internet of things

Forbes-Roundup Analytics,Big Data,BI, IOT

IOTExcellent article in Forbes on big data, analytics, and business intelligence. You can see my comments (top comments section)  and the Forbes article at http://www.forbes.com/sites/louiscolumbus/2015/05/25/roundup-of-analytics-big-data-business-intelligence-forecasts-and-market-estimates-2015/

One of the best roundup articles showing forecasts and outlook in these explosive growth markets. All businesses and providers must recognize the challenges that must be met and how all must adapt to secure real value from these trends.

Summary:

Summary of my recommendations in posted comments here – view big data/analytics/IOT as ‘technology enablers’, enabling you to improve and streamline business processes. The winning strategy- get past what I call the ‘gee-whiz’ factor, recognize IOT, analytics, and other technologies are a “means to the end,” driving new business processes to reduce costs, increase revenue, and improve strategic position.

Forbes article is highly recommended reading for all interested in big data, analytics, and IOT.

 

Paul B. Silverman is Managing Partner of The Gemini Business Group, LLC, a new venture development firm dedicated to helping global entrepreneurs succeed (www.geminibusinessgroup.com) . He is the former CEO of a predictive analytics company and writes and speaks about entrepreneurship, healthcare, analytics, and strategy management and is the author of “8 Building Blocks To Launch, Manage, And Grow A Successful Business.” See more at Paul B. Silverman Blog.

 

 

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More Mobile Devices Than People-IOT?

Interesting article in AssetDNA.com “Is Business Ready for the ‘Internet of Assets’?”

Here is a link to the AssetDNA.com article

Article quotes Digital analyst GSMA Intelligence that “… there are now more than 7.28 billion active mobile connections globally compared to 7.20 billion humans as per the US Census Bureau’s world population clock. What is more, these gadgets are multiplying 5 times faster than we are.”

Implications:

factory floorWhile mobile phone and data services in developing economies are growing exponentially, IOT applications and millions of IOT devices are a major driver fueling mobile services global growth.

IOT captures millions of information elements in many businesses, but today’s firms face three challenges to use this data:

1. How do you use this information to reduce costs, increase revenue, and improve strategic position ?

Today, most IOT is not effectively used. One example I like to use is McKinsey’s perspective looking at the oil drilling sector:

“… most data generated by existing IoT sensors are ignored. In the oil-drilling industry, an early adopter, we found that only 1 percent of the data from the 30,000 sensors on a typical oil rig are used, and even this small fraction of data is not used for optimization, prediction, and data-driven decision making, which can drive large amounts of incremental value.”

I see a similar situation in other sectors

2. Who is assigned responsibility to maximize the benefit of  IOT?

Maybe the CIO, or Operations Manager, Production Manager, Customer Service Manager, or other functional group? For the oil drilling sector, safety and muster drill compliance are critical factors and safety executives may be the decision makers. But to maximize IOT benefit, the starting point I always emphasize is understanding the value chain – that means quantifying value chain metrics, defining peer group benchmarks, identifying operational information ‘gaps’, and other management metrics to drive an optimum IOT solution. This is done before the first IOT device is installed with strong participation and management oversight at the “C” level.

3. How do you realign organizational structures given the reach and capabilities of IOT?

Think about production and operations management whereby decision making is often done by highly experienced line management with decades of experience. Or customer service and support groups using well-established, ‘proven’ techniques that have worked well for decades. Now imagine replacing that  with ‘algorithm decision making’ whereby integrated IOT and analytic models provide optimized decisions in the key value chain elements from supply side management and production through sales and customer service. How do you align the organization to meet these changing needs, what new skills are needed; what should be outsourced; how do you transition the organization to support the new business models- these are representative challenges that must be met for an organization to capitalize on the IOT and big data ‘tsunami’ we are now seeing.

My recommendation is view IOT and big data as ‘technology enablers’, enabling you to improve and streamline business processes.The winning strategy- get past what I call the ‘gee-whiz’ factor, recognize that IOT, analytics, and other technologies are a “means to the end” driving new business processes to reduce costs, increase revenue, and improve strategic position.

Paul B. Silverman

Paul B. Silverman is Managing Partner of The Gemini Business Group, LLC, a new venture development firm dedicated to helping global entrepreneurs succeed (www.geminibusinessgroup.com) . He writes about entrepreneurship, healthcare, analytics, and strategy management and is the author of “8 Building Blocks To Launch, Manage, And Grow A Successful Business.” See more at Paul B. Silverman Blog and sign up for Entrepreneurship Today! email updates to track latest new venture developments.

 

 

 

 

 

 

 

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Comments on Forbes Article – “Don’t Rube Goldberg Your IOT”

12Commented on Forbes Article – “Don’t Rube Goldberg Your IoT”

To successfully develop IOT solutions, we need to recognize IoT is a technology and learn from lessons from past revolutions such as e-commerce, EDI, and others. We need to also understand the role analytics will play in the IoT revolution which I also emphasized in my comments.

Here is a copy of my comments:

Thanks for the insightful IOT article and how you can avoid a ‘Rube Goldberg’ technology solution.

I have concerns about today’s IOT revolution based on my experience, working through other ‘revolutions’ such as e-commerce, EDI, cloud computing, analytics, and others. We are making progress on technology, security, interworking and similar challenges but I see lessons learned from other revolutions we must address.

Here are the 3 top critical success factors needed to create a mass market IOT:

1. Standards must move from ‘corporate’ internetworking to ‘market’ internetworking
We learned in the e-commerce/EDI revolution that spending the time and effort to develop standards for internetworking between suppliers, distributors, and customers provided the measurable benefits needed to ensure success. My experience addressing this challenge in the pharmaceutical/global distributor sectors confirmed this point. We need IOT standards for key sectors to provide the framework for growth.

2. Business strategy and process optimization must drive IOT, not technology

IOT is a technology – developing optimum, sustainable IOT solutions demand an experienced, multi-dimensional staff with strategy, financial, analytics, process analysis, and technology skills. The CIO will play a key role but … READ MORE AT Forbes Article- Dont Rube Goldberg Your IoT July 6

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Paul B. Silverman writes about entrepreneurship, healthcare, analytics, and strategy management and serves as Advisor, Speaker, Educator, and Managing Partner of the Gemini Business Group, LLC, a new venture development firm, and author of “8 Building Blocks To Launch, Manage, And Grow A Successful Business.” He also serves as Adjunct Professor in the R.H. Smith School of Business at the University of Maryland. See more at Paul B. Silverman Blog and sign up for Entrepreneurship Today! email updates to track latest new venture developments.

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