La Trobe University BUS1BFX Assessment 1: How IoT Affects Business

This essay examines the significant impact of the Internet of Things (IoT) on business management. It begins by defining IoT and then analyzes how this technology has revolutionized business operations, enhancing communication, efficiency, and customer outreach. The essay highlights both the advantages and disadvantages of IoT, including its effects on security, operating costs, and customer engagement. It explores how IoT enables businesses to collaborate, outsource, and expand their customer base, ultimately improving employee productivity and creating new market opportunities. The essay also addresses potential challenges and threats associated with IoT, concluding that while it has profoundly changed business practices, it also presents issues that need careful consideration. The essay emphasizes that IoT is evolving global business management with several new techniques and internet-based tactics.

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IT Write Up
IoT for Business Management
(Student Details: )
10/5/2019

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How new technology is affecting business
This essay is based on assessing how technology has impacted business. While researching a
specific technological change which is “Internet of Things” (referred as IoT), this essay is
going to reflect the impact of this technological change on business management. In this
context, with the help of this discussion an impact of aforementioned technological
advancement on modern business operations will be assessed (Vitez, 2019). Besides, this
essay will also recognize the comparative merits and demerits of IoT in relation to business
management. Apart from this, the essay will discuss the potential contribution of IoT trends
while heading to improving profitability as well growth of the business.
Before assessing the technological change impacts on business management, an
understanding of IoT needs to be demonstrated (Huichen & Neil, 2016). In this context, IoT
is a system of interrelated computing devices, objects, mechanical and digital machines,
animals or humans which are offered with unique identifiers. It has been found that IoT acts
as the ability to transmit data all over a network without needing any human-to-human as
well as human-to-computer interaction. Here, IoT as the major technological change has
completely revolutionized the way global firms conduct their business while allowing small
businesses towards the level the functioning field with bigger global firms (Vitez, 2019). IoT
considerably increases employees’ performance which is most essential aspect of any modern

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business. Presently, technology is generating so many important effects on recent business
operations. Irrespective of the size of the business firm, IoT being a novel technological
change is showing both tangible as well as intangible advantages which will definitely help
an individual to make money and reputation. Besides, the technology in the form of IoT is
significantly producing the outcomes which users, stakeholders, and customers require. It has
been observed by several business researchers that technological infrastructure based on IoT
really impacts the efficiency, culture and thereby relations of contemporary business.
Moreover, chosen technological change as IoT is also affecting the security of confidential
info as well as global trade advantages (Natalie, 2013).
In the context of impacts of IoT on business, it can be said that business operations are hugely
affected because of better communication, efficient operations, class relationships, business
culture, security, and research capacity which is typically offered by the IoT in business
management. In terms of technological change impacts on business, security is evolving the
whole world’s business operations (Ji & Anwen, 2010). Technological changes such as IoT
have brought both good and bad impacts from a security perspective. As we know that when
too much info is stored on internet-connected servers then it is always susceptible to data or
information theft. On the other hand, when it comes to operating costs of businesses, then IoT
allows business firms to sell their products and services online, it means IoT decreases the
operating costs of contemporary business (Vitez, 2019). For instance, when things will be
sold online then companies will not require brick-and-mortar stores which actually inculcate
huge operating costs. In this way, with the help of IoT tactics and strategies people can start a
new business while requiring almost negligible operating costs as compared to those of
offline infrastructure businesses (The Guardian, 2016).
Furthermore, customer outreach has influenced positively in modern businesses with the use
of IoT techniques. The world is actually thankful for internet as well as social media as the
reaching customers have become easier than ever now (Huichen & Neil, 2016). For example,
any newest small business firm can post its business-related content while using self-website
tool as well as many other social platforms. Therefore, IoT has helped world businesses by
helping actually interested consumers find them over internet (The Guardian, 2016).
Apart from this, IoT enables business companies to collaborate as well as outsource their
functions to the rest of the businesses in the regional and global business environment. In
addition, IoT has allowed international businesses to broaden customer base while allowing

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them to reach novel economic markets (Mavromoustakis et al., 2016). In this way, above-
conducted analysis is suggesting that IoT helped as well as continuously helping businesses
to enhance their employees’ productivity with the use of technological revolution. Moreover,
business software and computer programs with IoT enable employees to utilise more quality
info as compared to manual methods (Farhadi et al., 2012). Subsequently, Internet of Things
being the new technological evolution has created a team-dynamics in a business as
employees at diverse sites usually have better interactions. On the other hand, contemporary
businesses that have the technological capability to research novel opportunities can stay a
step ahead of their competitors with the help of such technological change as IoT
(Forschungs-Gemeinschaft, 2011). Besides, for a business to survive, IoT enabled them for
growing as well as acquiring new opportunities. Generally, IoT i.e. internet has also allowed
business to virtual travel in new markets without the risks of building a factory abroad. In this
way, there could be both positive and negative impacts of IoT on business management
related operations as technology is always carried inbuilt challenges, barriers, and issues with
it (Vitez, 2019).
In whole, this research essay has successfully explored how new technology as IoT is
affecting the business management and their future growth. Moreover, trending technology as
IoT has completely evolved so many businesses and thereby creating whole business niches
that never even existed before. It has been found that business owners run their companies
with the help of laptops, tablets as well as smartphones, while never even seeing opening a
brick-and-mortar presence worldwide. Apart from this, the daily business environment has
also been changed immensely, too. With IoT, business meetings no longer mean driving
long-distances as teleconferencing means getting everyone together online. In a nutshell,
technological changes or revolutions have completely changed the face of business while
posing few serious threats which need to be addressed in near future. In this way, IoT is
evolving global business management as smart business management with several new
techniques and internet-based tactics.

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References
Farhadi, M., Ismail, R. & Fooladi, M., 2012. Information and communication technology use
and economic growth. PLoS one, 7(11), p.e48903.
Forschungs-Gemeinschaft, D., 2011. The impact of control technology. IEEE Control
Systems Magazine.
Huichen, L. & Neil, W., 2016. IoT Privacy and Security Challenges for Smart Home
Environments. Information, 7(3), p.44.
Ji, Z. & Anwen, Q., 2010. The application of internet of things (IOT) in emergency
management system in China. In IEEE International Conference on Technologies for
Homeland Security., 2010. IEEE.
Mavromoustakis, C.X., Mastorakis, G. & Batalla, J.M., 2016. Internet of Things (IoT) in 5G
mobile technologies. UK: Springer.
Natalie, D., 2013. The future of the retail store – what does online mean for bricks. Dept
Comms , 24 September.
The Guardian, 2016. The future of e-commerce: bricks and mortar. [Online] Available at:
https://www.theguardian.com/business/2016/jan/30/future-of-e-commerce-bricks-and-mortar
[Accessed 28 September 2018].
Vitez, O., 2019. The Impact of Technological Change on Business Activity. [Online]
Available at: https://smallbusiness.chron.com/impact-technological-change-business-activity-
2191.html [Accessed 2019].