Note: This article was originally published on my previous blog ProcessRamblings.com.

In this article we are going to look at how different industries are leveraging (or can leverage) internet of things (IoT) to improve their business processes. These improvements can increase efficiency, improve data accuracy and resource utilization and most importantly increase customer satisfaction.

Auto Insurance – Additional Discount Process

Adeel Javed - How To Improve Operational Processes Using Internet Of Things (IoT)Recently all major auto insurance companies have started offering their customers additional discounts based on their driving performance. The customers are required to install a tracking device for a specified amount of time, once installed the tracking device starts transmitting data to insurance company. The insurance company captures and evaluates the data until the trial period ends.

Here is an overview of the additional auto insurance discount business process. This does not include all the steps, only main activities have been included to keep it simple.

  • Customer applies for the trial
  • Insurance company mails the device
  • Customer installs the device
  • Device transmit analytics
  • Insurance company captures analytics
  • Insurance company evaluate captured data
  • At the end of trial period the insurance company applies additional discount (percentage is based on customer’s driving performance)

Adeel Javed - How To Improve Operational Processes Using Internet Of Things (IoT)

By leveraging IoT data both the auto insurance companies and customers are reaping multiple benefits such as:

  • Insurance companies get more accurate driving data of customers for future analytics.
  • Insurance companies utilize the captured data to provide appropriate percentage of additional discounts to good performing customers, which further increases customer loyalty.
  • Rather than waiting for the trial period to end, customers get access to their driving performance and expected discounts information live.
  • To get higher discounts, customers can use the violations data (such as rapid acceleration and rapid braking) to improve their driving habits as well.

Waste Management – Garbage Collection Process

Adeel Javed - How To Improve Operational Processes Using Internet Of Things (IoT)Recently cities like Barcelona have moved from the traditional process where a garbage truck would have to make a scheduled route and pick up garbage cans regardless of them being full or empty.

Here is an overview of the new garbage collection business process. This does not include all the steps, only main activities have been included to keep it simple.

  • Set Threshold (garbage cans have embedded systems to communicate)
  • Garbage Can Transmits Analytics
  • Receive Analytics
  • Evaluate Data (check if threshold has exceeded or not?)
  • Calculate Smarter Route & Schedule Garbage Pickup

Adeel Javed - How To Improve Operational Processes Using Internet Of Things (IoT)

By leveraging IoT data the waste management companies are reaping (can reap) multiple benefits such as:

This process resulted in poor utilization of the garbage trucks, higher fuel costs and of course causing air and noise pollution.

  • Improved resource utilization – Using IoT, companies would know which garbage cans have exceeded the thresholds and need to be picked up. This data could be used to calculate smarter routes resulting in a reduced number of routes as compared to sending garbage trucks to all pre-defined routes.
  • Lower costs – Smarter routes will also help in lower fuel and maintenance costs of the garbage trucks.
  • Lower pollution – Another great advantage would be the reduction in air and noise pollution.

Those were just a few examples of how internet of things (IoT) is being used to improve business processes. There are numerous other processes that can benefit from internet of things (IoT). In conclusion, organizations should start thinking about IoT and how it can exponentially improve their efficiency and customer’s experience.

Republished/Cited