The Internet of Things (IoT) extends digital connectivity to devices and sensors in homes, businesses, vehicles and more, enablable virtually any device to transmit its data, to which analytics can then be applied to facilitate monitoring and a range of operational functions.
While IoT may still be an unfamiliar novelty to many consumers, organizations participating in our research are well aware of its applications and implications. Four out of five (81%) said IoT is important to their future operations. Majorities said the use of IoT is very important to speed the flow of information and improve the responsiveness of individuals within their business processes (61%) and to speed the flow of information to customers or consumers (58%).
However, the intentions of organizations to embrace IoT and use operational intelligence often outpace their current capabilities. For example, many can capture data but face challenges in using it. More than two-thirds (68%) said they are satisfied or somewhat satisfied with their organization’s ability to capture and correlate data from events. After that, managing and using it becomes more complicated. Nearly one-third (31% each) reported difficulties with inadequate data or in managing external data. About half (48%) said they spend the most time reviewing event data for quality and consistency issues, which suggests a lack of standardization across the data sources that are collected.
“The rapid introduction of sensor-enabled devices and machines with IoT capabilities has introduced a deluge of data that can be overwhelming for organizations to process and use operationally or for analytics,” said David Menninger, SVP research. “This research confirmed that organizations are embracing this new technology, but many lack the necessary capabilities. The biggest area of struggle for companies adopting IoT is a lack of resources to integrate and apply this new technology.”
Our research over the last decade in operational intelligence and data flowing through events has indicated a lack of preparation in the software and skills for this new generation of technological evolution.
Those interested in learning more about this benchmark research can download an executive summary at www.ventanaresearch.com/benchmark/internet-of-things-and-operational-intelligence. The research was sponsored by Teradata and Pentaho. Ventana Research, a leading business technology research and advisory services firm, provided qualified research participants with an incentive and complimentary report of the research findings as well as access to a free educational webcast on best practices from the benchmark research.