Big Data and IoT

Big Data and IoT

How Big Data can Unlock
the Value of IoT

Paul Sonderegger,
Big Data Strategist, Oracle @PaulSonderegger


The Internet of Things is becoming a reality; combined with Big Data, it provides huge opportunities

Intel

The Internet of Things (IoT) perfectly illustrates the three principles of data capital:

  • Data comes from activity. Every movement of a shipping container, change of room temperature, or adjustment of a wing flap is an activity. In most of the machines and buildings of the world, information created by these activities is lost. Companies are in a race to digitize and ‘datafy’ them before their rivals do.
  • Data tends to make more data. Algorithms that use accumulated data to predict maintenance schedules for electrical transformers or inventory movements in automated warehouses produce data about their own performance that can be fed back into the system to improve future performance. This becomes a competitive lead that’s very hard for others to close.
  • Paul Sonderegger

    Paul Sonderegger, Big Data Strategist

  • Platforms tend to win. The digitization and datafication of more mechanized activities brings platform competition to industries that have not seen it before. Already, luxury car makers are in a battle to be the preferred platform for connected vehicle services. This same phenomenon will change the terms of competition for heavy equipment manufacturers, athletic clothing makers, and construction contractors.

Few businesses – even services firms – are insulated from the competitive issues raised by IoT.

For example, banks are worried about consumer electronics makers shouldering their way into everyday payments through watches, rings and even jacket cuffs. Insurance companies have the same concerns about wearable health technology. The question is what to do about it.

 Few businesses – even services firms – are insulated from the competitive issues raised by IoT. 

The answer starts with cloud. Oracle Internet of Things Cloud Service  provides secure two-way connectivity to devices (whether directly or through a gateway), real-time analysis of the data they collect, and integration with enterprise apps to act on device data. But these capabilities should not remain islands in the cloud. Oracle IoT Cloud Service works with Oracle Database Exadata Cloud Service, to bring device data into an enterprise warehousing environment. Another great pairing with the IoT Cloud Service is Oracle Big Data Discovery Cloud Service for easy exploration of device data alongside customer, support, or transaction data to uncover new correlations and patterns. And Oracle Mobile Cloud Service is a seamless way to deliver device analytics embedded in mobile apps.

 The data captured from things in the real world doesn’t create value until it gets used. 

But the data captured from things in the real world doesn’t create value until it gets used. So what can companies do with it? There are four ways to put IoT data to use:

Data-driven tailoring: Algorithms feeding on data about device status and performance can drive preventative maintenance schedules tuned to each machine. For example, two turbines in the same wind farm will have different maintenance needs depending on whether they’re on the leading or trailing edge of the farm. Catering to the specifics of each may extend their operating lives and reduce downtime at a lower cost than a standardized schedule.

 IoT is one of the biggest sources of new data capital. These innovative digital products and services will be leading indicators for data-driven competitive strategy, and cloud-centric enterprise computing. 

Internal data markets: To put a device’s data in context, it has to be combined with data from other machines, as-built diagrams, weather data, or other data about owners, operators, and the surrounding environment. CERN, one of the most advanced research facilities in the world, runs the Large Hadron Collider which smashes atomic particles together to better understand the origins of the universe. To keep the massive LHC running properly, CERN created a data market where engineers can browse data from cryogenic systems, operational logs, and other maintenance data. This shopping-like experience makes it easier to create new combinations of data to get fast answers to new questions about the performance of this unique machine.

Data nudges: Analytics from device data can encourage people to use machines and facilities more effectively. For example, one European automotive insurer provides drivers with analyses of their driving as captured by an onboard data loggers. Not only does this help those who would like to drive more safely improve, it helps the insurer decrease the risk of the drivers they insure.

Data services: In some cases, device data becomes most valuable when sold to other parties. Some sports leagues, including NASCAR and the National Football League in the United States already sell data streams from events separately from broadcast rights. Expect to see more arrangements like this in less glamorous environments as IoT spreads through the transportation and logistics industries.

IoT is one of the biggest sources of new data capital. These innovative digital products and services will be leading indicators for data-driven competitive strategy, and cloud-centric enterprise computing.


This Big Data article is brought to you by Oracle and Intel®.

Intel® and the Intel logo are trademarks of Intel Corporation in the U.S. and/or other countries.


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