The Internet of Things is “a network of objects connected via the internet which can collect and exchange data.” It is commonly known as IoT. The boom of the internet has resulted in the digitization around the world for businesses. It has a significant impact on how organizations design, produce and sell their products and services. With the advancement of technology, companies are looking to leverage IoT across the life cycle of their products and services – like identifying new business models, sourcing materials, streamlining productions and managing customer experience.

Here are the top 5 positive impacts on an organization’s profitability through IoT implementation:

1) Supply Chain Management 

A study done by Forbes found that 64% of executives surveyed identified that the supply chain is a huge priority for their company. Especially for companies with massive logistical operations and management, this is critical. For example, Amazon’s growth soared once they acquired Kiva Systems, a manufacturer of IoT-enabled robots which are used in automating the manual labor. Because of these robots, Amazon has been able to save $22 million every year.  Also, solutions enabled by the IoT can also help to streamline the costs of logistics and distribution in many types of industrial and commercial enterprises. For example in the healthcare industry, IoT solutions can help reduce medical supply chain costs by 25% thus saving the industry around $1.25 billion per year. 

2) Product Optimization

A study done by Forbes found that 45% of executives surveyed indicated that IoT-enabled manufacturing has a high priority for their organizations. For example, IoT based solutions can have a significant impact on overall quality when they are introduced on the factory floor because they help manufacturers detect substandard materials and ensure that product specifications have adhered to guidelines.  For brands, this higher level of quality helps in reducing costs throughout the life of the product. 

3) Asset Tracking and Management 

For 74% of executives surveyed, asset tracking and management have significant importance because for companies who have extensive inventories of assets, IoT can help provide real-life information on location, efficiency, and health of the equipment. For example, Sullair manufacturers air compressors which are used in various industrial applications for more than 50 years. with the help of remote monitoring IoT solution AirLinx, it enables the customers to monitor their compressors and receive live maintenance alerts which reduce the downtime.  

4) Financial Decision Making 

82% of executives surveyed identified that finance was one of the prominent functions they prioritize.  By producing real-time visibility that complements data from enterprise resource planning (ERP) and accounting systems resulting in a holistic view of the enterprise, IoT plays a vital role in the financial decision. For example, Atria Power, India’s largest independent power producers, created a forecasting model for its power generation and distribution network.  With the help of IoT enabled solution, Atria Power now can accurately forecast how much energy it can provide to utilities and plan for the storage of excess energy that can be sold later. 

5) Customer Experience 

90% of the executives surveyed said that potential improvements to the customer experience are one of the most significant opportunities for the IoT. For example, Caterpillar, a heavy equipment manufacturer, produces, from locomotives and industrial generators to construct and my equipment can measure and communicate critical data. As a result, over 560,000 Caterpillar vehicles now collect and transmit data to their owners. IoT-enabled products, in this case, increased the value it provides to its customers by increasing efficiency, reducing operating costs, and improving productivity.  

Xpetize Technology Solutions is an IoT Solution provider. We are here to help you with IoT implementation. Please feel free to get in touch with us.