5 Benefits of the Internet of Things (IoT) for Businesses

1. Reduced Costs 

The more businesses use IoT devices to streamline operations and increase profitability, the more Internet of Things technologies will be tailored to help those businesses succeed.

From cybersecurity to workplace efficiency, IoT devices are already making an impact on companies’ bottom lines.

Maintenance costs can be positively impacted when IoT devices are used with sensors to keep business equipment running at peak efficiency. Proactive monitoring and troubleshooting of office equipment catches problems before they impact staff and employees, saving the hassle and costs of large repairs and minimizing costly extended downtime.

As you can imagine, this technology is extremely useful to businesses in the manufacturing, logistics, and food and beverage sectors to name a few.

There are also numerous ways to use IoT technology to favorably impact your bottom line through streamlining common working processes, a top driver of IoT investment for many companies. 

What the Stats Say About Cost Reduction 

Cost reduction as a result of Internet of Things implementation is most prevalent in certain industries, particularly manufacturing.

For instance, predictive maintenance (PdM) can reduce the time required to plan maintenance by 20 to 50%, increase equipment uptime and availability by 10 to 20%, and reduce overall maintenance costs by 5 to 10%, a study by Deloitte found.

Naturally, for a manufacturer, cutting costs in this manner is exceptionally beneficial, and while these types of industries are benefitting the most from IoT adoption, there are also clear benefits for the vast majority of organizations, regardless of industry.

This is often the case when it comes to reducing labor costs by improving process efficiencies. 83% of organizations that have introduced IoT technology have improved their efficiency by doing so, reducing their expenditures and bettering output from employees.

Activity monitoring can improve productivity by 10 to 12%, essentially meaning more bang for the business’ buck, according to McKinsey. 

2. Higher Efficiency and Productivity 

Efficiency is the basis for the kind of improved productivity that boosts revenue for businesses. 

One way to leverage the power of IoT to increase company efficiency is to use it to cut down on repetitive or time-consuming tasks. An example of this would be an automated PDF conversion and creation tool that removes the obstacles to PDF editing and archiving, increasing communication and documentation speeds. 

These IoT tools increase internal and external office communication, resulting in better productivity. In fact, 58% of companies are seeing increased collaboration through the use of IoT devices, according to a survey conducted by Harvard Business Review. 

In the work environment, IoT can be used to optimize an office floor plan and mobilize company resources—like copiers, printers, and WiFi bandwidth—for a better workflow and a more streamlined and effective approach to management. 

Or, using big data analytics through IoT can provide an overview of employee productivity and help determine what tasks are improving the function of your business—and which are impairing it. 

Big data can also be instrumental in tracking efficiency for manufacturing supply chains. You can follow delivery systems and monitor products and inventory to stay ahead of demand.

Additionally, you ensure that your hardware and software connections are adequately running in order to provide timely service to employees and customers. 

What the Stats Say About Efficiency and Productivity 

As we previously mentioned, many of the benefits IoT implementation create a domino of positive effects—improving your workforce’s productivity means reducing overall labor costs. 

For example, 46% of businesses that adopted IoT strategies experienced efficiency gains, despite the fact that only 29% expected such gains in the first place. 

While those figures may seem low, it’s worth noting that many of these businesses may not have anticipated the efficiency gains they reported, and their initial intentions for implementation were more aligned with the general modernization of their processes rather than a specific focus on improving the efficiency of a particular task. 

In other words, the efficiency benefits gained can be unintended consequences of upgrading organizational processes but are very welcome nonetheless. 

78% of companies say that introducing IoT into the workplace has improved the effectiveness of their IT team and 75% find it has increased profitability.

3. Creating New Business Opportunities 

While many businesses strive to create revenue from their digital services, many lack a cohesive strategy to do so. For that, IoT is a game-changer, as advanced analytics, artificial intelligence, and smart utility grids make it easy for SMBs to collect actionable data needed to provide the value their customers are seeking. 

These analytics provide new insights that are not only being used to create new business models but completely redefining traditional industries. 

For example, IoT sensors on automobiles that can track speed and driving habits help insurers optimize rates on automobile insurance. Retailers can use IoT to measure in-store foot traffic to optimize displays for maximum impact based on customer habits. 

The use of IoT has so much impact on business systems that 36% of companies are considering new directions in business thanks to their IoT initiatives. 

As a result of IoT’s ability to connect products and services as they relate to customer behaviors, more businesses are delivering new or updated products and services to an expanded customer base.

What the Stats Say About Business Opportunities

The impact that IoT technology has on business opportunities is enormous. 

94% of businesses in the US have adopted IoT use in some way, while 27% have IoT-specific projects in use, with an average “time-to-use” period of 11 months. 

Such are the benefits of using IoT in their operations—particularly in industries like manufacturing, logistics, and distribution, among others—that 78% of businesses have plans to use IoT in more projects by 2023. 

Sales enablement is cited as one of the top reasons for IoT investment, with 32% of organizations using Internet of Things technology to improve their products and services for customers and find new opportunities to grow their business. 

As IoT becomes a more fundamental aspect of business operations and of the development of projects that serve customer needs, we can expect to see it play an even larger role in the way companies leverage it for new opportunities and advantages over competitors. 

4. Improved Customer Experience 

While IoT technology mostly influenced back-end processes because of its relatively new presence, newer IoT uses have completely upended the way consumers approach their relationships with businesses. 

Front-end customer engagement has become a priority for organizations as they look to better engage with their audiences, usually through IoT devices. 

The modern customer expects to be able to interact with businesses through their phone, whether that’s using an automated chatbot, a reliable mobile website, or a dedicated app. 

40% of consumers do not care whether a chatbot or a real human helps them, as long as they are getting the help they need. 

Because of this, forward-thinking businesses are using new technology and combining it with IoT to better serve their customers. 

What the Stats Say About Improved Customer Experience 

It shouldn’t come as much of a surprise that IoT tech is having a huge impact on customer experience. 

Being able to unify any internet-connected device and offer customers an experience through their device of choice is a key selling point for modern businesses. 

This is the reason so many are investing in custom apps to better serve their audience across any device or endpoint. 

The rise of new solutions like low code have prompted 90% of IT leaders to feel that the flexibility and speed of these development environments have allowed them to improve customer experience. By making use of the IoT devices that live in virtually every customer’s pocket or backpack, a business becomes more accessible. 

It is also important for businesses to recognize that extending key business processes to everyday IoT devices will be pivotal in ensuring their future competitiveness. 

As an example of the change in how customers view IoT, 30% of consumers reported feeling completely comfortable with companies using IoT devices to provide proactive customer service, a 10% increase since 2017.

5. Increased Mobility and Agility 

The nature of IoT technology means that businesses now can let their employees conduct their work from virtually any location—this is the type of flexibility that can become a key advantage in the right situation. 

Office leases aren’t cheap, and the IoT revolution has allowed a surge in businesses shifting the way they operate—hiring more full-time remote employees in “work from anywhere” positions. 

The way the IoT improves business agility is evident in the estimated 43% of businesses that implement IoT policies experiencing increased business agility and improved operational processes.

Agility increases further when you have a solid strategy for securing those IoT endpoints. Keeping communication safe will become a primary concern for companies making use of the Internet of Things.

What the Stats Say About Increased Mobility and Agility  

While the Internet of Things provides ample opportunities for companies to use devices outside of typical office environments, there are several considerations that must be made. Take, for instance, security and safety—key aspects of IoT implementations that prompt hesitation among would-be adopters.  

42% of businesses cite “difficulty managing security” as a key challenge to IoT implementation in their organization.  

These security considerations are more comprehensive than just protecting the devices of remote workers, as IoT encompasses a wide range of devices such as edge devices.

29% of companies feel that the risk of adopting IoT is not worth the benefits of using it. But, with a strong cybersecurity policy in place, the Internet of Things can be used safely and effectively in business operations.  

In terms of organizations wanting to adopt a remote-first policy for their employees, ensuring the protection of the IoT devices they use daily is crucial in ensuring the business network and its data is not vulnerable to cyberattacks. 

As the IoT benefits of increased mobility become more evident, both with regard to remote work and tasks performed on-site with IoT devices, it must be tempered with the reality that organizations are frequently opening themselves to potential attack and increasing the size of their attack surface.

Because of this, a good security plan is crucial for IoT device use within organizations today.