What does an IoT system mean for businesses? What is the Internet of Things? What role does it play in industrial development? These three questions are searched for by many businesses on discussion forums. Let's discover the answers to all three with SBiz.vn!
What does an IoT system mean for businesses?
An IoT (Internet of Things) system is a system that connects the devices used in production to the Internet. They can extract and move data from devices to a common network and exchange data with each other. This is the simplest answer to what an IoT system means for businesses.
To do this, IoT solution providers have to upgrade old equipment and machinery so it can link to the Internet and to each other. Imagine a business's production line that always needs someone to watch and monitor how the equipment is operating.
What does an IoT system mean for businesses?
Now businesses know what an IoT system is: it lets devices communicate with and sense each other. Today IoT solutions are applied in almost every industrial sector, opening new doors for businesses to grow.
The history of IoT and its impact on world industry
In 1964, Karl Steinbuch, a German computer scientist, declared that “in just a few decades, computers will be present in almost every industrial product”. This statement proved the importance of the Internet in general and laid the groundwork for later generations to bring IoT into industrial development.
It wasn't until 1999 that Kevin Ashton, Director of the Auto-ID Lab at the Massachusetts Institute of Technology (USA), successfully applied radio frequency identification (RFID). The technology was later widely used in supermarkets and retail stores to prevent theft.
In 1983, Ethernet (the networking technology for local area networks, LAN) was standardized, opening the era of data transmission and high-bandwidth technology. This was the starting gun for industrialization and modernization.
An illustration of IoT in Windows 10
In 2002, cloud computing emerged, bringing engineering and technology closer to answering what an IoT system is.
Around 2008-2009, the number of objects and devices connected to the Internet was found to exceed the number of people. With the explosion of smartphones and tablets, the number of Internet-connected devices reached 50 billion while the world population was only 7.6 billion.
So large businesses and manufacturers are also setting up “connections” for everything in their companies to control and monitor effectively.
The pros and cons of IoT for industrial development
So does an IoT system have many pros and cons for businesses? Of course, the benefits IoT brings businesses outweigh the trouble it causes.
Pros
When a business uses an IoT solution to manage and maintain assets, all devices are synchronized on the same system. Businesses and manufacturers will experience the following benefits:
Tracking the operating progress of each device
Predicting production time and the quantity of finished goods
Extracting, transmitting and sharing data through sensors
Production errors and machine faults are reported as fast as possible
Immediate notification when a machine is approaching its service cycle
Improving staff productivity
Integrating and adapting quickly to many business models
Storing and predicting figures to change business strategy in time
The pros and cons of IoT systems
These are just the top 8 benefits IoT solutions bring businesses. With each business model, owners will certainly experience many other great things IoT brings to their business.
Cons
Privacy is violated if hackers break into the system.
Surplus labor grows quickly, raising unemployment.
However, many studies show that even with IoT solutions, businesses still need a certain workforce to monitor and track production operations. In addition, when equipment shows signs of damage, businesses still need a technical department to repair and assemble machinery and update its sensors.
Applications of IoT
Once they fully understand what an IoT system is, large businesses in every model are “courting” this solution, including the smart factory model. In Vietnam, large companies such as TH True Milk, Vinamilk, The Gioi Di Dong and Hitachi are all applying IoT in HR operations and production management.
Applications of IoT
IoT can be applied in many fields beyond manufacturing, such as healthcare, warehouse management, agriculture, retail, etc. This means that not only large businesses but also small and medium-sized businesses, manufacturers and household producers can use IoT solutions.
It isn't hard to understand what an IoT system is, but to apply this solution to production processes, businesses need to choose IoT solutions that fit their business model. SBiz.vn is the most reliable solution and support provider for businesses, helping them reach further and grow strongly in industry.