Critical decisions demand data-driven insight, and today’s business leaders are under pressure to capture and understand the data from their entire ecosystem. According to IDC, in 2020 IoT data will account for 10 percent of all the data registered globally. Although industry experts agree that IoT data is changing the game, it’s still largely untapped information that is essentially used for operational monitoring. According to Aberdeen Group and PTC's survey, 46% of respondents still find that large volumes of IoT data are underutilised and 30% of respondents need greater visibility into manufacturing processes. Moreover, 23% claim their Field Service operations are inefficient and could be improved.
A recent report published by McKinsey report confirms that most IoT adopters fail to use their data or derive just a small part of its value. For instance, only 1% of data coming from 30k sensors on one oil grid turns into actionable insights. Therefore, companies should be committed to not only capturing and storing IoT data, but also maximising its value.
By combining operational data with traditional 'corporate' data and incorporating IoT data into their key decisions, business leaders are 43% more likely to see improved accuracy of data analysis and 34% more likely to see an increase in decision speed. Greater ability to make fast and informed decisions could be the key to unlocking a corporate competitive advantage and elevated performance for the entire business.
In fact, increased visibility and insight provided Best-in-Class IoT users with 5x the year-over-year increase in operating profit as well as 4.3x improvement in asset uptime or utilisation. These Best-in-Class IoT users are also 78% more likely to have the ability to integrate machine/ device data with business solutions (i.e. ERP, CRM) and are 73% more likely to gain on-demand access to asset and service performance information. Usually these come coupled with policies for data governance and oversight (63%). Being a leading-edge company also means exploring other technologies like advanced analytics, machine learning & artificial intelligence to drive the business forward.
To amplify the impact of IoT and extract as much as 60% of its potential (McKinsey), companies need to combine and analyse data from many different systems simultaneously. Then, the application of IoT data will bring up the range of opportunities for redesigning, adjusting, and customising operations, processes, products, and services across various industries, from vehicle manufacturing to retail sales and digital services.
Recently, MEMS Power Generation deployed a system with live data on the location of all of its generator hire vehicles and the key status of every generator in the hire fleet. The location, running status and fuel levels of each generator rental unit is displayed in real time. All the information is monitored around the clock and by establishing preemptive alarms and warnings MEMS Power Generation is able to provide a proactive approach to any problem that may occur. This is the example of how IoT data allows businesses to transform regular operations and increase efficiency.
Product manufacturers can use performance data to prioritise functionality correction and eliminate underused features, streamline urgent modifications, redesign tasks and jobs, and build a more conscious strategic approach for future development. Therefore, companies need access to IoT data from other entities to build a more complete picture of how products and services are used. For example, GCE Healthcare's portable oxygen concentrator Zeno-O, now allows health care and home oxygen providers, patients and their families instant access to information from flow to oxygen purity, device location and battery life.
The data gleaned from IoT can play a crucial role in costs reduction, increasing customer satisfaction and creation of new business opportunities. However, to fully utilise these benefits the findings be able to must move the business forward.
Drawing on real-world examples, O'Reilly Media illustrates techniques to improve IoT analytics for a competitive advantage.