Why the Internet of Things has not established itself yet, and why you need it regardless
The Internet of Things – IoT for short – is a topic that cannot be avoided today. Many are talking about innovativeness, job security, and the need for digitalization – but few companies are actually taking the plunge. Why? Because there are many prerequisites for IoT that conflict with the traditional approaches of German companies.
For one thing, the Internet of Things requires a continuous flow of communication and information within the company. That means all process participants have to be linked, and the data collection format needs to be standardized. This is difficult to accomplish, associated with high costs, and leads to a never-before-seen level of transparency in the company.
All collected data also have to be available in real time from anywhere using mobile apps. This in turn requires data storage in a cloud. Many entrepreneurs refuse to take this step because they fear a loss of data. Digitalization also requires an extremely powerful ERP system that is able to process the new flood of data. Only a few systems are capable of this today.
Finally, the definitive argument: When a company takes the digitalization plunge alone today, the full potential of the implementation cannot be realized. That is because the Internet of Things really makes sense only in conjunction with Logistics 4.0 and when all business partners exchange data with each other. Only then do all business partners jointly profit from the new technology, while the benefits of isolated solutions are not as great as one may hope for.
Digitalization in terms of IoT is therefore still going to take some time, because it requires a massive change in thinking by the entire staff. Yet it is important for companies to take the first steps in the direction of digitalization early on. Because it is unavoidable.
Embracing digitalization in a timely manner gives you a head start over your competitors, which will be difficult to make up. Digitalization pressure will also increase explosively in the near future with the generation change at the head of companies. Young entrepreneurs who grew up in a networked world are more open to the topic than their predecessors.
Digitalization latecomers will therefore have to reorganize their business under time pressure to avoid losing even more time, money, and market share. Anyone who has implemented new systems in a company knows that pressure is not a good prerequisite for a successful implementation.
Those are three good reasons to explore the Internet of Things today and set the direction for the future. Ultimately all arguments against digitalization, from high investment costs, to data theft, to excessive transparency, can be refuted with intelligent solutions. We are happy to assist you on your way to the digital future.
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