Dawn Of A New Data: Monetizing The IoT Ecosystem
Enterprise mobility is growing – both on the BYOD and COPE platforms – and the world wide web is embarking on 5G speeds in 2018. All of this in tandem creates a perfect opening for the Internet of Things, which can now be moved from the buzzword column to the supply chain.
At the base of IoT, however, is data, and without it practitioners can’t fully embrace or implement the capabilities being made available in a world of connected things. According to the Ernst & Young (EY) IoT Competence Center, which is a global team of IoT professionals, thanks to considerable growth in the industry, monetization of the data collected from networked IoT devices will be among the biggest trends of 2018.
“Business and operational models based on IoT capabilities are still very traditional and the anticipated benefits have primarily focused around how to achieve incremental value (which created value islands) through increased productivity, process automation, and maintenance cost reduction,” the report said. “However, more and more decision-makers are realizing the disruptive potential of IoT and are likely to increase its current value stream (toward value ecosystems) and more effectively use and monetize the data collected.”
It comes down to practitioners and decision makers realizing the potential, and turning that into actionable, revenue generating – or saving – practices.
“As executives realize the value creation potential of IoT systems, they are likely to seek new areas of application within their organizations,” said Aleksander Poniewierski, a member of the EY IoT Group. “Our analysis projects that we will see multiple proofs-of-concept of such solutions in 2018, as well as acquisitions of start-ups that have IoT solutions in their portfolio. However, this shall bring its own challenges, as it cold demand a redesign of business and operating models that require interoperability of current solutions throughout the entire IoT technology stack and the need to embed new IoT sensors in existing products.”
As previously reported by Enterprise Mobility Exchange, conservative estimates say there will be 20 billion connected devices around the globe by 2020, a timeframe fast approaching. According to a recent report by Gartner, two-thirds of enterprises will adopt IoT products by decade’s end, up from 30% in 2017. Interestingly, there’ll be a roadblock in the way of well-versed data scientists, which will “inhibit 75% of organizations from achieving the full potential of IoT,” the report said.
But as the saying goes, follow the money.
Predictions show potential value is what’s really pushing IoT’s growth, as the market expects to jump from a $157 billion valuation in 2016 to $457 billion in 2020. Additionally, IoT’s data management market is also going to see a quick uptick in value, moving from $27.54 billion to $66.44 billion between 2017 and 2022. The major factors driving the growth of IoT data management market include the modernization of data warehouse architectures and rise in need for data traffic management. The increasing adoption of data encryption for IoT device security and growing data intrusion threats are also some of the factors driving market growth.
Organizations that deploy IoT services now are more aware of what they can do with a connected product, which is removing many of the early start-up hurdles and challenges. As IoT technologies and standards continue to mature, and the vendor experience pool gets wider and deeper, service launch expertise will become more widely available, making IoT easier to navigate.