Why are some companies obtaining desired results on the IoT journey while others are not?
“The success or failure of the Internet of Things hinges on big data,” says Brian Hopkins, an analyst with Forrester Research. The companies that monetize big data through analytics and strategic planning reap the benefits.
In the months since Conner Forrest highlighted ten examples of IoT and big data working successfully together, the symbiotic relationship of IoT and big data has produced other success stories. Among the successes are Nordstrom, Siemens and Coca Cola.
Nordstrom is using big data, IoT and real-time analytics to personalize sales opportunities. The retailer uses the swipe of a customer’s card during a point of sale transaction in stores to link to cookies tied to a customer’s online identity. Cookies inform the retailer what the customer has perused online, and thus allows the retailer to offer purchase suggestions in conjunction with those items. As noted on PYMNTS.com, real-time analytics that result in a personalized offer improve the brick-and-mortar retailer’s ability to compete with internet-based retailers.
Siemens is using IoT and big data to build the Internet of Trains, according to Bernard Marr, Forbes.com. Through captured big data, sensors and predictive analytics, Siemens is reshaping the reliability of train travel.
Coca Cola is using data from soda fountain machines to introduce the most popular combination as a ready-made canned drink. Plans are underway for a “virtual assistant” to reside in vending machines to allow greater customization of beverage mixing. “Coca Cola is known to have ploughed extensive research and development resources into artificial intelligence (AI) to ensure it is squeezing every drop of insight it can from the data it collects,” Marr noted.
So what sets these companies’ IoT implementation apart from the roughly 80 percent of implementations that seemingly waste transformational opportunities? The short answer: big data and IoT working together.
“Success with the Internet of Things requires more than chasing the cool factor,” wrote Maciej Kranz, author of Building the Internet of Things, in the Harvard Business Review. “…To fully realize IoT’s potential, companies need to approach it as a multifaceted journey, making changes to their business models and strategies — or risk ending their trip before it really begins.”
What is the connection between the Internet of Things and big data? “Just like with any big data play, merely collecting the data isn’t enough,” says Conner Forrest, ZDNet. “The data must be processed and analyzed to glean insights, and those insights must drive actionable steps that can improve the business.”
This post was originally published in January 2016 and has been updated for accuracy and comprehensiveness. The featured image is from ZDnet.com.