One month away from Apple’s newest product launch, Apple Watch, the news and blogs abound with information surrounding the latest trend in consumer electronics – the Internet of Things (IoT). While Cupertino’s titan of tech is likely going to change the frequency and way you flick your wrist, one thing is being left out, is the massive impact that IoT will have on businesses around the globe.
IoT is going to go beyond fitness tracking, lighting, improvements and notifications – it’s going to permeate
UPS is a shining example of how connected sensors can benefit a businesses bottom line.
Since 2008, UPS has been equipping 200+ sensors to thousands of their delivery trucks and the payoff has been substantial. Fuel efficiencies have been increased by 3.3% and delivery rates have gone up by 1.8% in the first 3 years of their program. With a profit margin averaging around 6%, every percentage point increase has huge gains for UPS as they compete against DHL, USPS, and their largest adversary, Federal Express.
Shipping isn’t the only industry that is gaining from the adoption of connected sensors and at Omni, we recognize the enormous opportunities in many businesses from monitoring refrigerator temperatures, optimizing delivery schedules for fuel distributors or even reducing trips for pest control operators through cloud based software and internet connected hardware. It’s not sexy, it doesn’t make a great headline, but it does have incredible ROI for clients like ours – and some in the business world see the enormous potential of IoT outside of the consumer segment.
Tim O’Reilly is one of those people.
The ‘Oracle of Silicon Valley’, O’Reilly invested in ebooks 20 years ago, started the first commercial website, and saw the business opportunities for open source software long before it became the norm
In a recent interview with VentureBeat, Tim brought up the huge opportunity that Silicon Valley (and it’s investors), are missing by focusing on the impact that ‘smart’ products will have on the consumer segment and not the business segment. We have no doubt that the Apple Watch will be amazing, fun to use, and change the way we interact with notifications, our phones, and even future consumer products. That being said, business process optimization should be garnering more headlines and more investor capital as they will, and already, are making businesses more effective, efficient, and profitable every day, as the cost of sensors, data, and software becomes more available, affordable and robust.