The impact of IoT data analytics on modern businesses

For billions of people, IoT devices have become a part of everyday life. These devices collect, store and transfer terabytes of data. For humans, it’s impossible to analyze such massive amounts of information. That is the task for computers. Businesses should seek the help of data analytics vendors to make sense of the data collected through IoT devices. Afterward, organizations can use these insights to make business decisions.

The primary purpose of IoT devices is to collect information. Still, once you do have the data, you need to analyze it to gain valuable insights. Businesses can use these insights to streamline their operations and do more efficient inventory management. IoT devices can be particularly useful for companies that maintain valuable physical assets. 

Industries transformed by IoT data analysis

The data collected from these smart devices can be invaluable in many different fields of business. It is particularly useful for companies that spend a lot of money on the maintenance of their assets. For instance, a large manufacturer can install these sensors on the equipment at their facility. The devices can track the condition and output of the machines. A company that operates a large fleet of delivery trucks can use these sensors to get updates on the condition of the car. Some businesses that already collect lots of data can use IoT devices to collect even more. Then they can get the help of data analytics vendors to gain valuable insights. 

Analytics strategy for IoT

Analyzing vast amounts of data collected through IoT devices requires a plan. Some key decisions will affect the effectiveness of your data analysis efforts.  First, you must determine what kind of device you need and then source it. There are so many sensors and other types of IoT gadgets to choose from. Even then, installing the devices is only the first step. After that, organizations still need to plan how to use the existing data to gain actionable insights.

Analytics strategy should consider what the data represents. Depending on the format and the type of the data, you will have to focus attention on different points of the data. For instance, If your company owns valuable equipment, you should direct your attention to the physical conditions of the tools, such as temperature. IoT devices can help you prevent any damages before they occur. If there’s any problem with your machinery, it will be detected early. This way, it can be fixed with little expense.

Businesses who intend to go down this route must consult with data analytics vendors, who can help them devise a strategy for analyzing the data. Once everything is set up, businesses can use these insights to improve their decision-making process. 

Even though IoT technology has come a long way, there are still limits to the technology. Data analysis vendors can help you come up with a strategy that is simple, effective, and most importantly, realistic.

Challenges of analyzing IoT data

IoT analytics can summarize data from many different sources, so it has the potential to save time and money. In an ideal scenario, the insights gained from data analysis should be freely available to all decision-makers at the company.

When it comes to data collection, IoT devices are sometimes inefficient by design. Any good data analytics vendor will consider these pitfalls when coming up with a plan for data analysis. One example of such a potential pitfall is a weak internet connection. Lack of access can seriously delay data-sharing between the device and the cloud.

It is also important to consider the format and shape of the data. IoT devices can collect it in many forms – audio, video, or images. All three types listed here have different characteristics and should be treated differently. Collection, transfer, and storage of different types of data require different protocols.

The volume of data collected from IoT devices is only going to grow. Instead of storing everything, many businesses implement a system to highlight the most important bits of data and store it selectively. This way, the whole set of data can be processed much faster and the storage costs will be lower as well.

Data analytics vendors can help you set up a system to address these challenges and make sure data collection (and storage) goes smoothly. 

Companies that invest significant resources into IoT data collection and analysis find it worthwhile to have a separate department, headed by Chief Data Officer, to handle these matters. Alternatively, smaller companies can also get the help of data analytics vendors at a much smaller cost.

Safety concerns

Since IoT devices collect such large volumes of data, a significant portion of it is going to be personal information. Throughout the process of collecting, transferring, and analyzing the data, it becomes vulnerable to malicious hackers. There may be internal threats as well. Any medium that involves the handling of so much data must be optimized for safety.

First and foremost, it is important to safeguard IoT networks. Most of the time, there are multiple devices connected to external databases through networks. There are many links in the chain, so the chance of something going wrong is higher.

Governments are very strict to enforce the standards of data safety. Any company dealing with such sensitive information is responsible for implementing a system to ensure the safety of the data. It becomes a particularly sensitive issue if the data contains personally identifiable details or sensitive financial credentials. Governments have punished companies for minor transgressions. So better to be safe than sorry. If you do not have a dedicated data security team, get in touch with data analytics vendors. 

Summary

Analyzing the data collected from IoT devices is a promising prospect. If done correctly, it can give you invaluable insights to make key business decisions. Still, due to the very nature of the process, there are many threats to look out for. If you’re at the head of the company and decide to use IoT devices for industrial goals, you should have an experienced team to manage the process. If you feel that there’s no one at your company who can step up, you can reach out to data analytics vendors.