January 5 by Neema Jyothiprakash
Celebrating the New Year is understandably exciting, but realistically daunting. We demand resolutions, radical change, and revolutionary progress.
Based on 2014 trends and insights about the business world, 2015 won’t be the year of Big Data, the Internet of Things, and Connected Customers. Instead, 2015 will be the year that redefines the impact of Big Data, the Internet of Things, and Connected Customers.
The difference is more than syntax; technology, business, and the economy have reached a global consensus that Big Data is worth investing in, the Internet of Things is the new standard for how we relate to machines, and customers connected to their vendors makes everyone happy. Now that we’ve collectively recognized that these technologies aren’t the future but the contemporary, the next step is developing analytics, impact assessments, and new business models.
This is especially relevant for the Industrial and Healthcare sectors because “Big Data created by industrial equipment holds more potential business value on a size-adjusted basis than other types of Big Data associated with the social Web, consumer Internet and other sources.”
To help unlock this potential business value, GE and Accenture recently released an “Industrial Internet Insights Report” for 2015, defining the Industrial Internet as the marriage of Big Data analytics with the Internet of Things. The companies surveyed were in the healthcare, aviation, wind, power generation, power distribution, oil & gas, rail, manufacturing, and mining sectors.
For these sectors Big Data is primarily about adding sensors and data collection capabilities to industrial equipment such as turbines or oil refineries. Combined with the Internet of Things which allows a communicative transfer of real-time data between machines, the need to strategically analyze and monitor what information the Industrial Internet captures
In the industrial sector, think about the environmental, economic, and customer value that successful analytics of the Industrial Internet can result in: for example, the largest UK provider of water and wastewater services, Thames Water Utilities Limited, uses the Industrial Internet to “respond more quickly to critical situations such as leaks or adverse weather events.” In the healthcare sector, monitoring medical equipment through the Industrial Internet framework can literally save lives.
Here are 3 Key Insights from the study:
1. The Industrial Internet is in the Top 3 Business Priorities
80-90% of companies said their C-level executives and Board of Directors are committed to being proactive about Big Data by working with the Industrial Internet as a top 3 business priority for the year. For 84% of C-levels, the most significant driver is the worry about how competition leverages the Industrial Internet to gain market share at their expense. Part of that is how to competitively price products, as 52% of C-levels stated their inability to do so.
To read more about how to leverage technology to competitively price your products, see here: Driving Industrial Growth with CPQ
2. Siloed data systems is the biggest barrier to data integration
At its core, the Industrial Internet is about connecting disparate streams of data into a meaningful whole. “The lack of an enterprise-wide analytics vision and operating model often results in pockets of unconnected analytics capabilities, redundant initiatives and, perhaps most important, limited returns on analytics investments.”
In fact, to respond to this, 49% of companies surveyed said they will appoint a Chief Analytics Officer to consolidate all data
analytical initiatives in one organization and streamline across
the whole company.
To read more about how your CRM analytics connect to your sales, contract, and revenue analytics, read here: Riding the Analytics “Wave”
3. The Industrial Internet needs its own business model
In 2015, the industrial sector does not just sell products. Companies in aviation, power generation & distribution, oil & gas, and manufacturing sell product-service hybrids, or “intelligent physical goods capable of producing data for use in digital services.” Physical equipment have their own data consciousness and should be sold that way, which means companies need new business models and product-service offerings that resonate with customers who are already used to a product-as-a-service model.
This hybrid business model also demands real-time selling, through multiple channels, and on multiple devices. If companies don’t focus on expanding their reach and improving accessibility with customers, they will lose out on valuable market share.
To read about how billing technology helps you meet your customers, see here: Lesson from Yelp – How Billing Can Provide an Unexpected Advantage
Join the Twitter Conversation: The Industrial Internet will replace #BigData & the #IoT in 2015 | http://goo.gl/NzUVVs
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To learn more about the changing landscape of analytics and business intelligence, please download Quote-to-Cash Intelligence & the Transformation of Business Analytics.