02 December 2015 |
Many Internet of Things (IoT) implementations are limited in scope, being driven by business units or functional areas, thereby making capture of enterprisewide benefits problematic.
Much of the value of IoT in the commercial and industrial sectors will be behind the firewall in what we call the "intranet of things."
A market for IoT algorithms is emerging, creating opportunities to tap into third-party analytics to create business value.
Product companies that are planning to transform into IoT-enabled service companies will encounter unanticipated execution challenges that impede business results.
Treat IoT data as a strategic enterprise asset, and develop an advanced analytics strategy for creating and acquiring algorithms that deliver business value-add.
Focus on use cases and benefits when planning commercial and industrial implementations of IoT; also, consider deploying proprietary and secure communication networks to create your own intranet of things.
Develop an advanced analytics strategy for creating value (algorithms) from IoT sensor data, and begin evaluating providers of analytics services.
Be prepared for volatility in the IoT service provider landscape as various IoT-enabled services encounter difficulties establishing viable business models.
Strategic Planning Assumptions
Through 2018, 80% of IoT implementations will squander transformational opportunities by focusing on narrow use cases and analytics.
Through 2020, 70% of industrial and commercial IoT implementations will be intranets of things that deliver operational benefits.