Does the world need IoT? – The meaning behind IoT technologies

Economic consideration and building customer proximity with IoT technology

The basic idea of IoT and the question of the meaningfulness of this technology. Is the fear or ignorance greater to embark on this step? 2018 will be the year of Internet of Things, if you want to be part of it, why not now?

This is a question that many people and companies ask themselves. But why? Basically, there is still ignorance and fear of these little things that collect data. The fear is not unfounded, as this year alone (2017) saw a great many cases of security vulnerabilities or poorly functioning hardware. Many of these IoT products were lovelessly designed to be thrown onto the market as quickly as possible – regardless of losses….
It is up to the manufacturers to form uniform standards and to solve the problems, which are not really big problems.

Introduction to IoT- Intelligent world thanks to Internet of Things

The idea of Internet of Things is more than ingenious. Many small helpers are now able to share all their collected information with/a cloud and enrich it with other data. Sensors that previously eked out a lonely single existence as devices can now be used far more productively. And the trend of mechanization in the direction of IoT does not stop; Gartner has forecast the following figures for the next few years:

  • 2016: Consumer & Business 6,3 Mrd. Devices
  • 2017: Consumer & Business 8,3 Mrd. Devices
  • 2018: Consumer & Business 11,1 Mrd. Devices
  • 2020: Consumer & Business über 20 Mrd. Devices

Also making a strong impact in 2017 was that 17% more was invested in IoT than the year before – totaling just under $800 billion. By 2021, investment in IoT will grow to as much as $1.4 trillion.

IoT – Yes or No?

Only until now we could not even clarify the question of the headline! The answer clearly goes in the direction of “YES”, because the new possibilities outweigh the fear of these devices. These little helpers are used in all walks of life, whether in industry or in private households – there is a purpose for them everywhere. Especially in the security environment, this technology is indispensable.

Economic consideration

Finally, the economic component must also be considered. If companies and corporations focus more on the real added value than just on the technology, then completely new business models can be generated and new markets can be acquired across industries. Many companies in the midmarket are overwhelmed with the technical progress and are waiting to see what happens. Due to a good order situation the park position is still possible, only must be acted in the next years in this segment. What may of course also be considered, not every IoT device creates the desired added value. Disillusionment can set in quickly because the processes in combination with the IoT devices are not adapted. It is necessary to have a fully comprehensive view of all processes.

Customer proximity through IoT technologies

This is another point that cannot be neglected in this consideration. An infinite number of measures are being taken to ensure that this proximity is not lost. Be it on the Internet with targeting or ads, no stone is left unturned to not lose the customer and to keep him happy. Yet it is so easy to level the loss at a reasonable level through the use of IoT technology. We’re not talking about tethering here, more about gently integrating it into the service and sales process. In advance, maintenance intervals, for example, can be identified and planned far earlier. High investments are also made in the desire to learn and understand the customer’s behavior. Only if I know what the customer needs and wants, can I as a company provide him with exactly that. The watering can in marketing has thus had its day and IoT and marketing thus enter into a symbiosis that could never otherwise be implemented in such a targeted manner. After all, it is the customer who pays the bill and he must not be sidelined in any way.

Industry 4.0

In the course of digitalization, Industry 4.0 and the ability of machines to communicate are also very important in production. Today, it is indispensable to also have an overview of the complete sequence of a manufacturing phase. Being able to plan timely maintenance and downtimes in advance is a must from a business perspective. There is no work-life balance for machines yet, but should it ever come to that, Industry 4.0 can fully help here.

What is Industry 4.0? – Basics explained

The IoT outlook for 2018

For the coming year, the prognosis is good that manufacturers will be more concerned with security issues and standards. Increasingly, there is also evidence that policymakers have recognized what is behind digitization and the use of IoT technology. The impact in this segment will continue to gain speed in 2018 and is unstoppable. By choosing true experts to support this segment, nothing can or will go wrong in the adoption of IoT. The overwhelming demands on SMEs, as already mentioned above, can thus be cushioned and eliminated. It will also not be painful to leave the comfort zone, rather it is a jolt in a future-proof direction. Therefore, 2018 will be the year of IoT, be part of it.

Gernot Wohlfahrt beschäftigte sich schon seit Kindesbeinen an mit computerbasierten Gerätschaften. Beginnend in der Kommunikationstechnik und der IT-Branche folgte nach Jahren der Berufserfahrung die Weiterentwicklung im Bereich Digitalisierung von Papierunterlagen, Workflows, SmartHome (Internet of Things), Sales und Tapetenwechsel in Unternehmen. Herr Wohlfahrt war mit seiner Unternehmung Firmamentor als Umsetzer von Feedback Management und Organisationsentwicklung tätig. Heute ist er als Spezialist für Virtual und Augmented Reality Lösungen aktiv.

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