Why IOT Matters The Most Right Now

The Internet of Things (IoT) has become one of the most talked about terms in the buzz-word driven technology sector, but at the recent MIT CIO Symposium many experts believe that for all the excitement, IoT needs operational linkage if it is ever to fulfill its promise.

Chris O’Connor, General Manager of IBM Internet of Things, estimates that 80 percent of the information coming from IoT sensors is never acted on today. And Michael Chui, a partner at the McKinsey Global Institute, and a panelist at the MIT Symposium, said. “One Big Three automaker I know collects nine million data points every second. When I asked a senior data officer there how many of those data points the company is using, the executive replied, ‘three.’” “Three million per second?” I asked. ‘“No,” the executive replied, “Just three.’”

That doesn’t mean the technology is immature, says Richard Soley, the Executive Director of the Industrial Internet Consortium, rather that the organizational processes needed to support IoT and its business objectives, are still lacking.

“It’s all well and good to have technological investment,” says Phil Regnault, senior vice president of technology solutions at Hitachi Consulting, who spoke at the event. “But if that investment is not accompanied by the right use cases and incentive mechanisms, the business will not get the results they need.” For IoT to deliver on its potential, leadership must understand the value drivers, align IoT objectives against the business model, and help IoT teams overcome organizational, regulatory and other blockers. “We have to talk about IoT in terms of impact and not the technology itself,” Regnault adds. “When we do, that’s when we’ll see IoT analytics have a snowball effect.”

To do this, CIOs will need to become one part strategic visionary and one part choreographer. Says Soley, “IoT is a different ballgame that physically makes manifest the CIO’s role at the center of the business.” He mentions that a decade ago, producing a light bulb would have required little in the way of IT, but that today, a light bulb may be part of a smart home security device system with many attendant technology, data, analytics, sales and marketing implications. The CIO is a leader and enabler in bringing all those organizational elements together to deliver on the company’s business goals.

original publication source: https://www.ibm.com/blogs/insights-on-business/gbs-strategy/new-thinking-the-business-of-iot/