The Internet of Things (IoT) is bringing massive opportunities and threats to almost every business. Business models are being totally disrupted by IoT-enabled products and services coming to the market. We have all seen examples of Market Disruption such as Uber or Airbnb, but many companies do not recognise that this disruption can come to them as a result of IoT and that it can either have a positive or negative impact on their business. So what are these potential changes ? :
You would not buy a mobile phone now without Bluetooth. Soon it will be the same with all sorts of hardware - it will simply be unsellable without IoT functionality. Right now, the cost of sensors may make adding IoT to your product too expensive but as the sensor costs reduce, there will soon be a point at which it becomes viable. At that moment, you need your product to have IoT functionality or your sales may quickly dry up. For that reason, companies are developing IoT-enabled versions of their products and building pilot runs so that they are ready to switch production to the IoT version as soon as it is needed. Need an example ? Hospitals in US believe that they will soon need to prove that the nurses always use the hand sanitiser when coming into a room to treat a patient. This could be achieved by using IoT. Even though the addition of IoT added cost to each hand sanitiser unit, it will save the hospital from the high cost of being sued by a patient who claimed that the nurse brought an infection into the room via dirty hands. Those who continue to try to sell a cheaper, non-IoT version of the sanitiser will find that their product is not even considered once this capability is seen as the "norm" in US hospitals. In addition, the hospitals have the added benefit of receiving a warning message from the sanitiser when the liquid is running low - so reducing the number of occasions when it runs our completely at a key moment and reducing the number of times that it needs to be manually checked.