As technology fueling the Internet of Things (IoT) continues to advance at a rapid pace, data analytics presents an exciting opportunity for companies who want to build on their position as industry leaders and increase sales, profit and market share. To position themselves for success, businesses will need to prepare for the changes that are necessary to begin implementing data analytics and IoT capabilities.
The road to success with IoT is not easy. Case studies show that installing a lot of sensors and generating many data points does not necessarily provide useful information. You can have an excessive number of sensors and collect a very fine resolution of data, but really that can burden your efforts in obtaining useful data analytics results. What is important is collecting the RIGHT data. Furthermore, data analytics software packages are not silver bullets; untrained users may have difficulty extracting useful knowledge from arbitrary data sets.
New systems must be implemented to handle the vast quantities and varieties of data that IoT can provide. A powerful, flexible and robust framework for collecting, transmitting and storing data is critical to successful implementation. Creating value with IoT will require a new mindset, as well as new tools, skill sets and business models.
What you can do:
Mitigate financial risk by taking advantage of economies of scale.
Develop a standardized framework for analytics and maintaining a central team of IoT and data analytics experts to reduce redundancy, promote collaboration and facilitate the transfer of best practices throughout the company.
Design for analytics at the early stages of the product design process to reduce unnecessary sensor, data transmission and data storage costs.
Consider analytics at the beginning of the design cycle as the ideal time to vet the business case.
Integrate IoT principles into existing engineering and business practices to increase productivity without requiring complex analytics.
Gain valuable feedback through monitoring a single signal or performance metric and providing real-time alerts. Developing complex models isn’t the only way to gain value.
Change at every level
The impact of IoT extends beyond specific organizational or functional groups. Data gathered from IoT devices, and the knowledge gained from associated analytics will change the way we do business. It will allow engineers to create better products and give field service personnel and sales teams the ability to further improve customer service and identify new opportunities. Even internal operations will be transformed, changing the way that IT, supply chain, manufacturing, and quality fulfill their responsibilities.
These applications will touch each of a company's business functions in some way and positively impact the culture. IoT has the potential to drive collaboration within an organization, and that collaboration is critical for innovation and quick realization of value for you and your customers.
At Parker, we are working to transform our business through a digital transformation. With our Voice of the Machine™ offering we deliver discreet IoT enabled platforms and components that allow our customers to understand what is happening deep inside their machine.
If you would like to learn more, please visit www.parker.com/iot.
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