Internet of Things Speeds Up Digitization

09.11.2020 by Ümit Günes

Three people working together on a whiteboard

If a beermat relays the guest’s preferences to the brewery the Internet of Things is sure to be involved. Companies across all industries are increasingly making use of the opportunities that the Internet of Things offers them.

When the first employee arrives at the office, lighting, heating and ventilation switch on automatically – and switch off when everyone has left in the evening. That is practical and pleasant for the employees, but lighting, heating and ventilation that are connected by sensors also enable the building to be managed in a much more energy- and cost-saving way. A camper van manufacturer that moves its vehicles around its enormous factory site several times a day in the course of the production process knows quickly thanks to vehicles being connected via an app exactly where a specific camper van is. And a compressed air service provider receives a precise overview of which compressors its customers have been using and for how long. That is important for planning maintenance intervals better, which eliminates unnecessary callouts and helps prevent possible machine outages.

These are but a few practical examples that show how companies can connect machines and equipment with each other simply and efficiently by means of the Internet of Things. Via the Cloud of Things management platform, for example, they can monitor production and process remotely and maintain machines predictively. Thanks to the IoT logistics operators can locate their vehicles precisely and track the route and condition of containers on the computer screen. If, for instance, a container with a cargo of perishable goods is in one place for too long or if the temperature rises worryingly, its sensors sound the alarm and, thanks to smart connectivity, damage can be prevented.

Data sent to the Internet of Things from connected sensors, vehicles and machines can also be processed intelligently, making entirely new business models possible. Take, for example, the taxi bell that eases the workload of a cab company’s call center or the SIM card-equipped beer mats of a provider who informs breweries about guests’ consumer behavior.

Are My Applications Secure on the Internet of Things

How Telekom ensures security on the Internet of Things:

Applications are hosted GDPR-compliant at high-security Telekom data centers in Germany.
Sensor data is read at the gateway and encrypted for transmission to the Cloud platform.
Only the customer has access to his data via any terminal device.
Standardized PSA procedures ensure data protection and security of infrastructure and IT systems and of networks and communication interfaces.

Powerful Mobile Technologies Supercharge the IoT

Around 30 billion devices are already connected worldwide on the Internet of Things. Market researchers at IDC assume that progressive digitization will increase this total to around 42 billion by 2025. For machine communication to function smoothly on this gigantic scale powerful mobile wireless technologies are required – technologies that Telekom provides such as NB-IoT (NarrowBand Internet of Things) and the new LTE-M (Long Term Evolution for Machine Type Communication). Both of these standards are based on 4G (LTE) and characterized by low energy consumption. NB-IoT and LTE-M are especially suited for a high level of building penetration. Battery-powered modules run for up to ten years from cellars and channels and through thick concrete walls.

The new mobile standard 5G with its low latency for time-critical digital applications of all kinds such as E-Health, Smart City and Industry 4.0 or for autonomous vehicles will fire up worldwide machine connectivity yet again.

Ahead of the Competition With IoT

The Internet of Things certainly opens up for enterprises many new sales opportunities and digital business models and services that are sensor-based. The German digital industry association Bitkom estimates global 2020 sales in the IoT market as totaling € 250 billion. A recent IDC study companies were focusing on optimizing internal processes. With IoT the respondents aim to reduce their costs (40 percent) und improve their internal efficiency and productivity (35 percent). Their main objective is to remain competitive in the future.

Many firms are thinking a step further ahead, however, and aim with the Internet of Things to attract new customers (27 percent) and improve their customer experience (26 percent) by providing new, data-based services. A large majority of German respondents (88 percent) are already implementing IoT projects of their own and nearly all of the are convinced that the technology is speeding up their business processes and is of decisive importance for their business success.

A recent survey by the market researchers at Gartner indicates that going in for the Internet of Things is worth it for companies of all sizes and in all industries. They found that 63 percent of the companies polled expected their IoT projects to pay dividends in three years. They are also doing something good for the environment because the Internet of Things helps them to operate more sustainably and to ship products in a way that is more resource-saving. This finding was reached in a report by Telenor Connexion and Northstream and in a recent online survey by Deutsche Telekom entitled Sustainable with the IoT.

IoT Solutions in the Fast Lane

88% of companies polled in Germany are already implementing IoT projects of their own
92% of IoT users in Germany believe that the IoT is of decisive significance for their business success
4 out of 10 companies use IoT platforms
61% of companies have a high level of IoT maturity
63% of companies expect their IoT projects to pay dividends in three years
An estimated € 250 billion will be spent in the global IoT market in 2020 werden schätzungsweise im Jahr 2020 weltweit im IoT-Markt umgesetzt

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Ümit Günes

Marketing Manager IoT

Having been with Telekom since 2008, Ümit possesses a comprehensive understanding of various facets of the Internet of Things. He has a keen interest in the digital transformation of the business world. On this blog, he shares insights into the latest developments and trends in the IoT sector that provide genuine value to customers.