The internet of things (IoT) promises to connect all of our devices someday. But, the potential applications of IoT are vast and stretch beyond just consumer devices. Shipping and receiving is one of those industries, for example.
It’s now possible to track individual components and products as they travel on ships, planes, or trucks. Sensors can weigh all of the parts in an inventory bin in a factory or all of the sweaters in a store’s stockroom, enabling new levels of supply-chain efficiency and inventory management.
According to James Manyika and Michael Chui, writing in Forbes, IoT sensors can be used to monitor equipment and signal when maintenance is required on machines - potentially reducing maintenance costs by up to 25%. Sensors could also report how devices are being used by customers, and such products could adapt to customer preferences.
After looking at 150 IoT applications, the authors estimate in the next ten years these technologies will see widespread adoption. The potential economic impact ranges from $3.9 to $11.1 trillion dollars by 2025. The authors also discovered that the majority of IoT value will be generated via business-to-business settings.
There are some hurtles to overcome, however. Interoperability will be paramount, so different information systems can talk to each other. In fact, interoperability is necessary for 40% of this the estimated value of IoT. Analytical software will also need to be compatible, so accurate real-time information can be gathered to get real business insight. While data is collected in many industries, this data does not always drive decision making. The authors use oil platforms as an example.
many of the components on a modern oil platform are now connected; there are over 30,000 sensors on such a platform. But less than 1 percent of the data generated by these sensors are currently used for decision-making. And a majority of the predictable maintenance issues require data from multiple components to be combined and analyzed.
The IoT market will drastically change of business operate. CIOs will need to become more adapt at interpreting data, and data is going to need to dive a lot of the decision making at companies. Make sure to check out the full article in the source below.