“Internet of things” – the buzzword that is recently taking the tech world is actually an old concept. The first instance of the concept being used would be Carnegie Mellon University’s Coke Machine which they connected to the internet to monitor the number of soda cans in the machine as well as their temperature.
The old concept has been given new life (Screenshot from Google Trends)
Apart from the entertainment value, connecting things to the internet has a lot of applications. Consumers, governments, and entrepreneurs recognize the value of interconnectivity between commonly used devices, with a projected $14.4 trillion value spread over the next decade.
So, what is the Internet of Things? Sometimes called the “internet of everything,” Global McKinsey Institute defines it as devices that “can monitor their environment, report their status, receive instructions, and even take action based on the information they receive.”
With the rise of wearables like the Apple Watch, the future of the Internet of Things is no longer a future but a present.
Internet of Business Things
As an emerging and untapped market, the Internet of Things industry is populated by big players such as Cisco and Intel and by tech startups. Angel investor site Angel List shows almost 1,500 investors invested in 539 IoT startups, all of which are expected to grow.
An explosion of internet-connected devices (Graph via HBR, data from BI Intelligence)
According to Business Insider Intelligence, from now to 2018, there will be exponential growth in devices, excluding smartphones and tablets connected to the internet. And businesses are at the front end of this boom.
The main driver? Operational efficiency.
Data drives all businesses, and leveraging market intelligence alongside IoT transforms decision-making processes. From tracking inventories to analyzing revenues and expenses, market intelligence enhances IoT’s potential by providing actionable insights from real-time analytics. They improve operational efficiency, reduce costs, and enable superior customer service.
However, the benefits of the Internet of Things come with a great downside: security.
While connecting our inert devices to the internet greatly improves their functionalities and scale, they also inherit the internet’s vulnerabilities.
Hackers and Hacktivists flourish in an interconnected world (Photo credit: Ricardo Alguacil)
Just this year, the PlayStation Network was hacked, and thousands of photos of celebrities were hacked from Apple’s iCloud in what would be known as The Fappening.
Current IoT devices such as smart TVs, webcams, and thermostats are 70% vulnerable to security attacks caused by poor password management and insufficient authentication. With the projected scale of the Internet of Things, probably whole cities and possibly whole countries, hackers have a bigger data pie to feast on.
Brace yourselves. Internet ubiquity is coming.
You didn’t see him coming, did you? (Photo from Game of Thrones)
The Internet of Things is all but inevitable. And it wouldn’t hurt to prepare yourself and your business for it. Here are some ways you can leverage the birth of this technology:
1. Minimize techophobia in the workplace.
IoT-related markets such as wearables, specifically Google Glass, drew some flak because of privacy concerns. Google Glass “Explorers” are now dubbed with the derogatory name “Glassholes” and are banned from public places such as restaurants and cinemas for fear of privacy intrusions. (Why they worry about privacy in a public place is beyond me.)
These concerns and other technological fears can be eradicated through education. People fear what they don’t understand, and your employees and partners will stick to what is comfortable rather than use a different, more efficient process.
That said, you shouldn’t use untested technology immediately on your company assets. That goes without saying, right?
2. Plan restructures in the business process and data management.
Operational efficiency is the primary driver of IoT in business. Its arrival would mean reducing redundant steps in your business, even removing the human factor. Increase the security of your data, especially confidential ones. Always back up.
Of course, adapting IoT for your business might be far off in the future, but this could be an opportunity to streamline your process. Preparing for IoT would just be an accidental benefit.
3. Stay abreast with the latest IoT news
The Internet of Things is still in its infancy, but the potential is enormous, similar to the dawn of the Internet during the 2000s. If you’re planning a startup, perhaps you should consider entering this industry.
If not, you should still watch for the latest news on IoT and perhaps even invest in some of the emerging startups. AngelList has a nifty list of IoT startups you might be interested in.
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How prepared are you for the Internet of Things? Tell us in the comments below.