The Internet of Things (IoT) paired with advancements in AI have fueled an unprecedented data tsunami at the edge. With billions of devices continuously generating data, organizations face a deluge of information that threatens to overwhelm traditional data processing infrastructures. Academic research reveals that the complexity and massive scale of machine generated IoT data, which is expected to grow exponentially, requires advanced data management and processing techniques beyond traditional systems.
Not only does this large sea of data come with leaks, dangers, and uncertainty, but it also holds the promise of undiscovered business value and potential innovation. In fact, despite the key security concerns, a study by Microsoft revealed that while 68% of organizations view IoT and Operational Technology (OT) as critical for business innovation, they simultaneously face significant security challenges. The ROI is worth the added security concerns, for titans like Siemens, who are using IoT to ensure cybersecurity in the area of energy distribution, predict equipment failures, optimize performance, and save hundreds of millions in savings and new revenue.
So, how can IT leaders effectively capture, process, and monetize this torrent of edge data? The answer lies in a combination of strategic partnerships, advanced infrastructure, and innovative data management techniques.
The first step is to reframe the perception of IoT data — it should be seen as an asset rather than a burden on infrastructure. Innovative companies are welcoming this data with open arms, much like finding treasure or a gold mine that can yet be minted and monetized. The key to IT alchemy is developing the right infrastructure and developing the right partnerships that can handle volume, velocity, and variety.
That presents both an opportunity and a challenge that expands with every element of a 5G network and every new, sophisticated sensor that comes online. Forward-looking organizations will seize the opportunity to adapt their data processing capability to handle the potential flood and to capitalize on it in strategic ways.
Here are six things IT and tech leaders need to be doing right now to maximize the ROI of edge data.
- Invest in edge computing infrastructure.
Invest in strong edge computing infrastructure for effective processing and analysis of data from IoT devices. It enables real-time data processing and analytics to be done at the edge, lowering latency, reducing bandwidth consumption, and empowering quick decision-making. Equipment such as edge servers, gateways, or other specialized hardware can be leveraged, which will accelerate compute-intensive tasks for IoT data analytics at the source.
- Use advanced data management techniques.
Use advanced data management techniques, such as metadata tagging, data cataloging, and data lineage tracking. These techniques organize and put into the right context large volumes of IoT data, making it more accessible and valuable for analysis. Implement data governance policies that guarantee the quality, security, and compliance of your edge infrastructure’s data.
- Develop strategic partnerships.
Partner with technology providers, collaborating with industry peers and domain experts to help develop your data monetization capability. Such partnerships can add skills, technologies, and market reach, increasing the value of IoT data. Look for partners who will be able to provide you with specialized analytics tools, industry-specific insights, or new use cases for your data.
Consider a data marketplace where you can share your IoT data with your partners or customers without any risks, and by extension, the raw data feeds, processed insights, or API access to your analytics platform directly. Establish data sharing agreements and privacy controls to make sure information remains both safe and compliant with relevant regulations.
- Implement robust security measures.
While the IoT devices are rapidly integrating into economies, security related to the data generated at the edge is of prime importance. IT leaders should implement robust security measures in place, such as encryption, access control, and regular vulnerability assessments. This is also a great area to leverage advanced tools and AI driven technologies that constantly monitor and alert you to any data anomalies that may occur. This will help protect sensitive data from breaches and unauthorized access. By bolstering security, organizations will increase trust among customers and partners and enhance the value of IoT data.
- Leverage cloud integration.
An important tactic for maximizing ROI is the integration of cloud and edge computing to ensure scalability, flexibility, and efficiency in data processing and storage. An effective integration can support the smooth, safe transfer and synchronization of data between edge devices and the cloud, which can enable holistic analytics and insights. IT leaders should explore hybrid cloud solutions that offer organizations the best of both worlds while maximizing their IoT data strategy for maximum impact.
- Focus on actionable insights.
Rather than aimlessly collecting more and more data, map out insights in the data that can guide actions. Consider investment in advanced analytics and machine learning capabilities that turn raw IoT data into business-smart intelligence. Work on use cases that show tangible ROI — predictive maintenance, operational efficiency improvements, or new service offerings based on data-driven insights.
Looking ahead, the key differentiator across industries will be the ability to build and maintain effective data processing infrastructure. By focusing on optimizing infrastructure, forging strategic partnerships, and deriving actionable insights, organizations can turn the data deluge into a strategic advantage.
Hitachi Vantara has looked to have inherent capabilities with integration to other leading technologies to offer cohesive solutions to these challenges, its always been about the data.
By Greg Bucyk, VP Partner Strategy, GTM and Strategic Alliances, Hitachi Vantara