Data plays an important role in the modern world and affects the functioning of every industry. Be it manufacturing, healthcare, or banking, top-notch data science solutions like IoT data analytics have changed the game, allowing companies to improve the quality and efficiency of their operations. To embrace changes and enable successful business development, it’s important to familiarize yourself with the essentials and capabilities of IoT data analytics.
What is IoT Data Analytics?
In simple terms, IoT data analytics is the transformation of collected data into useful and relevant information. IoT is a network of different gadgets that can connect and exchange information and data. Such devices generate a huge amount of data continuously, and to be suitable for analytics and further decision-making, this data needs to be sorted somehow. This is where IoT data analytics comes to the rescue, thanks to which data streams can be sorted, organized, and classified.
Being equipped with the combination of IoT and Data Analytics, you can monitor target metrics and KPIs, collect and integrate data from various sources, make forecasts, and optimize operational resources. For example, in supply chain management, IoT data analytics ensures real-time visibility and optimization. Sensors embedded in shipments track location, temperature, and humidity, providing a continuous stream of data. Analytical tools process this information, enabling companies to identify inefficiencies, predict delays, and optimize routes. If a shipment is exposed to unfavorable conditions, analytics can trigger alerts for proactive intervention. This minimizes losses, streamlines logistic processes, and enhances overall supply chain efficiency.
Types of IoT Data Analytics
There are 4 main types of IoT data analytics, and each of them highlights a specific area of work:
Descriptive Analytics
This type is more focused on processing the information and preparing analytical reports based on it. For example, data is collected about what music the user listened to during the year. Based on this data, it is compiled about what artists the user listens to, what genres, and so on. After this, you can create a report that will tell you about the user’s preferences. Then, you can take this report as a basis and create personal offers for this user.
Diagnostic Analytics
This type of analytics can be used to solve problems. The mechanism is based on a report from descriptive analytics, where the patterns are identified. Based on these patterns, a conclusion is drawn about when and how the problem occurred. For example, a virus is detected on one of the network computers. Using diagnostic analytics, you can find out how and what files entered the hard drive. After this, we can say exactly what was the starting point in launching the virus.
With the ability to diagnose problems, you can take preventative actions and strengthen security. It is also important that diagnostics can be carried out in real time, so the problem can be solved as soon as it’s possible.
Making forecasts
Since patterns can be identified through data analysis, forecasts can be made based on them. Predictive analytics uses historical data as well as machine learning and trends to make predictions. This type of IoT data analytics will be extremely useful for businesses to manage their resources and avoid risks.
The principle of predictive analytics can be described simply. For example, a company has released a new product. In the past, when new products were released, the company’s shares began to rise in price. This means that there is a high probability that the situation will repeat itself this time. Using such data, a company can monitor reactions to new products, and shareholders can decide whether to invest their money in shares or not.
Commentative or prescriptive analytics
This type is the most useful for business strategic planning and development because it can not only make forecasts, but also generate recommendations on what decisions or actions are recommended to take. In the case of predictive analytics, decisions about actions are made directly by the people who study the forecasts. However, recommendation analytics can solve this on its own, acting autonomously. This type saves time and effort, reducing unnecessary actions.
Why is IoT Data Analytics needed?
IoT data analytics offers several valuable benefits, let’s overview some of them:
- Operational Efficiency: IoT data analytics enables organizations to gain valuable insights from the vast amount of data generated by connected devices. By analyzing this data, businesses can identify patterns, trends, and anomalies, allowing them to optimize processes, improve resource allocation, and enhance overall operational efficiency.
- Predictive Maintenance: IoT data analytics facilitates predictive maintenance by analyzing equipment performance data in real-time. This helps in predicting when machinery or devices are likely to fail, allowing organizations to schedule maintenance activities proactively. This not only reduces downtime but also extends the lifespan of equipment, leading to cost savings and improved reliability.
- Informed Decision-Making: With IoT data analytics, decision-makers have access to timely and accurate information. This empowers them to make informed decisions based on real-time insights. Whether in supply chain management, healthcare, or energy consumption, having a data-driven approach enables organizations to respond quickly to changing conditions, identify opportunities, and mitigate risks, ultimately contributing to better strategic decision-making.
IoT data analytics and IoT software development both help businesses to fully unlock and understand the potential of the data that is generated daily by multiple devices. By applying custom software solutions, companies can cover their unique set of IoT-related tasks and business goals as well as get a long-term competitive advantage. For smooth implementation and usage of IT data analytics, it’s crucial to ensure data security, privacy, and compliance, and regularly update technology and processes to adapt to evolving IoT landscapes.
Featured image provided by Towfiqu barbhuiya; Unsplash; Thanks!
