BusinessComputers and Technology

Key Role of Internet of Things Technology in Digital Transformation

According to the official definition, the Internet of Things refers to “a system of traditional computing devices, mechanical and digital machines that are provided with unique identifiers and used to transfer data over a network without human-to-human or human-to-computer interaction.”

This means that all the devices you use daily are connected with the Internet of Things, or IoT. The Internet of Things industrial automation helps companies understand better ways to interact with you, no matter what device you are on be.

Many experts estimated that the number of Internet-connected devices will increase to more than 80 billion by 2025, which will accelerate the growth of IoT. Cloud computing has also contributed the way for IoT and accelerated its development.

IoT has driven the evolution of cloud computing by expanding cloud capabilities closer to connected devices. Digital transformation technologies have enabled cloud computing to facilitate the operation of computing, storage. And network services between end devices and cloud computing data centres.

Role of IoT in Digital Transformation

While the role of IoT in digital transformation is great, many factors increase the usefulness of IoT and accelerate its growth. Data has become more and more valuable to companies, and AI has made this possible by manipulating data. AI supports advanced digital IoT applications to enable predictive, perspective and good analytics.

Thanks to the Internet of Things (IoT) in manufacturing, industries can operate better by putting more real-time information. And decision-making power back in the hands of employees. With IoT Transformation, everything is securely integrated into business processes and workflows.

IoT has affected the retail sector in many ways. Customers are constantly on the lookout for a personalized, satisfying experience for the businesses they interact with. Consumers constantly want to connect with sellers and wherever they want.

They are constantly looking for a good selection of products to suit their lifestyle needs. They always try to know more about the products they want and place an order. Customers want to streamline and secure their purchases and receive their purchases quickly.

The IoT In digital transformation has made this possible by connecting customers to companies, no matter what device they are on, and providing them with the information they want. IoT has also made it easier to buy products or services online by connecting devices. When the devices are connected, a customer who sees a product on their phone while going out and then goes home and wants to view the same product on their laptop can do so easily.

Combination of IoT and Data

It is the digitization of the product and the use of data and analytics to improve the usability of user interactions that changes the company’s very business model. It fits Gartner’s definition of digital transformation: “the process of using digital technology. And supporting capabilities to build a robust new digital business model.”

While Fortune 500 companies are expected to digitize many of their product lines. And have already digitize them, the real digital transformation is being driven by small businesses, increasing the likelihood of “creating a strong new digital business model” in the process.

Let’s explore where IoT comes from and how advantages of IoT for industries contributes to the ongoing digital transformation in organizations. That already have an agile approach, automate their core processes, adopt analytics for all business functions, and invest strategically in innovation and IT.

Encourages Data collection

Companies make money by selling products and services, whether virtual, informational or digital. IoT works on a physical device that helps in transactions between a company. And its customer by collecting and using data. It is up to the company to convert this data generated from the physical world into useful information that sustains and grows its business.

  • This physical device consists of a sensor that collects real-time data from its surroundings or components, such as the volume or temperature of objects inside the system.
  • The software then converts this data into a digital payload, packs it with encryption and network protocols and sends it to the company’s database, which resides in its data centre or a public or private cloud.
  • Once you have this data, you can format it and feed it into your analytics software or AI-based business process model to make predictions and gain important insights into various business functions.
  • Two technical components are vital in the data journey, from sensor-collected metrics to insights driving decisions and strategies. Together, they make IoT-powered digital transformation possible.

IoT platform

The IoT platform is a software-defined solution that drives everything from connectivity to data processing to integration with analytics tools. It performs some important functions:

  • Delivers local compute power to shore devices
  • Analysing data from IoT sensors embedded in physical equipment
  • Bridging to a public cloud, private cloud, or on-premises data centre
  • Deploying analytics functions where data is generated

All of this makes IoT platforms “middleware” between remote user devices. And the applications that use their data – by merging the physical layer, the application layer, and everything in between.

The IoT platform acts as an OS driver, managing hardware and application interactions. What’s more, it allows you to connect and automate connected devices, be compatible with multiple networks. And cloud protocols, manage network security and encryption, have data processing capability. And even enable new or native application development is about.

No wonder the IoT platform is incredibly complex to manage and monitor. The amount of data generated makes it almost impossible to analyse in real-time. So, an important feature of IoT platforms is observability – how easily one can understand, control. And troubleshoot a complex system with the ability to drill down to a specific device, application, region or user role.

Advanced computing

Traditionally, all data processing has occurred centrally in enterprises-owned and operated data centres. Consumer and industrial IoT devices are now embed in driverless cars, drones, utility meters, CCTV cameras, heart monitors, oil rigs, and more.

These tools generate huge amounts of data which is invaluable given that it gets created and then has stale moments. Milliseconds count when police are trying to catch a criminal on the run, someone has a cardiac arrest, or a pedestrian is driving a self-driving car.

In such situations, there is a delay in moving critical data from IoT devices to the public cloud. Or data centre over long distances. Which only serves the purpose of data collection. They require analysis, AI and processing to be perform locally or as close to the device as possible so that the data is efficient in real-time.

This leads to a major change in computing, where data processing is move from data centres. And public clouds to remote locations to distributed, independent, self-contained mini data centres near clusters of IoT devices in a given area.

Transforming businesses with Internet of Things

The Internet of Things is evolving into the new hyper-connected reality of a hyper-converged edge. And public cloud environment, more broadly defined as the Internet of Everything (IoE). Advances in all these technologies enable the second wave of digital transformation in B2B. And B2C, leading organizations to scale up their IoT deployments.

Many small and large companies are shifting from pilot IoT projects. And concepts to bigger opportunities powered by data, artificial intelligence and machine learning. You can invest in IoT Application development services to build bridge the OT/IT divide between your company’s operational and IT sides.

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