What Is IoT, And How Is It Transforming Businesses Today

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The Internet of Things or IoT has become a buzzword in the domain of technological innovation and transformation. The IoT ecosystem and its supporting technologies drive digital transformation. It has now moved beyond the pilot stage and is now an essential component of business infrastructure. It presents them with new opportunities for value creation. The concerned opportunity stems from enterprises’ ability the aggregate data from their products or customers’ business processes and leverage it to make informed decisions. IoT platform thus carries the potential to dramatically overcome traditional industry barriers and establish new value pools.

IoT represents an ongoing paradigm shift within communications. Hence, everything that can yield benefits from a connection can and will be connected. IoT is a network of internet-connected devices. These devices can collect and transfer data across a network. The sensors and communication devices within the IoT ecosystem continuously intersect with cloud and analytics engines. Thus, it is bringing about a new age of automation in businesses. It is unleashing a new era of digitization force, enabling organizations to enhance operational fluency, improve customer service, and boost revenue opportunities.

Components of IoT Ecosystem

  • Sensors or controllers (these are embedded in connected devices; it is the “things” in the Internet of Things)
  • A gateway device (it helps aggregate and transmit data across the data network)
  • A communications network to send data.
  • Software to analyze and translate data.
  • The end application service.

IoT Protocols

IoT connectivity protocols are essential to the IoT technology stack. An IoT system has myriad components. The sensors/devices collect data from the environment in which it is present. It then transfers the over to the cloud for storing it. The data processing software converts the gathered data into actionable insights for end-use, which becomes accessible through a user interface. IoT protocols enable the hardware to seamlessly exchange data. Without it, the hardware will be rendered useless.

The IoT architecture has multiple layers. The most common IoT model is Open Systems Interconnection (OSI), which has seven layers. These layers, from bottom to top, include:

  • Physical
  • Datalink
  • Network
  • Transport
  • Session
  • Presentation
  • Application

There are two categories of IoT protocols. It includes:

  • IoT data protocols (Presentation / Application layers)
  • Network protocols for IoT (Datalink / Physical layers)

The crucial IoT data protocols in the IoT ecosystem are MQTT, COAP, AMQP, XMPP, and Stomp. The IoT service providers need to evaluate the messaging protocols like MQTT and CoAP as per requirements and specific IoT use cases. Selecting the right protocol with advanced capability is important to integrate more devices and reduce latency. While the legacy machine-to-machine (M2M) devices typically tailor-made protocol stacks for each specific application, the modern-day devices use internet protocols (IP) that function as the basis of the IoT protocol stack. They use IP over the different data link protocols and standardized transfer and transfer protocols that end up at the application layer.

Six key technologies enabling IoT

  • Cloud computing
  • Big data analytics
  • Edge computing
  • 5G
  • Low-power wide-area technologies
  • Network function virtualization (NFV) and software-defined networking (SDN)

How is IoT transforming modern-day business?

The IoT projects of businesses seek to open up opportunities for automation and data exchange through smart, connected products and predictive maintenance programs. An intelligent IoT ecosystem enables businesses to boost their decision-making process. Enterprises increasingly realize the potential effectiveness and applicability of IoT transformations. It will enable them to position themselves better, drive innovation and capital efficiency, and create optimum customer value while ensuring security, assurance, and interoperability. A few ways in which IoT is transforming businesses include:

  • Asset Tracking and Inventory Management: IoT applications grant you automatic control options to help you manage inventory. It also enables you to track it so that nothing goes missing while in transit effectively. IoT equipped with surveillance systems helps in preventing thefts.
  • Driving Real-Time Insights: IoT provides businesses access to real-time data. It is helping to improve the visibility of people, processes, and devices. Thus, the stakeholders can make enhanced decisions, innovate business models, and accomplish goals.
  • Effective Market Strategizing: IoT-enabled devices can augment how businesses ingest, process, visualize and respond to huge data volumes. It will help them gain a 360° view into their business, understand customer preferences, build effective campaigns, and drive revenue. The right data set and insights will help them customize their offerings and enhance customer satisfaction.
  • Accessibility, Efficiency, & Productivity: The current marketplace is essentially customer-centric. Companies that value and deliver as per customer demands can better position themselves to generate value and revenue. Customers expect quick deliveries of the purchased goods. The application of IoT technology solutions enables them to create a workflow to ensure faster delivery of orders. It enables you to automate critical and tedious business processes and real-time access responses on operational efficiency. These innovations thus enable businesses to improve their efficiency and productivity.

To Conclude:

IoT technology has become more mature and advanced with age and is increasingly becoming a mainstream technology. From automation to efficiency, improved customer service, security, and inventory management, it provides a wide range of opportunities and benefits to businesses.