This is 2021 and almost everything in the world today is driven by the internet. In fact, the world has advanced from the basic nuances of the internet and the focus is now changing to the Internet of Things. We all know and would agree that the IoT is among the most spectacular and fascinating fundamentals of the ongoing digital revolution. We are dwelling in times where cars are now internet enabled. Needless to say, we will get to see some massive transformations riding on IoT in the coming years. The future indeed belongs to IoT and the world must embrace the transition before it is too late.
IoT is steering major overhauls in all spheres of life. Speaking of the corporate world in particular, IoT is changing the face of the business world for the better as it exposes businesses to new opportunities with each passing day. In fact, the IoT has introduced startups and small businesses with opportunities like never before to go big. This blog sheds light on how the advent of IoT can propel ambitious startups to conquer the cloud nine of success. So, without further ado, let us get started.
Ways in which IoT can help startups drive greater success
Enhanced data analytics
Everything in today’s world revolves around data especially when it comes to the corporate world. Needless to say, data has a crucial role to play in helping enterprises in getting vital business insights. Moreover, effective data analytics enables refined decision-making that can give a major push to startups. Having said that, with IoT, companies can evaluate their business operations in the most worthwhile ways based on credible data. Self-assessment becomes way more convenient with IoT.
Moving forward, a more optimized analysis of current business operations and processes can provide great scope for improvements. Based on the data collected by the IoT infrastructure, business leaders can forecast adversities and prepare for the contingency. Besides, given the overwhelming significance of decision-making for startups, IoT can facilitate well-informed and meticulous decisions. After all, one wrong decision can doom a startup!
Whether it is about investments, prioritization of success factors, or logistics, startups have to be careful and calculated about their strategic plans and decisions. The greater the number of data streams and analytical insights the more enhanced will be the reliability of decisions. Given that, IoT can bring in massive changes to make effective leaders far more efficient.
Improved customer experience
It is a well-known fact that excellent customer service is the key to retaining customers. While startups are still in their growing phase, each customer counts for them. Having said that, startups need to deliver high value to their customers in terms of service and experience. It is noteworthy that as per American Express, customers are even happy to pay 17 percent price premiums when they are impressed by the experiences delivered by a business.
Moving forward, as per Forbes, 65 percent of people would be happy to commit their long-term loyalty to businesses that offer positive experiences to their customers. Having said that, IoT can be game-changing for startups when it comes to delivering incredible customer service.
With IoT analytics, startups can better comprehend the buying patterns and ever-changing preferences of customers. As long as companies remain aligned with the changes in customer behavior, they would have the best chance of retaining their customers. IoT can further assist small businesses in knowing how customers use their products and what features are of utmost importance to them. Along with this, combined with digital PR, IOT can help startups create personalized marketing campaigns for target customers. This can not only enhance customer experience but also boost sales and company reputation.
These insights along with the collection of customer feedback will be of great value to startups to plan their future products and services. This will give a consumer-based perspective to startups and they would be able to work on the designs and features that people anticipate the most. For example, data analytics and insights have led to the initiation of InsurTech startups. These startups have started revolutionizing the world of Insurance. It is being said that these startups are a threat to the status quo of established insurance companies. InsurTechs are technology lead companies that primarily use technologies such as artificial intelligence and IOT to offer coverage to a more digitally savvy customer base. Using these technologies insurtech companies mitigate and even avoid preventable losses for their customers, which leads to great customer experience.
Moreover, in addition to data on customer preferences, Internet of things will also play a humongous role in changing the dynamics of customer service. IoT will make both online and offline shopping far more convenient, fast-paced, and satisfying for customers.
The Amazon Go stores cite a perfect example of how IoT is making shopping hassle-free for customers. At these offline stores, customers can pick whatever they want and move out. The money would be debited automatically from their Amazon wallets and they would not have to stand in queues for checking out.
This is exactly what the future of shopping looks like and the more convenient a business makes it for customers the higher would be the customer retention rates. Of course, Internet of things has to be at the forefront of customer service.
Optimized inventory management
Inefficient management of inventory and regular disruptions in the supply chain can be disastrous for manufacturing startups. If there are gaps in inventory management or supply chain, a startup’s growth will remain stalled. What we also need to acknowledge here is that the entire world is in the middle of a grave supply chain crisis. Owing to that, production is on the decline, and the prices of supplies are skyrocketing.
The question is, “can anything be done to navigate through this supply chain crisis and get production lines streamlined again?” The answer is the Internet of Things (IoT). With IoT sensors and asset trackers, inventory management can get more productive than ever before. IoT asset trackers can track the location of supplies in transit. Besides, they can also provide real-time insights on the condition of the supply in transit and help businesses in avoiding the spoilage of supplies.
Furthermore, IoT sensors can also sense the temperatures inside the shipping containers or fleet vehicles to create a cold supply chain. A cold supply chain is essential for goods like foods and beverages, pharmaceutical items, chemicals, and other reactive compounds. If surrounding temperatures shoot up above prescribed limits, such items begin to deteriorate. In fact, in the case of chemicals, it can also lead to disastrous accidents. In such situations, IoT sensors can give alerts for immediate actions to be taken.
Therefore, as you can see, there are multifarious ways in which IoT equipment and sensors can optimize every vertical of inventory management. By all means, this is a competitive advantage that every business would want to gain. Besides, attaining this edge over customers becomes far more important for businesses in these times of uncertainties in the global supply chain. As startups begin to inculcate IoT into their supply chain, the manufacturing costs will also witness reductions.
Massive reduction in downtime
McKinsey concludes that with the help of Internet of things, businesses can bring up to a 50 percent downfall in equipment downtime. This advantage of IoT should be of immense importance for startups in particular as long durations of downtime can hamper growth. Downtime for unprecedented durations can affect production, project completion as well as customer experiences. Hence, it is imperative for ambitious startups to be immune to downtime debacles.
As explained in the insights from McKinsey, IoT can prove to be a perfect solution to minimize downtime. With the least possible downtime, a business can be more truthful to its commitments and deliver across its B2B or B2C channels within the stipulated time. IoT can enhance the preventive maintenance of machinery, systems, equipment, and other tools. Based on the indications by IoT models, companies can fix maintenance issues much before they collapse.
Also, minimum downtime implies that businesses would be able to get the most out of their employees without prolonged disruptions in the employee engagement process. Otherwise, because of long hauls due to recurring downtime, employees may begin to lose their motivation.
Cost-effectiveness is a direct measure of success for any business. The lower the operating costs the greater will be the profit margins. Having said that, every business big or small looks to ascertain ways that can enhance cost-effectiveness. What drives a downfall in operating costs are greater innovation and streamlining in processes within an organization. Well, Internet of things can help startups in achieving both these parameters for better cost-effectiveness.
When all operational processes will be optimized with the help of IoT, businesses can avert unnecessary losses they have to often bear. Besides, IoT-enabled power systems will ensure that there is no wastage of electricity in the workplace leading to unnecessary and exorbitant utility bills. In a similar way, in every domain of the workplace, IoT can be a worthwhile tool for reducing operational costs.
To further substantiate, as per McKinsey, predictive maintenance facilitated by IoT can save up to 40 percent of maintenance costs along with other operating costs. Furthermore, analysis by DHL and Cisco infers that IoT can help businesses save productivity losses worth USD 1.2 trillion.
Big boost for health tech startups
IoT is proving to be a priceless asset for the health tech startups that are gaining massive popularity in contemporary times. Based on the advancements in IoT, health tech startups are now able to offer more fitness features to customers. IoT is at the helm of cultivating healthy lifestyles among people and improving overall health quality. Needless to say, health tech startups are making the most of it and providing personalized health care remotely.
IoT or IoMT (Internet of Medical Things) comes with the incredible ability to monitor health data that includes blood pressure, heart rate, the number of steps walked, and so on. The reliability of health data provided by IoT is high and hence it can be used to offer personalized health tips and medical care to people. To add, IoT can also facilitate the health startups in monitoring patients from a remote location via health tracking devices.
Colossal scope for innovation
In the contemporary business world, innovation is synonymous with a competitive advantage. In fact, the future belongs to those startups or businesses that can excel in innovation. The race today is for innovation! This is where the timely incorporation of IoT becomes quintessential for startups. With IoT at the helm of various business verticals, startups can drive constant state-of-the-art innovation. Further, this seamless innovation will pave the way for better solutions, processes, and exponential growth.
In fact, as per Accenture, 62 percent of corporations are looking forward to making exorbitant investments in technologies that can drive high innovation. A large part of this investment is going into IoT. The sooner a startup gives itself the competitive edge of innovation with IoT the more streamlined will be the growth. Having said that, give your startup the perfect opportunity to go big with IoT and innovation. If there was ever an ideal time to invest in IoT, this is it!
To encapsulate, IoT holds the key to business success in the future. In the coming years, we would see the expanse, prowess, and scope of IoT amplify in an even more overwhelming way. Even today, those who have brought IoT on board are giving themselves a fair chance to build capabilities for the future. With the ever-increasing competition, it becomes essential to stay ahead of others and IoT is a wonderful opportunity for startups to grow big.