How the Internet of Things Will Transform Business in 2017 and Beyond

Amazon Echo, FitBit, and even your coffee pot are all examples of the Internet of Things (IoT), everyday objects that can connect to the Internet, be recognized by other devices, and feed information to databases.

IoT describes an "Internet V.2" where data is generated by physical things. Digital‑innovation expert Kevin Ashton defined IoT as a system where computers that know everything can extract information from collected data, allowing us to track, calculate, and reduce waste, loss, and cost, and to know when to replace, repair, or recall items.

With the physical world becoming a massive information system, the article asks how IoT will affect business in 2017.

Although some believed IoT’s adoption started slower than expected, most agree it is growing and will continue to expand through 2017 and beyond. While forecasts for the number of connected devices by 2020 remain uncertain, enterprises that learn to leverage IoT‑generated data are expected to survive and thrive.

IoT is spawning new products and innovations such as smarter homes, wearables, and connected cars.

Smart‑home technology saw a huge surge in 2016, with Amazon’s holiday sales reportedly nine times higher than the previous year. Surveys indicate that smart‑home devices will become more important in 2017, and 70 % of purchasers say they are likely to buy more.

Wearable products reached 78.1 million units sold in 2015 and are projected to grow to 411 million by 2020. Smartwatches, fitness trackers, VR headsets, and other wearables generate massive data that offers new business opportunities.

By 2021, an estimated 82 % of cars will be internet‑connected, enabling app integration, navigation, diagnostics, and even autonomous driving, driving heavy investment in automotive IoT innovation.

IoT will also change the way businesses operate:

Inventory management: Smart devices can automatically track assets, reducing manual counting.

Consumer demand: Customers will expect “smart” behavior from products, creating new revenue streams for innovative gadgets and appliances.

Shorter purchase cycles: Companies must respond faster to meet the instant‑satisfaction expectations of IoT‑enabled consumers.

Learning from data: The volume of data generated by smart devices can reveal insights that drive innovation.

Remote work: Greater integration of IoT enables more tasks to be performed remotely.

There is no doubt IoT is just beginning; firms that develop or expand IoT capabilities in their products, services, and operations now will gain a competitive edge.

However, like most new innovations, IoT has drawbacks. Most current IoT devices lack robust security, making them easy targets for hackers; millions were hijacked last year and used to consume Internet infrastructure. Future IoT manufacturers will need to prioritize security, and users should take all precautions to protect their devices.