Internet of Things (IoT): Definition, Benefits, Technology

Internet of Things (IoT): Definition, Benefits, Technology

The development of the Internet of Things (IoT) can change the way businesses optimize processes and attract customers. Learn what the Internet of Things is and how it can help businesses and other industries!

What is the Internet of Things (IoT)?

Internet of Things abbreviated IoT is a technology that refers to the process of connecting sensor devices via the internet to collect, exchange, and transfer data, and respond to users.

So that the device can carry out commands without the help of humans, computers, objects, or other processes.

Devices with technology, software, wireless, and sensors are embedded in everyday physical objects so that they are connected to each other.

In essence, the Internet of Things is a technology where the internet network can connect ‘things ‘ or any device to carry out activities. All “invisible computing devices” and related technologies are collectively referred to as the Internet of Things.

For example, you can turn on the lights by clapping your hands (without having to press the switch), automatic kitchen appliances, smart cars, connecting smartphones with home security systems, and other sophisticated devices.

Many technology companies have created products with an IoT approach. Examples of IoT are Google Home Voice Controller, voice assistants (Siri and Alexa), smart cars (Tesla), smart appliances (iRobot), smartwatches, and many more.

Digital payment applications with QR codes and barcode scanning methods are examples of IoT that we have used in the business sector.

In fact, there are already more than 7 billion connected IoT devices today. It is estimated that by 2025 it can reach 22 billion networks.

What Technologies Enable IoT?

1 . Artificial Intelligence

A machine with a certain technology can think to collect data to carry out commands. Big Data and Machine Learning technologies are also needed.

2. Connectivity

Host of the internet network to connect sensors to the cloud and “things” or other devices for efficient data transfer.

3. Small Size Device

This kind of technology has been developed since the 90s, but its development is still slow because at that time the chip size was quite large and the price was expensive.

Low-power computer chips called RFID (Radio Frequency Identification) tags were first used to track and connect expensive equipment.

As technologies evolve, computing devices are shrinking in size, chip sizes are becoming smaller, faster, and smarter, and the cost of integrating computing power into small objects is now also falling. So that the application of the Internet of Things is growing rapidly.

4. Sensor

Sensors that will define passive instruments and networks become active so that they are integrated.

5. Cloud Computing Platforms

The increased availability of cloud platforms allows businesses and consumers to access the infrastructure they need to upgrade without actually having to manage everything.

Benefits of IoT for Business

Here are some of the benefits of IoT in the business sector:

1. Save Operational Cost

Internet of Things technology is considered to be able to save operational costs because it can facilitate management within each department and throughout the company structure.

IoT really helps companies to simplify existing processes across production, manufacturing, supply chain, and other industries.

2. More Efficient Operations Management

Automatically connected smart devices will help with operational management. For example, for inventory management, stock management, shipment tracking, fuel, and spare parts management, and so on.

Companies can use RFID tags and sensor networks to track equipment, for example, so results will be more accurate and faster even in real-time.

3. Comprehensive Marketing and Business Development

The smart devices and software used can provide valuable information and specific data for business analysis needs.

Enables companies to develop business strategies such as targeted advertising, monitoring competitors, setting pricing policies, marketing activities, and other management.

4. Increased Staff Productivity and Profitability

Using machines to facilitate business activities, or shifting human tasks that can be done automatically with machines.

So that human resources can be diverted to tasks that are more complex and require personal skills, such as those related to ideas and thinking.

Based on data, 83% of IoT-enabled organizations claim to reduce expenses and increase employee productivity.

5. Increased Work Safety

Smart devices can be designed to reduce human errors during the work process. Making automatic machines with integrated security systems.

Also improve work safety, for example by making automatic management for compliance with the necessary regulations.

6. Better Utilization of Resources and Assets

IoT smart devices are used in various machines to support enterprise needs and efficiency.

For example, a water faucet with a simple detector to dispense water as needed. This can reduce electricity bills and create an eco-friendly working environment.

7. Increase Business Opportunities

Internet of Things technology increases effectiveness. This allows companies to:

  • Offer a wider range of services or products.
  • Improve quality compared to its competitors, at the same or more affordable price.
  • Creating intelligent solutions for products/services.
  • Make the company more competitive and attractive as a potential business partner.

8. A More Trusted Company Image

The use of this technology can support a safe and secure work environment, as well as with experienced staff.

So that companies that use high technology and IoT bring a positive brand image to customers, potential business partners, and investors.

9. Improve Security and Minimize Vulnerabilities

Companies can create surveillance devices, motion sensors, or automatic monitors to maintain work security and safety.

In fact, Internet of Things devices can be designed to predict fires, warning alarms, and so on.

10. Better Tracking System

In online business, customer packages are sent by third parties, namely expeditions.

With the Internet of Things-based devices, automated and real-time tracking systems can help provide information regarding package delivery.

As an online business, it is very important that customers know everything about their packages from the moment they place their order.

11. Autonomous Farm Equipment

Businesses in agriculture can also take advantage of the Internet of Things devices. For example, powerful and automated tools to gather info on soil temperature, humidity levels, air temperature, and wind speed, and provide farmers with actionable information/data.

Basically, the Internet of Things was created to facilitate various activities in various industries.

Online businesses are also adopting the Internet of Things approach. There are facilities for digital payment methods, online advertising strategies, order management, payment gateways, and so on.