Updated April 5, 2022 . AmFam Team
You may have heard the term “Internet of Things” (also known as IOT) buzzing around a lot lately. Catchphrases such as predictive maintenance, retrofitted sensors, and reactive technologies are humming through newsfeeds and making many entrepreneurs curious. But, is it all hype or is there measurable business value in investing in the IOT?
“The Internet of Things is going to be a big thing for small business,” says Tim Reid, a network systems engineer and consultant for private industry and government. Referring to the concept of billions of objects being connected to the Internet, Reid points out that smaller firms will be able to cut costs and become more competitive thanks to the new technology.
While the IOT is not a new concept, it is evolving and becoming more relevant in our everyday lives and the way small businesses get ahead.
A study by logistics service provider DHL and IT firm Cisco predicts that the IOT will save businesses $1.2 trillion in productivity costs alone.
Are you ready to be one of those businesses? Here are some ways that the IOT can improve your company’s bottom line.
Inventory management. You can keep track of costly inventory – even with it being in a remote location such as a warehouse. With inventory sensors on small items or large products, businesses can reorder stock as it runs low.
Safety compliance. “There are many local, state and federal regulations, but small businesses often don’t have the funds to hire compliance teams internally,” says Reid. IOT allows small businesses to use sensors to measure air quality, temperature, and other conditions that may be governed.
Potential revenue stream. “The big thing about the Internet of Things is that it can be a model for recurring revenue every month,” says Reid. For example, a small business can put sensors on a product that it installs and “offer to monitor it for customers for a monthly fee.”
Security. For years, video surveillance has utilized physical tape that could be removed or damaged. With the IOT, videos are connected to the Internet and can be viewed remotely. “Business owners can track access to their building based on fingerprints and badges. This is inexpensive and easy to implement,” says Reid. Many people are choosing security systems for protection for their small business. From the alarm system to fire, smoke, window and door sensors, you’ll gain peace of mind knowing you’re proactively protecting your business.
Wages and labor savings. If your business monitors or repairs products for customers, the IOT can be revolutionary. Traditionally, companies send out a person to repair a product or resolve an issue on site, which can be costly. With the IOT, data can be sent from the product directly to your company’s computer. You can troubleshoot, rule out problems and make decisions without leaving your office.
Energy management. Gone are the days of the maintenance staff going from room to room and building to building to adjust the thermostat. “It is now connected to sensors that can be controlled remotely,” says Reid. Businesses can save on energy costs by powering down when parts of their facilities are not being used. Nest thermostat is a popular smart device for energy efficiency that can be controlled from your phone no matter how far your business takes you.
“As small businesses continue to look for ways to reduce costs and gain agility, the Internet of Things can potentially level the playing field,” Reid says. “If you pay attention, small businesses can get ahead of larger ones.”