BUSINESS IMPACTS OF IOT Flashcards
Supply Chain and Inventory Management
What Happens:
IoT introduces smart tracking and automation to the supply chain. By using RFID tags, GPS, and sensors, companies can monitor goods from the moment they leave the warehouse to when they are delivered.
Impact:
Real-time location tracking of goods and shipments
Monitoring storage conditions like temperature and humidity
Automatic restocking alerts when inventory runs low
Predictive analysis of supply chain disruptions
Example:
An e-commerce company like Amazon uses IoT in warehouses to track item locations and manage robots for efficient picking and packing. Smart shelves alert managers when items run low, reducing the chances of out-of-stock situations.
Manufacturing and Industrial Automation (Industry 4.0)
What Happens:
IoT enables machines and equipment in factories to be connected, allowing real-time communication and data sharing. This creates a smart factory environment.
Impact:
Machines can self-diagnose issues and request maintenance
Improves productivity through automation and real-time monitoring
Reduces downtime with predictive maintenance
Tracks raw material usage and product quality in real-time
Example:
A car manufacturing plant uses IoT sensors to monitor robotic arms. If a sensor detects overheating, the system can shut down the robot for maintenance before it causes major damage.
Asset and Equipment Management
What Happens:
IoT allows businesses to track the condition, usage, and performance of valuable equipment and assets using connected sensors.
Impact:
Tracks equipment health to avoid sudden breakdowns
Schedules maintenance automatically based on real-time data
Extends the life of machinery
Optimizes asset usage
Example:
Airlines use IoT sensors to monitor engine performance in real-time. Engineers can detect abnormalities and fix issues before they cause delays or accidents.
Customer Service and Experience
What Happens:
IoT devices collect customer behavior and usage data, which businesses use to improve service quality and offer proactive support.
Impact:
Enables remote diagnostics and repair
Enhances personalized customer experiences
Helps companies offer better warranties and service packages
Increases customer loyalty and satisfaction
Example:
A smart refrigerator detects a technical issue and automatically sends a report to customer service, who then schedules a repair visit before the customer even notices the problem.
Logistics and Fleet Management
What Happens:
Connected devices send usage data back to manufacturers, allowing them to improve products based on real-world feedback.
Impact:
Enables businesses to track how customers use their products
Identifies flaws and opportunities for improvement
Speeds up the research and development cycle
Encourages data-driven product innovation
Example:
A smartwatch company uses IoT data to track how often users check heart rate or sleep patterns, then improves the next version based on actual usage.
Employee Safety and Compliance
What Happens:
In hazardous industries like mining, oil, and construction, IoT devices ensure worker safety by monitoring environmental conditions and health status.
Impact:
Detects gas leaks, high temperatures, or dangerous equipment conditions
Alerts supervisors in emergencies
Ensures workers follow safety protocols
Reduces workplace accidents and insurance costs
Example:
Workers in a chemical plant wear IoT-powered helmets that track heart rate, detect gas levels, and send alerts during emergencies.
