IoT Data Drives Value in the Digital Economy
A growing number of organizations today are undergoing a digital transformation (DX). IDC estimates the annual economic value of DX to be $20 trillion, or more than 20% of global GDP. It is driving a critical shift in how organizations develop, produce and sell their products and services which in turn affect their customers’ experiences and their bottom line over the long-term.
As more “things” become connected, the challenge is taking the data drawn from these "things" and turning it into actionable insights to drive organizational outcomes. Therefore, at the heart of digital transformation is the need to use analytics to turn data into insights and actions.
An organization’s data originates from either an internal or external data source. Data generated internally originates from processes and communications streams the organization uses to facilitate daily operations. Internally generated data can be collected through connected assets and processes, employees and other enterprise systems. This data circulates through an intelligent core – a place where the data is turned into insights for the organization. Those insights flow back into the organization as improved internal processes and lead to timely, better-informed decisions and actions. These new insights can help the organization determine new operating metrics to understand business processes and associated desired outcomes or it can reveal new revenue or customer experience opportunities based on context around specific situations, for example.
For the external processes, data from outside the organization – such as that from ecosystem engagements, customers and vendors, AR/VR devices, and many other technologies and systems – is captured and circulated through the intelligent core where it can be blended with the internally generated data and transformed into actions that can be taken to improve engagements with the ecosystem.
If the ability to transform data into insights and actions is going to be the means for competing in the digital economy, IDC believes organizations need to build a digital platform that is optimized around this task. Such a platform would be the basis upon which organizations can deliver value to their shareholders, customers, partners and employees.