Internet of Things (IoT): Forcing Traditional Businesses to Redefine Who They Are and What They Do

first_imgThe Internet of Things is making a lot of traditional businesses rethink exactly what their business is and how they create and deliver products and services.Jeffrey Kaplan, directory of THINKStrategies, wrote that “hardware and software is now being embedded into a company’s products and services to give the lines of business unprecedented insight into how their products and services are being used by customers so they can better serve current customers and develop new products/services to win new customers.”Jack Reader, business development manager at ThingWorx, said that “for the first time, we can see what’s happening in real time in the physical world, and data that used to be siloed is now flowing into one place.  Businesses can now tell when a machine is going to break down and take it out of production, replacing it with a backup machine, to keep productivity going…  It prevents businesses from stopping the operations when something breaks down and losing a ton of money… That’s the disruptive nature of the Internet of Things and the value proposition.”Jeff Kelley, analyst at Wikibon, said that “there is a fundamental change of mindset and it will require different ways of approaching application development and how you look at the business. For example, a company might have to redefine itself from thinking that it only makes ‘makes trains,’ to a company that also ‘services trains with data.’”Kaplan said that “a growing number of brand-name, consumer-oriented companies are demonstrating the power of IoT and the cloud such as those in the wearables and smart home markets…  However, only a handful of forward-minded business executives in traditional product markets are moving in this direction today. These enlightened executives see an opportunity to gain a competitive advantage in their increasingly commoditized traditional product marketplaces by converting data derived from their products into information services.”last_img

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