Rapidly emerging Internet-of-Things (IoT) technologies are revolutionizing the business processes. Over the past few decades, the development of the IoT has been prompting the digital transformation by introducing a plethora of novel concepts including integration platforms and architectures, smart products and communication protocols. Consequently, these innovations have also influenced the economic impact of the IoT.

In particular, the traditional end products have evolved into smart products and become aware of their own identity, environment and position. Furthermore, they can process data, make their own decisions and communicate with other devices opening tremendous circumstances for an immense number of applications that guarantee to improve the quality of our lives.

For small and medium enterprises (SMEs), this represents a huge opportunity to evolve from traditional product-oriented enterprises into data-driven enterprises [1] by not only introducing the smart products but also mining the data acquired by these products. Examining the data, gaining knowledge and discovering patterns equal new possibilities, new potential and consequently new services. However, the implementation of IoT solutions requires a fundamental transformation of the business model. To transform the business model, one can use a method developed by the DIGITRANS project, which supports SMEs in developing and implementing their new digital business models [2].

One interesting example of successful story presents a Slovenian high-tech SME called Sensum, which offers integrated high-quality assurance solutions for automatic visual inspection of pharmaceutical and nutraceutical products [3]. This company was founded in 2000 by the computer vision researchers from the University of Ljubljana and at first focused on the development of systems for applications in pharmaceutical industry, e.g. colour inspection of tablets in blisters. Through the years, it developed and improved several machines for automatic visual inspection and sorting of tablets and capsules and started to collaborate with IMA – one of the leading enterprises in this field. In the meantime, it penetrated the global market, kept growing and extended the manufacturing facility. Moreover, Sensum became recognized as a technology leader and preferred supplier of machines for automatic visual inspection and sorting of tablets and capsules [3].

According to [4], 200 billion devices are expected to be connected in 2020 or every human being in Earth will be surrounded by 26 smart products. It is therefore of utmost importance that SMEs adapt to these changes and thus transform their business models in order to stay competitive in the market. They are competing against time, so they have to encourage an open modernization-oriented culture within their organizations and attract new employees from the fields of data science and software engineering. This might lead to some structural changes within the organizations in the beginning. But potentially, it will ultimately increase their business opportunities and consequently guarantee new sources of income.

Authors: Melanija Vezočnik and Matjaž B. Jurič, University of Ljubljana, Faculty of Computer and Information Science

[1] A. A. Pflaum and P. Gölzer, "The IoT and Digital Transformation: Toward the Data-Driven Enterprise," in IEEE Pervasive Computing, vol. 17, no. 1, pp. 87-91, Jan.-Mar. 2018.

[2] DIGITRANS website. Accessed: Jan. 29, 2019. [Online]. Available: www.digitrans.me

[3] Sensum website. Accessed: Jan. 30, 2019. [Online]. Available: https://www.sensum.eu/

[4] A guide to the Internet of Things. Accessed: Jan. 29, 2019. [Online]. Available: https://www.intel.com/content/dam/www/public/us/en/images/iot/guide-to-iot-infographic.png