Proving the Business Case for the Internet of Things

Intel says IoT delivering ROI benefits for logistics players: IT Pro

Iain Morris
May 28, 2014
 
Semiconductor giant Intel has said organizations that have embraced M2M and Internet of Things (IoT) technologies have seen improvements in supply chain management that have already resulted in significant bottom-line benefits, according to a report from IT Pro.

In an interview with the website, Ton Steenman, the vice president of IoT for Intel (Santa Clara, CA USA), said that various industries – from retail to freight delivery – have already recognized the business case for investing in IoT services.

“Businesses can see the benefits of the IoT by making simple ROI calculations,” Steenman is quoted as saying by IT Pro. “Executives can say, ‘If I invest x amount of money, I can save y amount of money and return z to the bottom line’, so deploying IoT infrastructure is an unemotional business driven decision.”

An example provided by Steenman is that of Vnomics (Pittsford, NY, USA), a trucking company based in the US, which has been able to make a range of safety and maintenance improvements, as well as reduce fuel expenses by as much as 7% across the fleet, by installing sensors on each of its vehicles.

Using one of Intel’s Atom devices, the sensors gather vehicle data and dispatch this to a center where it can be analyzed for insights.

The fuel savings have not only bumped up Vnomics’ profits but also had environmental benefits, reducing the company’s carbon emissions by 38 million tons.

Along with a number of other high-profile technology companies, Intel is making a concerted push into the IoT space and recently began breaking out IoT revenues in its earnings reports.

As reported by IT Pro, the company’s forthcoming Quark chip will be aimed at allowing Intel to create more energy-efficient, small-footprint sensors that can feed information back to data centers for analysis.

Steenman expects similar cost and efficiency benefits to result from the rollout of smart city networks, improving traffic flow, smart parking, asset tracking and intelligent routing.

“There will be a whole new class of clean tech jobs created via city monitoring,” he said, according to IT Pro. “People will be needed to install and provision sensors and we will have to build analytics and applications/services to take advantage of the data.”

“On top of that start-ups will pop up to make use of the data on offer,” he added.
 
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