How IoT platforms can become data publishers and profit
Published in: Economy
Data has, of course, always been valuable to businesses at a fundamental level but it’s only in the last decade or so that we’ve begun to think of businesses as being “data first.”
In this context, data is of instrumental value to enterprise. Collected, structured, and analyzed correctly, data can form the foundation of business success.
A decade ago, when data-driven decision making was still in its relative infancy, researchers from MIT showed that firms adopting data-driven decision-making achieved 5-6% higher output and productivity. Today, the potential of data-driven decision making to streamline business processes and drive growth is much greater. Compared to a decade ago, businesses have at least 25 times the volume of data available for analysis. Further, research from McKinsey shows that the number of businesses gathering data from IoT devices increased from 13 percent in 2014 to about 25 percent in 2019.
Data gathered through IoT devices typically has higher utility because it can be analyzed in real time, allowing us in some cases to react in real time. Finally, in the last decade, our ability to analyze data has vastly improved thanks to the proliferation of analytics software and the growth of business data analytics, the market for which has doubled in size between 2015 and today, and is expected to grow at 13% CAGR through 2022.
According to the European Commission’s Big Data and B2B Digital Platforms report, industrial companies will make 3.6% per year in cost reductions by basing business decisions on big data analytics.
The “big data European economy” is expected to account for 5.8% of EU GDP by 2025 reaching an estimated value of €829 billion, up from 2.4% of GDP or €301 billion in 2018.
Globally, a 2020 survey of 1350 medium to large organizations by IT research and analysis outfit Enterprise Strategy Group found that 12.5% of total gross profit is now attributable to better use of data.
While the above numbers provide a clue as to the direction we are heading, the true value of data is likely to be far beyond what can be quantifiably estimated at this stage. In the information age, organizations that embrace data and data analytics will achieve greater and more rapid success than those which don’t.
The following is an example of leveraging data and transition to a more data-driven business model.
Phoenix Contact, with revenues exceeding 2.4 billion in 2019, is a global market leader and innovator in the field of electrical engineering and automation. The company generates a wide variety of high-quality data sets through its global business operations.
Learn how Phoenix Contact could turn buildings from a cost center to a profit center, and transition from a leading hardware supplier to a more data-driven business model!
We have published a minibook “What is the value of my data” that summarizes findings and insights across a range of industries through real-world cases.
Specifically, we seek to provide insight into the nature of your data, its place in the modern economy, its true value and potential, and what IoT platforms can do to leverage and monetise data that they are already collecting.
Here's what you will learn:
- The key features of data. Why some data can be used, again and again, without losing its value while other data has little or no value.
- How to help your clients to leverage data that you are already collecting. Understand the value of data from three perspectives: individuals, society, and businesses.
- How data trading fits into your client's business model. Discover ways to redesign your offering, differentiate your organization and profit.
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