$90 trillion in gross world product. 65 trillion in business trade value. 14.2 trillion in revenue potential. 22% higher margins. No matter the statistic or analyst report, the message is loud and clear: The Internet of Things (IoT) is full of promise and change – prepare for it now.
How will your organization take advantage of this new opportunity? In a recent study, the Economist Intelligence Unit found that the top response to that question is automation, followed by business process acceleration. Although these benefits can help a business run better, faster, and more efficiently, executives are missing out on the real potential of the IoT.
In as little as five years, 75 billion devices will link your businesses to data and insight. Plus, 25% of the world’s population will engage in social networks – driving even more information your way. With this volume of data available, it’s difficult to believe that automation and process acceleration are the only advantages of the IoT.
The IoT can revolutionize your business more than you think
The IoT is fundamentally shifting how everything in our world interacts with their surroundings, and more important, with each other. Monitoring and managing objects in the physical world electronically drive decision making beyond simple directions. Leadership can now optimize performance, save time and money in terms of people and processes, and improve the quality of life for everyone impacted by their decisions.
As Rui Nogueira, product manager for SAP HANA Enterprise Cloud at SAP, detailed during the Americas’ SAP Users Group Webcast “Accelerating IoT in your Organization: Introducing SAP’s IoT Development Platform,” there are three overarching themes of this transformation.
- Deepening insight. Bi-directional connection among Internet-enabled things – including people, content, sensors, machines, devices, and anything else you can imagine – is bringing incredible volumes of data into business systems. By combining this information with intelligent analysis, these signals enable a new level intelligence, empowering decision makers to adjust operations in real time.
- Redefining decision making. Did you know that less than 1% of all business data is regularly used? And much of it is geared towards just setting alarms and real-time control. However, this is nowhere near how much the IoT can transform decision making and resolution. By responding to information predictively and automatically as soon as it enters the network, you can adjust operational processes. This helps position your organization to take advantage of a new opportunity before competitors do and resolve potential issues before it becomes a weakness.
- Reimagining customer experience. With all of this insight comes an opportunity to develop new business models that complement, enhance, and personalize your products as well as the customer experience. For most companies, this will mean creating a service around the physical product. Take Siemens, for example. The company is offering data-based services that record, process, and analyze data generated from it machinery and systems located at the client site. As a result, the customer can increase the reliability of their investment by revealing hidden cost and efficiency savings and identifying issues before disrupting the entire production line.
Hold on! You need the right foundation first
To realize the full advantage of the IoT, businesses need a network and platform that support the capture and analysis of data as well as the ability to take action immediately. Sophisticated capabilities such as predictive analysis and self-service visualizations can help decision makers understand and predict business outcomes. However, those are not the only features that can help drive a truly IoT-enabled business.
Here are seven capabilities you should consider when selecting or building your IoT network and platform:
- Text analysis. Extract and process unstructured text data from various files with support for a variety of languages.
- Geospatial processing. Store, process, manipulate, share, and retrieve spatial data.
- Operational intelligence. Manage operational risk with end-to-end process visibility and better analytics.
- Series data processing. Measure data and forecast trends with native series data storage and processing.
- Graph engine modeling. Discover, manage, and analyze complex relationships for proximity- and location-based analytics.
- Multitenant architecture. Logically isolate databases while sharing underlying system resources to optimize efficiency.
- Security. Protect your data – your customers and your business will thank you. Authenticate and authorize applications and users each time your systems are accessed, ensuring that you are not vulnerable to hacking attempts and data breaches.
Start making the Internet of Things a reality for your business
Watch the entire Webcast series “Internet of Things (IoT) Community Webcast Series” presented by ASUG and SAP:
- Making the Internet of Things Real
- Transform Business Operations and Reimagine Business
- From Big Data to Smart Data (IoT)
- IoT and Industrie 4.0 – European Perspective, Examples, and Business Models
- Operationalizing IoT Data for Predictive Analytics
- IoT – From Vision to Value
- Transforming Your Business with IoT – SAP Partner Perspectives
- Accelerating IoT in your Organization: Introducing SAP’s IoT Development Platform
For more insight on how future tech will affect the way business runs, see Big Data, The Internet Of Things, And The Fourth V.