There are few technologies in the world today that can make a Trillion-dollar impact on the global economy. IoT (Internet of Things) is one of them. McKinsey, the global think tank, estimates that IoT will have an economic impact of between $4 trillion and $11 trillion by 2025 (Source).
IoT brings organizations a whole new way of working wherein it becomes easier to control, manage, and monitor remotely located hardware. Also, it can open up numerous business models and revenue channels that were earlier inaccessible for want of a suitable hardware and software solution. IoT will also enable businesses to get a fresh pair of eyes to look into data to derive insightful business insights.
From healthcare to home automation and even connected manufacturing — IoT is creating new ecosystems that will rewire how we interact with IT equipment and real-world environments.
How IoT is rewiring the world as we know it
When it was first introduced to the world, many labeled IoT as a hype that will fizzle out with time. However, time and market performance have proven that IoT is not any hype but a solid technology with real-world applications that can review business processes.
It has become to be looked upon as a technology that is digitizing the physical world with the help of penny-sized sensors. Yes, IoT helps with the BLE (Bluetooth Low-Energy (BLE). BLE, which is also known as Bluetooth Smart, is a significant protocol that turns ordinary IT equipment into smart equipment that can connect to cloud servers via the internet to share real-time data. In the process, it is creating Billions of revenue and cost-efficiency impact for several industries.
IoT’s impact on healthcare
The world’s most sensitive industry vertical is for upheaval with IoT. for a long time, healthcare professionals and caregivers relied on estimates of patient data which skewed treatment decisions and caused dear losses to both sides. Also, it was never easy to obtain real-time information about patient health stats at scale in a large hospital environment.
With IoT, a new breed of patient wearables is entering the market, which can solve healthcare one and for all. The most basic version of this is the common fitness bands and trackers that most consumer markets have accepted with fervor. However, IoT in healthcare will introduce highly advanced patient wearables that can track sensitive health stats on a real-time basis, beam the data to cloud servers, which healthcare professionals can easily track through web and mobile apps.
IoT’s impact on manufacturing
Imagine a many-football-sized manufacturing plant becoming a data spewing surface? The possibilities such manufacturing data will create are beyond measure.
The biggest impact of IoT on manufacturing can be listed in two ways:
- It will transform the manufacturing process by helping personnel with predictive maintenance, better asset management, and capacity utilization.
- It will enable new business models akin to anything-as-a-service wherein third parties will help manufacturers with their asset management through IoT data analytics.
One of the primary benefits that IoT will bring to manufacturing is the predictive repairing of assets. Traditionally, manufacturing equipment has been maintained based on calendars prescribed by OEMs (Original Equipment Manufacturers). However, when the equipment would break down unexpectedly, there were instances causing downtime and delays in repairing and restoring it to working condition. The resultant losses were in Millions to even Billions depending on the scale of manufacturing operations.
For instance, IoT sensors connected to an oil pipeline can collect data and upload it to cloud servers, which can be further analyzed to determine predictive outcomes. A remote operator can disseminate the data to decide what kind of preventive maintenance needs to be initiated to prevent downtime or improve asset utilization.
IoT’s impact on mobility
One of the biggest lifestyle improvements that IoT will bring to the world is connected cards. The recent awe-inspiring car models of Tesla, BW, Audi and the likes are computers with sophisticated software running on wheels. Under the hood, they are connected cars that are powered by a mesh of IoT sensors.
These connected cars will have features that were earlier seen as sci-fi or in James Bond movies. Connected cars have the capability to sense their surroundings using a wide range of sensors, including motion, display, light, weather, and so on. Based on the sensor readings, the car can redirect to a shorter or less congested route, show vital car stats to the driver, take anti-collision measures, and so on.
For example, an IoT sensor can deliver real-time fuel efficiency, battery life, and other vital vehicle diagnostics. In other words, IoT can bring a host of lifestyle and safe driving features to everyday commute.
IoT’s impact on home automation
Homes, which have majorly been seen as the last priority for technological advancements, are given higher priority in the IoT wave. A sleuth of IoT applications is created to revamp the home living experience. It begins with automation that will require the dwellers to exert minimal effort in managing and controlling their devices.
One of the use cases that has been growing in popularity is home automation. Home automation will enable users to easily automate routine tasks at home that earlier required manual actions. This includes climate control of HVAC systems, access controls, lighting and heating controls, etc. IoT will enable users to control their home smart devices like lights, fans, air conditions, and several other types of equipment online through cloud servers. This will heighten asset utilization, reduce energy wastage, and also improve the standard of living drastically.
Unlocking the true potential of the Internet of Things (IoT)
Although IoT is a world-changing technology, unlocking its true potential requires critical thinking, proactive planning, and diligent implementation. Given the wealth of IT expertise available in the world right now, designing an app for IoT is not a cumbersome process.
What will decide the success of an IoT app is the idea. IoT can automate anything; however, automating the right business process to a specific limit only can unlock its true potential. For businesses relying on manual processes and analog workflows for too long, IoT can breathe digitization that will augment their productivity and turn them into the modern digital era.
Undoubtedly, IoT is opening up a wide world of connected devices. It can heighten collaboration between human to machine and machine to machine, thereby creating tangible business benefits.
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Fintech Kennek raises $12.5M seed round to digitize lending
London-based fintech startup Kennek has raised $12.5 million in seed funding to expand its lending operating system.
According to an Oct. 10 tech.eu report, the round was led by HV Capital and included participation from Dutch Founders Fund, AlbionVC, FFVC, Plug & Play Ventures, and Syndicate One. Kennek offers software-as-a-service tools to help non-bank lenders streamline their operations using open banking, open finance, and payments.
The platform aims to automate time-consuming manual tasks and consolidate fragmented data to simplify lending. Xavier De Pauw, founder of Kennek said:
“Until kennek, lenders had to devote countless hours to menial operational tasks and deal with jumbled and hard-coded data – which makes every other part of lending a headache. As former lenders ourselves, we lived and breathed these frustrations, and built kennek to make them a thing of the past.”
The company said the latest funding round was oversubscribed and closed quickly despite the challenging fundraising environment. The new capital will be used to expand Kennek’s engineering team and strengthen its market position in the UK while exploring expansion into other European markets. Barbod Namini, Partner at lead investor HV Capital, commented on the investment:
“Kennek has developed an ambitious and genuinely unique proposition which we think can be the foundation of the entire alternative lending space. […] It is a complicated market and a solution that brings together all information and stakeholders onto a single platform is highly compelling for both lenders & the ecosystem as a whole.”
The fintech lending space has grown rapidly in recent years, but many lenders still rely on legacy systems and manual processes that limit efficiency and scalability. Kennek aims to leverage open banking and data integration to provide lenders with a more streamlined, automated lending experience.
The seed funding will allow the London-based startup to continue developing its platform and expanding its team to meet demand from non-bank lenders looking to digitize operations. Kennek’s focus on the UK and Europe also comes amid rising adoption of open banking and open finance in the regions.
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Fortune 500’s race for generative AI breakthroughs
As excitement around generative AI grows, Fortune 500 companies, including Goldman Sachs, are carefully examining the possible applications of this technology. A recent survey of U.S. executives indicated that 60% believe generative AI will substantially impact their businesses in the long term. However, they anticipate a one to two-year timeframe before implementing their initial solutions. This optimism stems from the potential of generative AI to revolutionize various aspects of businesses, from enhancing customer experiences to optimizing internal processes. In the short term, companies will likely focus on pilot projects and experimentation, gradually integrating generative AI into their operations as they witness its positive influence on efficiency and profitability.
Goldman Sachs’ Cautious Approach to Implementing Generative AI
In a recent interview, Goldman Sachs CIO Marco Argenti revealed that the firm has not yet implemented any generative AI use cases. Instead, the company focuses on experimentation and setting high standards before adopting the technology. Argenti recognized the desire for outcomes in areas like developer and operational efficiency but emphasized ensuring precision before putting experimental AI use cases into production.
According to Argenti, striking the right balance between driving innovation and maintaining accuracy is crucial for successfully integrating generative AI within the firm. Goldman Sachs intends to continue exploring this emerging technology’s potential benefits and applications while diligently assessing risks to ensure it meets the company’s stringent quality standards.
One possible application for Goldman Sachs is in software development, where the company has observed a 20-40% productivity increase during its trials. The goal is for 1,000 developers to utilize generative AI tools by year’s end. However, Argenti emphasized that a well-defined expectation of return on investment is necessary before fully integrating generative AI into production.
To achieve this, the company plans to implement a systematic and strategic approach to adopting generative AI, ensuring that it complements and enhances the skills of its developers. Additionally, Goldman Sachs intends to evaluate the long-term impact of generative AI on their software development processes and the overall quality of the applications being developed.
Goldman Sachs’ approach to AI implementation goes beyond merely executing models. The firm has created a platform encompassing technical, legal, and compliance assessments to filter out improper content and keep track of all interactions. This comprehensive system ensures seamless integration of artificial intelligence in operations while adhering to regulatory standards and maintaining client confidentiality. Moreover, the platform continuously improves and adapts its algorithms, allowing Goldman Sachs to stay at the forefront of technology and offer its clients the most efficient and secure services.
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UK seizes web3 opportunity simplifying crypto regulations
As Web3 companies increasingly consider leaving the United States due to regulatory ambiguity, the United Kingdom must simplify its cryptocurrency regulations to attract these businesses. The conservative think tank Policy Exchange recently released a report detailing ten suggestions for improving Web3 regulation in the country. Among the recommendations are reducing liability for token holders in decentralized autonomous organizations (DAOs) and encouraging the Financial Conduct Authority (FCA) to adopt alternative Know Your Customer (KYC) methodologies, such as digital identities and blockchain analytics tools. These suggestions aim to position the UK as a hub for Web3 innovation and attract blockchain-based businesses looking for a more conducive regulatory environment.
Streamlining Cryptocurrency Regulations for Innovation
To make it easier for emerging Web3 companies to navigate existing legal frameworks and contribute to the UK’s digital economy growth, the government must streamline cryptocurrency regulations and adopt forward-looking approaches. By making the regulatory landscape clear and straightforward, the UK can create an environment that fosters innovation, growth, and competitiveness in the global fintech industry.
The Policy Exchange report also recommends not weakening self-hosted wallets or treating proof-of-stake (PoS) services as financial services. This approach aims to protect the fundamental principles of decentralization and user autonomy while strongly emphasizing security and regulatory compliance. By doing so, the UK can nurture an environment that encourages innovation and the continued growth of blockchain technology.
Despite recent strict measures by UK authorities, such as His Majesty’s Treasury and the FCA, toward the digital assets sector, the proposed changes in the Policy Exchange report strive to make the UK a more attractive location for Web3 enterprises. By adopting these suggestions, the UK can demonstrate its commitment to fostering innovation in the rapidly evolving blockchain and cryptocurrency industries while ensuring a robust and transparent regulatory environment.
The ongoing uncertainty surrounding cryptocurrency regulations in various countries has prompted Web3 companies to explore alternative jurisdictions with more precise legal frameworks. As the United States grapples with regulatory ambiguity, the United Kingdom can position itself as a hub for Web3 innovation by simplifying and streamlining its cryptocurrency regulations.
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