The Internet of Things (IoT) is predicted to make a huge impact upon the way we live our lives and businesses must be prepared sooner, rather than later.
In particular, the huge increase in the amount of data available, collected from smart meters, wearables and any other online device, will provide challenges and opportunities.
Firstly, businesses will need to be aware of what data they are permitted to collect and store in accordance with existing data regulations. Recent surveys have shown that consumers can take a dim view of data collection, particularly when companies are not wholly transparent about its usage. For businesses looking to take advantage of the IoT data explosion, honesty is the best policy.
In addition, storing all this additional data will not be a straightforward task. If businesses are using cloud vendors to store their IoT data then they need to ensure that security systems are robust and that the location of the data complies with data governance rules. In addition, should any security breaches occur, businesses should let consumers know as early as possible, but be prepared for some reputational damage.
As well as being clear with consumers, there are internal improvements that businesses can make in order to better utilise IoT data. Often companies can get carried away with the amount of data that is available and lose focus. They can make the mistake of thinking more data means better results, when in reality, the amount of data is irrelevant if businesses are not analysing it properly.
Therefore, investing in data scientists and analytics software is essential if companies are to gain a competitive edge from the expected growth of IoT data.