While the financial services industry has embraced Big Data and the Internet of Things (IoT) from the very beginning, a 2015 survey revealed that 87 percent of people hadn’t even heard of IoT.
However, with the incredible advances in cloud computing, the IoT and Big Data market is experiencing exponential growth in both revenue and public interest. As this trend continues, experts predict that 2018 will be the year both technologies finally hit the mainstream.
What’s Next for IoT and Big Data?
Internet of Things [IoT]
In the past, IoT devices commonly consisted of ATMs or mobile phones. But thanks to an explosion of new devices, there are now 8.4 billion connected things in use worldwide, with the average person owning 5.1 connected devices.
With such a large platform for market growth, organisations can look to capitalise on niche opportunities by offering unique Internet of Things services and improving customer value.
The IoT not only connects us on a global level, but continuously collects colossal raw datasets from our immediate environment.
The analysis and use of this Big Data will have a widespread impact on many industries. And, while the potential for data-driven business outcomes is strong, organisations will need to establish a clear adoption roadmap to ensure successful and profitable integration.
A Growing Market Opportunity
The IoT’s revenue potential is huge, with the market experiencing extraordinary growth in recent years. Its value is predicted to rise from £666 billion in 2015 to £2.99 trillion in 2025, while the Big Data analytics market is estimated to be worth £149 billion by 2020.
This growth is predicted to bring in substantial profits for the public and private sector, with the IoT set to generate £3.44 trillion and £10.77 trillion for the each respective sector.
However, perhaps the most exciting prospect for competitive enterprises is the fact that IoT and Big Data remain in their infancy. With less than 1% of generated data analysed so far, there’s still plenty of insight to gain and plenty of opportunities to take advantage of.
The Potential for IoT and Big Data by Industry
Every industry can reap the rewards of well-managed Big Data analysis and IoT adoption. Here are just a few examples:
The use of IoT and big data in the financial services industry is making it possible to monitor customer behaviour, detect fraud, and make data-driven revenue decisions that lower financial risk.
For many industries, the IoT merely aids automated duties, but financial firms will be able to respond in real time to customer needs, transforming insurance, banking and investment.
Through the application of Big Data, fintechs are exploring fresh insights into human behaviour, personalising the customer experience, and going beyond simple predictive processes.
The manufacturing industry has been one of the earliest adopters of IoT and AI. Smart manufacturing has impacted the industry greatly, making processes more efficient, productive and safer. While IoT solutions have traditionally been retrofitted to existing equipment, IoT-ready smart machines are now taking precedence, making the implementation of automated tools easier to manage.
The retail industry is already profiting from smart clothing, with 78.1 million pieces purchased in 2015 alone. Wearable IoT devices are on the rise and, though mainly embraced by the fitness industry, day to day clothing is also appearing on the market. The use of these devices will enable customers to monitor their health and will also impact heavily on the transformation of the healthcare industry.
Overcoming Potential Roadblocks
Like any revolutionary change in industry, there are potential roadblocks to IoT and Big Data that organisations need to consider.
The main concerns among IT decision makers can be seen in the graph below. However, the answers to these potential issues lies in re-prioritising resources and investing in secure, flexible architecture.
40 percent of businesses view security and data privacy as the biggest roadblocks to IoT adoption.
Botnets, ransomware and denial of service attacks (DDoS) can exploit vulnerabilities in IoT security. Increasing education around security implementation in the early stages of IoT design will help mitigate these risks.
Only 37 percent of organisations have a formal digital transformation strategy in place, making it difficult to implement technology successfully. Restructuring resources and investing in outsourced IoT guidance will lead to a clearer roadmap for IoT and Big Data adoption.
Just 29% of businesses are gaining insight from raw data. Organisations must re-prioritise current resources to capitalise on niche opportunities and align data analytics with business outcomes.
Only 41% of businesses offered data loss training in 2015. Setting data retention policies to determine data lifecycle needs will prevent mission-critical data from slipping through the net.
The Internet of you: IoT & Big Data in your Organisation
More than 80 percent of businesses adopting Internet of Things and Big Data have already seen increased revenue. It’s clear the opportunities for these technologies far outweigh the risks and, with proper funding for intelligent data systems, every organisation can prepare for the challenges in adoption and implementation.
Of course, the power of IoT and Big Data goes beyond the creation of new revenue streams. Both technologies are set to revolutionise every aspect of human life and provide actionable data-driven insight for businesses across the globe.
Want to learn more about the work we’re doing around IoT and Big Data? Check out our data science page for a rundown of our practices.