Analytics is the key to making IoT projects pay off
As the Internet of Things becomes mainstream in companies, corporate managers are diving into IoT initiatives with a technology-centric approach. They are fixated on picking out the right technology to connect their products to the IoT. Moreover, a major blind spot they face while taking up an IoT project is treating it purely as a data management initiative that is limited to storing and accessing data. The result is that the ability of companies to connect devices and produce data has greatly outstripped their ability to analyze it.
A study from McKinsey revealed that only one percent of data from an oil rig containing thirty thousand sensors was actually used. This just goes to show that companies need to move beyond adding sensors to their products and reciting virtues of their ability to amass data – true value comes from the insights derived from the data and the business outcomes it achieves. Consider this, a connected forklift will prove to be valuable only if the data it sends across is analysed and acted upon, for instance, to carry out pre-emptive maintenance or to optimize routes within the warehouse.
It is utopian to think that companies can store data and then get back to it later to analyze it for insights. They need a strategy upfront to avoid ending up with huge piles of data without any actionable information. Making the most out of IoT involves thinking along multiple lines – how the data will be used, how much of it can be managed, how fast it can be analyzed, and finally how the insights will be used to make decisions. Regrettably, most IoT initiatives do not take into consideration such operational elements required for continual value. To achieve maximum ROI and prevent being disappointed, IoT projects need to provide an environment for access, storage, and analysis of data.
Dean Hamilton, GM IoT at Accelerite, in his recent article, “Why you need to design for analytics to succeed at IoT”, writes about the need for companies to design everything — products, applications, sensors, networks, services, etc. — with one all-encompassing goal: to maximize the value of the data they create or ingest through analytics. He discusses how designing for analytics from the ground up will lead to a new era of connected, personalized products that will ultimately deliver better customer experiences and financial gain for businesses. Read the complete article here.
Concert IoT Platform lets you create IoT service-oriented apps with IoT PaaS capabilities, allowing partners and developers to quickly innovate and enrich your ecosystem. The Insight Framework, deployed with other Concert elements or with legacy IoT platforms, derives business insight from the vast troves of sensor data produced by IoT/M2M/Industrial Logic Controllers.
Also read about the case for IOT service enrichment platforms here.