{"id":1263,"date":"2019-02-15T10:32:02","date_gmt":"2019-02-15T10:32:02","guid":{"rendered":"http:\/\/kusuaks7\/?p=868"},"modified":"2023-07-24T17:06:32","modified_gmt":"2023-07-24T17:06:32","slug":"monetizing-the-internet-of-things-iot","status":"publish","type":"post","link":"https:\/\/www.experfy.com\/blog\/iot\/monetizing-the-internet-of-things-iot\/","title":{"rendered":"Monetizing the Internet of Things (IoT)"},"content":{"rendered":"

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\u201cWhy incur the expense of generating and collecting all of this IoT data if you\u2019re not going to monetize it?\u201d<\/em><\/p>\n

Organizations are racing to embrace the Internet of Things (IoT) as the pundits create \u201cvisions of sugar-plums dancing in their heads.\u201d McKinsey Global Institute released their study \u201cThe Internet of Things: Mapping the Value beyond the Hype<\/a>\u201d in June 2015 that highlighted the staggering financial value that IoT could create!<\/p>\n

The folks at Wikibon provided a perspective on the sources of \u201cIoT monetization\u201d in their recent research titled \u201cHarvesting Value at the Edge<\/a>\u201d written by the always delightful and provocative Neil Raden. To quote the Wikibon research:<\/p>\n

IoT, though a useful application of available technology, and well-defined at the hardware and network levels, the heart of IoT, that\u00a0part that yields the real value, is edge analytics<\/strong>. Making sense of the sensor data before it comes home. We already know how to stream massive amounts of data into data lakes for later analysis, but analytics at the edge begs a different approach.<\/em><\/p>\n

I didn\u2019t necessarily agree entirely with Neil\u2019s assertion that most of the value would be created at the edge. While it\u2019s true that there are lots of insights at the edge, especially in enabling a new family of operational use cases, most of the insights at the edge are very tactical.<\/p>\n

Just as there is a big difference between data and analytics, there is an even more significant difference between insights and action, which is the difference between having insights versus making insights actionable. Insights without action are\u2026well, why bother. Insights are not valuable until they are delivered to a user that can apply those insights to make better decisions. And for the more operational and strategic use cases, those decisions happen at the core and cloud.<\/p>\n

There is even more strategic value as you move further back to the core and cloud.<\/p>\n

Note: while there seems to be much industry confusion about terminology concerning the IoT analytic tiers, for purposes of this blog I will be using Edge, Core and Cloud to represent the different tiers. This analytics architecture looks like a Neural Network, especially when one considers that there could be multiple layers at the Core or middle tier.<\/em><\/p>\n

The analytics being performed at the different IoT tiers include:<\/p>\n