Uncover the Value in the Internet
of Things: Getting ROI from IoT
of Things: Getting ROI from IoT
Melissa
DiEgidio, PTC
DiEgidio, PTC
Smart, connected products and the
Internet of Things (IoT) are changing how value is created for customers, how
companies differentiate their products and services, and the industry boundaries
across which companies compete.
Internet of Things (IoT) are changing how value is created for customers, how
companies differentiate their products and services, and the industry boundaries
across which companies compete.
During the recent LiveWorx event in Boston, a panel of Industrial Internet
Consortium (IIC) members addressed the value within IoT.
Consortium (IIC) members addressed the value within IoT.
“There’s a lot of hype around IoT, said panel
member Syed Hoda, CMO at ParStream, which offers an analytics platform. “But
there are some things that are actually real-life, places where you can
monetize it and customers like it,” he said.
member Syed Hoda, CMO at ParStream, which offers an analytics platform. “But
there are some things that are actually real-life, places where you can
monetize it and customers like it,” he said.
Yet, a recent ParStream survey of early IoT
adopters found that measuring ROI is a challenge. “Only one-third of companies
had metrics, and about another one-third said they didn’t know how to measure
it,” Hoda said.
adopters found that measuring ROI is a challenge. “Only one-third of companies
had metrics, and about another one-third said they didn’t know how to measure
it,” Hoda said.
“A lot of companies are just trying to learn,” Hoda
said. But the companies with the best ROI were also the best at collecting
and acting on data to generate value quickly, he said.
said. But the companies with the best ROI were also the best at collecting
and acting on data to generate value quickly, he said.
EMC’s Wayne Adams agreed that many companies
struggle with where to start. It’s not as simple as taking information from
sensors and benchmarking data, said Adams, senior technologist
and director of standards at the company.
struggle with where to start. It’s not as simple as taking information from
sensors and benchmarking data, said Adams, senior technologist
and director of standards at the company.
“It’s not just about the data. It’s about
knowing what to match additional information to before you can
do analytics.” Many companies find that the value in data from connected
products is exponentially enhanced when combined with data from other sources,
for example enterprise systems data from CRM, ERP or PLM systems.
knowing what to match additional information to before you can
do analytics.” Many companies find that the value in data from connected
products is exponentially enhanced when combined with data from other sources,
for example enterprise systems data from CRM, ERP or PLM systems.
The challenges IoT bring are not just confined to
the question of how to collect and analyze the data generated from connected
products. There’s the question of how to define and communicate the value.
the question of how to collect and analyze the data generated from connected
products. There’s the question of how to define and communicate the value.
Allan Alter, senior research fellow with consulting
group Accenture, said the first step is to understand what your customer
wants.
group Accenture, said the first step is to understand what your customer
wants.
“Thinking about the customer is where it all
starts,” he said. Companies must be able to clearly define and articulate the
value proposition for customers and internal stakeholders in order to succeed.
starts,” he said. Companies must be able to clearly define and articulate the
value proposition for customers and internal stakeholders in order to succeed.
Want to hear more from the ICC panel “Getting from
IoT to ROI: A Panel Discussion on the Business Side of the Industrial Internet”
watch the LiveWorx replay today.
IoT to ROI: A Panel Discussion on the Business Side of the Industrial Internet”
watch the LiveWorx replay today.
