Becoming a connected enterprise is a dream for most organizations operating across various industries. The rewards are too many to count: Increased inter-departmental collaboration, accelerated innovation, operational efficiencies, increased business revenue, and data-driven decision-making.
In this blog post, we’ll focus on business system integration with cutting-edge IoT technologies. We’ll explore the key advantages, and challenges, as well as how to successfully embed IoT capabilities into your business systems.
First, let’s begin with why we need to embark on this integration journey in the first place.
Why integrate business systems with IoT?
When you introduce IoT to your IT landscape - whether residing on-prem or in the cloud - you can automate and streamline all your workflows and business processes based on IoT events. This alone can bring about massive improvements to your business operations and productivity. Your teams can now focus on more strategic and value-intensive tasks and projects.
The magic of IoT only begins when it helps you collect and store massive amounts of data on how your machines and systems are performing. But the real transformation takes place when you connect IoT with the rest of your IT landscape such as your apps, devices, machines, systems, etc.
Key benefits
We have seen it from first-hand experience. When done right, integrating IoT intelligence into your business systems and applications are numerous. This strategic move has proven to be a game-changer for many businesses and startups globally. Here's why you should seize this opportunity:
- Unlock greater operational efficiencies: IoT equipment and solutions are designed to automate workflows, perform real-time monitoring, and pave the way for predictive maintenance.
Automating routine tasks and processes reduces manual intervention and errors. Real-time monitoring, with the help of IoT sensors and equipment, helps maintain optimal equipment performance.
The insights on the maintenance needs gathered from IoT sensors empower the responsible teams to perform maintenance and significantly reduce machine downtime and business disruption. - Move productivity and innovation northwards: Integrating IoT into business systems and processes introduces greater automation and access to valuable data and insights.
These forces help your teams shift their focus from repetitive and mundane tasks to more strategic tasks and priorities. This much-needed shift in attention and energies pave the way for increased productivity and innovation in the workforce.
Streamlined processes, efficient resource use, and optimized workflows become the norm and help your business build a competitive advantage. - Push customer experience (CX) to new heights: It’s imperative to keep customers engaged these days. If you are not actively thinking about them, somebody else will. And the cost of acquiring new customers is at an all-time high.
Whether you are into retail insurance or manufacturing, you need to consistently work on improving the equation with your customers. IoT tech helps you get into the minds of your customers and build products or deliver services that are likely to be well-received by them. - Drive decision-making to accelerate time to market: Today’s sophisticated and cost-efficient IoT devices can collect and communicate vast amounts of data from customers and business operations. The collected data can then be analyzed with intuitive dashboards and visuals to gain insights into the overall operational performance, customer behavior, and market trends.
Using advanced analytics tools and platforms, business executives can gain actionable insights to transform every aspect of their business, from customer service and marketing efforts to sales and human resources management. Insights-driven decision-making leads to better product development and faster time-to-market, ensuring a tremendous competitive advantage and customer experience.
Challenges in connecting IoT with business systems
There’s no doubt about the transformational value that IoT integration can have on your business operations and overall growth. However, companies, especially first-timers, often encounter challenges while adopting IoT-edge into their businesses. Here are some of those challenges.
- Increased security risks: Cyberattacks and malware are constant threats, and data breaches can cause financial losses and damage a company's reputation.
- Cost: Reducing costs while still delivering innovation can be difficult.
- Change management: Employees may resist new technology, and ensuring job security is essential.
- Planning and communication: Lack of alignment between business and IT goals can lead to problems like poor user adoption.
- Infrastructure: Lack of ICT infrastructure and poor IT support can be barriers.
- Training: Inadequate staff training on the new technology can be a challenge.
- Data management: Handling large volumes of data, ensuring data integrity, and protecting data privacy can be complex.
- Compliance: Meeting new regulatory or reporting requirements can be a significant effort.
How to overcome these challenges
Eliminating these challenges might not be possible for most organizations. However, it is imperative to have a strategic approach to address these challenges. Some of the solutions that can be applied to overcome these challenges include:
1. Adopt a security-first mindset
- Encrypt data: Implement end-to-end encryption for data transmission between IoT devices and business systems.
- Regular updates: Ensure IoT devices and systems are updated with the latest security patches.
- Robust authentication: Use multi-factor authentication and other robust security protocols to prevent unauthorized access.
- Network security: Deploy firewalls, intrusion detection systems, and other network security measures to protect against cyber threats.
2. Upskill your people
- Training programs: Invest in training programs to upskill existing employees in IoT technologies and management.
- Hire specialists: Bring in IoT specialists or consultants to guide the integration process and provide expertise.
- Continuous learning: Encourage constant learning and stay updated with the latest developments in IoT technology.
3. Ensure interoperability
- Standard protocols: Adopt IoT devices that adhere to widely accepted standards and protocols to ensure compatibility.
- APIs and middleware: Use APIs and middleware solutions to bridge gaps between systems and devices.
- Vendor collaboration: Work closely with IoT vendors to ensure their devices are compatible with existing business systems.
4. Invest in data architecture
- Data analytics tools: Utilize advanced data analytics tools to manage and analyze large volumes of data effectively.
- Data filtering: Implement data filtering techniques to process only relevant data and reduce data overload.
- Cloud solutions: Use cloud storage solutions to handle large volumes of data cost-effectively and securely.
5. Build for scalability
- Scalable infrastructure: Invest in scalable infrastructure, such as cloud computing, that can grow with your IoT needs.
- Modular systems: Design IoT solutions with modular components that can be scaled up or down as needed.
- Cost management: Plan for scalability costs and budget accordingly to avoid financial strain during expansion.
Also read: 7 Ways to Secure your IoT Devices
Use case (Retail)
Nearly every industry can benefit from the Internet of Things (IoT). Let’s look at a sample use case in the Retail industry.
Imagine you want to integrate IoT capabilities into your business systems to build on your inventory management capabilities so that your stores (and the shelves in those stores) never run out of supply. IoT tech can help with:
- Smart shelves: These smart shelves - embedded with IoT sensors and devices - can detect the weight of products and determine when stock levels are low. When stocks are low on these shelves, they can pass on or communicate the insights with the inventory management system to update stock levels in real time.
- Automated ordering: The inventory management system can automatically place orders to suppliers when stock levels fall below a certain threshold, ensuring timely replenishment.
- Supply chain coordination: The order management system can notify the supply chain management system of new orders and expected delivery times, coordinating the entire supply chain process.
In addition, the store staff can be alerted for the incoming deliveries and restocking schedules. Embedding IoT into retail operations in such a way can lead to improved inventory management, increased customer satisfaction and greater sales.
Steps to embed IoT capabilities in business systems
The planning and implementation journey or experiences are likely to be different for different organizations. Whether you decide to embark on this journey on your own (with your in-house expertise and off-the-shelf solutions) or engage a professional IoT services provider will also affect the overall journey and final outcomes. However, the steps that are very much likely to remain same for everyone include:
1. Define clear objectives: You are not going to reach anywhere unless you decide on the route and the destination. The same logic applies when you plan to introduce or embed a new technology, such as IoT or GenAI, within your organization. To ensure a seamless transition toward IoT-driven business operations and decision-making, you must identify specific business challenges that you want to address with IoT and set measurable goals.
2. Build on the right IoT platform: Fortunately, we have numerous options, but you need to choose the platform that can promise scalability, security, and compatibility with your existing systems and applications. An IoT tech consultant or development partner can help you make an informed decision.
3. Develop a comprehensive strategy: Develop an actionable strategy that outlines the business problem that you want to solve using IoT, potential solutions, timelines, whether you’d need a development partner or have in-house expertise, whether on-the-shelf solutions will suffice or need custom solutions. The strategy will serve as a single source of truth or information for all the stakeholders involved in this initiative.
4. Implement and integrate: Begin with pilot projects to test and refine your IoT implementation before full-scale deployment. Ensure that IoT data seamlessly integrates with your current business systems for smooth operations and enhanced decision-making.
5. Commit to continuous monitoring and improvement: Continuously monitor the performance of IoT systems to identify areas for improvement. Use data analytics to optimize processes, enhance efficiency, and achieve your business goals.
Last, but not least, you must realize that IoT implementation and optimization is a continuous process and not a one-time task.
Conclusion
Emerging and innovative tech - such as IoT and Generative AI - have the potential to transform the way businesses operate across sectors. Whether you operate in the manufacturing sector, in insurance, retail, banking, or healthcare, you can embed modern IoT solutions within your business systems and apps to streamline your workflows and accelerate productivity and business revenue.
Kellton offers comprehensive IoT services and solutions to its customers. Whether you are looking for on-the-shelf solutions or require custom IoT solutions to help drive your business forward, we can help. Connect with Team Kellon for a free consultation.