The Internet of Things seeks to achieve two basic outcomes: to help you save money, and to help you make money. And the currency of IoT is data.
With a digital-first mindset, you have discovered the business value of connected devices and identified those devices that offer the greatest potential. Now that those connected devices are collecting data, the next step in your IoT journey is to think about how you can get the most value from that data.
Enterprises that store, secure, analyze, report on, and begin to take action on their data have the greatest opportunity to improve their business.
Begin with the end in mind
When tackling the question of ROI, it’s critical to begin with a clear end in mind. Understand what piece of the equation is under the microscope and take the time to set up the right commands to gain the most long-term value. Though the total value might not yet be realized, having an understanding of what you want to accomplish will help you focus on what data you need to gather. Choose one use case and look for potential problems and even unintended solutions in your data. Those “aha” moments can help you better identify challenges, tweak data and see all the possibilities that can help you build a strong model for ROI.
A Keystone study on data-driven enterprises shows that companies that thought through their data use cases – not just what data their collecting, but who can use it, how it’s stored, and how to make it available in real time rather than just reactively – are more profitable, more efficient and more engaged with their customers. Specifically, these data leaders realize an average
- $100 million higher margins
- $34k in revenue per employee
- just 1% higher IT spend
The data gleaned from connected devices will allow you to optimize performance, reduce risk, and use resources more efficiently. Consider a large enterprise with a dozen conference rooms shared among hundreds of employees. Teams can schedule meetings in these spaces in advance. But what happens when a meeting is cancelled, or ends early? A smart building can collect data on how employees are using each space, move machines away from low-use areas, create new facilities in locations where they are most needed, and conserve energy in the form of lights, air conditioning and heat when it’s not.
Connected devices provide data that can help you be smarter about how you use products and services, help you use resources more efficiently, and lower costs for a stronger bottom line.
Enterprises are discovering that the best way to build business is to offer value added services to the products they already sell. The data you gather from your connected devices can help you understand how customers interact with the items they purchased from you, and what value you can add on an ongoing basis. Car manufacturers build a single engine style, and are able to convert it, tuning up the power based on what customers want. Smart phones come with variable storage, appliances with tiers of service, and features can be turned on and off remotely to meet highly specific customer needs.
Understanding what services your enterprise can add that will offer additional value and encourage ongoing engagement with customers is a critical component to realizing the business value of IoT and how to make money from your data.
Download an excerpt of the IDC MarketScape report to learn more about key players in the market who may be able to help your organization captures and analyzes the data and increase your bottom line.