Internet of things (IOT) has created a lot of buzz over the last 2 years. Every day we are hearing of a possibility of connecting almost every device to the internet. On other fronts, the claims have been materialized. More and more devices are getting connected to the internet every day. We are currently talking about over 7 billion devices connected to the internet. And, the number is becoming bigger and bigger each day.
Investors are having a field day with the increased returns from this new, promising venture. Moreover, all the firms are realizing the importance of this new necessity. It’s great. It’s a promising, raw but profitable technological footprint. In fact, according to CB Insights, Internet of things (IoT) companies attracted more than $1 billion in venture capital in 2013.
To add on that, more connectivity is in the offing. According to buzz, “Over the next decade, the Internet of things (IoT) is poised to change the way we go about our daily lives with projections of over 50 billion connected devices by 2020, compared to the 7 billion devices today.
Why is this important?
The statistic denotes a big business growth potential for the struggling and vibrant startups. 50 billion plus connected devices is a big plus as it makes so much of marketing campaigns, automation, and other tasks easier.
Tapping on the huge, promising opportunity…
How can startups benefit from the Internet of things (IoT) and use it for their growth?
There are various ways in which Internet of things (IOT) can help spur the growth of mushrooming businesses.
1. Internet of things (IoT) helps cut expenses while increasing business mobility.
With the proper implantation of the Internet of things (IoT) in firms, employees no longer need to be in the office physically. Startups can cut more costs by offering their employees the possibility of clocking in via mobile devices. Such mobile connectivity helps the startups to cut overhead costs drastically. Besides, businesses can implement automatic payments by using payroll software solution and other online services. The systems can release payments to distributors or pay employees automatically without having a physical intervention.
Other areas include the hotel industry, where establishments prefer online booking systems to traditional physical booking processes. The businesses have taken into account internet reservation sites. Alternative hospitality services, like AirBn, a consumer favorite have as well come up, thanks to the Internet of things (IoT). Airbnb specializes in renting rooms, apartments, and even entire houses. This makes it easier to access those facilities for the customer while reducing the overall costs incurred by the establishments.
2. Reinventing marketing and improving business transactions
Innovation gives an edge to marketing campaigns. And, to stay on top, businesses need to come up with top inventions that will help them spur their marketing campaigns. Besides, such inventions help make it easier for them to become a force to reckon with in their industry. Give the right devices, start-ups can also use fewer employees to perform a multitude of tasks. For example, we do not need cash registers like it used to be a norm before. With the advent of plastic money (credit cards & debit cards), most of the manual cash registered have been forced to oblivion. Now, more than ever startups and other outlet stores can use that technology (credit/debit card swipe devices) to increase sales. In the same sense, mobile phones have done away with the analog, landline telephone, ushering in a flexible digital communication platform. Such platforms make communication easier and more convenient.
3. Reinventing industries
Internet of things (IOT) will benefit all types of businesses. Internet of things (IoT) helps by reinventing industries on three levels.
- Business moment —which is the need to compete with unprecedented business velocity and agility. To achieve this feat, companies will need to make adjustments so as to fit in the changing business landscape of their industries. For instance, as I had mentioned above, hotel chains will have to reinvent their strategies to ace the new competition. Besides competing with other hotel chains, they will also have to compete with other e-reservations sites like Airbnb, which specializes in homes, apartments, and rooms for rent.
- Business process — Startups can cash on digital technology to provide customized services and solutions to customers or improve products and services. Besides, digital technology can help in delivering better customer experience.
- Business model — more and more startups are merging every day. For example, Google’s driverless car merger with the automotive industries makes it easier for automotive to use those technologies develop better, effective and sturdy internet controlled automotive, which will help both parties remain in business.
4. Provision of real-time data
Data is all about decisions. The 50 billion plus devices we are talking about will create billions of objects that will generate more real-time data. Data is money. It is the backbone of every business. All businesses need data which can be analyzed and used to make crucial business decisions. Those companies that make use of the data need data collection, storage, and processing device. That is why computers and other devices come in handy for startups and other mushrooming ventures.
The leap of technology is a blessing and good news for start-ups. Now, more than ever start-ups can compete with veteran industries on an equal playing field. An important invention has been the Internet of things (IoT). With internet of things, so many activities can be performed remotely. Companies can make huge profit and a very low operations costs. The good thing is, Internet of things (IOT) is a growing new dimension in the business arena. And it is the backbone of future businesses. It’s estimated that the revenue to be generated by the Internet of Things’ suppliers will reach $309 billion by 2020! This is a pretty huge opportunity both for investor and the users of this technology.