Business Information Systems: Opportunities and Challenges of Internet of Things Technology

This report discusses the characteristics of Internet of Things (IoT) technology and its significance in businesses. It analyzes the opportunities and challenges of using IoT and provides a value chain model to analyze the value delivered by IoT technology in businesses. The report is based on JWS Sports and Leisure Limited Company of UK, offering football, soccer, sportswear equipment.

BUSINESS INFORMATION
SYSTEMS

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK 1............................................................................................................................................3
Evaluation of the characteristics of internet of things technology(IOT).....................................3
TASK 2............................................................................................................................................5
Analysation of the opportunities and challenges by using Internet of things:.............................5
TASK 3............................................................................................................................................8
Value chain model to analyse the value delivered by the IOT technology in businesses...........8
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business information system offers the relevant information to the organization which is
essential to manage the business function efficiently. This process involves the technology factor
as hardware, software component to carry out the work effectively (Hwang and Kim, 2017).
Internet of thing is the technology define as the system interrelated technology which involves
the connectivity of the object through sensors. In businesses, it is used to find the effective
solution with the use of devices, sensors. JWS sports and Leisure limited company of UK is
offering football, soccer, sportswear equipment. The report illustrates that the key issues
associated with using of internet of thing technology for the business. It involves the
identification and characteristics of internet of thing technology, it describes the organizational
opportunity and the challenges faced by the sport sector regarding IOT. It further describes the
value chain model which define how the value is delivered by the using of the IOT technology.
MAIN BODY
TASK 1
Evaluation of the characteristics of internet of things technology(IOT)
Internet of things describe as a technology which embedded the physical objects with the
sensors and devices. It is the system which is correlated with the computing components, digital
equipments. It provides the transference of the data over a network without the intervention of
human. It is the anticipating technology which is being used by the businesses to carry out their
task effectively. It develops the customer engagement with the company, also able to enhance the
customer experience with the company's products and services (Haseeb and et.al 2019). Simply
this technology enables the wearable object to connect with the system. For example smart watch
is connected to the smart phone so that it's all functionalities can be operated by the one click on
smart phone. With the use of this technology organization can be able to design such products
and services which are considered as complex or impossible to design. As for the sport sector
company can begin to introduce this technology to design the products as to produce the
wearable object which can track or monitor the sports person's performance.

Characteristics of the IOT
Connectivity: Connectivity simply understood as the methods to connect the things together. As
in the IOT devices they are the sensors which are connected to the physical objects. For the IOT
devices connectivity through the system is must have needed for working. Better connectivity of
the devices enables the network accessibility through which the market opportunity are
increasing related to this technology. Therefore, businesses can proceed to develop the smart
products which are able to catch the attention of the customers (Ali and et.al 2017).
Unique identity:
As the devices or objects which are connected to the internet possess the different IP address, it
includes the intelligent interfaces which aims to communicate with the person. The main point of
using these devices as it provide the control to the user so that they can control the device
remotely.
Scalability:
IOT technology provides the scalability as it is able to tackle all the connected devices regardless
of any interruption. Therefore, its setup is capable of maintaining all the massive expansion. It
enables the businesses to continue their services throughout the day with no interruption.
Heterogeneity:
It is one of the main characteristics of the IOT as the IOT devices are designed on various
hardware platforms or networks so that they can easily connect to other platforms with different
networks. Therefore, for the IOT devices it is important to directly connect with the
heterogeneous network (Preety and Kpereobong, 2021). This technology enables the devices to
work effectively while connecting with each other.
Significance of the IOT related to business
Increase the customer experience:
IOT enables the organization to create their customer personalization, it also allows them to
improve the services for the customers so that they remain loyal to the company to make
investment in their product and services. It speed-ups the business process IOT devices also able
to predict the result.
Provide better opportunity for business:
With the implementation of this technology it allows the organization to produce wider range of
the product and services, it increases the efficiency of the product so that customer can

differentiate the product of the company with other companies in the market (Rebouças Filho
and et.al 2019).
Real time analytics:
Real time analytics is one of the most important process which this technology offers. As it
enables the businesses to obtain the customer patterns by knowing their buying habit. It also
helps the organization to find the issues so that effective strategy can came out to make
improvement.
Effective decision-making process:
IOT devices are able to find the effective solution, as it reduces the human intervention therefore
sometimes there might be a situation in the business which cannot be handled by the human. In
such situation IOT machine comes to rescue to provide better solution by examining the
information pattern.
Therefore the significance of the IOT are very well-known, as the rise of this technology
is developing many more opportunities for the business. As customer prefer the smart devices
most therefore it is the chance for the companies to introduce this technology in their product and
services for the better customer retention. As for the business it is important to implement the
IOT technology for the better customer retention also IOT devices allow the businesses to predict
the outcomes so that relevant action can be taken (Hopkins and Hawking, 2018). Its machine
stores the real time data through which company can know the purchasing behaviour of their
target customer so that they avail the services according to the customer's demand.
TASK 2
Analysation of the opportunities and challenges by using Internet of things:
IOT offers many opportunities to the organization to grow their business exponentially
but along with the benefits IOT also involves the challenges which can cause barrier in achieving
the goals or objectives. As for the sport sector it offers many opportunities as the components of
IOT are most important in dealing with the sport factor. Smart wearable devices, clothing sensors
are able to track the activity of the sports person which enables them to make improvement if its
needed. As tit helps the coaches to access the data so that they can implement the plan to
improve the game of player (Martinez, 2019).

The opportunities which is generating by the implementation of the IOT technology are as
follows-
Modernization of the analytics:
Previously organization spent their money and time to develop the analytics for the business to
create their own algorithms to smoothly run their business. However, the emergence of the IOT
technology provide the pre developed analytics engines for the business, these are at low cost
price. Therefore, for the JWS company they can proceed to implement this technology to design
analytics for their product it can be money saving process for the company so that they can make
investment on other project.
Secure and productive work:
IOT devices enables the workplace as safe as the sensor are able to detect the causing factor. As
the IOT connected devices provide help to monitor the hazardous places from this effective or
immediate actions can be taken to protect the human lives. As for the JWS company they need to
implement the IOT sensors so that it can detect all the factors which is bale to cause any
disastrous situation (Suppatvech, Godsell and Day, 2019). IOT is able to implement the better
work place environment as its devices allow the organization to create new jobs to handle the
machine.
Personalization:
IOT equipment as WIFI, network hardware connectivity enables the sports organization to
access the detailed data of the consumer so that it enables the company to tailor their services
provide to each fan to fulfil their specific needs.
Revenues:
IOT devices allows the sports organization to invent on the smart technology as the customer in
the market prefer the smart devices which offers the better connectivity and any time access.
Therefore, for that purpose company can proceed to prepare the products so that it can increase
their annual revenues.
Efficiency:
IOT devices provide better opportunity to the sport organization as with the help of this company
can design the better products which can track the data as for the JWS company they can proceed
to provide the sensors' sportswear so that it can track all the activity of the sportsperson through
this data effective strategies can be made (Wilburn and Wilburn, 2018).

Smart products and services:
IOT technology is able to provide the better information which can be used by the organization
to design their products and services. As for the JWS sports company they can proceed to
include the sensors and devices in their product and services so that it will attract the customer to
make purchase in their services.
Challenges associated with the Internet of thing
As using of this technology provides many benefits but there are some challenges which can be
faced by the organization while using this technology. Some challenges are as follows-
Security challenge:
It is considered as a main challenge as the IOT devices required the internet connectivity over the
network. As there are more chances of cyber attack which can give the vulnerable situation. As
for the sport sector if company begin to use the IOT device to design their products and the
machine is controlled by the smart devices what if the attacker seize the control in such condition
company might have to face the major consequences which can be lost of data (Fernández-
Caramés and Fraga-Lamas, 2018).
Lack of skilled employees:
It is the foremost important challenge as the IOT devices are connected to the hardware or
required the software coding for the sensors. It requires a skilled professional who can deal with
such devices. As for the sports company if they want to design the products while implementing
the IOT technology they must need to hire the professional who have better understanding in
dealing with IOT devices. Therefore, JWS company need to hire the talent who have better
understanding monitoring the IOT devices o that it can be effectively used to carry out the
organizational task effectively (Grow and Shackelford, 2020).
Unstructured data:
As the data from additional sensors can give the unstructured data which is most challenging part
for the organization. As for the JWS sports company if the IOT device they are using give the
unorganized data then it would be difficult for them to design a strategy for the production of
their product and services.
Limited bandwidth:

As the main factor of the IOT devices its their connectivity but it is also a major challenge as the
market is increasing day by day as it create a concern that the bandwidth of the IOT devices
might suffer for the space, as large files required the huge space then it can be a challenging to
store the data. This is because as the server model is based in the centralized system which drives
the traffic over the IOT network therefore it might cause the space problem for the data.
Therefore, for the JWS sports company it is important for them to consider the IOT connectivity
provider or proceed to choose the right record of service, so that they will be able to overcome
the limited bandwidth challenge.
Remotely controlling the devices:
As the IOT environment is consists of the number of devices which can be sensors, gateways
which are embedded with other physical objects. These devices can be arranged at different
geographical area which can be remotely controlled by the organization. Therefore, it can be
challenging for the company to maintain all the devices remotely. For that purpose JWS sports
company need to assign the better geographical range to their IOT devices so that they don't need
to face controlling challenge.
Managing the large data sets:
As the data management is the important task for the company so that they can produce relevant
strategy for their operational procedures. As the IOT system deals with the numerous IOT
sensors or devices which implies that the company has to manage all the data which is given by
each IOT devices. In such condition the handling of the data will be challenging also to measure
the real time data could be a major challenge for the company. So this can be a challenge which
can JWS company can face to in their operational process to deal with the large data sets (Meier
and et.al 2018).
TASK 3
Value chain model to analyse the value delivered by the IOT technology in businesses
Value chain define as the business activities which enables the businesses to deliver the valuable
product and services in the market. It mainly focuses on the internal factors of the business to
know about the information related to the costs, or to include the factors which can add the
values in the product and services so that it can differentiate from other competition in the
market. Value chain model involves the process which are as follows-
Primary activities:

Primary activities involves the factor which are used to increase the value and to develop the
competitive advantage for the company.
Inbound logistics: Inbound logistics activities used to receive, warehousing the raw materials
which are required for designing of the product and services. In such activities Internet of thing
can be beneficial as it helps the organization to give the proper information about the resources
so that they can prepare the strategy to preserve the resources which can be further use to design
the products.
Operation: As the name define operation are the activities to convert the input into the desired
output. For that purpose JWS company need to assign the role to their effective employee so that
they can effectively carried out the task for their organisation. Having technology advancement
in the operation can make the whole process easier and flexible (Zhan, 2020). Therefore
company can proceed to use the IOT devices which can help to deliver the better input such as
information which can help the employees to complete the operational process.
Sales and marketing: After the completion of the product design then the next process is to sale
the product by using marketing tactics. It involves the process which can be company consider to
interact with their customers so that they can buy their product. As for the JWS company if they
want to increase the sales of their product they can proceed to use the IOT device as it helps
them to obtain the pattern of their target customer so that they can imply the marketing tactics to
lure the customers towards the product.
Outbound logistics: This activity refer as to deliver the product into the market, therefore
company prepare the storage of their product to make it avail in the market. For that purpose IOT
device can be effectual as it enables the company to safe route for the transportation of the
products into the market. With this JWS company also know about the status of the traffic so that
they can safely deliver the product in the market.
Services: It is important for the company to provide better services to their customers for their
retention by providing them better products. IOT devices enables the company to implement
better services so that it will increase the customer relationship with the company.

Secondary activities:
These are the support services which provide the support to the primary activities it involves the
factors which are as follows-
Procurement: This task mainly concern as how the organization manage or obtain their raw
material for the designing of the products. For the JWS sport organisation they can proceed to
use the internet of thing technology which can avail them to know about the relevant vendors so
that they can purchase the raw materials for production process. Therefore IOT devices can give
the better services so that company can manage all their activities (Udoh and Kotonya, 2018).
Technological development:
Technological aspect involves the research as to design or create the techniques which can be
used for the manufacturing process. To create the value in the product company can proceed to
implement the IOT technology so that it will increase the sales of the product in the market as
well as it is beneficial to increase the revenue for the company.
Human resource management: Human resource management team ensures the recruitment
process for the company. As they are the in charge of managing the resources of the company
also hire the talent which can satisfy the company's environment. For the JWS company with the
help of IOT devices they can be able to track the information of the candidate so that they can
hire the relevant candidate who are able to carry out their operation successfully, or to
completely managed in company's environment. IOT also enables the HR team to design the
better strategy for the company so that they can select their market segment to target their
audience to increase the sales of their product and services.
Infrastructure: Infrastructure involves the whole structure of the company which involves the
accounting, financing and the quality management for the product. As for the JWS company they
need to implement the workplace environment so that their daily operation will be managed
effectively. For that purpose IOT devices are capable of managing the functionalities of the
company.

CONCLUSION
From the above report it is concluded that the implementation of the Internet of
technology can offer many opportunities to the business. As enabling of its devices provides
better customer retention to the company. Other than its advantages this technology has some
drawbacks to which the businesses need to consider while dealing with this technology. This
report described the characteristics of the IOT devices which can provides the benefit in their
aspects, also described as how significance of this technology develops the business opportunity
for the organization. It also illustrated the opportunities which is provided by this technology to
the sport sector, as how it helps the sports sector to grow by using its devices, it also involves the
challenges which is faced by the sports sector because of this technology. It finally concluded
with the value chain model which describe the values delivered by the IOT technology.

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Online
What is the Internet of Things, or IoT, 2021. [online]. accessed
through<https://www.iotforall.com/what-is-internet-of-things>.