By Lisandro Sciutto, Director of Product at Infor Latam
Connectivity, cloud storage, automation and data analysis are essential factors for an efficient and complete strategy
Currently, the Internet of Things presents an opportunity for the industry, especially if we consider how digital transformation has changed the way people communicate and relate to each other and the environment in which they live. There are even initiatives to encourage the development of technologies for smart applications, such as the “IoT Platform — Open Structure of Technologies for the Internet of Things and its Applications”, launched in 2016 by the Federal Government in partnership with the Federal University of Ceará for the creation of solutions for applications in smart cities. Even so, many organizations are still skeptical or struggling to understand how to engage and where to start with an Internet of Things (IoT) strategy.
Even with the increasing adoption of Big Data by the industry and with smaller and more affordable sensors, there is still a lot to evolve. According to the 2015 Accenture survey, “From Productivity to Outcomes: Using the Internet of Things to drive future business strategies,” 84% of top corporate executives, known as the C-suite, believe their companies have the ability to create new service-based income streams using IoT. However, only 7% developed a comprehensive strategy and directed investments towards IoT.
Simon Jacobson, Gartner analyst and author of the whitepaper "Four Best Practices for Managing the Strategic Vision for the Internet of Things in Industry", says that the strategic vision for the Internet of Things is becoming increasingly clear for the industrial segment, with at the top of the priority list. He points out that rapid changes can create uncertainty as the technological evolution of IoT is faster than industry stakeholders can assimilate and link with performance-based maturity. Also according to Jacobson, the consequence can be uncertainty in value and differentiation for IoT business purchases.
While companies already have many IoT components installed, these applications are often bundled together or are part of an Intranet rather than the Internet. For example, many companies have used EAM systems for years to collect and monitor the status of their internal equipment, and use telemetry to track the location and performance of heavy equipment, including encouraging hourly lease agreements. In addition, machine-to-machine connectivity is used in vending machines and parking meters, where the devices send a signal when service is needed. Despite these familiar use cases, a new pattern of strategy is needed to take IoT to the next level. To do this, operations and IT systems need to align to create an integrated Internet of Things strategy.
An IoT system is not something a company can buy and activate, nor is it a piece of hardware or software to be bought and deployed in a few days. It is more aptly described as a mindset or strategy, which leverages multiple technologies into a cohesive plan. Big Data is a critical component of that plan, but managing that data is one of the key challenges. TechCrunch's Ron Miller wrote in the article, "If You Think Big Data is Big Now, Just Wait", about the massive amount of data the IoT has the potential to create. "The promise of Big Data ushered in an era of data intelligence. Coming from machines to streams of human thought, we currently collect more information every day, so much so that 90% of the data in the world today was created in the last two years alone. In fact, every day we create 2.5 quintillion bytes of data – by some estimates, that equates to a new Google every four days, and the rate is only increasing.”
This amount can be crippling. According to Gartner, industries are forced to find and master the alignment, convergence and integration of IT and operational technology (OT) environments. This requires new organizational designs and technical skills and responsibilities that were not needed before.
The IoT has great potential, but it presents challenges that companies must face as they develop their Internet of Things strategies. Connectivity, cloud storage, automation and data analytics are factors in the equation that must be mastered before the comprehensive strategy can be implemented. It's connectivity – inside and outside the plant, the application of collected data and a change in an organization's mindset that will make a difference for companies.
Currently, the Internet of Things presents an opportunity for the industry, especially if we consider how digital transformation has changed the way people communicate and relate to each other and the environment in which they live. There are even initiatives to encourage the development of technologies for smart applications, such as the “IoT Platform — Open Structure of Technologies for the Internet of Things and its Applications”, launched in 2016 by the Federal Government in partnership with the Federal University of Ceará for the creation of solutions for applications in smart cities. Even so, many organizations are still skeptical or struggling to understand how to engage and where to start with an Internet of Things (IoT) strategy.
Even with the increasing adoption of Big Data by the industry and with smaller and more affordable sensors, there is still a lot to evolve. According to the 2015 Accenture survey, “From Productivity to Outcomes: Using the Internet of Things to drive future business strategies,” 84% of top corporate executives, known as the C-suite, believe their companies have the ability to create new service-based income streams using IoT. However, only 7% developed a comprehensive strategy and directed investments towards IoT.
Simon Jacobson, Gartner analyst and author of the whitepaper "Four Best Practices for Managing the Strategic Vision for the Internet of Things in Industry", says that the strategic vision for the Internet of Things is becoming increasingly clear for the industrial segment, with at the top of the priority list. He points out that rapid changes can create uncertainty as the technological evolution of IoT is faster than industry stakeholders can assimilate and link with performance-based maturity. Also according to Jacobson, the consequence can be uncertainty in value and differentiation for IoT business purchases.
While companies already have many IoT components installed, these applications are often bundled together or are part of an Intranet rather than the Internet. For example, many companies have used EAM systems for years to collect and monitor the status of their internal equipment, and use telemetry to track the location and performance of heavy equipment, including encouraging hourly lease agreements. In addition, machine-to-machine connectivity is used in vending machines and parking meters, where the devices send a signal when service is needed. Despite these familiar use cases, a new pattern of strategy is needed to take IoT to the next level. To do this, operations and IT systems need to align to create an integrated Internet of Things strategy.
An IoT system is not something a company can buy and activate, nor is it a piece of hardware or software to be bought and deployed in a few days. It is more aptly described as a mindset or strategy, which leverages multiple technologies into a cohesive plan. Big Data is a critical component of that plan, but managing that data is one of the key challenges. TechCrunch's Ron Miller wrote in the article, "If You Think Big Data is Big Now, Just Wait", about the massive amount of data the IoT has the potential to create. "The promise of Big Data ushered in an era of data intelligence. Coming from machines to streams of human thought, we currently collect more information every day, so much so that 90% of the data in the world today was created in the last two years alone. In fact, every day we create 2.5 quintillion bytes of data – by some estimates, that equates to a new Google every four days, and the rate is only increasing.”
This amount can be crippling. According to Gartner, industries are forced to find and master the alignment, convergence and integration of IT and operational technology (OT) environments. This requires new organizational designs and technical skills and responsibilities that were not needed before.
The IoT has great potential, but it presents challenges that companies must face as they develop their Internet of Things strategies. Connectivity, cloud storage, automation and data analytics are factors in the equation that must be mastered before the comprehensive strategy can be implemented. It's connectivity – inside and outside the plant, the application of collected data and a change in an organization's mindset that will make a difference for companies.
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