“What the Internet of Things is really about is information technology that can gather its own information. Often what it does with that information is not tell a human being something, it [just] does something.” — Kevin Ashton
Consumers and businesses both have strived with the growth of technology. IoT is one such development. Being surrounded by various machines that can interact with us and complete day-to-day tasks for us is not only a miracle but a dream come true. There are so many things that humans don’t like doing. They want someone else to do it for them.
Let us take a basic example to understand this better. Suppose you go out and midway you realize that you have left the AC on. What will you do? Going back would mean wastage of time and not going back would mean that your electricity bill will rise. In such a case if you have an IoT enabled AC then you can use your mobile and with a simple click turn off the AC. Did you see how easy life has become now?
IoT has done wonders and one of the most useful applications of IoT is its integration with data analytics. In this blog you will read about the benefits and challenges of IoT in data analytics.
In the words of Brendan O’Brien, Chief Architect & Co-Founder, Aria Systems- “If you think that the internet has changed your life, think again. The IoT is about to change it all over again!”
(Recommended blog - IoT in Daily Life)
Benefits of IoT in Data Analytics
Initially it was a very costly affair to extract a huge volume of data and analyze it. But as the technology grew it became less and less costly.
Now with IoT it has become so economical that the companies derive a lot of benefits. There are many companies that have IoT in their data analytics field like - Microsoft, SAP, GE etc. Implementation of IoT in data analytics has a lot of benefits in day to day operations of a business entity. They are given below.
(Suggested read - AI in Microsoft)
Benefits of IoT in Data Analytics
Better human productivity
Human productivity increases with motivation, incentives and rewards. Giving a proper healthy working environment to the employees is important to enhance human productivity.
Now with IoT in data analytics organizations have implemented so many different devices that help in improving human productivity. For example- smart sensors are installed in the offices that keep a tab on the employee. These sensors collect data of various types.
It includes the engagement time of humans, their ratings, and extra-curricular activities done during working hours. This data is used to analyze the efficiency and productivity of labor. Collecting employee data requires consent.
As per the data released by Accenture, only 32% employees permit companies to use employee data and 55% of businesses don’t even ask for consent.
Improved equipment maintenance
Organizations use IoT in data analytics to measure the equipment requirements as well. Manufacturing industries use IoT to measure the equipment. When machines require repair, when they become obsolete, in which conditions machines can work well.
These smart sensors can also be used for machines. These machines help to reduce heavy repair costs, maintenance costs, breakdown costs etc. Sometimes machines breakdown in the middle of the manufacturing process.
It causes a lot of wastage of time and costs. With IoT enabled sensors we can analyze the asset data and reduce risks and send timely alerts.
With the help of IoT in data analytics all the operations in the organization can be optimized. You can get a comprehensive view of the activities happening around the business.
In the words of Grant Notman, Head of Sales and Marketing, Wood & Douglas “The IoT is removing mundane repetitive tasks or creating things that just weren’t possible before, enabling more people to do more rewarding tasks and leaving the machines to do the repetitive jobs.”
It ensures that deliveries, workflow and activities are timely carried out. With IoT we can ensure that no bottlenecks and defects are found in the processes. There are so many companies that have implemented IoT in data analytics and have experienced increased growth and productivity.
Enhanced customer experience
Customer experience and their satisfaction is very important for businesses. Be it a retail store, hospital, school, or an e-commerce platform it is important to keep the customers satisfied.
With the help of IoT all the relevant customer data is analyzed. Their feedback, purchasing patterns, demands, tastes and preferences everything can be figured out. IoT is beneficial to customers and businesses both at the same time.
(Suggested Read - Customer Experience Trends)
Challenges of IoT in Data Analytics
There are so many benefits of IoT in data analytics that are mentioned above. But there are some challenges that arise out of it. Sometimes companies don’t understand technology and are unable to utilize the employee data obtained.
Without effectively utilizing the data we cannot figure out the ways in which improvement can be done. Data overloading can also happen at the workplace. Apart from data overloading there are security risks, high costs, expert costs involved. Not every company can implement IoT in their field of data analytics.
The expense involved is too much. Companies fail to understand the long term benefits that will arise with such technology. Such high investment cannot be done without thinking about it. And the ROI is not immediately obtained. It takes time and proper strategies to develop the best system.