Businesses globally embraced digitalization to stay relevant and keep up with the market requirements. The digital transformation of businesses was able to set them apart from their competition. Today, having a great product or service is not enough to gain customers or retain market share. Hence, digital transformation enables the business to utilize customer data directly. In reality, it enables companies to get closer to their customers and the first step to establishing a digital link with their customers can happen with the Internet of Things (IoT). IoT platform enables digital transformation to physical products.
IoT starts with connectivity; however, digitization has opened up more opportunities for big and small enterprises. Digitalization is being led by some of the biggest companies which has created pressure for traditional Fortune 500 companies to digitize to some extend. Additionally, as they are aligned with culture transformation becomes more understandable and exciting enough to motivate employees.
How Can Business Leverage IoT Data?
Data collected with help if IoT is mainly of the product itself. It is usually bifurcated in terms of the product’s usability, utility, and performance. This data can be modeled and compared with its actual usage which can result in innovations that improve products and leads. Other than the obvious the data generate and collect can be useful for different departments of the company. These departments include manufacturing, marketing, sales, support, business development, human resources, and legal.
Benefits of the Internet of Things for businesses:
IoT technologies provide traditional companies to become digital-based companies. Through digitalization, businesses can experience faster innovation, new business models, better efficiency, increased competitiveness, and enhanced customer experiences. Hence, the benefits of digital transformation are getting closer to the customer and using that information for customer proximity.
This will help businesses improve the way companies market, sell, engineer, and support their customers. Businesses gain a closer vantage point that results in tremendous competitive advantages. These advantages have now attainable to all big and small businesses that can harness the power of IoT to achieve digital transformation for their products.
Opening up new business opportunities
Data generated by IoT devices can be utilized by businesses to understand customers’ changing needs and adjust their product offerings. Additionally, they can also introduce new products/services to cater to their broader audience.
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Delivering meaningful, tailored customer experience
The new data provided by IoT can be used to capitalize on new sources of customer data, i.e. IoT devices. This will help businesses gain deeper insights into customer behavior and accordingly tailor their customer experience. Through advanced personalization and increased accessibility, they can have better control over how their customers view the product.
Boosting business efficiency
IoT has the potential to increase business efficiency by combining rich data insights and autonomous sensors through process automation. Some of the notable processes that can be streamlined include logistics, inventory management, energy management, security, and others.
Reducing operating costs
IoT allows automation across several processes which leads to cost savings and allows businesses to use resources wisely. For example, IoT energy solutions can help businesses manage their utility consumption and eliminate waste. This approach can be applied to ventilators, heating and air conditioning systems, water supply, lighting, and others.
Improving employee productivity
Similar to the cloud and mobile technologies, IoT can help businesses empower staff by offering them better agility and making business systems easily accessible anywhere and anytime. For example, smart sensors are capable of keeping employees connected around the clock while delivering real-time insights for better productivity.
Digitalization has become one of the crucial elements of business operation. Additionally, to serve the growing population of digital natives they have to transform and embrace it. IoT has become an important tool in this transformation and is helping businesses connect with their target audiences. IoT tools are also helping them to stay ahead in the completion which is growing every day.