IoT for Business: Stats, Benefits, Examples, & Implementation Guide

Industry leaders are quickly acknowledging the numerous benefits that IoT brings to businesses across all sectors.

According to Business Insider’s forecasts, the quantity of IoT devices employed in different industries is estimated to reach a staggering 55 billion by 2025.

IoT empowers businesses to replace outdated manual asset tracking systems by implementing automated sensors.

These sensors seamlessly connect to the internet and integrate with centralized systems, allowing real-time monitoring of valuable company assets.

Moreover, IoT holds immense potential in elevating customer satisfaction to new heights by providing advanced functionalities and personalized experiences.

On that note, let’s have a look at everything about IoT for businesses, including stats, benefits, and some other essential information.

What is the Internet of Things (IoT)?

The Internet of Things (IoT) refers to a network of devices, vehicles, appliances, and other physical objects that are connected with sensors, software, and network connectivity, allowing them to conflict and share data.

These IoT devices, also known as “smart objects” can range from simple smart home devices such as smart thermostats to wearables like smartwatches and RFID-enabled clothing to complex industrial machinery and transportation systems.

Experts are even envisioning entire “smart cities” predicated on IoT technologies.

IoT allows these smart devices to communicate with each other and with other internet-enabled devices. Such as smartphones create a vast network of interconnected devices that can exchange data and perform various tasks autonomously.

This can include, monitoring environmental conditions in farms, managing traffic patterns with smart cars and other smart automotive devices, controlling machines and processes in factories, and tracking inventory and shipments in warehouses.

The potential of IoT applications is vast and varied, and its impact is already being noted across a wide range of industries, including manufacturing, transportation, agriculture, and healthcare.

As the rise of internet-connected devices continues to grow, IoT is likely to play an increasingly important role in shaping the future. It’s already transforming the way we live, work, and interact with each other.

In an enterprise context, IoT devices are used to track and monitor a wide range of parameters such as temperature, humidity, air quality, energy consumption, and machine performance.

This data can be further analyzed in real time to identify patterns, trends, and anomalies that can help businesses optimize their operations and improve their bottom line.

What the Stats Say About IoT for Businesses

As per the latest reports, 78% of businesses say that introducing IoT into the workplace has improved the effectiveness of their IT team and 75% find it has increased profitability.

The impact that IoT technology has on business opportunities is enormous, especially in the United States.

In the US, 94% of businesses have adopted IoT use in some way, while 27% have IoT-specific projects in use, with an average “time to use” of 11 months.

Sales enablement is marked as one of the top reasons for IoT investment, with 32% of organizations using Internet of Things technology to improve their products and services for customers and find new opportunities to grow their business.

As IoT becomes a more important aspect of business operations and of the development of projects that serve customer needs, we can expect to see it play an even larger role in the way companies leverage it for new opportunities and advantages over competitors in the upcoming years.

Benefits of IoT for Businesses

The concept of IoT includes two key features that define its essence:

Automation:

IoT revolves around the idea of direct communication between many devices and hardware components without the need for human intervention. It allows seamless connectivity and interaction between these entities.

Connectivity:

IoT empowers enhanced connectivity within a global network, allowing easy access to vast amounts of information and resources.

For example, Artificial Intelligence, Big Data, and Machine Learning are crucial for enabling automation, while cloud computing and wireless communication technologies primarily enhance connectivity.

Now, let's explore the main advantages of IoT technologies and services, primarily focusing on IoT benefits for businesses.

1. Optimal Asset Utilization

By implementing IoT into their business models, companies can efficiently track and monitor their assets.

This includes using sensors in vehicles and remote locations to stay updated on changing events. With IoT, businesses can proactively monitor the health of their equipment, ensuring optimal functioning at all times.

2. Insightful Data from Sensors

By integrating IoT companies can gather valuable insights from every corner of their business. In critical situations, data becomes invaluable. For example, the benefits of IoT in Healthcare.

IoT devices offer numerous opportunities for healthcare professionals to monitor patients effectively, while also empowering patients to monitor their health.

These devices facilitate seamless data collection, remote monitoring, and real-time communication, revolutionizing healthcare practices.

Also, companies can install remote sensors in sensitive sites like oil wells, connecting them directly to headquarters via cellular networks.

This enables remote monitoring, control of equipment, real-time data collection, and the ability to build predictive models for future forecasts.

3. Enhanced Customer Service

IoT for businesses can streamline their processes, reducing turnaround times and resource requirements for asset management. One of the biggest examples is Amazon, which has leveraged IoT to enhance customer satisfaction.

This includes using AI robots to automate the sorting and placement of products, as well as employing remotely controlled drones for local product shipments.

Although IoT technology has mainly impacted back-end processes due to its relatively recent emergence, it has now totally transformed the way consumers interact with businesses, leading to a shift in front end customer engagement strategies.

Companies are now prioritizing engaging better with their audiences through IoT devices. Modern customers expect to engage with businesses through their smartphones, whether it's via automated chatbots, legit mobile websites, or dedicated apps.

In fact, 40% of consumers and customers don’t mind whether they receive assistance from a chatbot or a human, as long as their needs are met.

Businesses with forward-thinking leverage new technology and combine it with IoT to offer enhanced customer service.

Combining internet-connected devices and offering a seamless experience across different IoT devices has become an important selling point for modern businesses.

This drives many businesses to invest in custom apps that cater to their audience on any device or endpoint.

The rise of solutions like low-code and no-code development environments has empowered IT leaders, with 90% saying that the flexibility and speed of these platforms have improved clients' experience.

By utilizing IoT devices generally found in customers' pockets or backpacks, businesses can ensure they are easily accessible at all times.

4. Enhanced Mobility and Agility

The emergence of IoT for businesses has increased mobility and flexibility of business, offering notable advantages, especially for small and mid-sized businesses (SMBs).

With the ability to work from anywhere, workers can perform their tasks from various locations, reducing the reliance on costly office leases.

Integrating IoT policies in firms has improved business agility, with approximately 43% of businesses experiencing enhanced operational processes.

This agility has become even more important since the pandemic, as companies had to establish remote work policies to meet new demands. Remote workers have become an integral part of modern workforces, and this trend is expected to continue in the future.

To unlock the full potential of IoT technology across all devices or communication purposes, it is necessary to prioritize solid strategies for securing these endpoints.

Many businesses cite difficulties in managing security as a key challenge in IoT implementation. It is crucial to address security concerns comprehensively, considering the protection of devices used by remote workers and other IoT devices like edge devices.

Although 29% of firms may perceive the risk of adopting IoT as outweighing the benefits, with a robust cybersecurity policy in place, the IoT can be safely and effectively integrated into business operations.

For companies implementing a remote-first policy, ensuring the security of IoT devices used by workers becomes crucial to safeguard the business network and its data from potential cyberattacks.

As the benefits of increased mobility through IoT become noticeable, both in remote work and on-site tasks with IoT devices, it is important to recognize the potential vulnerabilities and expand attack surfaces.

Hence, a comprehensive security plan and policy for IoT device usage within firms are vital in today's landscape.

5. Cost-Effectiveness

When it comes to the benefits of IoT for businesses, the automotive industry stands greatly from IoT advancements. The advantages of IoT in manufacturing include designing self-driving cars that communicate with internal devices.

This connectivity not only reduces labor costs but also improves fuel efficiency, making it especially promising for transport services like Uber.

The implementation of the Internet of Things brings about significant cost reduction, it is the main IoT benefit, particularly in specific industries such as manufacturing.

For example, as per a study by Deloitte, predictive maintenance (PdM) can result in a 20% to 50% reduction in the time needed to plan maintenance, while also increasing equipment uptime and availability by 10% to 20%.

Ultimately, maintenance costs can be reduced by 5% to 10% through PdM implementation.

A remarkable 83% of businesses that have adopted IoT technology have witnessed enhanced efficiency, resulting in reduced expenses and improved output from employees.

Moreover, McKinsey stated that activity monitoring, facilitated by IoT, can boost productivity by 10% to 12%. This means businesses get more value from their investments, achieving a greater return on investment.

6. Enhanced Business Opportunities

Implementing IoT solutions allows companies to expand their range of services or products, or elevate their quality compared to competitors, all while maintaining competitive pricing.

Firms can alternatively take on more complex tasks in terms of production difficulty, time, or quantity. In short, the adoption of smart solutions makes a business more competitive and appealing as a potential business partner.

For example, the using IoT sensors in automobiles allows insurers to optimize rates on automobile insurance by tracking speed and driving habits.

Furthermore, Retailers can leverage IoT to measure in-store foot traffic, enabling them to optimize displays for maximum impact based on customer habits.

The impact of IoT on overall business systems is so significant that a considerable 36% of companies in the world are considering new directions in their business strategies as a result of their IoT initiatives.

7. The Trustworthy Image of the Company

Businesses that embrace IoT solutions create a positive impression among customers, investors, and business partners who recognize the numerous advantages offered by the Internet of Things.

Also, attracting experienced and sought-after industry professionals becomes easier when a company provides a safe and secure working environment, facilitated by a network of smart devices.

After looking at these 7 key benefits, it’s clear that this technology will play a crucial role in business success.

Where exactly can IoT work best?

Internet of Things technology with new communication and interconnectedness has remarkable rewards for any business. That’s why any industry decided to implement IoT within its sector.

Connected Cars

A connected car is the best example of IoT technology. With features like IoT sensors and internet facilities, connected cars can operate on their own. This will help to enhance the performance by making passengers safe. But, most of the large automobile manufacturers today are working on connected car solutions.

Wearables

Nowadays, wearables have a higher demand in markets all around the world. For instance, big companies like Google, and Lenovo have invested in making such products. Moreover, sensors and software are installed under these wearable devices which collect user information.

Industrial Internet

The Industrial Internet also known as the Industrial Internet of Things is a new thing in an industrial environment. It operates on data analytics, sensors, and many other IoT devices to make qualified machines.

IoT in Agriculture

As the population is constantly increasing, the demand for food supply is also rising. So, to increase food production the governments are helping farmers to use advanced techniques and technologies including IoT.

The information provided by smart IoT devices helps farmers use meaningful perceptions to result in a good return on investment.

Some simple examples of IoT applications in agriculture are sensing soil moisture and nutrients, and controlling water usage for plant growth.

How should businesses approach IoT?

Integrating IoT devices can be a complex and challenging task, but there are several best practices that businesses can follow to ensure that their IoT devices are secure, reliable, and optimized for performance. Here are a few tips that might help when approaching IoT.

1. Plan your IoT strategy:

Before you deploy any IoT devices, as a business you should have a clear understanding of their objectives, use cases, and desired outcomes. This can help you choose the right devices, IoT platforms, and technologies, and ensure that their IoT strategy is aligned with their business goals.

2. Choose secure IoT products:

Security is a crucial consideration for IoT solutions, as they can be vulnerable to cyberattacks. You should choose devices that are designed with security in mind and implement appropriate security systems, such as encryption, authentication, and access controls.

3. Monitor and maintain devices:

IoT devices need to be properly monitored and maintained regularly to make sure that they are performing optimally and are not vulnerable to security threats.

This can include monitoring device health and performance, updating firmware and software, and conducting regular security audits and predictive maintenance.

4. Manage data effectively:

Internet of Things devices generate vast amounts of real-world information, which can be challenging to manage and analyze.

In this case, as a business, you should have a clear data management strategy in place, including data storage, analysis, and visualization.

To ensure that you can extract meaningful insights from the data that is generated by their IoT devices.

5. Build an ecosystem:

IoT devices are a common part of a larger ecosystem that includes other devices, platforms, and technologies.

You should have a clear understanding of this ecosystem and ensure that your IoT devices can integrate effectively with other systems and technologies.

Future of IoT for Business

After looking at the numbers, the future of IoT looks exciting. Many new developments and innovations are on the horizon, with providers of devices offering attractive pricing to customers, as the cost of IoT device production declines.

As the rise of IoT devices continues to grow, businesses need to be prepared to adapt to new technologies and embrace new use cases and applications.

Because those who can do so will be positioned to reap the benefits of this transformative technology.