The Internet of Things (IoT) is exploding in popularity as companies look to take advantage of new ways to use device- and sensor-generated data to create new Digital Business models or to augment existing systems and processes. Despite the novelty however, many businesses remain unsure of how this information can be collected, analyzed, and incorporated into existing systems. In Saugatuck’ most recent Digital Business survey, 41 percent of respondents indicated that they were either very or extremely committed to taking advantage of the Internet of Things (IoT), and 47 percent indicated that they were using sensor technologies to enhance the delivery of digital products and services. (1390SSR, 2014 Enterprise Intelligence Survey: Digital Business & Hybrid Cloud, 20 June 2014)
Much of this early success with the Internet of Things comes from the low-hanging fruit around mobile device sensors such as GPS or machine generated data in the form of log files (1276MKT, Geofencing, Sensors, Mobility and Location Intelligence Possibilities, 17 October 2013). While there is high expected value from many sensor data sources, at present only 34 percent of our survey respondents expected sensor data to be a medium-to-high enabler of business innovation (1390SSR). This is likely due to the difficulty in setting up new instrumentation, gaining access to existing sensor networks that exist within the organization (which are frequently encapsulated within process control systems), and finally in the challenges of managing and using that data once it has been captured.
Why is it Happening?
The Internet of Things is part of a larger trend around Big Data that seeks to use information generated in machines, Mobile devices, and sensor networks to generate business value, improve efficiency, or aid decision-making. Unlike other areas of big data that focus on pre-existing data sets and data mining, most IoT initiatives focus on generating new data, or filling holes in existing data sets to make other information more valuable.
The context in which Internet of Things data is generated and used, then, becomes highly relevant to business is expecting to gain value from these new capabilities. As a result it becomes increasingly important to be able to relate sensor data to other data sources across the enterprise, both as it is generated and when it is analyzed. (Alteryx Inspire The Importance of Analytic Context, 20 June 2014).
Click here to read the Market Impact, including three specific areas where we expect MDM to add value to Internet of Things initiatives.
This blog was originally published on Saugatuck Lens360 Blog on July 2, 2014. Published with permission.