Strong Analytics Skills 3X More Likely To Lead To Success With Internet Of Things (IoT)
- Companies with strong analytics capabilities are 3X more likely to get value from the Internet of Things (IoT) than are those with weaker analytics capabilities.
- 90% of respondents see IoT as an opportunity, while only 15% see it as a threat. For those with strong analytics capabilities, 95% see IoT as an opportunity.
- 66% of the respondent companies who are actively working on IoT projects collect data from and send data to their customers, suppliers, or competitors.
- 53% see IoT as important to their organization’s strategy today, and 68% say that it will be necessary to their corporate success in the future.
These and many other insights are from a recently published research report from MIT Sloan Management Review, Data Sharing and Analytics Drive Success With Internet of Things (IoT) (free, opt-in, PDF, 18 pp.). An online version of the report is also viable on the study’s microsite. MIT Sloan Management Review conducted a survey of business executives, managers, and IT professionals from organizations located around the world. The survey, conducted in the spring of 2016, captured insights from 1,480 respondents from a wide variety of industries, and from organizations of all sizes. MIT Sloan’s research team also interviewed industry experts to gain their insights into how data sharing and analytics drive the success of the Internet of Things.
Key insights from the study include the following:
- Sending and receiving IoT data with customers is the most common data flow, followed by suppliers and competitors. 46% of the organizations actively share IoT-generated data with customers, followed by suppliers (31%) and competitors (17%). Self-driving car manufacturers and system providers are actively sharing sensor data across competitive boundaries today to increase the level of overall safety and increase the on-road customer experience. The following graphic compares the information flows for a given organization generating and distributing IoT data.
- Organizations getting the most value from IoT are sharing the most data across their value chains. Companies more adept at sending and receiving IoT data to and from customers, suppliers and competitors have significantly less trouble getting value from IoT compared to those that don’t. Integrating suppliers into an IoT-driven data interchange pays off the most of the three areas of IoT-based integration, as shown in the graphic below.
- Companies with strong analytics capabilities are 3X more likely to get value from the Internet of Things (IoT) than are those with weaker analytics capabilities. Indeed, organizations with strong, good, or excellent analytical capabilities are much more likely to be sending data to (23%) and receiving data from (20%) competitor devices. Data sharing correlates with the ability to analyze data according to the study.
- Gaining the needed analytics expertise is the biggest challenge companies face in implementing their IoT strategies and initiatives. The area needing the greatest improvement is in improving overall analytics capability (58%) following by strengthening the analytics talent base (52%). Just under half (49%) are also looking to increase their IoT talent base as well.
- Companies getting the most value from their IoT strategies successfully combine analytics expertise, effective governance and successful data sharing with customers, competitors and suppliers. 38% of organizations surveyed have this triad of skills which provides a solid foundation for aggregating and sharing data across their value chains including with competitors.