As the Internet of Things (IoT) becomes more prevalent in the manufacturing industry, companies are capitalizing on the tremendous business opportunities it can provide. Embedded sensors and other "edge technologies" are enabling manufacturers to gain deeper insights into customer needs and behavior patterns. These insights provide significant opportunities for cost savings and incremental revenue by enabling the entire manufacturing ecosystem to respond quickly and appropriately to changes in customer usage.
Microsoft estimates the opportunity for IoT-generated data at $371 billion, which will be realized both by cost-containment and revenue-generation. Capitalizing on this opportunity requires solutions to contextually analyze multiple data sets to generate real-time insights and often create close-loop action on the instrumented products or assets.
Monetization strategies typically require a scale approach after successful proofs of concept or pilot programs. A scale approach to IoT monetization must address:
- Deep customer understanding of the intended design objectives and outcomes
- Understanding of IoT consumption – a human or a machine as the end point
- Identifying information needs for data as an asset class
- Converting raw "bits and bytes" into meaningful insights and foresights
- Defining "actions for change" from an infrastructure and organizational skills perspective
These steps naturally require a rethink on how to "absorb" IoT-generated data and how an organization creates capabilities to leverage "next-generation analytics" to deliver the promise of IoT monetization.