Generating, mining and analysing data is only half the battle when it comes to the IoT (i.e. or interconnected “intelligent things” working together to deliver new digital realities) . Being able to monetise that data is a potentially new benefit to the connected enterprise, delivering value to every industry and enabling new business models. It does so by supporting key initiatives such as customer engagement, digitised business processes and production, along with risk and compliance management. Every business should be asking how they can leverage their rich data sources and build on these using IoT and advanced analytics to unlock and mobilise new business models and revenue streams.
The continuing digital business evolution exploits emerging and strategic technologies to integrate the physical and digital worlds and create entirely new business models, transforming business design, industries, markets and organisations.
IoT, advanced analytics and cloud computing are some of the components that are driving the emerging digital business. The cloud is the perfect foundation and conduit for the digital business, particularly as the cloud serves as the core for the connected Edge.
An enterprise-grade IoT solution demands scalability, flexibility, security and real-time insights, all of which can be provided in the Azure cloud. It enables businesses to innovate, allowing the easy creation of apps and portals to launch new capabilities and services to customers.
As the amount of data that things produce increases exponentially, compute power shifts to the edge to process stream data and send summary data to central systems in the cloud. Digital trends, along with opportunities enabled by AI, are driving the next generation of digital business and the creation of digital business ecosystems. Take insurance as an example, an industry slow to adopt technology; the rise of the connected car is opening up a plethora of new opportunities, which blends the digital and physical worlds to create a natural and immersive, digitally enhanced experience.
Sensors in cars have given rise to telematics, offering insurance based on driving behaviour and potentially reducing the number of claims, increasing the accuracy of quotes and opening up the possibility to offer new services. However, that is just the first step an insurer can take in the monetisation of data. What about selling the data to an oil company, informing them of the petrol stations with the highest footfall from generated location data? Or analysing the demographics of the drivers to offer them pensions or life insurance?
To monetise data, a collaborative strategy must be deployed across an organisation – connecting the right people with the right data at the right time and turning all types of data into actionable business insights. Taking it a step further, advanced analytics can drive AI and cognitive machine learning opportunities – such as smart contracts in insurance.
Sean Morris, Head of Consultancy at New Signature says it best when he states that “the key factor in any IoT transformation project is being able to monetise the data that’s uncovered and drive tangible business value from it. That’s where analytics turns insight into advantage. You take that data, analyse it, and the find trends or correlations that enable you to create new ways to market or drive sales, opening up new market opportunities and incremental revenue streams,”