Regardless of whom you talk to, everyone agrees that IoT is the “next big thing”. Enterprises that look for ways to sharpen the existing business models adopt IoT technologies. The question arises how the IoT benefits the businesses and how can the new revenues be generated through enhanced customer satisfaction.

The internet has transformed the way businesses communicate. Digitization can make unprepared players disappear. New technological advancements help to expand and intensify the relationships with the existing customers and also help you build new ones. Business models based on “connecting things” have been penetrating the markets as they deliver greater ROI.

Market size and number of devices:
According to a recent research, more than 14 billion connected devices can be expected by the end of year 2022. The devices would be connected directly or indirectly to the internet. Wondering if it means intelligent buildings, healthcare, automotive and utilities? Of course, it does! This next wave of technology transforms everything.

The major challenges for existing business models for employing IoT:
For most of the companies, it can be daunting to convert the existing products into smart ones. Embedding them into the digital world can be challenging for businesses. Here are some major reasons why IoT is not spreading so fast in the industry:

Price:
People find the consumer products to be way too expensive. Nobody wants to buy a $ 99 smart light bulb or a $ 99 smart brush. Something should be done for reducing the prices of sensors and chips so that the customers can buy them easily. As of now, there are just a few people who are ready to pay the price for Internet-connected smart devices and utilities. Once they understand the importance of such products and know how these devices improve the lifestyle, they would not hesitate to invest money for such products.

Basket of remotes:
Yes. It is a fact that one would need a whole bunch of remotes to access the Internet-connected things. In order to take the full advantage of the functionality, “basket of remotes” would be required. It is believed that consumers would take some time to ensure that their smartphones and tablets can talk to each other.

Privacy:
Most of the business owners believe that IoT enabled devices aren’t secure. Security experts agree with this fact that such products are difficult to secure as compared to web. Companies that manufacture such devices focus on developing cheaper ones and forget about securing them.

Competition:
Imagine an arena full of competitors wherein everyone attempts to shape the future and the best part is that they try to win over the same customers. It may be challenging for the businesses to compete with the biggies and leading industry players.

However, value-added services and new business models can help to achieve success and bring new opportunities for the enterprises.

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