Gaining value from IoT(Internet of Things) | Part 2
In the first part , we read about the importance of having well defined and measurable objectives so as to improve the operational efficiency, to embed intelligence for product differentiation and to generate new revenue streams with new business models. Now, in this section, let us discuss about the other key factors, which underpin every successful IoT strategy
Having right data strategy
With billions of connected devices, data is growing exponentially. Analysts estimate that about 2 billion gigabytes of data are being produced every day; but it is surprising to know that only 15% of that data is actually useful.
This is where it is important for companies to define, as to what percentage of data to be processed at the edge level itself and what percentage to be sent to the IoT cloud.
Right data strategy does not stop restricting data transmission. But, it is key to generate meaningful data and restrict data generation by having the right number of sensors. For example, an iPhone has less than 10 sensors, yet we see thousands of applications around them. In contrast, consider an industrial device like a machine or an appliance that has 3000+ sensors and generating volumes of data — most of this data might not be useful for any analysis. Yes, comparing an iPhone with an industrial device is not ideal. But, the idea is to convey the importance of right data strategy. It is critical to identify those pertinent handful of sensors in such a way that analysis of data from these sensors will deliver business outcome driven applications.
A right data strategy will strengthen data integrity by only storing and analyzing the “right” data and will help reduce the operational costs, which is key for gaining value.
Internet of ‘Partnership’ things (Ecosystem play)
A traditional IT software comprises of two layers, an application layer and a platform layer. But, an IoT application typically comprises of a stack of five layers (Sensor/Device, Connectivity, Database, Application platform and Applications & Analytics) and the connectivity layer serves as the GLUE between the hardware and the software layers.
Currently, it is not easy to name one single company that would be able to offer turnkey IoT solutions for its customer; so the success of any IoT application will be based on good technical and business co-ordination between these fragmented industry ecosystem players.
Start local and go global
Unlike physical product, software is a global product by nature because of its ease in delivery and deployment, however IOT solution is neither software nor hardware.
So in the case of IoT, one needs to consider two factors for going global, Replication which involves duplication of the solution in a new region and context, and second one being the Customization which involves redesigning the solution to make it adaptable to a new place and environment.
While these two factors appear mutually exclusive, for going global, it is good to start local and then proceed with a hybrid approach on what aspects to replicate, and how to customize!!
To conclude, “IT to IoT” is a new phenomenon. For every business, whether emerging or mature, IoT will improve productivity, enable efficiency and generate new revenue streams. Though we are at the peak on the IoT hype curve, we are realizing the tangible outcomes of what IoT can yield. It is definitely on its way in moving from hype to reality and help gain value.
The views expressed in this article are those of the author and may not reflect those of SAP .