Article Review: How the Internet of Things Is Helping Small Businesses

E. Shein (2015, Dec 14). The Internet of Things and Small Companies. Forbes, https://www.forbes.com/sites/centurylink/2015/12/14/how-the-internet-of-things-is-helping-small-businesses/#7301896265f3 (accessed May 12, 2017).

Bibliographical references

P. Friess (2013). The Internet of Things (IoT) refers to the convergence of technologies for smart environments and interconnected ecosystems. River Publishing Company. http://www.internet-of-things-research.eu/pdf/Converging Technologies for Smart Environments and Integrated Ecosystems IERC Book Open Access 2013.pdf (accessed May 12, 2017).

D. DeLoach (2013, Aug 26) “”Internet of Things Part 4: Important Issues in Internet of Things Governance.“” Infor Bright Retrieved on May 12, 2017. http://tinyurl.com/mxnq3ma

L. Columbus (2015, Dec 27). “”2015 Internet of Things Predictions and Market Estimates.“” Forbes, retrieved on May 12, 2017.

Constantin, L. (2016, Sep 13). “Hackers found 47 new vulnerabilities in 23 smart devices at DEF CON.” Retrieved May 12, 2017, from PCWorldfrom IDG. http://www.pcworld.com/article/3118763/security/hackers-found-47-new-vulnerabilities-in-23-iot-devices-at-def-con.html

Objectives

Provide a definition of internet of things

Discuss how internet of things impacts positively on small businesses

Give examples of how internet of things devices can be used to help small businesses

Explain how internet of things can help small businesses become efficient and effective in their day-to-day operations

Provide an analysis of the future value of internet of things

3. Summary

Some small business owners might think that only large companies stand to benefit from the internet of things (IoT). In real essence, IoT is creating opportunity for the small businesses by helping them develop innovative products and improve efficiency. IoT refers to sensors found in different devices with an ability to collect, monitor data from objects within a short period and communicate diverse information like the speed of the motor vehicle, environmental conditions and if particular street lamps are in good condition. A research company, Gartner estimates that by 2020 there will be approximately 25 billon IoT devices as business from every industry figure out how they can exploit the technology to their advantage.

One example of how start up and small businesses have taken advantage of IoT is through a company called Bigbelly which was started by two students in the year 2003. The company develops ‘stations’ that are solar powered which have resemblance to street-corner garbage cans when looked from the outside. Nevertheless, inside, these cans have high-tech trash sensors and compactors which have the capability to detect fullness and at the same time send notifications through cloud when they require to be emptied. In addition to this, the system of this can has the capacity to shown collectors when they are not full which helps in saving energy and time. New York City has implemented this technology and now trash can be picked twice a week rather than thrice per day.

Furthermore, IoT can help small businesses by making their day-to-day operations effective and efficient. IoT systems displace traditional systems which reduce the operating expenses and consequently reduction in costs. A study conducted by AVG, a security software company revealed that 57 percent of small organizations had the expectations that IoT will significantly impact on their operations. For instance, when a small business organization is able to monitor data from the IoT devices remotely, the business can expect to achieve increased efficiency through reduced wastage, lower costs and raised productivity .

The value of IoT is beyond the data gathered as it has the capability to provide services which secure and analyse data and present the findings for interpretation. Thus, the future is presented with a wide range of opportunities which can be derived from connecting with the right IoT device and making informed decisions that emanate from the data collected.

4. Results

Small businesses have the capability to compete with large organizations because IoT provides innovative opportunities

In the next decade, IoT devices will largely influence on the operations of both large and small businesses

Small businesses that use IoT achieve efficiency and effectiveness through reduction of expenses, improved production and waste reduction

The value of IoT in the future will be immense and will affect every aspect of life

IoT presents small businesses with prospect of exploring new ideas and launching new activities that will be unique in the market

The key thing will be determining why a certain device should be connected, the data it will gather and what decisions can be made using the data

5. Critique

In general, the author has done a good job of integrating IoT with small businesses. At the start of the article that author defines what is IoT in detail and at this point she provides a general definition and provides examples of IoT devices. Tay (2015) has defined IoT as concept which provides a description of the future where devices and systems will be connected to the to the internet and in turn they will be identifiable to others.

I agree with the article that in the future internet of things will have a significant impact not only to the world of business but also to the daily activities of human beings. The prediction by the article that IoT devices will increase in the next decade has been informed by the increased dependency that human beings are having on the internet (Columbus, 2015).

Additionally, the article is right on the fact that IoT has the ability to bring more efficiency and effectiveness in organizations. IoT devices can help in helping organizations reduce costs of operations (Friess, 2013). The author has provided statistics to support her arguments which makes the information more authentic.

Nevertheless, this article has concentrated on providing the benefits and the positive impact of IoT on small businesses and has failed in providing the risks that come with using this technology. According to DeLoach (2016), internet of things comes with numerous critical issues on its governance which poses a risk in future implementation.

On the other hand, Constantin (2016) highlights risks and vulnerabilities that come with using IoT. The author of this article has disregarded the shortcomings of using IoT such as hacking and stealing of consumers personal information which can have an adverse effect on the operations of the business.

6. Questions

1. How efficient and effective is IoT?

Internet of things is highly effective when the right devices are used by the organization and the data collected is used to make the right decisions.

How is the future of IoT?

The future of IoT according to statistics will be very significant in not only the business world but also human activities.

Does IoT have risks?

There is no doubt that internet of things implementation comes with many risks and vulnerabilities that can affect the organization operations

Why should small businesses adopt IoT?

The main reason is to have them develop a competing edge against large organizations through innovative ideas.