Digital Enterprises, Big Data and Internet of Things (IoT) today require organizations’ information system to be redefined. Although the potential of connected objects looks promising, it still poses a number of challenges for businesses.
According to Dominique Guinard, IoT will redefine data-Sharing and privacy in three major areas:
- The value of data outshines the value of product – Selling a product is not the end of the profit service; instead, it is the beginning of the bigger profit and more services.
- Privacy contracts connect man and machine – Customers have options to share their personal information in exchange for better services.
- Data is the new oil – massive and detailed consumer behaviour and product use data will be the driving power of digital marketing.
The promise of digital transformation and value creation from IoT and Big Data has the potential to redefine information technology and management.
The challenge of the volume, variety and velocity
Gartner says that 6.4 billion connected “Things” will be in use in 2016, and it is expected to reach 21 billion by 2020. All these objects included in the communication system will generate huge amounts of data.
The growth represents the first challenge for the company. How to handle an increasing volume of data, effectively integrate the variety of interfaces, and ensure sufficient velocity to obtain usually insights.
The connection with the information system
The second challenge will be the communication between the “things” and the information system. Creating intelligent gateway solutions will be easy for the connected things integrated into the information system while minimizing investment.
Today the smartphone is the intermediate platform at the heart of connected objects. But tomorrow, the platform might change to glasses, smartwatches or smart wristband. If standardization is a key point in the IoT development, most likely it will not be a single standard, but a large technical area that includes multiple standards.
Promote the new business model innovation
The Internet of Things will undoubtedly create new business models. If you want your business model to be succeeded in the new digital era, it is important to develop an IoT implementation plan to support the future business of your organization. You might need a completely different mindset for the business model innovation.
The traditional business model is a company launches a new product, promotes and shows the values, and the customers buy the product. In the IoT world, you need to keep the product in line with the market desire such as free software updates or value-added features.
Manage user data
The fourth challenge is privacy. The networks of connected objects being built today will be at the heart of ongoing processes of information transmission, storage, exchange and sharing. For confidential or personal information such as bank details, health, list of dialed numbers etc., the user consent for each type of data will be the norm, while the shelf-life should be defined and explicitly manifested. Data anonymization, or at least a part of them will become the norm.
On the legislative side, the foundations exist. Maybe in the IoT age, they will need to be strengthened or redesigned to protect users from misuse.
The IoT is only part of the fourth industrial revolution that is taking shape today. Biotechnology and artificial intelligence will be added to form an increasingly complex IT environment to understand for the company but at the same time increasing bearer of meaning and values.