The advantage of the IoT is that it opens up opportunities for SMEs to grow and optimise customer experience.
From smartwatches, self-driving cars, automated response sensors and tiny chips to large smart machines, the age of connected devices is here.
The Internet of Things refers to the concept of billions of devices being connected to the internet, and it is having an impact on how we do business today.
According to business technology company Gartner, by 2030 smart machines, connected devices and nearly unlimited amounts of information will come to dominate small business. It also predicts the low cost of adding IoT capability will further ‘activate’ unconnected devices. Emerging areas of business will see the rapid growth of connected things, leading to improved safety, security and loss prevention while helping develop new business models.
Small and midsized businesses can benefit from connected devices. So just how can your business take advantage of the IoT wave?
- More efficiency
Today precision is key. For many businesses, relatively simple processes such as estimating inventory and manually updating equipment are no longer enough. Gone are the days of the educated guess or slow, repetitive manual processes.
With connected devices becoming cheaper, there is the opportunity to leverage cheap processors, sensors and other technologies to help with the collection of information from all sorts of business areas, leading to more informed, data-driven decisions.
- Easier payments
The payment revolution is continuing to make its way to small businesses. Customers can do without pulling out cash or credit cards and entering PINs. The IoT offers customers easy, quick and accessible ways to make payments.
‘The world of the IoT opens up significant opportunities for SMEs to grow and optimise customer experience.’
Technologies such as PayPass and mobile payments are making it easier for customers. As these payment systems become more popular, small businesses can find advantages such as easier payment processing, making refunds and issuing credits.
- Using data
Data is revolutionising the business world. Large companies are leveraging large amounts of customer data to deliver valuable, actionable insights. While using and analysing data has been intimidating for small-business owners, IoT systems for leveraging data are becoming more affordable and accessible.
Gartner believes that by 2020 component costs will have dropped to the point that connectivity will become a standard feature, even for processors costing less than $1. Increasingly, the IoT will become more accessible, quicker and easier to use than ever before. With the IoT making its way to more and more small businesses, it is a chance to provide a real 360° overview of customers – who they are, market sentiment and why they might be leaving.
- Security focus
A government report says that online criminal activity is estimated to cost Australian organisations $1 billion each year, while only 2% of businesses report that protection of their online business information is a priority.
This year, however, will see a significant shift toward a greater focus on cyber security. With new technologies and businesses coming to realise the benefits of the IoT, small businesses increasingly need to discuss their cyber-security strategy as data protection is fundamental to business.
The world of the IoT opens up significant opportunities for SMEs to grow and optimise customer experience. But as businesses turn to new technologies, they need to consider their approach. While simple processes such as regularly updating passwords and ignoring suspicious emails can help reduce risk, stronger procedures are needed so customers can be assured your business is doing its best to protect their data. An SSL not only helps to keep customer data safe, it can also attract more loyal shoppers who feel secure using your website.
While it is important to keep up with the technology curve, it is also important to be selective about technology so as to create the opportunities that will help drive business and keep you ahead of the competition.
Tara Commerford, GoDaddy Country Manager for Australia & New Zealand
This article first appeared in issue 12 of the Inside Small Business quarterly magazine
