28 June 2020, 08:06 PM

Internet of Things: Going from cost-cutting to innovating revenue chains

Internet of Things: Going from cost-cutting to innovating revenue chains

 

Covid-19 is having an unprecedented impact on our society and economy. Countries across the world are witnessing huge economic disruptions. Growth parameters are under threat. The World Bank in its ‘Global Economic Prospects’, June 2020 issue has warned that the global economy will shrink by about 5.2% in 2020, making it one of the four most severe downturns in 150 years.

“Per capita incomes of emerging markets and developing economies are expected to shrink this year, tipping many millions back into poverty,” the report has cautioned. The American economy contracted by 5% in the first quarter of 2020 and is projected to decelerate by 7% in 2020. The Indian economy is projected to decline by 3.2% in 2020.

The pandemic has spread with astonishing speed without any signs of recovery. The number of deaths is increasing and so is the number of hungry mouths. The medical fraternity is working hard to find medicines for the pandemic. The business community too is seeking a way out to save their businesses, many of which have been shattered due to the prolonged lockdown.

If the discovery of a relevant medicine remains uncertain till date, the global business community has found one solution to their problem in technology. Emerging technologies such as Internet of Things (IoT) are helping businesses to remodel their traditional operations, providing alternative business ideas and are opening up opportunities to cut costs and in reaching new markets. Enabled by the exponential increase in computing power and availability of large amount of data, machines are fast learning to replace humans in several areas.

The quickly changing dynamics of the Covid-19 pandemic and the inability to visit physical sites has led to the need for increased transparency regarding employee whereabouts and well-being, about goods in transit, marketing and about manufacturing. IoT does exactly that by creating a team dynamic within the business by connecting different sections and products. Connected products can boost consumer engagement and deliver substantial value for both consumers and businesses across industries. IoT has never been more significant, as more and more companies find themselves in desperate need to re-engage with consumers and stay relevant.

What is IoT and how does it work?

Businesses are looking at IoT as a possible saviour from the present mess. But what is Internet of Things? How does it work?

IoT is a technical concept of connecting multiple devices that can switch on and off, using the web, in order to use software and automation processes. It is a system of interrelated physical devices embedded with sensors and network connectivity that enable them to collect, process and exchange data.

In 2013, the Global Standards Initiative on Internet of Things (IoT-GSI) defined IoT as “the infrastructure of the information society, enabling advanced services by interconnecting (physical and virtual) things based on existing and evolving interoperable information and communication technologies.”