The Internet of Things (IoT) is one of the most prominent buzz words dominating recent new articles, social media feeds, business analytics and economic projections, and experts suggest that the hype surrounding IoT hasn’t even reached its peak yet! What really has businesses, market researchers and economists excited are projections for just how much potential the IoT offers for business growth and prosperity. Some estimates project a market opportunity of $7.1 trillion by 2020. As such, experts suggest that the Internet of Things harbors the potential to be the next largest catalyst for a new era of growth in consumer goods and electronics.
But what exactly is the Internet of Things?
Essentially, IoT is a network of interconnected objects. The Internet of Things (IoT) is a scenario in which the majority of physical objects have the ability to transfer data over an internet network without requiring human-to-human or human-to-computer interaction. These objects or “things” as part of the Internet of Things contain embedded technology designed to help an object interact with internal or external environments. In order for the system to work, physical items must contain a unique identification codes and have embedded sensors that can innately detect and interact with other internal and external sensors, ultimately allowing objects to sense and communicate with one another and their surroundings. IoT has evolved out of the integration of wireless technologies, micro-electromechanical systems, and Internet connectivity, in an effort to generate more ways to increase efficiency and improve quality of life.
How far-fetched is this scenario?
Not far at all. In fact, the IoT scenario is already partially in practice as machine-to-machine (M2M) communication technologies have been rapidly increasing in popularity among many commercial and consumer items. M2M communication is currently being utilized in various business industry sectors from manufacturing and power systems to consumer goods production. The fact is that many consumers already have devices which utilize M2M technology. Such products are often referred to as “smart“objects.
Technology is such an exciting investment and business opportunity, but like all endeavors is not without a unique set of risk exposures to accompany the many benefits and rewards. At Sinclair Risk and Financial Management, we specialize in problem solving and finding solutions to the challenges and risks that Connecticut businesses face. Whether your operation is a local start-up or a multi-national operation, we offer a complete portfolio of Wallingford business insurance products customizable to fit the specific needs of and business. We also specialize in crafting commercial insurance packages designed to mitigate the unique risk exposures of high risk and fast-paced industries such as technology, aviation, manufacturing and more. To learn more about comprehensive risk management approaches, give our Wallingford business insurance specialists a call today at (877) 602-2305.