NEW YORK, Jan. 21, 2016 /PRNewswire/ -- How to Use Data to Monetize Smart Devices
In 2005, three Mega Trends converged to pave the way for the emergence of what we now know as the Internet of Things (IoT). First, cellular operators had completed the bulk of their network buildouts, and were looking for opportunities to leverage these networks in new ways.
Second, semiconductor manufacturers began producing low-power, wireless chipsets that extended applications to the reach of device connectivity.
Third, companies began seeking innovative ways to create new recurring revenue streams by connecting their products and devices; thus, the idea was born to introduce a new breed of smart, connected products. A decade later, as Stratecast discussed in a recent report, 2 IoT, also known as the Internet of Everything, is on the march around the globe. More than nine billion devices are currently connected, and that figure is expected to grow to as much as billion by 2020.3 The global economic impact of IoT is expected to reach as much as $ trillion by 2025.
The promise of IoT, at least in the eyes of its advocates, is the ability to capture and leverage data across virtually every aspect of the human experience—and, of course, to monetize that data; or, at minimum, to optimize operations and costs as a result of leveraging IoT-delivered data. That means the financial upside for IoT, as partly reflected in that $ trillion projection, is massive. Challenges to the predicted runaway success of IoT, however, loom large as well. Fewer than 23% of the respondents to Stratecast's 2015 Big Data & Analytics (BDA) Survey indicated they are considering, planning, implementing or using IoT; IoT ranked 16th out of the 21 BDA solution types offered in the survey. This is, in part, because IoT is still a relatively new phenomenon, and because not all businesses have "things" to manage.
Stratecast, however, asserts that among those who do, there were three primary reasons for the sparsity of IoT-ready respondents:
1. The lack of a clear, compelling return on investment (ROI) story about the benefits IoT can deliver. This is imperative, as responsible parties weigh decisions on whether, or at least when, to deploy IoT.
2. Knowledge gaps between the market hype surrounding IoT and a true understanding of what it takes to deploy IoT.
3. Uncertainty over the value to be obtained from yet another data stream, when most organizations already have their hands full managing existing sources of Big Data.
This report analyzes the challenges that these factors represent, and illustrates how they are being met—in part, through named customer case study snapshots that illustrate both qualitative and quantified ROI resulting from IoT deployments.
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