How is IoT Useful in Your Business for Asset Management?

Today, there are more than 20 billion existing IoT users, which will increase to more than 41 billion users in 2025.

If we speak about IoT for the business purpose, according to Statista,

“The global market for the Internet of things (IoT) end-user solutions is expected to grow to 230 billion U.S. dollars in size by the end of 2020. The technology reached 100 billion dollars in market revenue for the first time in 2017, and forecasts suggest that this figure will grow to around 1.6 trillion by 2025.”

What is IoT?

The Internet of Things (IoT) portrays the network of physical objects, which we also say  “things” in this case. These objects or things are embedded with sensors, software, and other technologies.

The objective of connecting is to trade & exchange information with different gadgets and systems over the internet. These devices range from ordinary household objects to sophisticated industrial tools.

Here are some examples of IoT

1. Amazon go - In Amazon go, all you have to do is enter in the amazon store with an RFID Amazon app, take the product and walk out and the amount for the purchased product will be deducted from the synced amazon wallet. There is no cashier nor a cash counter.
   
   
2. Driverless cars - The built of autonomous cars is the same as that of normal cars we drive. But instead of driving it manually, they have senses to drop you to your destination.

With more than 20 billion connected IoT devices today, specialists are anticipating that this number should develop to more than 40 billion in the next few years.

Also Read: Why Rail Assets Require Efficient Asset Management Software?

What is Asset Management & Why it is Important?

There are many risks involved if there is no asset management software in your organization. Every equipment fixed or liquid is important to your business functionality.

For instance, in which year or month software is expiring, or when you need to renew the license. And at that time, if the audit is performed and it is found that you are using an expired software, then you may have to pay a huge fine. Therefore, tracking software information is important.

A proper IoT Asset Management is required for the business to monitor and manage the assets using a systemized approach. The benefits from asset management include improvement in productivity and efficiency which will lead your business to a better position to increase their return on investment.

This is what happens when you don't use asset management!

1. Less return on investment

Maintenance of any hardware or software tool is expensive and time-consuming. It is difficult to keep a regular and accurate check over all the devices and software; leading to a poor return on investment.

2. Unable to enhance asset performance

Improper functioning of assets or a lack of sight on poorly performing assets can lead to productivity loss and increased downtime period.

3. Hard to manage inventory

Without any accurate asset management system, you cannot handle and manage the inventory remotely. Whereas, it is a critical aspect of the asset management system to remotely wipe data, revoke access, or either install or update software across all the devices.

4. Unable to identify unused assets

For the field-based staff of an organization, it is important to know about the whereabouts of the unused asset. You should know when and where the asset is gone.

Asset Management is important because it assists in retrieving complete information of assets life cycles such as equipment and vehicle. The centralized system helps in cost control. It also helps in integrating with other systems for collecting all information at one location.

Also Read: Why Asset Tracking Software is Crucial for Every Business?

How IoT helps in Asset Management?

IoT helps in asset management in several ways:

1. Less human involvement

IoT enabled assets management uses IoT sensors. This empowers organizations to know the asset's information eliminating the need for human power. It actively keeps track of all the assets. These IoT sensors are attached to each asset.

However, choosing the IoT sensor is also crucial because they are a variety of them such as acceleration, temperature, humidity, pressure, and proximity sensors, etc. Therefore, you must choose the IoT sensor according to your business need.

The sensors attached to the asset are used to collect data & it is sent to the cloud platform. It sends data after 5 or 10 minutes (as per the organization requirement).

2. Asset optimization

When an asset is purchased, it is obvious to expect revenue generation from the asset. Asset managers know the importance of keeping an asset in the running condition. When an asset tracking plan is executed, it is important to keep a clear picture of assets so that plans can be made accordingly.

With the IoT enabled asset management, you have the capability to see if the asset is working properly & performing as per expectation or not. In case if it is not working as expected then preventive & predictive maintenance can be executed for the purpose of asset optimization.

IoT sensors keep track of asset performance. When you know what's going on with an asset you can make a reasonable decision in order to save expenses and extend the life of an asset.

3. Cost tracking

Without correcting the source from where the costs are made it's hard for any business to reduce the upkeep cost. For example, if the maintenance manager is unaware of the main problem an asset is confronting, he can't make the right move in order to fix the asset.

IoT empowered assets will give the information based on the root cause which has to be corrected in order to save assets & making smart financial decisions.

4. Monitoring maintenance

With the IoT technology, you can monitor your assets, machines, equipment, etc. in real-time.  For example, when a manufacturing plant monitors its asset health their operational cost can be reduced. As IoT sensor can alert plant managers when asset operating parameters are not matched.  They also get notified when temperature or environment parameters do not match.

Also Read: 8 Evergreen Asset Tracking Software Benefits That Helps Business

Conclusion

The demand for asset management IoT gadgets will develop by 3X in the year 2022, as per global asset management experts. Sectors such as transportation, manufacturing, agriculture, hotel, etc. can take advantage of this technology.

Internet of Things (IoT) is a next-generation method for asset tracking and management. However, this technique is new but still has the power and potential to change the game.