There Are New Markets for Industrial IoT Data
The availability of industrial IoT (IIoT) data is
creating new ways for industrial
organizations to collaborate and to innovate.
In effect, data functions as a new kind of
lubricant for industrial processes. However,
that is not its only use.
However, the value of this experience base
is about to experience a new revolution.
Thanks to low-cost connectivity and data
science technologies, the very nature of
industrial hardware and operations is
changing. It is now straightforward to
monitor remote and nomadic assets. These
may be fixed container tanks. They may also
be self-propelled, construction machines,
located remotely, outside the traditional
boundaries of factories and industrial plants.
Everyday activities show that Internet data
has a non-trivial economic value and has
gained currency as a tradeable asset.
Industrial organizations should anticipate
that the same will be true of IIoT data.
The ability to gather more and better quality
industrial data is exposing new sources of
value as organizations find ways to apply
that data to make better decisions. For
example, industrial firms can optimize asset
usage intensity via more frequent
observations. They can use software to geo-
lock the operating envelope for expensive
machinery to prevent misuse or theft,
potentially lowering their insurance
premiums. There are even ways to associate
equipment data to with individual users
thanks to the ready access of personally
identifiable data.
To capitalize on IIoT data opportunities,
industrials need to develop strategies for
different market segments – by types of data
and customer. Their chances of a successful
implementation will depend on four internal
capabilities:
1. managing data as an asset class,
2. identifying value-propositions with
data-engineers and -scientists,
3. installing scalable, technology
capabilities for data sourcing and
supply,
4. and, innovating in business
development, intellectual property and
regulatory fields related to IIoT data.
These developments raise several important
questions. Might it be possible for machine
data to become as valuable, if not more,
than the underlying hardware itself? What
are the implications for industrial era,
hardware-centric business practices? And,
what kinds of new markets will emerge as
industrial IoT data matures into a new class
of tradeable assets?
H OW THE II O T IS M ODERNIZING
I NDUSTRIAL P RACTICES
With a 200-year history dating back to the
Industrial Revolution, industrial firms have
evolved processes for making, selling and
supporting industrial hardware at scale.
They rely on tried and tested supply chain
models, conformance standards and
commercial frameworks for sales and
warranty support activities.
IIC Journal of Innovation
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