MIT: Sharing Data, Analytics Fuels Growth

Sharing Data, Analytics Fuels Growth

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A report from the MIT Sloan Management Review finds that companies that share data from their internet of things projects are better positioned to take advantage of what the technology has to offer. However, finding IT pros with the right IoT skills set is proving a challenge for many businesses.

by Scott Ferguson

The internet of things (IoT) is more than a series of sensors on the factory floor or inside the dashboard of self-driving cars. It’s also about the data these devices collect and what companies and their IT departments are doing with all the information that they are accumulating.

The issues of IoT data and what to do with it is the focus on a recent report from the MIT Sloan Management Review titled, “Data Sharing and Analytics Drive Success With IoT.” The study, which is available through the MIT website or as a PDF with registration, is based on interviews conducted in the spring with 1,480 business managers, IT pros, and executives from a wide variety of industries and organizations of all sizes. The research project sponsored by Teradata was published on Sept. 8.

The report is a sprawling work that looks at many different aspects of IoT, but one of the key findings is that companies that share data are in a much better position to grow and profit from the technology. Specifically, 66% of respondents say that they are sharing data with not only customers, but also suppliers and competitors.

From that information, the authors find that the more data that is shared with customers, the more these customers are willing to share in return. “This exchange of device data across organizational borders deepens existing relationships between organizations and forges new relationships,” the report notes.

One of several examples from the report includes WASH Laundry, a company competing in the $5 billion coin-operated laundry industry. The authors explain how the company’s technology unit gathers information not only from customers, but also from equipment suppliers and telecoms supporting the network, to better refine its business model, give customers incentives, and help better manage its supply chain.

While traditional businesses are typically loath to share data with competitors, the MIT report indicates that in the era of IoT, sharing pays off. Of those surveyed, 26% who send IoT data to competitors reported that they have no trouble getting business value from IoT. That number drops to 17% with those businesses that do not send data to competitors.

The key to using IoT data, whether it’s internal or shared with the outside world, is having good analytics capabilities. However, this is where the supply of knowledgeable technology talent becomes critical. The authors write: Read more…

IoT Success: Sharing Data, Analytics Fuels Growth – InformationWeek

A report from the MIT Sloan Management Review finds that companies that share data from their internet of things projects are better positioned to take advantage of what the technology has to offer. However, finding IT pros with the right IoT skills set is proving a challenge for many businesses.

 

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Eric Axelrod

President & Chief Architect at DIGR
I have helped companies bring new data driven products to market, drive efficiency out of their supply chain, execute strategic plans, and drive top line and bottom line growth by enabling every business function with actionable analytics. I can transform a business which is lacking critical insight into an agile, strategic, data driven organization.

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