No doubt, the internet of things (IoT) has been a major point of interest among vendors, business managers, startup founders, marketers and technology experts for years.
Meanwhile, the advancement of the Internet of Things has brought easiness to the operating systems of both small and large scale firms -- helping several business sectors to stay connected and produce better results than ever before.
According to International Data Corporation IDC, by 2021, the global IoT spending is expected to reach $1.4 trillion as organizations, startup founders, and other IT related industries continue to invest in the hardware, software, services and connectivity that enable the IoT.
While the adoption of IoT keeps growing, there are still some common assumptions and views that are incorrect, which is based on faulty thinking or understanding of the Internet of Things. These basic misconceptions have deprived many startup founders and small business owners
However, this article is not set to encourage or discourage any IoT practices, instead to expose you to some false assumptions that have been, or most likely will be the catalyst to your business’s negative experience with IoT - if you don't erase it.
Below, therefore, are 6 basic misconceptions all business owners must know about IoT in 2018
Misconception 1: IoT will prevent business failure:
This is a very common imprecise assumption that most startup founders and other business organizations make concerning IoT.
If your business does not have a proper layout plan; or your organization lacks the effective Customer Relationship Management, CRM, as well as other things that could help a business thrive, it'll definitely be vague to think that IoT will prevent a business or organization with a faulty foundation from failure.
What IoT technology does is increase the efficiency of a well-structured business, by collecting data and allowing faster connections and interaction from the producer to different customers. This implies that IoT doesn't prevent business failure but contribute to the success of a business that is well managed.
Misconception 2: IoT is for the big organizations:
This is a very common misconception, as many startup founders believe that IoT is only for large corporations. Meanwhile, the technology has become more accessible to the extent that smaller organizations can tap into it with ease.
With the reduction in the price of sensors, cloud services, and hardware components, IoT solutions serve as a cost-effective option for small businesses to expand from their present state in the market.
In fact, approximately 57% of small business think that IoT will have a significant effect on their bottom line, according to an AVG survey.
Howbeit, that IoT is clearly not only for large companies, but even small and mid-sized company can seriously benefit from this growing technology to become top competitors in their field.
Misconception 3: IoT is mainly for the transport sector
This is yet another baseless assumption concerning IoT. It is true that the transport sector was one of the early adopters of IoT - where Custom Fleet Managers and some auto shipping companies’ used sensor and GPS fleet tracking device system to monitor and minimize the risk associated with shipping of cars and other equipment.
However, there are a lot of other areas, such as agricultural sector, the consumer market, healthcare and various payment sectors that have made use of IoT technology to improve their operating standard.
In fact, the United Kingdom now have several companies developing soil sensors for farmers, to monitor systems and control tools for agricultural sectors. These sensors enable farmers to gather data, providing them with the opportunity to make an accurate decision.
Misconception 4: IoT is solely for business organization and operational use:
This is a very common misconception, as some startup founders believe that IoT is solely for business organization and operational use only.
However, IoT is not only limited to business organizations and company. In fact, there are 58.7% of US homes that have at least one internet enabled connected device.
It’s actually about connecting different devices to the internet. These devices could include any electronics and gadgets that fall under smart categories such as TVs, fridges etc.
Misconception 5: IoT solution development is easy
With the production of cheap sensors, software and cloud availability, a lot of companies and individuals believe that it is very easy to create and maintain an IoT solution.
However, you need to understand that IoT solution management is more than a mobile app, a smart application, cloud hosting and other internet related stuff. It really entails a level of strong professionalism in terms of maintaining security, reliability, privacy, and scalability.
A research study shows that 75% of all IoT projects are failing due to segmentation and lack of experience by companies developing them.
This is the reason why some companies look out to hire personnel who are specialized and skilled in data science, industrial network engineering, mobile application development and enterprise connectivity to secure their company from different IoT disasters.
Misconception 6: All IoT devices are safe
This is another misconception we need to look into: Most startup founders believe that once it is IoT device, then it’s safe.
IoT devices are most times insecure, because of its seamless connectivity to the internet. This makes it easier for hackers to penetrate into the user’s privacy and steal valuable data. In fact, a recent study from Cybersecurity Ventures showed that cybercrime damages will cost the world $6 trillion annually by 2021, up from $3 trillion in 2015.
Although, IoT devices contain layers of security, when it comes to protecting your data from malicious intent - you need a strong software security program to ensure optimum security of your business devices.