19 Dec

How IoT can Accelerate Digital Transformation

How IoT can accelerate digital transformation

Physical objects like a river, an engine, a tree or any household object can be fitted with sensors that would measure their physical characteristics and the changes in the surrounding environment. These sensors can measure anything from location, temperature, flow rate, vibration or anything that can be quantified. Low powered networking technologies allow these data to be shared across devices and data centers. In simple terms, this is the working principle of the internet of things (IoT).

Application of IoT has resulted in low-cost smart sensors transfer a massive amount of data of the physical world which can be measured. This data is converted into information with the interconnectivity of applications, networks and data centers communicating with each other. Through the proper use of real-time advanced analytics, these data is transformed into intelligent and actionable insights which can be used for business decisions.

Data Revolution and digital transformation

The appliances like smart meters, radio frequency identification tags, different wearables, connected cars, and several other machines and devices are generating a massive amount of data about the environment around them. This data is transformed into actionable and intelligent insights which are enabling businesses to respond to different metrics of the changing market conditions with speed and flexibility using the cloud technology. New IoT solutions are devised and deployed through the cloud platforms that would communicate with devices and people globally. Consumers are empowered on an increased scale and in smarter ways with more customer-centric business processes and workflows.

Numerous companies are using social media, mobile, analytics, and cloud to come up with new industry solutions in manufacturing, retail, operations, banking, health care, and myriad industries. This is giving birth to disruptive processes and new service based revenue models increasing the competitive advantage and enhancing customer experience. No wonder, this requires a high level of understanding about how the IoT solutions fit in the digital transformation exercise. This requires to rethink beyond the devices and their interconnectivity and have a holistic view of purpose, people, processes and information in tune with the vision for IoT implementation.

2 billion IoT objects in 2006

Enhancement of digital transformation through IoT

It’s beyond doubt that IoT solutions would enable a total transformation of business models into disruptive service based revenue models. The plant managers can optimize operational models by integrating the old and the new methods as there would be intelligent devices interacting with each other to improve productivity. This would reduce the operational costs and maintenance costs and simultaneously optimize asset utilization. The engineers can improve functionality with connected products to improve efficiency, manage complexity, cut costs and deliver higher value. The actionable insights gained from interconnectivity of devices and the operational performance of products can be used for new and more innovative product development.

Integration of IoT to accelerate digital transformation

As enterprises adopt IoT and evaluate the impact of it on customer experiences and IT departments, they have to develop an IoT strategy. The strategies have to be developed in tandem with people, processes, and technology. The strategic advantages of cost efficiency and customer centricity have to be chalked out, and a game plan should be formulated. At the onset, the competitive edge it would create has also to be estimated, and a strategy to capitalize on it has to be determined. A business case for IoT has to be developed with a thorough understanding of the strategy and the business drivers including the people and the processes. The skill requirements should be estimated to find whether the appropriate skill set is available for envisioning IoT and the execution of it.

The impact IoT would have on the structure and culture of the organization also has to be evaluated and assessed. The probable changes in culture and structure that need to be implemented has to be determined and executed. The operational processes may require a shift from technology governance to operational leadership with adherence to corporate IT standards and guidelines. The processes that need to be automated for smooth implementation of IoT has to be identified and the changes in the existing processes implemented. The current process should be evaluated, and the pros and cons assessed in terms of the envisioned strategy and then reengineered for the effective implementation of IoT.

IoT Will Have An Economic

There may be natural resistance from few individuals for which change management would play a significant role in the digital transformation process. The companies are gradually shifting their IT architecture as they are using social media, mobile, analytics, and cloud technologies in unison with the use of Big data which are the founding stones of IoT solutions. Thus going forward, the combined data from the IoT solutions and the traditional organizational systems would certainly provide a more holistic view of customers, products, processes, and stakeholders. Such integration of massive amount of data certainly pose newer challenges, but open source software, cloud services, and standards would make the transcendence easier.

Conclusion

Digital transformation connects many devices, people, and processes which make up its business ecosystem. Integration of IoT in digital transformation enables connecting the unconnected not only in the business ecosystem but within the whole supply chain. The information thus gathered is fed and analyzed to gain actionable insights about as many business facets as possible. This is how IoT would further digital transformation by creating more business value through actionable insights gathered from IoT devices, enterprise, and social data. Thus IoT solutions will become an integral part and would accelerate the digital transformation process to a considerable degree.

Key Takeaways

  • The data generated through interconnected devices is transformed into actionable and intelligent insights which enables businesses to respond to different metrics of the changing market conditions with speed and flexibility using the cloud technology.
  • It’s beyond doubt that IoT solutions would enable a total transformation of business models into disruptive service based revenue models.
  • Integration of IoT in digital transformation enables connecting the unconnected not only in the business ecosystem but within the whole supply chain.
  • The information thus gathered is fed and analyzed to gain actionable insights about as many business facets as possible.
  • This is how IoT would further digital transformation by creating more business value through actionable insights gathered from IoT devices, enterprise, and social data.