IoT: Is Your Enterprise Ready to Take the Leap?

When internet was used for the first time to transmit data in 1969, little did we know about smart car, smart enterprise or Internet of Things (Internet of Things (IoT).Today, we are living in the age of Internet of Things. Switching on the AC of the car while in the office lift or switching on the coffeemaker while reading a book is no longer a fiction but a reality.

Discussion on Internet of Things (IoT) - a connected environment, where you switch on the washing machine while in office or your running shoes track your running speed per hour- has so far resonated most in the business to consumer space.

While the discussion of Internet of Things (IoT) on enterprise environment may not be as quirky as what is experienced or spoken about on the consumer side but it has impacted the enterprises as well. CIOs/CTOs are already realizing the ways it can shake up the enterprise network. As Daniel Castro, senior analyst with the Information Technology and Innovation Foundation (ITIF) puts it ‘Products and services which were previously outside their (CIOs) domain will increasingly be under their jurisdiction' with internet of things connecting various entities in an enterprise.

M2M provides an array of benefits:What does M2M or IoT mean to an enterprise?

Web-connected locations tracker to monitor people/assets, security cameras at office premise, smart-meters to track power consumption of a building are some examples.

For example, Machine-to-Machine (M2M) solutions like location tracker or smart meter connects ‘things' to the internet transforming them into intelligent devices that exchange real time information and opens up a range of possibilities on how businesses are run, and how they keep customers happy. According to a recent study by GSMA, global M2M connections will touch 250 million in 2014. In India, M2M has impacted government, private enterprises and in many ways our lives directly or indirectly.

- Operational efficiency: Save time and money e.g: Retail industry with better fleet navigation

- New business models: Stay ahead of the game e.g: Amazon Kindle

- Customer satisfaction: Increase customer loyalty e.g: Smart Car

- Compliance: Avoid penalties & improve business practices e.g: Smart Metering or eCall

With the growing penetration of IoT in the enterprise environment, M2M services will play a key role in a connected world; M2M is widely adopted in Smart Meters in Utilities, fleet management, retail wireless Point of Sale (PoS) machines. These solutions have even helped many organizations in creating new sources of revenue, which is increasing their demand and deployment across sectors like utilities, automotive, healthcare, consumer electronics, etc. According to the latest report by Machina Research, India will reach 7.93 mn M2M connections by 2015, earning more than 2200 Mn INR in revenues and as per GSMA, the proliferation of connected devices will create a USD 4.5 trillion market for global business by 2020.

Therefore, new generations of networkable devices coming up with consistent device miniaturization and plummeting technology costs are adopted by the enterprises to enhance efficiency. The data generated by these devices, when analysed are giving insights to enhance their services. Thus, interwoven data is playing a pivotal role in the hyper connected world. Internet of Systems or the Internet as we know, Internet of People and the Internet of Things are three phenomenon which are generating peta bytes of data. This data is seen as an opportunity for enterprises to leverage and create new business models and shape customer experience, thereby becoming an integral part of the customer's lifecycle.

Building blocks of a connected enterprise

To operate in the Internet of Things (IoT) environment, enterprises need focus on the following factors"

- Network: Evaluate the wired and wireless network of the enterprise as performance of the network would be crucial to leverage the Internet of Things. In a converged wireline/wireless IP network of an enterprise, ensuring seamless communication will a challenge with a variety of applications competing for network resources.

- Security: Security of data is paramount and the right design of M2M elements viz., device, application, connectivity and destination server infrastructure plays a critical role in ensuring a no compromise deployment.

- Manageability: The M2M deployments are typically widespread in geography and enterprises need to deploy right tools for manageability in order to control the total cost of ownership (TCO).

- Business Processes: The higher visibility into business through M2M/IoT deployments calls for reengineering or in certain cases transformation of business processes. As an example, a connected high value asset enables organisations to better manage and control asset efficiency. The legacy processes need to be re-designed to leverage the benefits of M2M.

Enterprises are increasingly realising the benefits of these devices and it is driving innovation in the Internet of Things (IoT) space.