IoT for SME – potentials and challenges © Photo Credit: lassedesignen -

IoT for SME – potentials and challenges

The Internet of Things offers a wide range of possible applications for SMEs that can improve their competitiveness. The short study exemplarily presents five future-oriented examples in the fields of “track and trace” and “remote monitoring” that exploit the potential of the IoT for new solutions. In addition, challenges and framework conditions for the application of IoT in SMEs are addressed.

The Internet of Things (IoT) is a global market that has developed dynamically so far and will continue to grow. IoT technology plays an important role in the digital transformation of SMEs, although smaller companies still have to catch compared to large companies. The widespread use of IoT varies significantly between industries and fields of application.

In the extremely heterogeneous SME segment there are pioneers that use the options of the IoT either as providers or buyers of solutions in particular for the optimization of processes, for the improvement of the existing range of services or for the development of new business models. The experiences of those players are the focus of the short study, which deals with the potential of the IoT for German SMEs, the challenges in the implementation and the design of suitable overall conditions. The study is based on the results and knowledge gained through expert discussions and two workshops on the central application fields of “Track & Trace” and “Remote Monitoring”.