As each new piece of data is created every millisecond of every day, we are incrementally stepping into an era where every living and nonliving object brings value to someone else. Whether it’s our homes, our cars, or our bodies, everything is generating data that someone else wants and needs. However, the very act of data collection brings no real advantage. To offer any substantial value, companies must combine this information with everything it does.
For many industries, the notion of the Internet of Things (IoT) is nothing new. For 30 or 40 years, manufacturers, utility providers, and retailers have been using sensors to track the entire value chain. Back then, the IoT was relegated to gathering of low-level operational data to monitor the performance of basic, day-to-day equipment functions and operations. At best, this information gave a glimpse of what happened in the past and what caused a certain event.
Fast-forward to today: The introduction of predictive Big Data, advanced analytics, and more-affordable sensors have transformed the purpose and usefulness of the Internet of Things. In the Americas’ SAP Users’ Group (ASUG) Internet of Things webcast, How to Plan for When (Almost) Everything Is Connected, Timo Elliot, vice president and global innovation evangelist for SAP, and Irfan Khan, chief technology officer of global customer operations at SAP, explained how this wave of change is enabling companies of all sizes and industries to do more with IoT-generated data. “The technology is enabling organizations to perform algorithms and analyze data on a bigger scale, which is prompting them to disrupt their traditional business models and explore new areas of revenue opportunity,” states Elliott.
3 new realities strengthen the value of IoT
The IoT is very quickly extending beyond the tried-and-true task of automation and monitoring. Rather, the value shift is moving toward predictive and remote access. In turn, this approach is enabling people to make real-time changes anytime, anywhere, and on any device and impact the business positively.
However, this is only the beginning. In fact, there are three key reasons why every company should consider integrating the IoT into their operations, interactions, and overall digital strategy.
- Development: As companies continue to collect more data from a variety of sources, the IT function is left with the hefty task of integrating devices, data sources, and application across the entire value chain. The real art and science behind this task lies in how hyperconnectivity allows this information to be distributed across the business network to avoid data silos.
- Business models: Consumers expect products to add value to their lives – whether in the form of convenience, reliability, privacy, or efficiency. This increasingly popular demand across all B2B and B2C markets are forcing companies to shift away from the traditional approach of producing, selling, and delivering a tangible product. Rather, many brands, such as Kaeser Kompressoren and John Deere, are finding new and profitable revenue streams in the form of value-add services.
- Consumer behavior: Security, privacy, convenience, and stickiness of service. These are the highly sought-after attributes of the customer experience. People are becoming more aware that data is captured, access, and analyzed throughout the buyer journey. With the help of advanced analytics, decision makers can dig deep into this data and gain insight never before thought possible. On the flip side, the traditional market will need to rethink how it treats consumers along the way – choosing concessions to drive additional value.
If you have customers, IoT applies to your business. Although there’s a temptation to do nothing until everything settles down, consumer behavior is significantly more advanced based on their adoption of technology and their perceived value.
Isn’t it time that you incorporate the IoT into your 2016 strategy?
Watch the entire Webcast replay How to Plan for When (Almost) Everything Is Connected presented by ASUG and SAP.