Enterprise IoT – Why are businesses adopting it?

Date: 07-03-2024

In today’s business world, companies face many challenges. They struggle with things like being inefficient, not having up-to-date information, and keeping their data safe. They also have to deal with high energy costs. All of these things make it hard for businesses to grow and be successful in the digital age. One solution to these problems is called Enterprise IoT, or EoT for short. EoT is a way for companies to connect all of their devices to work together and share information. This can help businesses make better decisions and be more efficient.

A recent report shows that the global enterprise IoT market is growing quickly, and is expected to keep growing. This is because more and more companies are using EoT to improve their operations.

In this guide, we’ll explain what EoT is, give examples of how it works in the real world, and show you how to create a successful EoT strategy for your business.

What is Enterprise IoT?

The Enterprise Internet of Things (IoT) is all about using technology to connect devices and equipment across large organizations. By doing so, these organizations can collect data that helps them better understand how their equipment is being used, how well it’s performing, where it’s located, and more. This data can then be used to optimize operations, increase efficiency, and improve safety.

Unlike the IoT devices you might have at home, like smart speakers or fitness trackers, the Enterprise Internet of Things is focused on commercial and industrial applications that are used on a much larger scale. To make it work, organizations need to have strong data analytics tools, good security measures, and technology that can integrate with their existing systems.

The Enterprise IoT can help businesses run better by providing them with useful information about their equipment and how it’s being used.

Benefits of IoT in Enterprises

Enterprise IoT solutions can deliver significant financial and operational benefits directly affecting a company’s bottom line. Let us take a closer look at some of the key benefits of IoT platforms for businesses.

Increased Efficiency

By fitting machinery, vehicles, and equipment with IoT sensors, businesses can monitor usage patterns and performance more accurately. This data can be used to optimize processes and reduce downtime. Sensors can detect emerging issues early and alert managers before failures occur, allowing for just-in-time maintenance when needed.

Enhanced Safety and Compliance

Facility sensors provide continuous visibility into safety practices, hazardous situations, and environmental conditions. Managers can use this data to correct unsafe circumstances and comply with regulations proactively.

Cost Savings

Enterprise IoT solutions can lead to significant cost savings in labor and operational efficiencies, energy savings from usage reductions, decreased downtime and waste, lowered inventory carrying costs due to just-in-time ordering, and other benefits.

New Revenue Opportunities

Monetizing IoT data can help businesses develop new usage-based or subscription service business models with real-time equipment insights, which can increase sales touchpoints with customers to sell additional services.

Sustainable Competitive Advantage

Enterprise IoT data provides businesses with insights that their competitors do not have. This can help companies stand out with better products, personalization, and predict future trends. IoT unlocks improvements in how things work, making it essential to stay competitive in the digital world.

Common Enterprise IoT Use Cases

The landscape of business is changing with the help of Enterprise IoT. It’s revolutionizing the way companies work and making their processes more efficient. Whether it’s managing the supply chain or improving healthcare, the possibilities of IoT are endless. Check out some of the most popular use cases of Enterprise of Things to get an idea of how businesses are using this technology.

Smart Manufacturing

The Industrial (IoT) connects equipment on the factory floor to prevent breakdowns before they even happen. By using sensors, it tracks the performance metrics of machines like pressure, vibration, and temperature to optimize processes and save energy. Large companies like Siemens, GE, and Bosch are already benefiting from it. They’ve improved their quality control, increased production output, and shortened production cycles by using IoT.

Connected Logistics

Tracking devices such as fleet tracking telematics can help businesses optimize their vehicle’s route, driver’s behavior, fuel usage, cargo conditions, and cold chain integrity. With the help of IoT, enterprises can manage their inventory automatically and effortlessly. Smart warehousing with sensors monitoring stock levels and expiration dates in real-time is the way to go. Logistics giants like UPS, FedEx, and Maersk are also using IoT to coordinate their planes, ships, and trucks for quicker and more efficient transport.

Automotive

The automotive industry is being transformed by IoT, which is making cars smarter, safer, and more fun to drive. With the help of sensors and networks, cars can now communicate with their surroundings and share real-time data, which is making autonomous driving and predictive maintenance possible.

Smart Facilities

Office buildings, schools, and shopping centers are now equipped with smart devices that can monitor the temperature, lighting, occupation, air quality, leaks, assets, and security. These systems are managed by building management software to save energy, space, and maintenance cost based on individual room insights. The Edge building in Amsterdam has more than 30,000 sensors to automate lighting, heating, and more based on accurate usage patterns.

Utilities and Energy

Electricity, oil, and gas, as well as water meters are pretty smart these days. They can communicate how much of it you’re using, and they can also detect when things are going wrong. Renewable energy sources also have sensors that keep an eye on how they’re doing so they can be maintained properly. Companies like Duke Energy, Enel, and Woodside are using this technology to prevent outages and leaks and to keep things running smoothly.

FinTech

The Fintech industry is using IoT technology to provide better and more personalized financial services. By connecting IoT devices with financial platforms, banks and financial institutions can access a lot of customer data. This data helps them recommend customized financial services, detect fraudulent activities, and make payment processes easier. All these things make managing your money easier and more secure.

Connected Healthcare

Hospitals are using IoT solutions to keep tabs on medical equipment, labs, and also adjust things like air conditioning in rooms. Patients are also wearing wearables that track their health in real-time, such as heart rate and glucose levels, which doctors use to make better diagnoses and treatments. Big health systems like Mayo Clinic and Kaiser Permanente use the data from IoT devices to make sure patients have great experiences, are safe, and to provide better care.

Smart Retail

Stores are trying out new tech stuff to make shopping easier and faster for us. They use cameras and sensors to let us grab what we need and just go without ever waiting in line. They also use screens that show us ads based on what we like, and they keep track of what we buy so they can give us coupons for more stuff we might want. The stores can even use all this info to figure out how we move around the store and what we like to buy so they can keep enough of it in stock.

Connected Products

Companies are making their products smarter these days. They are adding sensors and internet connection to gather data about how people use these products. This data can help them to make better products and offer more services. For example, Tesla cars have sensors that can tell the company how well the car is doing and when it needs maintenance. This way, the company can keep the car running smoothly and keep the owner happy.

Smart Agriculture

Farmers are using smart technology to keep an eye on their crops, soil, equipment, and livestock. They get real-time updates on everything that’s happening and use that information to reduce waste, get better yields, and automate tasks like watering and harvesting. It’s called precision farming and it’s helping farmers be more efficient than ever.

Aviation

The Internet of Things (IoT) in aviation is like a game-changer. It can help in taking flight operations, maintenance, and passenger experiences to all new levels. By placing sensors throughout aircraft, airlines and airports can track everything from engine performance to baggage handling in real-time. This leads to better operational efficiency, less downtime, and more enjoyable passenger experiences.

Challenges Enterprises Face in IoT Implementation

The enterprise IoT has a lot of potential for businesses, but it also comes with its own set of challenges. These challenges can be both technological and organizational in nature and require careful consideration. Let’s take a closer look at what they are.

IoT Data Management

Dealing with tons of real-time data is a tough nut to crack. There are hundreds, if not thousands of IoT sensors and systems, each spewing data in different formats. It can be a real pain to collect, normalize and analyze all that data. To make sense of it all, organizations need data science expertise to develop systems that can aggregate and extract meaningful insights through analytics. Without this expertise, organizations could drown in a sea of IoT data with minimal value.

To streamline the process, it’s important to implement advanced data management platforms that can automatically normalize and analyze incoming data. Regular training sessions can also help staff effectively use these tools, improving data-driven decision-making.

Legacy System Integration

To get the most out of IoT solutions for enterprises, it’s important to make sure they work well with all the existing IT systems like ERP, CRM, e-commerce platforms, and data warehouses. This can be tricky because old and new technologies don’t always play nice together, and you might need to change how things work so you can use the real-time data. 

The goal is to make IoT work with the other systems, not make it hard to use them. Figuring out how to do this can be a challenge, but using integration platforms as a service (iPaaS) can help connect different systems in a flexible and scalable way. This lets you use IoT data with all the other digital tools you’re already using.

IT/OT Alignment

In factories and industries, IoT requires the IT and operations teams to work together on a single infrastructure for both digital and physical systems. This may mean that the organization needs to change and break down the barriers between these two groups. It also requires the leaders to commit to training the operations team on new technologies.

Interoperability Issues

Connecting different IoT gadgets can be quite complex, costly, and time-consuming as they often lack universal standards. The problem is that each device has its own hardware, network protocols, and software. And to make it worse, vendors keep updating their products, so you need to keep retrofitting. But don’t worry, new IoT standards will help ease the problem. Nonetheless, it won’t be a complete solution. One way to deal with it is by collaborating with dedicated IoT software developers to help shape universal standards. This will make it easier to connect different technologies and reduce future technical issues.

Proof of RoI

Measuring the return on investment and distinguishing between overhyped claims and actual benefits can be challenging for business leaders who are not well-versed in the true potential and limitations of IoT technology. It is crucial to carefully plan and test projects, and to link use cases to quantifiable key performance indicators (KPIs) in order to show tangible ROI before scaling up. Educating top management might be necessary to make progress.

Security Risks

Hackers have a much easier job nowadays with everything being connected to the internet. IoT devices, data transmission, cloud platforms, and data usage are all vulnerable to attacks. To keep them secure, companies should use a combination of methods such as encryption, access controls, data masking, microsegmentation, and expert monitoring. 

It’s important to invest in specialized IoT security solutions and educate staff regularly to reduce risks and prevent data breaches. By doing this, companies can ensure that their IoT devices and data are safe and secure.

Lack of Internal Expertise

Internet of Things (IoT) is still a new technology, and there aren’t enough skilled workers yet in areas such as hardware, data science, analytics, cybersecurity, app development, and connectivity. It takes a lot of work to become an expert in these fields, or you can hire specialists, but they’re hard to find. That’s why many companies prefer to partner with IoT vendors who have the knowledge and experience to help them out.

Immature Technology

Although IoT technology for enterprises is advancing quickly, there are still some issues with standards, security, bandwidth, and analytics. These gaps make it difficult to scale. Fortunately, edge computing architectures are changing to address the latency and bandwidth constraints. As the platforms continue to develop and mature, their capabilities will improve.

Cultural Resistance

Making use of real-time IoT data requires adjusting policies, procedures, workflows, and corporate culture, which is a big change. But not everyone might be on board with this change and that can lead to underutilization or resistance towards IoT capabilities. However, if everyone is in the loop, well-trained and involved, it can overcome any resistance – that’s why a comprehensive change management strategy is necessary.

Steps for Enterprise IoT Application Development

To create a great IoT solution for businesses, you need to think about both the technology and the business goals. Just follow these steps to develop an enterprise IoT solution.

App Conceptualization

During the conceptualization phase, it is crucial to understand business objectives, identify potential IoT use cases, and evaluate the impact on existing processes and systems. This strategic planning phase sets the tone for the rest of the development process.

Requirements Analysis

Conducti a thorough feasibility study to evaluate technical and economic aspects of the project. It is essential to gather requirements from all stakeholders to ensure that the solution meets business needs, user expectations, and technical constraints.

IoT Platform Selection

Select an IoT platform that fits the project’s requirements. Considerations such as compatibility with existing infrastructure, scalability, security features, and support for analytics play a vital role in choosing the right platform.

UI/UX Design

The UI/UX design phase involves designing the IoT system architecture, selecting devices, developing data flow diagrams, and integrating the architecture with existing enterprise systems. This stage requires careful planning to ensure scalability, security, and efficient data management.

Prototyping and Validation

It is crucial to develop a prototype to validate the concept with stakeholders, allowing for early identification of potential issues and refinement of the user experience.

Development

Development involves building the IoT application, integrating it with selected devices, and ensuring seamless communication between the IoT platform and enterprise systems. Agile practices can be beneficial here for iterative development and testing.

Testing and Quality Assurance

Conducting comprehensive testing, including unit testing, integration testing, system testing, and security testing, is crucial to ensure that the application meets all requirements and is free of vulnerabilities.

Deployment and Launch

After thorough testing, deploy the application in a controlled environment and monitor its performance. Careful planning is necessary at this stage to minimize disruption to existing operations.

Training and Support

It is essential to provide end-users and IT staff with training to ensure they are equipped to use and maintain the new system. Establishing support processes to address any issues post-deployment is also necessary.

Continuous Maintenance and Optimization

After deployment, it is crucial to continuously monitor the system to optimize performance, address any emerging issues, and update the system as needed based on user feedback and technological advancements.

Understanding Enterprise IoT Software Development Cost

The expenses involved in building and deploying IoT solutions for enterprises can vary significantly based on numerous factors, including the scale, complexity, number of use cases, endpoint volume, and required capabilities. Although the exact cost may differ depending on the specific requirements and scale of the project, industry experts estimate that the average cost range for developing an enterprise IoT software solution lies between $35,000 and $150,000 for small to medium-sized deployments and $200,000 to $350,000 or more for large-scale, complex implementations.

Below, we will delve into some of the primary factors that influence overall IoT software development costs in detail.

Scope of Use Cases

The cost of a project is directly proportional to the extent of its scope, especially when it spans across various business units and objectives. A project that aims to improve efficiency in a single manufacturing site would require less expenditure compared to a logistics tracking rollout that impacts the entire supply chain, field operations, and customer experience. In order to maximize return on investment, it is essential to prioritize use cases.

Number of Endpoint Sensors

Expanding the Internet of Things (IoT) ecosystem by adding more sensors and endpoints to monitor equipment, facilities, or products results in a proportional increase in hardware, connectivity, and data management expenses. Furthermore, the complexity of managing and processing the data signals also increases with the addition of more endpoints. Therefore, a focused approach is recommended for initial projects to ensure efficient utilization of resources and optimal outcomes.

Edge vs. Cloud Data Processing

Transmitting sensor data to the cloud for processing entails high bandwidth requirements and latency considerations. Implementing edge computing architectures to filter and analyze data locally can reduce data transmission costs, but it may also increase hardware needs. Striking the right balance through a hybrid model can effectively optimize both approaches.

Legacy Systems Integration

Integrating IoT data with enterprise systems like ERP and CRM can significantly enhance the context of the data. However, it also increases the overall integration costs, especially when dealing with multiple legacy systems. The complexity and cost involved in such integrations can be reduced by starting with greenfield implementations.

Custom Software Development

The implementation of IoT solutions in enterprises necessitates the development of bespoke dashboards, analytics, automation, and control software. The incorporation of intricate business logic, algorithms, and functionality results in a proportional increase in the overall cost of enterprise IoT software development.

IoT Platform Setup

Leading cloud service providers offer IoT platforms-as-a-service with varying pricing structures based on multiple factors, including endpoints, data processing capabilities, and additional features. On the other hand, open-source software provides more flexibility in terms of customization options, but its implementation and management require technical expertise.

Data Storage Needs

The frequency at which data is collected from devices and sensors has a direct impact on the amount of cloud storage required. When dealing with high-frequency temperature readings from a significant number of sensors, the storage needs and expenses are higher compared to occasional equipment telemetry. To optimize storage, compression and selective data transfer techniques can be employed.

Security Requirements

Securing IoT systems requires several measures such as data encryption, access controls, and hardened devices. While these measures are essential, they often add overhead costs. Additionally, rigorous penetration testing and audits help reduce the risk of security breaches but can also lead to increased labor costs. Furthermore, continuous monitoring for threats and regular updates are essential but also lead to ongoing expenses.

Geographic Distribution

Deploying a global network infrastructure requires higher connectivity costs, and it is necessary to have a distributed infrastructure for Local Area Networks (LANs) and Wide Area Networks (WANs). When deploying systems across multiple regions, it is important to consider the associated costs such as labor, security, maintenance, and platform licensing fees.

How can we help your organization?

Investing in Enterprise IoT can unlock a future of innovation and competitive advantage. Copperchips has extensive expertise in IoT services that can help elevate your business operations, making them efficient, productive, and sustainable.

Our team specializes in seamless integration with cloud platforms, secure IoT communication protocols, and machine learning models for instantaneous data processing and valuable insights. Contact us today for a tailored IoT solution that drives innovation and growth for your enterprise.