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Learn how IoT technology is transforming business efficiency, providing real-time insights, and driving relentless growth.
The Internet of Things (IoT) has reached astonishing heights for businesses and consumers worldwide. In 2023, researchers estimated over 41 billion IoT-connected devices. That's roughly 1.89 IoT devices per every inhabitant on the planet, and that staggering number is only growing.
IoT technology connects our activities nearly everywhere: homes, shopping centers, offices, factories, farms, vehicles, and even outer space.
Ready to dive into the future of business with IoT? Let’s explore how this game-changing technology is revolutionizing the face of business today.
Epicor IoT: Monitor equipment, assets, environmental factors, inventory locations, and beyond for connections like never before. Learn more.
To begin with, let's define what we mean by IoT.
The Internet of Things, or IoT, refers to a vast network of interconnected devices that communicate and exchange data with each other over the internet. These devices range from everyday household items, like smart refrigerators and wearable devices, to sophisticated industrial machines embedded with sensors and software.
By leveraging real-time data collection and communication capabilities, IoT devices can operate autonomously, making intelligent decisions without the need for human intervention. This seamless integration and process automation have led to enhanced efficiency and improved decision-making.
In the enterprise context, IoT plays a pivotal role in transforming traditional business operations. It enables businesses to monitor and manage assets, optimize supply chains, and enhance customer experiences through smart technologies.
Going more in-depth, there are numerous use cases for IoT in business.
IoT technology and embedded computing devices enable businesses to:
In warehouse and supply chain settings, an IoT system can be used to:
These advanced capabilities are streamlining workflows and replacing previously manual processes. There's no need for humans to physically check meters and equipment gauges with IoT sensors that can continually monitor activity.
Such increased efficiency means enterprises can uncover lucrative new revenue streams. Mobile operators, for example, can use IoT devices to manage networks and applications in real-time which means they can focus on other strategic activities like personalized engagement and in-the-moment upselling.
Here's a more detailed look at the top use cases of IoT in enterprise.
Autonomous vehicles are one of the most well-known applications of IoT, with longtime automotive companies such as BMW Group, Ford Motor Company, General Motors, and Tesla.
A recent market report predicts that the global autonomous vehicle market will hit nearly $2.2 trillion by 2030, up dramatically from $76.13 billion in 2020.
Manufacturers make up a large chunk of the segment, with many installing connected devices to monitor the performance of their vehicles and delivery routes.
Commercial fleets such as delivery trucks are increasingly being fit with IoT devices for enhanced oversight and management:
Similar to self-driving cars and fleet management, IoT solutions can help with traffic management. Roadway infrastructure is becoming more interconnected with cameras, sensors, traffic light controls, and apps to submit data to avert or alleviate traffic congestion, warn of road conditions, prevent accidents, and safely reroute vehicles for smoother travel.
Cameras can detect and transmit data about traffic volume to apps and data management groups to determine what mitigation steps should be taken and sensors on traffic signals can measure ambient light (from the sun) to adjust the brightness of traffic lights and ensure optimal visibility for drivers.
These connected devices can also detect open or occupied parking spaces and transmit the information to signage, kiosks, and parking apps to alert parking ramp management and alert drivers.
They can also maintain the safety of causeways, roadways, and bridges. Sensors can monitor stress levels and structural conditions, sending health updates to authorities and alerting them to needed maintenance well in advance of any major collapse or safety failure.
Utility companies are using IoT to bring greater efficiency and resiliency to energy grids.
Historically, energy has flowed through grids in one direction --- from the site of energy generation to the end consumer or business company. Now, however, connected devices are enabling two-way communication along the entire supply chain and improving the ability of utility companies to better monitor, manage, and throttle supply.
Utility companies can also analyze device-collected data to detect blackouts and redirect energy distribution when needed to respond to changes in grid load and energy demand.
Additionally, smart meters at businesses and homes are analyzing energy usage patterns to find ways that energy companies can improve their efficiencies and build a smarter, more sustainable grid.
Connected IoT devices can monitor environmental conditions as well, such as air quality, water levels, and activity in natural habitats. Businesses, in turn, can use this data to better minimize their carbon footprint and more effectively comply with (and document such compliance) environmental regulations.
The market for environmental IoT sensors is rapidly growing. A recent report puts the global market for environmental sensor technology at $14 billion and it's expected to reach $19.3 billion by 2030.
Beyond the monitoring of weather conditions, environmental IoT systems can provide other critical monitoring for raw materials and goods:
Property owners are using IoT to make buildings smarter --- more secure, more energy-efficient, more comfortable --- and reduce maintenance and management costs.
Beyond surveillance footage, IoT systems in buildings can monitor HVAC systems and continually optimize the temperature for optimal comfort and energy efficiency, aid in crowd management for smoother traffic flow, ensure smart access control and intrusion detection, and monitor environmental conditions to prevent safety hazards, and continuous tracking of high-value assets.
Connecting building systems can also improve worker safety, task coordination, and shipping and receiving operations.
IoT technologies are upending supply chain management by integrating sensors, GPS tracking, and the relentless flow of real-time data streams into every step of the process. These advancements allow for precise monitoring of goods in transit, timely deliveries, and reduced risk of loss or damage. With real-time data, managers gain unparalleled visibility into inventory levels, shipment locations, and potential bottlenecks, enabling more informed, confident, and accurate decision-making and proactive issue resolutions.
Moreover, IoT-enabled supply chains facilitate enhanced planning and forecasting capabilities. By analyzing data from seemingly endless touchpoints, businesses can predict demand more accurately, optimize route planning, and adjust logistics strategies on the fly.
Overall, this leads to improved efficiency, reduced costs, and higher customer satisfaction as operations are fine-tuned to meet market demands and expectations.
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To recap, the core benefits of deploying IoT are:
As IoT gains increasing adoption, many exciting enterprise IoT trends are beginning to emerge such as 5G and edge computing.
Realizing the full potential of enterprise IoT hinges on ultra-fast connectivity. Enterprises are turning to 5G networks to enable real-time decision-making and facilitate the seamless movement and configuration of machinery, thanks to ultra-wideband capabilities. This investment in 5G is critical for supporting the speed and efficiency that modern IoT applications demand.
With the rise of 5G and IoT technologies, businesses are increasingly shifting their workloads to the edge.
Edge computing is a computing model that processes data near the source where it is generated, such as IoT devices or sensors, rather than relying on a centralized data center. This approach reduces latency, optimizes bandwidth, and allows for faster, real-time data analysis and decision-making, and it's increasingly being leveraged to speed up data analysis and increase productivity.
As IoT technologies evolve, investment in edge computing is expected to grow, enhancing the ability of enterprises to process data closer to the source and respond more swiftly to operational needs.
Although enterprise IoT solutions deliver incredible efficiency to organizations, the enterprise IoT market is not without challenges.
Here are some of the more noteworthy issues that businesses are encountering:
The power of IoT solutions is its rapid-fire speed so businesses real-time data to remove latency or delays for the decisioning process. Companies considering an IoT platform need to look for devices and technology that can support real-time decision making to act on data that's accurate to the second—within 10 milliseconds to be precise.
High-speed, 5G technology is a must for organizations who want the full benefit of IoT connectivity. While 5G delivers superior enterprise internet performance in terms of power and speed, there are drawbacks for businesses.
Costs to develop and deploy 5G are expensive and may require upgrades to the entire network infrastructure.
The network is not available everywhere, thus many businesses must adopt a hybrid approach using both 4G and 5G. While this can enhance overall coverage, the approach is expensive and complex. There are increased security vulnerabilities with managing two networks, and using 4G as a fallback has greater latency which can impact performance.
As more devices and business processes become interconnected and cloud-based, bad actors have a wider field of attack. Companies rolling out IoT applications must adopt more robust security measures to limit the risk of data breaches, ransomware, and malware attacks.
Deploying 5G technology often necessitates the installation of new hardware and antennas, which can be logistically challenging and time-consuming, especially in urban areas where space is limited.
5G networks and devices generally consume more power compared to 4G, leading to higher energy costs and potentially necessitating more robust energy management solutions to ensure sustainability.
Not all existing IoT devices are compatible with 5G technology, which means businesses might need to replace or upgrade a significant portion of their current hardware, leading to additional expenses and logistical challenges.
The sheer volume of data generated by IoT devices can be overwhelming. Businesses need sophisticated data management systems to efficiently collect, store, and analyze data. Without proper data handling, the insights derived from IoT can be inaccurate or delayed.
Integrating IoT devices from different manufacturers and ensuring they work seamlessly together can be challenging. Lack of standardization in IoT protocols can lead to compatibility issues, requiring additional resources to manage and maintain the ecosystem.
With the increase in data collection comes the risk of violating user privacy. Businesses must navigate complex regulatory environments and ensure they comply with data privacy laws, which can vary significantly by region and industry.
Keeping IoT devices updated with the latest firmware and software patches is crucial for security and functionality. However, managing updates for a large number of devices spread across different locations can be logistically challenging and resource-intensive. While cloud-based deployments facilitate remote management and updates of IoT devices, the challenges of diverse device ecosystems, network connectivity, security risks, operational disruptions, resource constraints, compliance, and scalability issues remain significant hurdles that businesses must address to maintain an efficient and secure IoT ecosystem.
The adoption of IoT technology is transforming the way businesses operate, delivering unprecedented levels of efficiency, real-time insights, and exceptional decision-making capabilities. From improving supply chains and enhancing customer experiences to driving new revenue streams and increasing safety, the benefits of IoT are vast and varied.
However, these advancements come with challenges. High costs, infrastructure demands, security vulnerabilities, and the complexity of managing 5G or hybrid 4G and 5G networks are significant considerations. Despite these hurdles, the potential for IoT to transform business processes makes it a worthwhile investment. Some may call it table stakes for companies operating in supply, manufacturing, and distribution.
As technology continues to evolve, businesses that have the know-how to effectively implement and manage IoT solutions will be well-positioned to thrive in the competitive landscape.
In navigating the benefits and challenges of IoT, a thoughtful, well-measured approach—with continual process audits—is key so businesses can securely and smartly leverage the full potential of IoT for maximum growth, efficiency, and innovation.
Ready to see how IoT can transform your business? Reach out to Epicor and let’s embark on this exciting journey to a smarter, more efficient future together. Let’s connect.
