This article is a guest post by Eleanor Hecks, Editor-in-Chief at Designerly Magazine. All views/opinions/suggestions are that of the guest writer. This Website may or may not subscribe to them.
When you think of the Internet of Things (IoT) in small businesses, you may wonder about the actual advantages that lie within this technology.
The Internet of Things is changing companies’ operations, disrupting traditional practices with automated tracking systems. It is like a giant Web of interconnected devices embedded with sensors that collect data to help you understand your environment, creating a centralized system for real-time monitoring.
How can this technology have the power to boost your bottom line? With IoT usage growing in every industry, you will understand why more businesses are using it with the benefits below.
1. Increases Your Company’s Operational Efficiency and Cost Savings
Every successful business owner knows operational efficiency is one of the keys to success. With the IoT, you have the power to achieve this. Leveraging this technology allows you to streamline your processes, maximize resources, and cut waste while saving time and money.
When you use the IoT in a small business, everything works together seamlessly, making the system more productive. For example, a small delivery company could use IoT devices to track their vehicles. In an IoT-powered fleet management system, administrators can optimize delivery routes based on real-time traffic data.
It can collect information by monitoring driver behavior, fuel consumption, and maintenance needs. Producing more efficient routes for delivery drivers means the organization can reduce time on the road and fuel costs, making more timely deliveries.
When the IoT increases your operational efficiency, it saves your business money in two ways — directly and indirectly. Direct savings will come from reduced resource usage, such as predictive maintenance. Such predictive tactics have been shown to lower costs by 30% using the IoT. Indirect savings could come from increased customer satisfaction due to improved service. This leads to repeat business and stronger customer loyalty.
In both cases, they positively impact your bottom line. By incorporating the IoT in small business practices, you can achieve your goals faster and cheaper, leading to greater profitability.
2. Guarantees Workplace Safety
Worker safety is a high priority for organizations that want to sustain a happy, healthy workplace. Thanks to the IoT, companies now have a better system to help them achieve this goal.
The IoT is creating a safe workplace for all by gathering real-time data and monitoring its conditions to prevent accidents and maintain safety. If it identifies any potential hazards, it can notify employers in real-time.
One way it aims to provide safe working conditions is through wearable devices. Workers wear these devices to enable the technology to track their movements and alert them of danger. Businesses also invest in smart systems that monitor the workplace environment for air quality, temperature, and humidity.
The IoT can even catch excessive machine noise levels to prevent hearing damage. On construction sites, workers wear smart helmets that detect high body temperature and heart rates or if a worker falls.
Preventing workplace accidents helps companies avoid high costs associated with medical and legal fees and increased insurance premiums. Plus, a strong safety record retains employees, saving businesses two times an employee’s salary from finding a replacement.
3. Enhances Customer Experience
The IoT is also changing how small businesses engage with their customers through personalized experiences. With the IoT, companies can gather real-time data about their consumer. They gain insights into customers’ behaviors and preferences and use that information to define their strategies.
The data received from the IoT empowers organizations to tailor their services to customers, creating customized experiences for individual buyers. For instance, clothing retailers can provide customers with personalized recommendations using IoT-powered smart mirrors. These mirrors can offer suggested items based on the customer’s unique style preferences, trendy clothing, and accessories that enhance their outfits.
An Adidas store in London has equipped its fitting rooms with smart mirrors. This technology can detect what the customer is trying on, and show the outfit in different colors and sizes. Companies that invest in the IoT have created a fantastic customer experience, making people more likely to purchase the clothing they try on while shopping.
4. Drives Better Decision-Making
The IoT has access to large volumes of data and is incredibly effective at gathering it. This information gives businesses the intelligence necessary to inform strategies and operational decisions.
For instance, organizations use this data to access customer behavior and insights. When a consumer purchases an IoT-enabled device, the company can track how they use it to make improvements. These products could be Fitbit or a smart TV.
IoT sensors are also useful in tracking which products customers interact with the most often or determining the busiest shopping times. This information can guide everything from staffing decisions to product placements, making it more likely for a company to improve profitability.
It also saves businesses money because data can reveal if a product is not selling well. With this information, they can easily decide to discontinue the product. If data shows higher in-store traffic during specific hours, managers will know when to extend working hours during peak times to boost sales.
5. Spurs New Growth Opportunities
Many companies strive to create new revenue streams from their offerings, but they need a creative strategy to get there. The IoT is powerful in this aspect, as the technology’s real-time data collection gives businesses the information needed to meet customer expectations.
Organizations can monitor this data to offer services in other ways or introduce entirely new service offerings. For example, an HVAC company typically provides installation and repair services. However, they can use the IoT to monitor clients’ systems continuously and offer preventative maintenance based on the data.
Similarly, companies can create new products with built-in IoT technology to provide enhanced features like remote control or customization options. Pet-care enterprises have innovated their business using the IoT. They offer IoT-enabled pet collars, allowing owners to:
- Track a pet’s location.
- Monitor their health.
- Dispense food when it is feeding time.
This advanced technology gives pet owners peace of mind and differentiates a pet-care company in the market. Small businesses boost their growth and bottom line by driving innovation and opening new revenue streams.
Ramp Up the IoT in Small Business
The IoT offers small businesses plenty of advantages for boosting their bottom line. It improves productivity and efficiency, drives better decision-making, and opens new revenue streams. From there, companies can satisfy customers’ needs and improve wherever possible.
For organizations wanting to boost their bottom line, consider investing in IoT technology. Understand how it can be valuable within your operations and build a strategy for implementation.
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