Primary message the author is sending to the reader
The author gives a description of the various applications where sensor technology can be applied to increase profits and reduce costs in the different industries. The author refers to these technologies as the internet of things. The information networks can be applied to create new business models that can help different business to compete in the business world.
The author’s primary audience involves various industries and businesses. For example, marketing companies are one audience that the author is trying to reach. Another audience is the manufacturing industries. Additionally, car companies, insurance agencies, geological and engineering companies, government institutions and other public organizations. The message is directed to these audiences since most of their business operations involve the use of static technologies. The emergence of new technologies seems to have a bright future in improving the performance of the various organizations when incorporated in their operations. Some of the early adopter’s utilization of these technologies provides evidence of the application of these new technologies.
Evidenced provided by the Author
The author provides evidence of examples of the technologies that can be used in the different industries. Under information and analysis, a number of technologies can be used to track different behavior. Insurance agencies are installing sensors in their customer’s cars, which allows them to determine the prices of their policies based on the where the car is driven and how well it is driven. Additionally, rental car companies such as the Zipcar are already utilizing sensors in their cars to reduce the need of rental centers. This has contributed to increased revenues for the company. In supply chain management, the use of sensors on tags placed on products has helped to reduce logistics costs and thus improved the inventory management. Furthermore, in the aviation industry, airplane manufacturers are building airframes with networked sensors, which provides continuous data on the product’s tear and wear. This provides useful information that can help in the maintenance of the airplane.
The author notes that the use of the Internet of Things has a bright future. However, to be able to have successful application of these technologies, the author provides a number of critical factors that need to considered. Application of these technologies by the early adopters needs to provide evidence that the use of sensor driven-technology will indeed increase value. Various industries and government regulators will have to study the rules on data privacy concerning sensitive customer information. Additionally, there will be a need to form legal frameworks that will be used to handle bad situations resulting from the application of the new technologies. The author also argues that, for the use of sensors to be applicable on a larger scale, the cost of sensors will have to be reduced. For large organizations, application of new technologies will bring radical changes in the organization structures of these organizations. Lastly, the author encourages the different companies to start applying these new technologies as a way of achieving their financial targets.
The author’s description of the article provides the reader with a detailed application of how well the Internet of Things can be used to enhance the performance of a company. Additionally, the examples of companies already utilizing such technologies are evidence that such technologies are a necessity in the fast changing technological world. This article is extremely valuable to the reader since it also provides some of the issues likely to be experienced in the application of the new technologies in their business models.
Reference
Chui, M., Loffler, M., & Roberts, R. (2010). The Internet of Things. Mckinsey Quarterly, 2, 1-9
