Why SMEs Need to Add Internet of Things?

September 9, 2020

Internet of Things, a familiar tech-solution is contributing to making a better tech-world for businesses and market. The infiltration of iot in every section has proved its versatility and frequent updates hints for the presence of unexplored potential. IoT has opened a new path to build vast networks of connected devices.

IoT integrated management systems are bliss for small and medium-sized businesses. It is often noticed that many small and medium-sized enterprises (SMEs) are struggling to stay alive while churning benefits. Today, companies incorporating advanced IoT system into their daily processes have developed a sophisticated way to make profits.

Industry 4.0 is a technical word used to address the new phase in the Industrial Revolution that includes automation, machine learning and interconnectivity. It strives to help businesses through various advanced technologies.

IoT is one of the heroes in the Industrial Revolution. It can connect physical devices to digital platforms to develop most favourable ambience for manufacturing and supply chain management. There are IoT service providing companies which can introduce IoT in your business.

What, Why and How?

IoT has added smartness in the way of thinking, it has added smartness to connecting platforms and devices, and the best thing about it is that it can be accessed by small, medium and large-sized companies. The unbiased nature and potential results drawn by IoT makes it different and most compatible.

IoT solutions consist of sensors and smart devices which can sense and communicate with each other over the cloud. The IoT integrated sensors and devices detect the change occurring in the environment or collect the data from the designated target for the software to process and then performs the automated response like notifying the responsible parties if any issue occurs.

IoT connected devices provide data which can be used to improve existing business practices and support machine-to-machine communication. No doubt, different industries suffer different challenges, but IoT is the standard solution in different ways.

How is IOT helping different types of business?

A) IoT in Logistics:

Logistics is one of a broad sector which is dependent on proper management of distribution and transportation operations. An error can turn the whole process upside down. The need for prompt and appropriate transportation along with the expectation of consumers has left no chance to plan for a series of pick-ups and sit with crossed fingers.

Earlier, experienced transport managers used to plan an efficient route. But today, regulatory laws like GDPR affect everything, from driver’s hour to how IoT and telematics data are utilized in fleet operations.

Following the regulation as well as last-minute requirements makes delivery and transport route complex than it was earlier. The complexities turn to be worst by the massive amount of information which has to be shared to coordinate different branches of a business. Well, IoT helps in this situation and untangle complexities by enabling enhanced data flow by developing a network of devices that connects and shares data.

In addition, IoT-enabled fleet management systems can cut excessive fuel consumption, time consumption, ensure driver’s safety through continuous vehicle monitoring.

Read More: Why is IoT Impossible Without an Open Ecosystem?

B) IoT in Manufacturing:

The one most crucial aspect in the manufacturing industry is effective resource management because SMEs have limited resources, and they cannot afford any kind of loses. Well, in reality, coordinating the manufacturing of goods becomes tiresome without the right tools.

IoT technology empowers businesses to manage their manufacturing processes precisely to curtail upcoming issues and improve existing procedures. More than 58% of manufactures have accepted the fact that IoT technology helped them in transforming their businesses.

IoT can be used to establish efficient asset usage, improve equipment service life and to get optimal ROI on assets. It is estimated that the global usage of IoT in the manufacturing sector would reach USD 45 billion by 2022.

C) IoT enhances productivity:

SMEs always tries to settle themselves into the successful list with maximum benefit and best customer experience. They follow the same basic principle, i.e. to increase productivity and in result, revenue will automatically increase.

The addition of IoT in SMEs helps in achieving the motive. The highly advanced IoT-integrated devices facilitate access to accurate and actionable data which improves decision-making processes and assist them in taking quick actions to important events and emergencies.

IoT systems help by enhancing collaboration between departments, monitoring fleet operation, reducing operational costs, tracking the transportation movement etc. Data collected by IoT devices can be used by companies to deliver product faster, meet the target quotas and enhance the supply chain.

D) IoT ensures proper maintenance:

Maintenance of assets in a company is crucial and complicated. Breakdown of an asset or vehicle can cause a massive loss to SMEs, so they need to maintain the health of every machine and ensure servicing on time. IoT-enabled car trackers diagnose and transmit malfunctions before they turn into some serious issues. The device connected through the OBD-II port allows access to engine error codes and diagnostic reports.

OBD-II is an onboard computer used to keep a check on vehicle data like speed, mileage, emissions etc. It can be accessed through a 16-pin usually placed under the driver’s side dash. Thes diagnostic reports identify and inform about which vehicle needs servicing and when to schedule preventive maintenance. IoT-enabled preventive maintenance solutions can cut diagnostic time up to 70% and causes a 25% reduction in repair time. It improves the operational efficiency of assets.

Read More: Six Inevitable Steps to Bring Digital Transformation in Your Business

E) IoT promises Consumer Satisfaction:

Today, customers demand are massive as they are aware of the latest technologies. They are expecting rich experience, and only IoT can provide that. SMEs can provide real-time information of product to their customers through IoT. On-time delivery is necessary to build loyal customers. When the delivery time exceeds the expected time, customers get frustrated. Sometimes late deliveries cause spoilage of the perishable product.

So, we can conclude that on-time shipment is an unavoidable requirement. IoT enabled devices integrated with sensors that are capable of diagnosing small changes in the condition of cargo or vehicle. It even maintains the required temperature to keep the product at a good state. It informs the company about the shipment-status which they further share with the customers to gain trust. By updating the shipment-status increases ROI by retaining their existing customers as well as attracts new customers with their top-quality services. IoT helps in boosting sales, lowers customer costs and enhances customer satisfaction.

F) IoT improves Security and Safety:

IoT solutions are not only meant for the benefit of the company, but they also offer advantages for the safety and security of a company’s workforce, property and goods, trucks & cargo. IoT solutions automate security processes and detect the flaws existing within the system, notifying the administration to eliminate any casualties.

Nevertheless, employees who feel safe and protected turns out to be more productive. IoT-enabled fleet management solutions monitor and manage the fleet remotely while providing real-time access to the location. It offers prompt alerts in case of an accident or any other emergencies which ultimately promises the safety of the driver and ensures quick actions in case of any mishap.

IoT is the next big thing in Tech-world.

Internet of things has changed the outlook of SMEs. It has added smartness in the operations and supply chains. In the coming years, businesses will be more dependent on the latest technologies. To say it straight, more on IoT.

Internet of Things has not just chartered a smooth path for complex operations, but it has also reduced operational cost, fuel cost and time consumption. IoT connected device provides data which can be analyzed to develop the demand-based products. It even helps companies to meet the expectation of the customers. From early detection of machinery breakdown to on-time delivery of a product, IoT is everywhere. If you still not a part of IoT-world then you might be losing a lot more than your imagination.

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