Enterprise ‘Internet Of Things’ Gaining Traction

We are in the digital age, but some companies have yet to pull their operations into the technical realm. Unless they act fast, those businesses will lose out on major growth, cost savings and customer satisfaction.

That is the conclusion of a newly released study by Verizon Enterprise, State of the Market: The Internet of Things 2015.

According to the report, companies that take full advantage of IoT technologies will be up to 10 percent more profitable than competitors that don’t by 2025. It’s curious that businesses today have yet to digitize their products and operations considering the foundation to do so – network connectivity, security, cloud computing and digital infrastructure – have been available for years.

With shrinking data processing and connectivity costs, the ROI for digitized projects grows, and firms gain more access to the resources needed to enter the Internet of Things. According to ABI Research, cited by Verizon’s report, IoT is likely to create 5.4 billion connections across the globe by 2020, including those stemming from fixed line, cellular, satellite and short-range wireless connections.

Today, there are 1.2 billion connections, the research shows. That’s a 28 percent year-over-year growth of the IoT world between now and 2020.

When broken down by industry, these mobile-to-mobile connections have increased by 204 percent within manufacturing firms, 128 percent within the finance and insurance market, and 120 percent within the media and entertainment market.

Adopting this technology makes businesses’ services and products more personal, faster and accessible to consumers across the globe. It’s a chance for companies to compound their business operations for the better, but it doesn’t have to be overwhelming: Verizon Enterprise says starting small is the key to entering the Internet of Things. “IoT isn’t just for multinational companies investing tens of millions of dollars,” the report concludes. “A few dozen sensors and simple automated alerts can cut costs, create new revenue opportunities, and transform customer service.”