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2017 Internet Of Things (IoT) Intelligence Update

Louis Columbus, CONTRIBUTOR FULL BIO

Opinions expressed by Forbes Contributors are their own.

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Manufacturing, Consulting, Business Services and Distribution & Logistics are the

top four industries leading IoT adoption.

Growing revenue and increasing competitive advantage are the highest priority

Business Intelligence (BI) objectives IoT advocates or early adopters are pursuing

today.

Location intelligence, streaming data analysis, and cognitive BI are the top three

most valuable IoT use cases.

The higher the BI adoption, the greater the probability of success with IoT

Manufacturing, Consulting, Business Services and Distribution & Logistics are the top four industries leading IoT adoption.

Location intelligence, streaming data analysis, and cognitive BI are the top three most valuable IoT use cases.

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initiatives.

53% of all respondents say that IoT is somewhat important with fewer than 15%

saying it is critical or very important today.

These and many other insights are from Dresner Advisory Services’ 2017 Edition IoT

Intelligence Wisdom of Crowds Series study. The study defines IoT as the network of

physical objects, or "things," embedded with electronics, software, sensors, and

connectivity to enable objects to collect and exchange data. The study examines key related

technologies such as location intelligence, end-user data preparation, cloud computing,

advanced and predictive analytics, and big data analytics. Please see page 11 of the study

for details regarding the methodology. For an excellent overview of Internet of Things

(IoT) predictions for 2018, please see Gil Press' post, 10 Predictions For The Internet Of

Things (IoT) In 2018.

"Although still early days for IoT, we see this as a defining topic for the industry. IoT

Intelligence, the means to understand and leverage IoT data, will likewise grow in

importance and will elevate key technologies such as location intelligence, advanced and

predictive analytics, and big data," said Howard Dresner, founder and chief research

officer at Dresner Advisory Services.

Key takeaways from the study include the following:

Business Intelligence Competency Centers (BICC), R&D, Marketing &

Sales and Strategic Planning are most likely to see the importance of

IoT. Finance is considered among the least likely departments to see the

importance of IoT. The study also found that sales analytics apps are increasingly

relying on IoT technologies as foundational components of their core application

platforms.

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Manufacturing, Consulting, Business Services and

Distribution/Logistics are IoT industry adoption leaders. Conversely,

Federal Government, State & Local Government are least likely to prioritize IoT

initiatives as very important or critical. IoT early adopters are most often defining

goals with clear revenue and competitive advantages to drive initiatives.

Manufacturing, Consulting, Business Services and Distribution/Logistics are

challenging, competitive industries where revenue growth is often tough to achieve.

IoT initiatives that deliver revenue and competitive strength quickly are the most

likely to get funding and support.

IoT advocates or early adopters say location intelligence, streaming data

analysis, and cognitive BI to deliver the greatest business benefit.

Conversely, IoT early adopters aren’t expecting to see as significant of benefits from

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data warehousing as they are from other technologies. Consistent with previous

studies, both the broader respondent base and IoT early adopters place a high

priority on reporting and dashboards. IoT early adopters also see the greater

importance of visualization and end-user self-service.

Business Intelligence Competency Centers (BICC), Manufacturing and

Supply Chain are among the most powerful catalysts of BI and IoT

adoption in the enterprise. The greater the level of BI adoption across the 12

functional drivers of BI adoption defined in the graphic below, the greater the

potential for IoT to deliver differentiated value based on unique needs by area.

Marketing, Sales and Strategic Planning are also strong driver areas among IoT

advocates or early adopters.

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IoT early adopters are relying on growing revenue and increasing

competitive advantage as the two main goals to drive IoT initiatives’

success. The most successful IoT advocates or early adopters evangelize the many

benefits of IoT initiatives from a revenue growth position first. IoT early adopters

are more likely to see and promote the value of better decision-making, improved

operational efficiencies, increased competitive advantage, growth in revenues, and

enhanced customer service when BI adoption excels, setting the foundation for IoT

initiatives to succeed.

The most popular feature requirements for advanced and predictive

analytics applications include regression models, textbook statistical

functions, and hierarchical clustering. More than 90% of respondents replied

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that these three leading features are “somewhat important” to their daily use of

analytics. Geospatial analysis (highly associated with mapping, populations,

demographics, and other Web-generated data), recommendation engines, Bayesian

methods, and automatic feature selection is the next most required series of

features.

74% of IoT advocates or early adopters say location intelligence is

critical or very important. Conversely, only 26% of the overall sample ranks

location intelligence at the same level of importance. One of the most promising use

cases for IoT-based location intelligence is its potential to streamline traceability

and supply chain compliance workflows in highly regulated manufacturing

industries. In 2018, expect to see ERP and Supply Chain Management (SCM)

software vendors launch new applications that capitalize on IoT location

intelligence to streamline traceability and supply chain compliance on a global

scale.

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