Integrating smart technology into commercial businesses is becoming commonplace as businesses try to meet growing customer demands and beat the evergrowing competition.
Smart technology is all about using interconnected devices and systems that collect, analyze, and utilize data. This data and network of systems help automate and streamline business operations, enhance decision-making, and allocate resources better.
Smart technology can also help businesses discover new growth opportunities, increase efficiency, reduce costs, and improve customer experiences.
This article covers everything you need to know about integrating smart technology in commercial businesses, including its role and the major types of smart technology.
The role of smart technology in commercial business
Smart technology, involving everything from artificial intelligence (AI) to the Internet of Things (IoT), is changing how businesses conduct their operations.
According to Fortune Business Insights, the global IoT market will likely grow from $714.48 billion in 2024 to $4,062.34 billion by 2032.
Here are some key ways smart technology is impacting commercial businesses:
- Enhanced efficiency: Automating tasks, streamlining business operations, and real-time data analysis can increase productivity and reduce costs. For instance, for running a restaurant, on-demand order-taking platforms can help streamline customer interactions and ensure seamless order processing. This smart technology is increasingly being integrated into restaurants and other commercial businesses to enhance operational efficiency and improve customer satisfaction.
- Improved customer experience: Personalized recommendations, faster response times, and seamless omnichannel experiences create loyal customers.
- Data-driven decision-making: AI-powered analytics provide valuable insights that can inform strategic choices and optimize operations.
- Predictive maintenance: IoT sensors can detect potential equipment failures before they even occur, preventing downtime and reducing maintenance costs.
- Supply chain optimization: Real-time inventory, and demand tracking help businesses improve efficiency and reduce waste. For instance, in a service-based industry like a lawn care company, integrating smart technology such as lawn care software can help streamline scheduling and routing, manage customer information, get timely invoicing so they don’t fall behind on accounts receivable, and streamline operations in general, which in turn leads to happier customers.
All in all, smart technology helps businesses gain a competitive edge, improve their businesses’ efficiency, and enhance the customer experience.
6 types of smart technology in commercial business
Here are some main types of smart technology being used in commercial business today:
IoT
The Internet of Things is a network of interconnected devices that collect, exchange, and analyze data. It’s the basis for many smart tech applications, changing how businesses work.
Key types of IoT devices include sensors and gateways. Sensors measure physical quantities like temperature, humidity, pressure, and more, while Gateways connect IoT devices to the internet and other networks.
For example, you can set up IoT-powered inventory management systems in retail to track stock levels in real-time. This will help you detect the demand for your products and stock them in advance to prevent stockouts.
This also improves customer service by reducing the likelihood of customers needing help finding the products they need.
Pro tip: Start with a small-scale project to test IoT technology in a manageable setting. This will help you understand how it works, identify challenges, and see the potential benefits before committing to a larger rollout. It’s a low-risk way to learn and refine your approach.
AI
Artificial intelligence is all the rage right now. For the uninitiated, it’s a broad field of computer science that focuses on making systems that can think, learn, and make decisions on their own.
Businesses often use AI to generate new leads, automate tasks such as appointment setting, improve decision-making in their operations, and offer better customer service. Whether you’re exploring tools for marketing automation or Mailchimp, Klaviyo, or considering Klaviyo alternatives, AI-powered platforms can help you choose the best solution for your business needs.
Here are some ways AI can help you transform your business:
- Automation: AI automates tasks like data entry, customer inquiries, and product design, allowing the team members to focus on more important work.
- Better decision-making: AI can analyze large datasets to identify patterns and trends humans might miss, helping businesses make more data-backed decisions, such as dynamically adjusting a pricing strategy based on customer usage patterns and the marketplace demand.
- Improve customer support and buying experience: AI-powered chatbots help companies offer personalized customer service and routine customer questions, allowing human agents to deal with more complex issues.
- Product development: Commercial businesses can use AI to design new products, improve existing ones, and predict consumer preferences.
- Automated content creation: Many businesses now use generative AI to create content for marketing, social media, and more.
Pro tip: Implement data cleaning and validation processes to leverage only quality and substantial data. For example, you can use algorithms to detect and correct errors in data, including inconsistencies or missing values.
Cloud computing
Cloud computing is a way to provide IT services over the internet, allowing businesses to access and use applications, storage, and servers whenever they need them.
For example, Dropbox is a popular cloud storage service that allows users to access and share files from anywhere.
It’s a significant part of every business system because it offers flexibility, the ability to scale up or down, and saves costs.
Here are some key cloud computing types:
- Infrastructure as a Service (IaaS): Provides computing resources like servers, storage, and networking.
- Platform as a Service (PaaS): Offers a cloud-based platform for developers to build, run, and manage applications.
- Software as a Service (SaaS): Delivers applications over the internet, eliminating the need for businesses to install and maintain software on their own premises.
Aside from scalability and cost-cutting, cloud-based solutions can also aid in disaster recovery.
Before you move all your operations to the cloud, start a pilot project to test the feasibility and benefits of cloud computing.
Choosing the right provider is equally important. The cloud provider should also meet your needs and offer security and compliance certifications.
Pro tip: Establish solid security practices to protect your data and applications in the cloud. This includes using encryption, setting up firewalls, and regularly updating your systems to keep your information safe from threats.
Machine learning
People often use Machine learning (ML) and AI interchangeably, but the former is more like the subset of the latter. Technically, ML is a branch of AI where computers can learn from data and improve at tasks over time without having to run a code manually.
It’s like teaching a computer to recognize code and patterns and make decisions based on what it has learned. Businesses can use this AI technology in many areas to increase efficiency and save time, from recommending products in online stores to improving customer service with chatbots.
Here are some ways ML can help a commercial business with their operations:
- Predictive analytics: For example, it can help businesses anticipate when a customer is likely to stop using a service (customer churn) or forecast the demand for specific products during certain seasons, allowing companies to plan better and stay ahead of the competition.
- Fraud detection: ML algorithms can gauge patterns in fraudulent activity that a normal human might miss. These algorithms also learn consistently from new data, improving their ability to spot suspicious activities—from credit card fraud to identity theft.
Recommendation systems: Machine learning can personalize recommendations for products, services, and content. This is the technology behind the “You might also like” sections on e-commerce sites or the customized playlists on music streaming services, enhancing user experience by making relevant recommendations.
Product recommendation based on machine learning (Source)
Machine learning techniques can also help you improve natural language processing tasks. This includes applications like chatbots, voice assistants, and language translation services.
Big Data
Big Data refers to the vast amounts of data businesses generate, store, collect, and analyze to determine customer and market patterns and trends. Unlike traditional data, Big Data can be both structured and unstructured.
This data is generated every second online, from online transactions to social media interactions, and businesses use this data to make data-driven decisions to improve their modern business activities.
With the right tools and analysis, companies can use Big Data to predict future trends, optimize operations, and create more personalized customer experiences.
Big Data use case (Source)
One of the most prominent examples of Big Data in action is Amazon. The company uses Big Data to personalize shopping experiences, recommend products, and optimize pricing. It helps Amazon determine what products a customer will likely buy and when.
Pro tip: Utilize Big Data analytics tools that can handle large volumes of data and provide actionable insights. Popular choices include Hadoop, Apache Spark, and Tableau.
Edge computing
Edge computing is a game-changer in so many ways. It brings data processing closer to where it’s generated or needed instead of relying solely on centralized cloud servers.
Processing data at the “edge” of the network (including on local devices or nearby data centers) helps businesses achieve faster response times and improve their security measures.
Edge computing is particularly important from a security point of view. Since it entails processing data locally, sensitive information doesn’t need to travel as far or to as many locations, reducing the risk of data breaches. This is particularly beneficial for businesses in sectors like finance and healthcare, where data privacy is at the forefront.
Where smart technology benefits commercial businesses the most
Smart technology has many use cases and benefits, especially for commercial businesses. Here are a few examples of how it helps commercial businesses:
- Business efficiency: Smart technology helps businesses automate tasks and analyze data in real time to increase productivity and reduce costs. For example, AI-powered chatbots can handle standard inquiries, allowing sales reps to handle complex customer service-related issues.
- Enhances customer experience: You can leverage AI-powered insights to offer personalized recommendations to customers, respond to them faster, and create an omnichannel experience by reaching customers through their preferred channels.
- Data-driven decision-making: For example, a retail company can use AI to look at customer buying habits and see which products are often purchased together. This helps them arrange products better and improve their cross-selling strategies.
- Predictive maintenance: IoT sensors can detect possible equipment failures before they occur, preventing downtime and reducing maintenance costs.
- Supply chain optimization: Smart technology can help businesses track their inventory and shipments in real time, allowing them to predict demand in advance and reduce waste.
- Security and risk management: Smart technology can help tighten security and identify potential risks beforehand. For example, IoT sensors can detect issues in network traffic that might occur due to a cyberattack. This way, security teams can prepare to combat the threat before it wreaks havoc on your system.
How to implement smart technology for the most impact on commercial businesses
We’ve seen how smart technology is transforming production and commercial businesses. Here’s an overview of how to actually implement smart technology to improve your business processes:
- Invest in data quality: All the implementation will only be helpful if the data you use is up-to-date, accurate, and reliable. Before integrating any new tech, clean and organize your data. This will help avoid data quality issues and discover only relevant insights.
- Start with clear objectives: Identify goals and objectives you want to achieve with smart technology. Is it the customer service you’re having trouble with? Or do you want to reduce cost and optimize time by freeing up manual tasks like data entry and running campaigns? A clear objective will help you find the right tools and resources to implement smart technology.
- Review and optimize processes regularly: Like every technology, smart technology should evolve with your business. Review how the technology is working out for your business regularly and make adjustments accordingly. This continuous review will help you stay ahead of the competition and ensure the technology aligns with your business goals.
- Establish strong security measures: Smart technology often involves handling large amounts of data, which can be a target for cyber threats. Choosing solutions with reliable encryption, regular updates, and strong access controls to protect your business and customer data.
- Accounting automation: Smart technology, including accounting automation tools, streamlines financial processes by reducing manual data entry, improving accuracy, and providing real-time financial insights.
Most importantly, make sure you work with a technology provider who understands your industry and can make implementation smoother and more secure.
Integrating smart technology for business success
Smart technology is changing how businesses operate and deal with their customers. Beyond marketing and offering a better customer experience, these new-age technologies are also helpful for making data-driven business decisions and securing your customer and business data.
But merely implementing isn’t enough. You need to focus only on quality data, set clear goals, and regularly review your processes to maximize the benefits. At the same time, make sure to work with a trusted provider like Codegrape to implement these technologies for your mobile apps and plugins.
