Uncover the Value in the Internet of Things: Getting ROI from IoT
Melissa 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.
During the recent LiveWorx event in Boston, a panel of Industrial Internet 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.
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.
“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.
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.
“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.
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.
Allan Alter, senior research fellow with consulting 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.
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.