Creating a successful Internet of Things data marketplace
(c) McKinsey and Company – Business Technology Office
The Internet of Things (IoT) will turn the current rush of industrial data into a rogue wave of truly colossal proportions, threatening to overwhelm even the best-prepared company. As the gigabytes, terabytes, and petabytes of unstructured information pile up, most organizations lack actionable methods to tap into, monetize, and strategically exploit this potentially enormous new value. McKinsey research reveals that companies currently underutilize most of the IoT data they collect. For instance, one oil rig with 30,000 sensors examines only 1 percent of the data collected because it uses the information primarily to detect and control anomalies, ignoring its greatest value, which involves supporting optimization and prediction activities. One effective way to put IoT data to work and cash in on the growing digital bounty involves offering the information on data marketplaces to third parties.