IoT Revolutionizing Business For The Little Guy

Daniel Newman

Patterns from the past show technology advancements tend to benefit big businesses, often eliminating the need for small businesses. It’s no wonder then, that small businesses have been historically averse to embracing expensive technology in the way big businesses do.

The Internet of Things, or IoT, is the exception to this norm. Being customizable and practical, the IoT is poised to revolutionize the way small businesses operate. In fact, 57 percent of small businesses think the IoT will have a significant effect on their bottom line, according to an AVG Survey. From everyday operations to tracking inventory, small businesses can take advantage of the versatility that the IoT provides to finally level the playing field with the big guys.

Simplicity of the IoT

One of the great things about the IoT is this new age in connectivity doesn’t propose unnecessarily complex, world-changing ideas. Rather, most of the innovations are arguably simple and possibly even mundane. For example, consider Valarm, a small business startup specializing in monitoring systems, figured out how to add sensors inexpensively to many different areas. Valarm added sensors to a client’s vineyard to detect freezes and cold temperatures (as this ruins the grapes). When the temperature drops, the sensors activate sprinklers that encase the grapes in ice, thereby protecting them. This is no novel idea, but a rather simple one stemming from the desire to protect grapes from the cold. All the same, the efficiency that comes with this simplicity is what enables the vineyard to compete with bigger vineyards that could potentially afford more sophisticated systems and employ a larger workforce.

In this way, the IoT can truly give small businesses an edge. There is one caveat, though: it needs to be implemented correctly. According to Drew Robb, speaking about to the success of IoT, “No doubt more than a few firms—big and small—will come out with some ridiculous-sounding applications. The point is to keep your IoT plan practical, useful, and affordable.”

Affordable option

As IoT becomes more popular, the cost of these systems is steadily decreasing making it an affordable alternative for most small businesses. In terms of day-to-day operations, Michael Feldman states that it’s “displacement of traditional systems could reduce operating expenses.” For example, small businesses can use IoT-based security alarm systems and other sensor-based systems such as IoT thermostats and air-conditioning systems to help control heat and electricity costs. Furthermore, the ability to connect more devices to the Internet allows for greater intelligence and streamlining the processes of daily operations.

Unlimited connection possibilities

In the small town of New Bedford, Massachusetts, folks over at Inex Advisors are using the IoT to change how traditional businesses run. From sensors that allow local fishermen to reduce their paperwork and follow compliance regulations to weather stations that enable local vintners to monitor their vines, the execution of IoT concepts shows the unlimited potential of connectivity.

Consider the example of Bigbelly, a company started by two students from Babson College and Olin College of Engineering. Bigbelly created solar-powered stations that look like garbage cans from the outside. Inside, however, they have trash compactors and sensors that detect the fullness of the can  and send notifications when the can needs emptied. In this way, waste collectors are notified about which cans need emptying, saving time and energy on their collection routes. Bigbelly is another great example of how sensors can help monitor and track the simplest items, making something even as mundane as trash collecting more efficient.

Figuring out how the IoT can help a particular business or even an aspect of it is key, as the opportunities really are endless. Small businesses that choose not to embrace this technology will be left in the dust, unable to compete with bigger systems and even their small business peers who have decided to digitize.

Ultimately, Gartner vice president Jim Tully makes a very poignant point: “I think most people will be surprised at how invisible the technology is even when it is so pervasive. But the implications of IoT on every aspect of life will be profound.”

For more on how IoT technology is transforming business, see The Internet Of Things Transforms The Sum Of The Parts, Not Just The Whole.

Photo Credit: Janitors Flickr via Compfight cc

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About Daniel Newman

Daniel Newman serves as the Co-Founder and CEO of EC3, a quickly growing hosted IT and Communication service provider. Prior to this role Daniel has held several prominent leadership roles including serving as CEO of United Visual. Parent company to United Visual Systems, United Visual Productions, and United GlobalComm; a family of companies focused on Visual Communications and Audio Visual Technologies.
Daniel is also widely published and active in the Social Media Community. He is the Author of Amazon Best Selling Business Book “The Millennial CEO.” Daniel also Co-Founded the Global online Community 12 Most and was recognized by the Huffington Post as one of the 100 Business and Leadership Accounts to Follow on Twitter.
Newman is an Adjunct Professor of Management at North Central College. He attained his undergraduate degree in Marketing at Northern Illinois University and an Executive MBA from North Central College in Naperville, IL. Newman currently resides in Aurora, Illinois with his wife (Lisa) and his two daughters (Hailey 9, Avery 5).
A Chicago native all of his life, Newman is an avid golfer, a fitness fan, and a classically trained pianist

Will The Collaborative Economy Completely Reimagine Tomorrow's Big Business?

Daniel Newman

Today, the largest car rental and hospitality companies are Uber and Airbnb, respectively. What do they have in common? Let’s see — neither of them own physical possessions associated with their service, and both have turned a non-performing asset into an incredible revenue source.

Don’t be surprised, because this is the new model for doing business. People want to rent instead of own, and at the same time, they want to monetize whatever they have in excess. This is the core of the sharing economy. The concept of earning money by sharing may have existed before, but not at such a large scale. From renting rooms to rides to clothes to parking spaces to just about anything else you can imagine, the sharing economy is rethinking how businesses are growing.

What’s driving the collaborative economy?

The sharing economy, or the collaborative economy, as it’s also called, is “an economic model where technologies enable people to get what they need from each other—rather than from centralized institutions,” explains Jeremiah Owyang, business analyst and founder of Crowd Companies, a collaborative economy platform. This means you could rent someone’s living room for a day or two, ride someone else’s bike for a couple of hours, or even take someone’s pet out for a walk—all for a rental fee.

Even a few years ago, this sort of a thing was unthinkable. When Airbnb launched in 2008, many people were skeptical, as the whole idea seemed not only irrational, but totally stupid. I mean, why would anyone want to spend the night in a stranger’s room and sleep on an air bed, right? Well, turns out many people did! Airbnb moved from spare rooms to luxury condos, villas, and even castles and private islands in more than 30,000 cities across 190 countries, and rentals reached a staggering 15 million plus last year.

What is driving this trend? Millennials definitely play a role. Their love for everything on-demand, plus their frugal mindset, makes them ideal for the sharing economy. But the sharing economy is attractive to consumers across a wide demographic, as it only makes sense.

How collaborative economy is reshaping the future of businesses

Until recently, collaborative-economy startups like Uber and Airbnb were looked upon as threats. Disuptors to any marketplace are usually threatening, so this isn’t surprising. Established businesses that were accustomed to the way things had always been did (and still do) rail against companies like Uber or AirBnB, yet consumers seem to love them. And that’s what matters. Uber has faced many harsh criticisms, yet it continues to provide more than a million rides a month.

We are living in an era of consumer-driven enterprise, where consumers are at the helm. Perhaps this is the biggest reason why the collaborative economy is here to stay. No matter what industry, companies are trying to bring customers to the fore. A collaborative business model allows customers to call the shots. A great example is the cloud, which relies on resource sharing and allows users to scale up or down according to their needs.

Today, traditional businesses are participating in a collaborative economy in different ways. Some are acquiring startups. General Motors, for example, invested $3 million to acquire RelayRides, a peer-to-peer car sharing service. Others are entering into partnerships like Marriott, which partnered with LiquidSpace, an online platform to book flexible workspaces. Other brands, like GE, BMW, Walgreens, and Pepsi are also stepping into the collaborative-economy space and holding the hands of startups instead of competing with them.

Changes in the workplace

Remote work and telecommuting has taken off as companies become more comfortable with the idea of people working outside their offices, and cloud technology is enabling that. Now, let’s look at the scenario from the lens of the sharing economy. With companies looking to find temporary resources that can meet the fast-changing demands of the business, freelancers could replace a large chunk of full-time professionals in future. Why? Because at the heart of this disruptive practice lies the concept of sharing human resources.

As companies set out to temporarily use the services of people to meet short- and medium-term goals, it’s going to completely change the way we build companies. Also, as we have seen through the growth of companies like Airbnb and Uber, it’s going to change the deliverables that companies provide. With demand changing and technology proliferating at breakneck speed, it’s not just important that businesses start to see and adopt this change; it’s imperative because companies that over-commit to any one thing will find themselves obsolete.

When it comes to workplaces, so much is happening today that it’s impossible to predict where things are ultimately headed. But one thing is for sure: The collaborative economy is not going anywhere as long as our priorities are built around better, faster, more efficient and cost-effective.

Want more insight on today’s sharing economy? see Collaborative Economy: It’s Real And It’s Disrupting Enterprises.

This article was originally seen on Ricoh Blog.

The post Will the Collaborative Economy Completely Reimagine Tomorrows Big Business appeared first on Millennial CEO.

Photo Credit: Pedrolu33 via Compfight cc

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About Daniel Newman

Daniel Newman serves as the Co-Founder and CEO of EC3, a quickly growing hosted IT and Communication service provider. Prior to this role Daniel has held several prominent leadership roles including serving as CEO of United Visual. Parent company to United Visual Systems, United Visual Productions, and United GlobalComm; a family of companies focused on Visual Communications and Audio Visual Technologies.
Daniel is also widely published and active in the Social Media Community. He is the Author of Amazon Best Selling Business Book “The Millennial CEO.” Daniel also Co-Founded the Global online Community 12 Most and was recognized by the Huffington Post as one of the 100 Business and Leadership Accounts to Follow on Twitter.
Newman is an Adjunct Professor of Management at North Central College. He attained his undergraduate degree in Marketing at Northern Illinois University and an Executive MBA from North Central College in Naperville, IL. Newman currently resides in Aurora, Illinois with his wife (Lisa) and his two daughters (Hailey 9, Avery 5).
A Chicago native all of his life, Newman is an avid golfer, a fitness fan, and a classically trained pianist

How One Business Approach Can Save The Environment – And Bring $4.5 Trillion To The World Economy

Shelly Dutton

Despite reports of a turbulent global economy, the World Bank delivered some great news recently. For the first time in history, extreme poverty (people living on less than $1.90 each day) worldwide is set to fall to below 10%. Considering that this rate has declined from 37.1% in 1990 to 9.6% in 2015, it is hopeful that one-third of the global population will participate the middle class by 2030.

For all industries, this growth will bring new challenges and pressures when meeting unprecedented demand in an environment of dwindling – if not already scarce – resources. First of all, gold, silver, indium, iridium, tungsten, and many other vital resources could be depleted in as little as five years. And because current manufacturing methods create massive waste, about 80% of $3.2 trillion material value is lost irrecoverably each year in the consumer products industry alone.

This new reality is forcing companies to rethink our current, linear “take-make-dispose” approach to designing, producing, delivering, and selling products and services. According to Dan Wellers, Digital Futures lead for SAP, “If the economy is not sustainable, we are in trouble. And in the case of the linear economy, it is not sustainable because it inherently wastes resources that are becoming scarce. Right now, most serious businesspeople think sustainability is in conflict with earning a profit and becoming wealthy. True sustainability, economic sustainability, is exactly the opposite. With this mindset, it becomes strategic to support practices that support a circular economy in the long run.”

The circular economy: Good for business, good for the environment

What if your business practices and operation can help save our planet? Would you do it? Now, what if I said that this one business approach could put $4.5 trillion up for grabs?

By taking a more restorative and regenerative approach, every company can redesign the future of the environment, the economy, and their overall business. “Made possible by the digital economy, forward-thinking businesses are choosing to embrace this value to intentionally reimagine the economy around how we use resources,” observed Wellers. “By slowing down the depletion of resources and possibly even rejuvenating them, early adopters of circular practices have created business models that are profitable, and therefore sustainable. And they are starting to scale.”

In addition to making good financial sense, there’s another reason the circular economy is a sound business practice: Your customers. In his blog 99 Mind-Blowing Ways the Digital Economy Is Changing the Future of Business, Vivek Bapat revealed that 68% of consumers are interested in companies that bring social and environmental change. More important, 84% of global consumers actively seek out socially and environmentally responsible brands and are willing to switch brands associated with those causes.

Five ways your business can take advantage of the circular economy

As the circular economy proves, business and economic growth does not need to happen at the cost of the environment and public health and safety. As everyone searches for an answer to job creation, economic development, and environmental safety, we are in an economic era primed for change.

Wellers states, “Thanks to the exponential growth and power of digital technology, circular business models are becoming profitable. As a result, businesses are scaling their wealth by investing in new economic growth strategies.”

What are these strategies? Here are five business models that can enable companies to unlock the economic benefits of the circular economy, as stated in Accenture’s report Circular Advantage: Innovative Business Models and Technologies that Create Value:

  1. Circular supplies: Deliver fully renewable, recyclable, and biodegradable resource inputs that underpin circular production and consumption systems.
  2. Recovery of resources: Eliminate material leakage and maximize the economic value of product return flows.
  3. Extension of product life: Extend the life cycle of products and assets. Regain the value of your resources by maintaining and improving them by repairing, upgrading, remanufacturing, or remarketing products.
  4. Sharing platforms: Promote a platform for collaboration among product users as individuals or organizations.
  5. Product as a service: Provide an alternative to the traditional model of “buy and own.” Allow products to be shared by many customers through a lease or pay-for-use arrangement.

To learn more about the circular economy, check out Dan Wellers’ blog “4 Ways The Digital Economy Is Circular.”

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Human Skills for the Digital Future

Dan Wellers and Kai Goerlich

Technology Evolves.
So Must We.


Technology replacing human effort is as old as the first stone axe, and so is the disruption it creates.
Thanks to deep learning and other advances in AI, machine learning is catching up to the human mind faster than expected.
How do we maintain our value in a world in which AI can perform many high-value tasks?


Uniquely Human Abilities

AI is excellent at automating routine knowledge work and generating new insights from existing data — but humans know what they don’t know.

We’re driven to explore, try new and risky things, and make a difference.
 
 
 
We deduce the existence of information we don’t yet know about.
 
 
 
We imagine radical new business models, products, and opportunities.
 
 
 
We have creativity, imagination, humor, ethics, persistence, and critical thinking.


There’s Nothing Soft About “Soft Skills”

To stay ahead of AI in an increasingly automated world, we need to start cultivating our most human abilities on a societal level. There’s nothing soft about these skills, and we can’t afford to leave them to chance.

We must revamp how and what we teach to nurture the critical skills of passion, curiosity, imagination, creativity, critical thinking, and persistence. In the era of AI, no one will be able to thrive without these abilities, and most people will need help acquiring and improving them.

Anything artificial intelligence does has to fit into a human-centered value system that takes our unique abilities into account. While we help AI get more powerful, we need to get better at being human.


Download the executive brief Human Skills for the Digital Future.


Read the full article The Human Factor in an AI Future.


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About Dan Wellers

Dan Wellers is founder and leader of Digital Futures at SAP, a strategic insights and thought leadership discipline that explores how digital technologies drive exponential change in business and society.

Kai Goerlich

About Kai Goerlich

Kai Goerlich is the Chief Futurist at SAP Innovation Center network His specialties include Competitive Intelligence, Market Intelligence, Corporate Foresight, Trends, Futuring and ideation.

Share your thoughts with Kai on Twitter @KaiGoe.heif Futu

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Finance And HR: Friends Or Foes? Shifting To A Collaborative Mindset

Richard McLean

Part 1 in the 3-part “Finance and HR Collaboration” series

In my last blog, I challenged you to think of collaboration as the next killer app, citing a recent study by Oxford Economics sponsored by SAP. The study clearly explains how corporate performance improves when finance actively engages in collaboration with other business functions.

As a case in point, consider finance and HR. Both are being called on to work more collaboratively with each other – and the broader business – to help achieve a shared vision for the company. In most organizations, both have undergone a transformation to extend beyond operational tasks and adopt a more strategic focus, opening the door to more collaboration. As such, both have assumed three very important roles in the company – business partner, change agent, and steward. In this post, I’ll illustrate how collaboration can enable HR and finance to be more effective business partners.

Making the transition to focus on broader business objectives

My colleague Renata Janini Dohmen, senior vice president of HR for SAP Asia Pacific Japan, credits a changing mindset for both finance and HR as key to enabling the transition away from our traditional roles to be more collaborative. She says, “For a long time, people in HR and finance were seen as opponents. HR was focused on employees and how to motivate, encourage, and cheer on the workforce. Finance looked at the numbers and was a lot more cautious and possibly more skeptical in terms of making an investment. Today, both areas have made the transition to take on a more holistic perspective. We are pursuing strategies and approaching decisions based on what delivers the best return on investment for the company’s assets, whether those assets are monetary or non-monetary. This mindset shift plays a key role in how finance and HR execute the strategic imperatives of the company,” she notes.

Viewing joint decisions from a completely different lens

I agree with Renata. This mindset change has certainly impacted the way I make decisions. If I’m just focused on controlling costs and assessing expenditures, I’ll evaluate programs and ideas quite differently than if I’m thinking about the big picture.

For example, there’s an HR manager in our organization who runs Compensation and Benefits. She approaches me regularly with great ideas. But those ideas cost money. In the past, I was probably more inclined to look at those conversations from a tactical perspective. It was easy for me to simply say, “No, we can’t afford it.”

Now I look at her ideas from a more strategic perspective. I think, “What do we want our culture to be in the years ahead? Are the benefits packages she is proposing perhaps the right ones to get us there? Are they family friendly? Are they relevant for people in today’s world? Will they make us an employer of choice?” I quite enjoy the rich conversations we have about the impact of compensation and benefits design on the culture we want to create. Now, I see our relationship as much more collaborative and jointly invested in attracting and retaining the best people who will ultimately deliver on the company strategy. It’s a completely different lens.

Defining how finance and HR align to the company strategy

Renata and I believe that greater collaboration between finance and HR is a critical success factor. How can your organization achieve this shift? “Once the organization has clearly defined what role finance and HR must play and how they fundamentally align to the company strategy, then it’s more natural to structure them in a way to support such transformation,” Renata explains.

Technology plays an important role in our ability to successfully collaborate. Looking back, finance and HR were heavily focused on our own operational areas because everything we did tended to consume more time – just keeping the lights on and taking care of our basic responsibilities. Now, through a more efficient operating model with shared services, standard operating procedures, and automation, we can both be more business-focused and integrated. As a result, we’re able to collaborate in more meaningful ways to have a positive impact on business outcomes.

In our next blog, we’ll look at how finance and HR can work together as agents of change.

For a deeper dive, download the Oxford Economics study sponsored by SAP.

Follow SAP Finance online: @SAPFinance (Twitter)LinkedIn | FacebookYouTube

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Richard McLean

About Richard McLean

Richard McLean, regional CFO for SAP Asia Pacific Japan, oversees all key finance and administrative functions for field and regional headquarters, supporting more than 16,000 employees. He has more than 20 years of experience in senior finance roles with leading global companies across a range of industries, including financial services, investment banking, automotive, and IT. He joined SAP in 2008.