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The business environment is now more competitive than ever. It is particularly challenging for a business to remain profitable year after year and maintain a strong market position. For this reason, it is important for businesses to take advantage of modern technologies, which can enhance various aspects of their operations and provide a new competitive advantage. One such technology is the Internet of Things, or Internet of Things (IoT).
The importance of the Internet of Things has not gone unnoticed by Greek businesses. According to the annual ‘Survey on the use of information, communication and e-commerce technologies in businesses, 2021’ by the Hellenic Statistical Authority, 22% of businesses that have access to the internet for business purposes use the Internet of Things. In the graph below from the Hellenic Statistical Authority we see the ways in which Greek businesses use the Internet of Things.
The impact of the Internet of Things is evident globally. According to Statista, in 2024 there are 18 billion devices connected to the Internet of Things and they are expected to reach 32.1 billion in 2030. By the end of this article you will have a full understanding of what IoT is and how you can integrate it into your business operations.
What is the Internet of Things (IoT)?
The Internet of Things (IoT) refers to connecting physical devices to the internet, allowing them to send and receive data. These devices include sensors, production machinery, vehicles and other infrastructure. Through the analysis of this data, businesses can monitor and manage their operations such as production, distribution, warehouse management, and more more efficiently.
Key elements of the Internet of Things
1) Devices and sensors
Devices and embedded sensors are the basis of the Internet of Things. They are the starting point, as they collect real-world data about products, machines, the environment and more.
2) Network
A necessary element of the Internet of Things is an internet connection, via WiFi, 4G/5G or other technologies.
3) Internet of Things applications
Internet of Things applications refer to software that receives data from IoT devices and can process or analyse it before returning it to the end user. Some IoT applications use technologies such as artificial intelligence and machine learning to analyse data, categorise it, filter it or perform an action automatically. Other applications simply display it to the end user. The functionalities offered by each IoT application depend on the information needs of the respective business.
5 Benefits of the Internet of Things in business
The integration of the Internet of Things into business processes offers significant advantages, such as:
1) Creating a competitive advantage
If a company implements IoT technologies in a smart way, it can improve its processes as well as the quality of the data in its possession so much that it can outperform its competitors in specific areas and gain a competitive advantage.
For example, by integrating sensors, an industry can predict when its machines will need maintenance, preventing breakdowns and significantly reducing the time the machines are out of service. In this way it can significantly reduce the costs of maintaining machinery, allowing it to offer a lower price than the rest of the market or to invest more in marketing.
At the same time, the company with IoT devices can calculate and record important quality indicators, thus understanding when the quality of the products produced by the machines begins to decline. Thus, it can immediately proceed with their maintenance, keeping the quality of the products at a high level. This consistency is appreciated by consumers, who continue to buy from the company since they are consistently satisfied.
Companies that integrate the Internet of Things in these ways gain a big advantage over their competitors that do not exploit the potential of IoT.
2) Increased productivity
Businesses that exploit the potential of the Internet of Things can significantly increase their productivity.
Staying with the industrial example, with predictive maintenance, the production department can schedule the maintenance of machines at times when they do not need to be running at all or at least not at full capacity. This capability guarantees that the company is always operating at its highest production capacity without reducing the amount of product from the downtime of the machinery.
3) Cost reduction
With the Internet of Things, the company can reduce costs from energy consumption. IoT devices can sense at any time whether the machines need to be left on and adjust their operation according to the needs of the moment. In the same way, they can regulate other energy requirements of a facility, such as electricity and heating. With these adjustments, the IoT brings the cost of energy down to a minimum.
In industry, it predicts failures, thus eliminating large maintenance costs in case of severe damage. Conversely, with the data it offers it can suggest that no maintenance is needed, reducing costs from maintenance that did not need to be carried out.
4) Improved customer service
The Internet of Things has the potential to improve customer service and increase customer satisfaction. By using IoT devices in transportation and warehousing, businesses can reduce errors in shipments, as well as delivery time. At the same time, many businesses are viewing the location of the order in real time, keeping customers informed of its progress. Speed, transparency and reduced errors significantly improve the customer experience.
5) Fostering innovation
By leveraging IoT applications, companies can identify new business opportunities and offer new products and services, or improve existing ones. With new technologies, companies can produce more complex products, in larger quantities or in less time, unlocking possibilities that did not previously exist.
An example of innovation is Bigbelly’s waste tracking. By placing smart sensors in bins, they provide real-time information on fullness so that waste collections can be made in a timely manner and only where needed. This service is particularly valuable for cities and various businesses, and could not be implemented without Internet of Things technologies.
Internet of Things applications: 7 examples
We have been observing for years how the Internet of Things is being used by businesses in various industries. Let’s take a practical look at how the Internet of Things enhances critical business functions.
1) Product production - quality control
IoT devices are used by companies in the production of products to ensure their quality and standardize production. With sensors and other devices, they record temperature, humidity, light and other indicators and ensure the quality and safety of products.
We used IoT devices (sensors) in the olive oil production process of Kolymbari SA. The sensors record the temperature at key stages of production, allowing automation of quality control and recording of sample taking. In combination with Soft1 ERP and custom application development, we digitized the production process as a whole, improving oil quality and reducing data search time and errors.
The digitalisation of the process and the automation of quality control also reduces production waste, i.e. wastage from defective products that do not meet specifications.
As confirmed by the ELSTAT survey, 16.8% of companies use sensors to monitor or automate production processes.
2) Predictive maintenance
As we discussed earlier, the Internet of Things enables predictive maintenance of machines, preventing breakdowns, increasing productivity and reducing costs and downtime. Now, with specialised software, factories can create digital twins, i.e. digital clones of machines, making it easy to visualise problems and simulate different scenarios.
According to the ELSTAT survey, 32.1% of Greek businesses use IoT devices to monitor the maintenance of vehicles or machinery.
3) Transport - Logistics - Fleet Management
28.3% of businesses use devices to track the location of products and vehicles. With the Internet of Things, transport companies can know where their vehicles are at any time and accurately estimate the time of arrival, depending on the prevailing conditions. These capabilities are widely applicable to courier and food delivery companies, allowing customers to know in real time where their order is and track its location. At the same time, they are also used by both public and private means, such as buses and taxi or scooter companies. The customer can calculate the arrival time of their transport, as well as locate the nearest scooter on the map.
4) Energy
The Internet of Things (IoT) is helping to reduce energy consumption in businesses through automation, monitoring and real-time analysis. It is used by 43.7% of businesses for this purpose. IoT sensors can monitor the presence of people in workplaces and adjust lighting and heating or cooling accordingly. For example, in an office building, lights and air conditioners can be automatically turned off when the spaces are empty, reducing unnecessary energy consumption.
By using connected devices, businesses can monitor energy consumption at any time. IoT enables analysis of energy use by specific machines or parts of the business and provides data to optimise efficiency. This allows companies to identify equipment that is consuming excessive energy and replace or adjust it.
5) Safety
Security is the most widespread use of the Internet of Things by Greek businesses, with 91.9% of businesses having integrated smart alarm systems to secure their premises. Smart cameras and sensors can be connected to software that has been customized to perform automated actions or alert people.
6) Supply chain
The Internet of Things is also finding great application in supply chain management. Businesses can know at any time where the products they have sold and the stocks they have ordered are located, which also serves the needs of product traceability. At the same time, they can ensure that the requirements for maintaining the quality and safety of products are met, such as keeping them at an appropriate temperature during transport.
7) Waste control
The Internet of Things (IoT) is making a significant contribution to improving waste management, making the process more efficient, sustainable and cost-effective. Smart bins are equipped with sensors that monitor their filling level in real time. This information is sent to central management systems, allowing waste managers to organise collection routes more efficiently. As a result, collection only takes place when the bins are almost full, reducing unnecessary trips and wasted resources.
Using this data and GPS, managers can plan more efficient collection routes. IoT helps calculate the shortest route to collect waste from full bins, reducing fuel use, vehicle maintenance costs and emissions.
Internet of Things: the challenges
We can now see that the value that the Internet of Things brings to businesses is undeniable. However, this technology is not easy to integrate into a business without proper planning.
1) Cost
The cost of integrating Internet of Things technologies is particularly high, if we include both equipment and software needs. For this reason, a proper analysis of the needs must be carried out in order to come up with the optimal solution, without wasting large amounts of money on a system that will ultimately not benefit the company. As long as rational planning is done, the IoT installation will definitely return the investment in the long run.
2) Personal data
One issue that arises from the deployment of IoT devices is the protection of user data collected by them. With the strengthening of the GDPR rules, businesses need to take appropriate measures to ensure they are compliant with the provisions of the law.
3) Cyber security
Cybersecurity is a key issue in the Internet of Things. The large number of devices creates more risks for cyber-attacks, so businesses need to put a lot of emphasis on security to protect their devices and valuable data.
4) Integration
The devices that will be installed may have great capabilities, but they will not offer the company anything if they cannot be effectively combined with the necessary software. Therefore, it is critical to select devices and applications that can work together efficiently.
Leverage the potential of IoT
At Verus+ we are constantly integrating new technologies and the Internet of Things could not be the exception. We have the expertise and the right tools (ERP systems, software development, hardware and security) to successfully implement the Internet of Things in your business operations. Contact us to analyze your needs and together we can come up with the best way to leverage IoT.
