Big Data: The Internet of Things (IoT) presents a large cache of consumer data that speaks volumes about customer buying, spending and lifestyle choices
However, Chuck Martin, editor of IoT Daily, notes in his April 6 column that a new study including research by Oxford Economics and commissioned by Verizon shows that only about 8% of companies are using their Internet-generated data in a significant way. Significant here means using more than 25% of their IoT data.
The two main drivers behind the use of IoT data are the same ones that have driven business since the beginning of commerce. A desire to increase revenue and a need to reduce cost.
While the percentage of companies making significant use of IoT data is minuscule right now, the study estimates that nearly half of businesses with IoT data will be using more than 25% of it within two to three years.
But that means that 3 years from now 1 of every 2 businesses with IoT data will continue a hands-off approach to using this information for business-building purposes
The Internet of Things denotes the constantly expanding network of physical devices that use an IP address to connect and communication with other Internet-enabled devices and systems. These devices include programmable home thermostats and wearable fitness-monitoring devices.
Another factor that comes into play is the reluctance of consumers to share personal data for what might be considered “off-label” uses.