How has the internet of things impacted businesses?
Posted: Tue Jan 21, 2025 4:28 am
Communication and connectivity play an important role in today's business world: together they have managed to reshape commercial and industrial flows. At the same time, there is an increasing search to connect everyday objects with people. According to Gartner, Inc. , by the beginning of 2020, more than 26 billion devices were estimated to be connected to networks. This data reflects a very close reality: everything that can be connected will be connected and companies must know how to take advantage of this new scenario.
The Internet of Things
The Internet of Things (IoT) refers to a system of computing devices embedded in everyday objects, “things,” that can transfer data over a network without requiring human interaction. In other words, devices that can communicate with each other and with humans. IoT connects devices to the Internet in order to assign them new tasks, including controlling smart items remotely or receiving alerts and status updates.
The term was coined in 1999 by Kevin Ashton, a researcher costa rica whatsapp lead at the Massachusetts Institute of Technology (MIT). In his article That “Internet of Things” Thing, he explains that people’s lack of time creates the need to connect to the network of networks through other means. This led to the creation of devices that execute functions for humans, bringing the physical world closer to the digital one. The first Internet thing was a Coca Cola machine inside Carnegie Mellon University, in the early 1980s. Programmers could connect to the machine and thus check its availability of cold drinks. In this way, they decided whether to make the trip or not.
However, this example seems a bit rustic for today's demands: smart homes, vehicles, appliances and other objects now connected, offer infinite opportunities to the modern business world and its evolution. In this context, the Industrial Internet of Things (IIoT) is the set of connected devices that form systems capable of monitoring, collecting, exchanging and analyzing data, delivering valuable information that allows the company to make operational and/or commercial decisions in a more agile and precise way.
How has the Internet of Things impacted businesses?
The expansion of the Internet of Things opens up new windows of action for the business world, as well as challenges. The extreme digitalization of the physical world will develop a direct and intimate connection between users and brands. The countless sensors connected to almost any device become an infinite sea of data; much larger than the Big Data we have at our disposal today. Therefore, AI tools are key to staying afloat. Decisions made automatically will make tasks be carried out at a dizzying speed and businesses must keep up with this pace. All of this must be taken into account by companies to survive and reposition themselves.
How the Internet of Things has impacted some industries
But what is the real impact of the Internet of Things on a business? Some of the key beneficial changes taking place today include:
Inventory management: Warehouse inventory can be a headache if you have poorly trained or scarce staff, even if you require the storage of multiple inputs. IoT solutions allow the warehouse to be tracked and managed using sensors, devices and software, providing the option of being controlled automatically. This offers greater peace of mind to the owners, a more optimal flow between the warehouse and the business and more time for the staff to take care of other operations.
Data sharing and perception: With more connected devices, the volume of data collected will be even greater. This will allow you to know more accurately not only your customers and the market in which you operate; it will also provide you with information about your employees, competitors and the company itself, facilitating business decision-making.
Optimizing customer relationships: IoT completely changes how these relationships are managed by allowing closer access to customer data: detailed metrics, behavioral patterns, requirements, purchasing cycles, etc.
Optimizing marketing strategies: thanks to information beacons and the large volume of information they offer, marketing professionals are able to propose individualized strategies based on people's daily lives, taking into account their habits, the places they frequent and when they do so, and their schedules.
Productivity and efficiency: With better information about customers, the market, employees and company operations and better business decisions, the productivity of any business can be significantly increased. Implementing IoT solutions also saves time considerably, as software and devices allow complex tasks to be performed more quickly.
Remote work: IoT technology is making remote work an attractive alternative for many people. Employees can connect with others and establish more flexible and productive workflows. Physical inventory management can be made easier, and in a few years with a smartphone or tablet and an internet connection, you may be able to manage an entire production line.
The Internet of Things
The Internet of Things (IoT) refers to a system of computing devices embedded in everyday objects, “things,” that can transfer data over a network without requiring human interaction. In other words, devices that can communicate with each other and with humans. IoT connects devices to the Internet in order to assign them new tasks, including controlling smart items remotely or receiving alerts and status updates.
The term was coined in 1999 by Kevin Ashton, a researcher costa rica whatsapp lead at the Massachusetts Institute of Technology (MIT). In his article That “Internet of Things” Thing, he explains that people’s lack of time creates the need to connect to the network of networks through other means. This led to the creation of devices that execute functions for humans, bringing the physical world closer to the digital one. The first Internet thing was a Coca Cola machine inside Carnegie Mellon University, in the early 1980s. Programmers could connect to the machine and thus check its availability of cold drinks. In this way, they decided whether to make the trip or not.
However, this example seems a bit rustic for today's demands: smart homes, vehicles, appliances and other objects now connected, offer infinite opportunities to the modern business world and its evolution. In this context, the Industrial Internet of Things (IIoT) is the set of connected devices that form systems capable of monitoring, collecting, exchanging and analyzing data, delivering valuable information that allows the company to make operational and/or commercial decisions in a more agile and precise way.
How has the Internet of Things impacted businesses?
The expansion of the Internet of Things opens up new windows of action for the business world, as well as challenges. The extreme digitalization of the physical world will develop a direct and intimate connection between users and brands. The countless sensors connected to almost any device become an infinite sea of data; much larger than the Big Data we have at our disposal today. Therefore, AI tools are key to staying afloat. Decisions made automatically will make tasks be carried out at a dizzying speed and businesses must keep up with this pace. All of this must be taken into account by companies to survive and reposition themselves.
How the Internet of Things has impacted some industries
But what is the real impact of the Internet of Things on a business? Some of the key beneficial changes taking place today include:
Inventory management: Warehouse inventory can be a headache if you have poorly trained or scarce staff, even if you require the storage of multiple inputs. IoT solutions allow the warehouse to be tracked and managed using sensors, devices and software, providing the option of being controlled automatically. This offers greater peace of mind to the owners, a more optimal flow between the warehouse and the business and more time for the staff to take care of other operations.
Data sharing and perception: With more connected devices, the volume of data collected will be even greater. This will allow you to know more accurately not only your customers and the market in which you operate; it will also provide you with information about your employees, competitors and the company itself, facilitating business decision-making.
Optimizing customer relationships: IoT completely changes how these relationships are managed by allowing closer access to customer data: detailed metrics, behavioral patterns, requirements, purchasing cycles, etc.
Optimizing marketing strategies: thanks to information beacons and the large volume of information they offer, marketing professionals are able to propose individualized strategies based on people's daily lives, taking into account their habits, the places they frequent and when they do so, and their schedules.
Productivity and efficiency: With better information about customers, the market, employees and company operations and better business decisions, the productivity of any business can be significantly increased. Implementing IoT solutions also saves time considerably, as software and devices allow complex tasks to be performed more quickly.
Remote work: IoT technology is making remote work an attractive alternative for many people. Employees can connect with others and establish more flexible and productive workflows. Physical inventory management can be made easier, and in a few years with a smartphone or tablet and an internet connection, you may be able to manage an entire production line.