Part 8: Internet of Things (IoT) – Connecting the physical world to the internet

In my last articles I had addressed Artificial Intelligence and its application areas in order for you to better understand and classify the technical developments in the context of digitization and digitalization. Now it is time to explain the term and the consequences of Internet of Things (IoT) to understand another important technological progress that will change our world.

With this article you will get answers to the following questions:

1. Internet of Things (IoT) – What is it and how does it work?
2. Internet of Things (IoT) – What does it mean? (Consequences)
3. Internet of Things (IoT) – Relevance to the question of “How to Dominate your Market”

1. Internet of Things (IoT) – What is it and how does it work?

Increasingly, it is possible to connect devices to the Internet and let them communicate with people and other items. E. g. it is possible for a washing machine with internet access to turn on itself when the power is the cheapest or to inform the user via an app when the laundry can be hung. Another example is the smart home, where it is possible that the front door automatically closes itself when the residents leave the house.

In order for this to be possible, various technologies such as RFID (radio frequency identification) are used: A small device-mounted chip that gives them their own identity, memory, and the ability to communicate with other devices and obtain data so they can make their own decisions within a predefined frame. For this reason items with this technology are called smart devices.

With the increasing networking of devices over the Internet, a new technology infrastructure emerges, also referred to as the Internet of Things, abbreviated to IoT.

As a result, we can state that the IoT is increasingly connecting the real world with the virtual world, with the goal of making life safer, easier, and more economical.

2. Internet of Things (IoT) – What does it mean? (Consequences)

If more and more devices in our world become smart, this will have an impact on our everyday lives and our working environment: Things that we have to do ourselves today and that we take for granted will be done for us automatically tomorrow. Through the data that we are able to see the internet usage profiles for each customer will be customized.

Here are some examples to illustrate:

• In Trucks there will be dozens of sensors that analyze any problem like performance, safety and productivity issues. An implemented early warning system lets you know if any problem might cause a delayed delivery and makes sure to solve it on time – even before the driver would have been able to realize that there might be a problem. Just imagine the truck needs to be brought to a service station because of the need to replace broken parts. In this case an appropriate message will be sent, the nearest service station will be located on the track and the driver will be informed of where to stop and what needs to be done.
• Intelligent deliveries find their own way to the destination and send information about their shipping route.
• Street lights will dim themselves when nobody is around. As a result, the power consumption and costs will be reduced.

These are just a few examples, but on the basis of their diversity, they already give an idea of how far-reaching the effects will be.

“The Internet of Things (IoT) is not just about Trucks, cars, factories, power companies, hole cities – it’s about connecting everything.”- Yasemin Yazan

3. Internet of Things (IoT) – Relevance to the question of “How to Dominate your Market”

If you understand the principle of IoT, it makes sense to look at it today and think about which products and business ideas, regardless of the industry, can be developed: What kind of products and/or services do you offer as an entrepreneur and how do you turn them into smart products and/or services through a connection to the internet? What kind of intelligence would provide added value for your customers you should work on today?

Answers to these questions will open your way to market leadership.

Conclusion

In addition to the previous aspects I discussed in my recent articles, the IoT is another element of relevance to digital transformation. For you as an entrepreneur, it is important not only to ensure your survival, but also to conquer the market of the future, so as not to be overrun by the digital tsunami. This presupposes that you are thoroughly familiar with the elements of digitalization and that you are able to deal with them.

Do you want to check how familiar you already are with the terms on this topic? Then do the Digi-Check to find out what you already know and where you still have a lack of information.

Note: If you belong to the first ones, you’ll also get the opportunity for a free 30 minutes online coaching session with me on top to talk about your results and your next steps.

So, take your chance and do the test now: Click here for the Digi-Check!

Do you want to get more insights from Yasemin about digitization, digitalization and digital transformation? Next Part is coming soon – so stay tuned. It is worth it!

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