The Internet of Things and Digital Transformation


What is the difference between the internet of things and digital transformation? The internet of things (IoT) is a component of digital transformation (DT). IoT is considered the most important component of DT because it enables, drives and accelerates business creation/change opportunities and improvements in the ways we work, live, entertain ourselves and connect.

The Digital Age has brought with it a new way of thinking about products and business operations. Labor rate changes in emerging economies, coupled with challenges associated with logistics and energy costs, are influencing the global economy.

The Internet of Things (IoT) is often thought of as primarily an industrial and consumer technology. Based on the last 5 years’ IoT tendencies, business organizations growing consensus is that IoT is taking a leading role in digital transformation in a wide variety of business applications in companies around the world.

What’s driving this new level of awareness in the Internet of Things is a convergence of three key technology shifts that are accelerating IoT deployments:

  • The explosion of data generated by devices. The number of connected computing devices around the world is growing — several billion connected devices are already in use today, with many more expected in the near future. These devices — smart meters and appliances, radio-frequency identification tags, connected cars, wearables and more — are producing massive amounts of data about the environment around them.
  • Cloud as a growth engine for business. Businesses are able to respond to changing market conditions with agility and flexibility using the cloud. New solutions can be deployed quickly and cost effectively to open cloud platforms that connect to people and devices around the globe.
  • New ways to engage the business and its customers. Mobile and social networks are enabling people to work in a smarter way by putting more real-time information and decision-making power in the palms of their hands, with everything integrated securely in business processes and workflow.

While devices and connectivity are of course all important, whether it’s in the Industrial Internet of Things or the Consumer Internet of Things where the device obviously has an additional dimension, in the end the Internet of Things is an umbrella term. It covers many things, and at the same time is part of a bigger ecosystem of technologies and value.


The Internet of Things and Digital Transformation


IoT acts as the eyes and ears of organizations, and its value comes from how the data collected is used to improve effectiveness, productivity and/or care of consumers and organizations. Leveraging IoT for enterprise digital transformation is in the early stages with a long way to go for the enterprises.

The digital transformation is transforming and maturing the internet of things making it more inclusive between technology, processes, people, benefits and massive real life scenarios, rather than just the technology and devices.

For example, the convergence of IoT, AI and big data analytics is transformational on a technological level, or how executives realize that digital transformation is absolutely impossible in many industries and use cases without the IoT.

Despite the fact that connecting devices is not new and that with the Internet of Things we have entered a new dimension in many areas, we are still at the beginning of an era of accelerating Internet of Things adoption. And, it will be a key pillar in the digital transformation economy.



Business value is created by combining the IoT device data, arranged with environmental, social, and enterprise data, while increasing the original value of the device manifold. As a result, IoT-based solutions form an integral part of a business’ operational model and therefore should be viewed as an integral part of a digital transformation strategy.



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