Harvesting value in IoT is not all that easy. The traditional business models have usually not been equipped to make or monetize the tremendous amounts of data that comes from a device or a sensor. So when a business wants to get into IoT, it needs to make sure that it has some core capabilities within the organization. It is not just enough to get on to the IoT bandwagon without having the capabilities to harvest the value. Depending on the organization, you may need different levels of these capabilities. So what are these core capabilities?

  1. Additional Infrastructure: Many organizations see value in IoT but are unsure if their existing infrastructure can support their vision. Their current operating equipment most likely does not have sensors attached to them. In addition to the sensors, they will need to invest in other technology infrastructure that can receive, store and process the data streams.
  2. Human Capital: The current skillsets of the employees (even those in information technology) are probably not geared towards storing/sifting/analyzing the endless stream of data. Some firms are debating whether they should outsource the data analytics to a specialist provider or invest in the skills in-house. Some of the larger cloud providers can today provide sophisticated services that mitigate the need for companies to invest in employee skill development.
  3. Processes: It is one thing for a company to have mature processes and governance in place. It is another for companies to have processes and governance structures tailored to meet the unique challenges of IoT. So far, the industry has not put enough thought into the governance of IoT-enabled processes. Before venturing too far, companies ought to think through how IoT can affect their current GRC (governance, risk, and compliance) processes.
  4. Additional Capital: Investing in IoT may not be a cheap endeavor. Depending on the current operating environment, significant amounts of capital may need to be infused simply to develop the basic infrastructure, processes, and capabilities in place.
  5. Data Handling, Privacy & Security: If you look at the negative climate of data security incidents in the past few years (Home Depot, UPS, Target, and many others), it is clear that companies have just begun to take information/data security seriously. And all of this with data movement as a result of traditional transactional processes. When you couple this with an endless stream of sensor data from all sources, additional challenges certainly arise. Think about the ramifications of leaking PII (personally identifiable information) from a device planted on a consumer device. Think about data leakage of potentially sensitive geospatial information from government devices. The threat possibilities are simply too numerous to fathom.