The Internet of Things technology has become an integral part of most businesses that operate in the digital environment and depend on real-time data. Through immediate collection and analysis of valuable insights, companies can gain a competitive advantage, build a more efficient and data-driven strategy, and unlock new revenue streams and opportunities. In this article, we will talk about the definition of the IoT analytics, its core benefits for businesses, and tools and technologies needed to successfully implement this process in your organization.
What is IoT analytics?
IoT data analytics refers to the process of collecting, storing, processing and analyzing the data that is collected with smart devices. Say, a hospital collects real-time data of the patients’ vitals and analyzes this data to identify specific behavior patterns or anomalies. In this example, the data is collected by devices like smart wearables and is then analyzed to provide the needed insights and reports.
IoT analytics is part of the IoT implementation process that is often carried out by a third-party IT vendor like SoftTeco. In addition to IoT software development, such companies often provide consulting services and can help set up analytics and reporting. In this way, you receive a full cycle of IoT development services, delivered by an experienced team of professionals. Now let’s look at the main steps of the process so you get a better understanding of how the data is being transferred and processed:
- Collection: the data is collected in real-time. It might be environmental data (temperature, humidity), healthcare data (heartbeat rate, blood pressure), etc. The IoT sensors are located in specialized devices.
- Transmission: the collected data is transmitted to a storage, which is most often a cloud platform. Edge devices are also a common choice for data storage.
- Storage: the data is securely stored in the database of choice (cloud or on-premises). Note that the selected storage should support the format and type of collected IoT data as well as its massive volume.
- Processing: to prepare the data for analysis, it should be processed first. It might include data standardization, elimination of duplicate or corrupted data, etc.
- Analysis and reporting: after the data is ready, you can start analyzing it. Companies often use ML-powered tools for more accurate insights and advanced reporting, including various forms of data visualization.
Main IoT analytics tools
When you plan IoT implementation, it is important to know the main tools that are usually associated with this technology. Some of the most common choices include:
- AWS IoT Analytics
- IBM Watson
- Google Cloud IoT Core
- Predix
- Power BI
- Grafana
Note that the final choice of the tech stack will depend on your specific project, available tech assets and your current digital infrastructure. You will get a more detailed overview of needed technologies during the project discussion with the selected IT vendor.
Top benefits of IoT analytics for businesses
As mentioned above, more and more companies use the Internet of Things to drive business growth and generate revenue – but how exactly does IoT data analytics transform companies? Below is the list of its top benefits.
Real-time monitoring
It’s always better to be proactive than reactive, especially when it comes to monitoring complex equipment, specific work environments, or observing the behavior of your employees. IoT enables real-time monitoring and smart devices can immediately send notifications in case the collected data differs from the preset standard. For example, if a specific indicator of equipment differs from the expected norm, it might signal about the upcoming failure – and a company can prevent damage before it happens through timely maintenance.
Predictive maintenance
The example above brings us to the next benefit, which is predictive maintenance. The maintenance costs for companies across industries can be very high and it’s in the company’s best interest to minimize them. Through 24/7 monitoring and timely reaction to detected issues, organizations can greatly reduce costs and prolong the equipment life.
New business opportunities
As businesses get access to real-time data, they can use it to better analyze the market, customer behavior, and any problematic areas in the organization. By knowing how to effectively allocate resources and what issues need to be addressed in the first place, businesses can design strong development strategies and back them up with the collected data. Data analysis also opens up vast opportunities for growth and new revenue streams as an organization will have a holistic view of the needed segment.
Security and compliance
IoT analytics helps improve fraudulent reporting by enabling companies to immediately detect suspicious activity and fraudulent behavior. The technology also contributes to improved compliance by adhering to data privacy and security in a more efficient manner.
Examples of IoT analytics across industries
To help you better understand the impact of IoT analytics on companies across industries, let’s look at several domains and the ways analytics in IoT fits in:
Agriculture and farming: the Internet of Things significantly contributes to precision farming and helps monitor crop conditions, soil fertility, humidity in greenhouses, etc.
Manufacturing: IoT analytics enhances predictive maintenance, helps detect any defects and issues at early stages, and improves quality control.
Healthcare: with the help of the technology, medical professionals can ensure 24/7 patient monitoring (including remote monitoring). IoT also improves the diagnosis process by collecting relevant data.
Retail: real-time collection of data on customer behavior and preferences helps retailers improve their marketing strategy and gain a better understanding of current trends and market needs.
Logistics & supply chain: the Internet of Things greatly helps with inventory management and goods monitoring, thus improving the whole supply chain process.
Things to consider before IoT implementation
If you decide to implement IoT in your business, you will definitely see numerous benefits that the technology brings – but only if you approach the implementation process with a well-defined strategy. Thorough planning is a must if you want not only to increase your revenue and efficiency but also to avoid the most common challenges and hidden rocks:
Security
Since IoT devices transmit and share massive amounts of information, including sensitive data, it’s critical that these devices are secured against potential attacks. There are many security challenges associated with this technology, including lack of encryption, weak authentication, or firmware vulnerabilities. All these issues should be addressed and constantly monitored.
Lack of technical assets
IoT implementation requires specific infrastructure that would support massive data volumes and process data in real-time. Hence, you will need to select a suitable cloud provider and ensure that your current processes can be either migrated to the cloud or integrated into it.
Lack of skills and knowledge
One more challenge that is often associated with IoT implementation is lack of technical talent among the organization. Setup and configuration of IoT devices and software requires specific experience and skills. If you partner with an external vendor like SoftTeco, the company will take care of all requested IoT services and might provide training for your team as well. But if you plan to handle IoT implementation with your in-house team only, get ready to invest in its training.