November 19, 2018

7 Minute Read

The Growing Impact of IoT on Business, Commerce and Start Ups

Wherever you are in the world – the stage is set for IoT to be the driving force that powers our economy for decades to come. This is how we see IoT impacting the business now and in the very near future.

What is the Impact of IoT on Business?

The impact of IoT on business is extreme and borderless. IoT is revolutionizing the marketplace for businesses across all industries – bringing the world into an era of information and service delivery that has never before been possible.

There are currently 4.9 billion connected things. By 2020 there will be an estimated 50 billion connected things with an estimated 6.1 billion Smart phone users globally.

What is the Internet of Things (IOT)?

The Internet of things (IoT), is the internetworking of physical devices, vehicles, buildings and other items—embedded with electronics, software, sensors, actuators, and network connectivity (also referred to as “connected devices” and “smart devices“) that enable these objects to collect and exchange data.

In 2013 the Global Standards Initiative on Internet of Things (IoT-GSI) defined the IoT as “the infrastructure of the information society.” The IoT allows objects to be sensed and/or controlled remotely across existing network infrastructure, creating opportunities for more direct integration of the physical world into computer-based systems, and resulting in improved efficiency, accuracy and economic benefit.

Simply put, IoT is the smart device revolution.

According to Forbes online
87% of people don’t know what IoT stands for. But that doesn’t mean they aren’t already a part of it. If you have ever used an ATM you have already connected.

From Smart Watches to Oil Rigs, IoT is finding its place in homes and businesses across the globe

The Internet of Things are machines and objects that are embedded with data connectivity and sensors which allow them to connect and communicate in real time with their environment. From Smart watches to Smart thermostats in your home, mobile phones and everything in between, IoT is everywhere.

There are currently 4.9 billion connected things. By 2020 there will be an estimated 50 billion connected things

Start Ups and IoT

IoT enabled devices talk to each other, but more importantly for the Start Up entrepreneurs, they talk to us… the merchants, business owners and service providers big and small.

For Start Ups to succeed in the digital economy they must embrace the idea that web, mobile and IoT apps are the new business platform.

smart devices iot

IoT Implementation in Business

The apps which were once only for big business are now the primary way in which we interface with our clients. They have the power to foster your customer’s loyalty and support.

Thanks to the data available through IoT we are able to tap into niche markets and anticipate exactly what they want, where they want it, how they want it presented, and all the personalized bells and whistles that will make it theirs.

What’s more is that it allows us new ways of making ourselves accessible to the market. We are no longer using IoT primarily to collect data to improve our operational efficiency, we are using it to create tools that put us in their hands and their thoughts when it matters.

It has the potential to be a catalyst for economic growth and job creation, increased manufacturing jobs, streamlined business operations, and innovative advancements across all economic sectors
– Bob Latta, the Hill

Contextualized, personalized geographically aware experiences

Contextualized, personalized geographically aware experiences are the norm in today’s market. But not to worry, along with these great expectations come great applications – it has never been easier to set your business up for responsive and connected digital interfacing with your target market.

By strategically aligning mobility with corporate objectives and KPI’s, new businesses can quickly deliver personalized mobile experiences that enhance customer engagement and drive sales and loyalty.

No more waiting for IoT to Blast Off

Three, two, one, you missed it.

Probably the most exciting thing about IoT for Start Ups is the SPEED at which things can happen. This is thanks to the insane accessibility of just about everything to a much bigger portion of the population than ever before.

We have reached a place where consumers demand to be kept constantly connected, with the freedom to choose how and when they connect to the people, things and services that are important to them.

What this means for Start Ups is that you no longer have to wait through that once mandatory initial growth stage. Companies are going from Start Up to big business in a matter of months.

Case Study:

The Dollar Shave Club in the US: They launched their simple brand on You Tube with one great video and within two days they had 12,000 customers. That was in 2012. The company stayed true to video and their online interface, and has just been bought by Unilever for 1 billion dollars. Beautifully illustrating the power and speed of a connected society.

Projections for the economic effects of IoT in Business

According to research published in Information Age the stage is set for Big Data and IoT to boost the UK economy by double the current spend on education, National Health Services and the Defense Budget combined by 2020. We can expect a similar trend throughout the rest of the connected world.

iot start upsWhat’s great about IoT is that it’s already here, we don’t have to wait for it to hit us. How quickly we let it revolutionize our business potential is up to us.

IoT business impact statistics to consider:

  • An estimated $6 trillion will be spent globally on IoT solutions over the next five years.
  • It’s estimated that Governments will be the second largest adopters of IoT systems for the purposes of increasing productivity, improving quality of life for citizens and reducing unnecessary spending.
  • By 2019 more than 1.9 billion connected home devices will be in everyday homes.
  • By 2020 an estimated 90% of cars will be connected – making automated driving a real possibility
  • Samsung Electronics announced in June this year that they intend to invest 1.2 billion dollars in IoT industries over the next four years, with the purpose of bringing IoT devices into everyday homes.
  • The role of Chief Information officer (CIO) in big business is evolving closer to traditional marketing functions. Tech is now essential to the growth of businesses and for personalized outreach to individual consumers.

The Impact of IoT on Developing Countries

In developed countries the Internet of things is part of daily life and even the greater advancements are being taken for granted. Even in countries like South Africa, IoT solutions are making an impact.

From connected refrigerators in the public health care units which maintain the temperature of medicines, to mobile solutions and anywhere connectivity.

Wherever you are in the world – the stage is set for IoT to be the driving force that powers business and economy for decades to come.

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