Convergence of IoT and Data Analytics for Better Business Performance

IoT and Data Analytics

The evolution of disruptive technologies such as artificial intelligence, machine learning, big data, and others have dramatically led to digital transformation across business functions. These technologies have the potential to bring transformation to everything and enable consumers, enterprises, industrial, and governments to drive innovation. The advent of the internet of things (IoT) has essentially driven the world to a new connected environment where everything is connected to the internet and with each other.

Combining this technology with data analytics may enhance the data processing the companies already have. The convergence of IoT and data analytics will analyze the massive volume of data generated by connected devices. The amalgamation of both technologies has already proved effective and beneficial in industries like retail, telematics, healthcare, manufacturing, and smart cities, among others. Apart from this, their true value for organizations has yet to be fully realized and leveraged.

A majority of big tech companies are seeing the benefits of having IoT Data Analytics as the accessibility of it continuously growing. Companies including Microsoft, Amazon, GE, SAP, Salesforce and others have already begun implementing IoT data analytics into their business processes.

In today’s digital age, as businesses struggle with new technologies in order to seize the volume, velocity, variety, and genuineness of data they collect in their every day processes, they can also explore new value with the help of IoT data analytics. Considering reports, there will be an estimated 4.4 trillion gigabytes of data generated per year by 2020. However, as the value of this voluminous amount of data continues to grow, the convergence of IoT and data analytics will play a significant role.

Unleashing the Value of IoT Data

As the popularity of the internet of things is relentlessly growing, it is generating a massive amount of data that needs to be processed to drive competence. This huge volume of data carries enormous promises if analyzed effectively. In this context, making use of IoT analytics tools can draw significant benefits as they are typically capable of analyzing data at a greater scale. By putting these tools in place, the data that enterprises produce is effectively gleaned, assessed, and stored. These, in turn, enable organizations to optimize their operations at all levels, perk up decision making, and accomplish benefits. According to McKinsey estimations, by 2025, IoT could contribute up to US$11.1 trillion per annum to the global economy. 

Combining IoT and Data Analytics 

IoT technologies are able to completely rephrase how businesses think of their customers. The data generated by IoT devices convert drives value only if it gets subjected to analysis, which leads to the field of data analytics. This is referred to as a process that is used to evaluate large and small data sets with varying data properties to derive meaningful and actionable insights. 

The convergence of IoT and data analytics can empower enterprises in driving business growth by performing real-time management of critical systems, disaster planning and recovery, and enabling leaders to utilize business resources effectively. Although, big data analytics itself leverage IoT for easy functioning, but also poses some challenges. Big data is inevitable in IoT owing to the immense deployment of sensors and internet-applicable things. The role of data analytics in IoT becomes vital when the complete IoT system acts as a data generated source.