According to McKinsey, the total potential impact of IoT will face a tremendous increase by 2025 which stands between $3.9 trillion and $11.1 trillion per year. That is why every company should be part of this growth. The convergence of between the digital and the physical world will generate new business models, improve customer satisfaction and enhance efficient initiatives.
To create business value from the IoT, companies need to focus on their customer’s needs and process optimization rather than being overwhelmed by technical challenges. Indeed, many technologies like IoT platforms, data lakes, communication providers and analysis tools are critical elements that constitute the IoT solution. By relying on Talend technologies, organizations are going to be able to achieve and fulfill their IoT projects. How? Let me show you.
First, let’s focus on the core components of an IoT project:
- Devices: Many everyday objects can be used as examples: Everything from vending machines to toothbrushes are going to be proactive, smart and will be able to deliver more value to customers by sending or/and retrieving data.
- IoT platform: It is the core component of the IoT project. IoT platforms are responsible for data ingestion, storage, and processing from connected devices. It’s like a factory that retrieves raw materials and transforms it to a final and useful product.
- Consumer information systems: An IoT platform takes part of existing information ecosystem. The interaction between the IoT platforms and the information system already in place is crucial to achieve business value. For example, the data collected can be analyzed with a traditional business intelligence tool to better understand customer behavior. The CRM can be filled with more accurate data to help marketing teams optimize their marketing campaigns. Finally, maintenance team can be more efficient by anticipating machines failures based on sensors. Figure 1 highlights the high-level architecture of an IoT project.
Figure 1: a generic IoT architecture
To implement an IoT platform, organizations have 3 main choices
- Create their own architecture: This solution is built, obviously, from scratch. There are a lot of propriety and open source tools that are available for each stage of the building process. The time to market is higher than prepackaged solutions and highly skilled teams are needed. However, enterprises have total control of their ecosystem and ownership of their data.
- Buy a generic IoT solution: This type of solution is already prepackaged and available to be used immediately via cloud/ on-premise deployment. This model reduces time to market and resource size.
- Buy a business specific IoT solution: Some vendors are more verticalized and offer an optimized IoT platform for specific industries like energy, health and manufacturing. This choice is catered to specific use cases, type of devices and analytics framework. With this orientation, enterprises can leverage their IoT project quickly.
So should you buy or build an IoT platform? It depends on the project parameters such as time to deliver, budget and available resources. In both scenarios, huge volumes of data will be collected, processed and stored. In both scenarios, we need to extract value from this data & demonstrate ROI. Let’s begin with the “Build Scenario” that was already explained in the previous paragraph.
In figure 2, we show an IoT platform based on different modules. Each component is dealing with a specific step of the IoT data journey. By using Talend, we avoid hand coding to create interactions between these components. In this specific architecture, the urbanization of the entire stack can be developed, deployed and monitored with Talend. Data agility can be achieved by reducing the cost of implementation and improving developer’s productivity.
Figure 2: A customized IoT architecture
What about buying an IoT platform? How can Talend help organizations create value from collected data?
As a part of the information system, a closer interaction between the IoT platform and other applications must be established. By using this data for analysis or for a more operational task, we can extract the expected value.
Let’s take for example an insurance company selling home security services. They recently included a lot of sensors as part of the connected home kit. They have chosen an IoT platform solution to accelerate the project and want to adjust their marketing mix based on the collected information. Their main priorities include:
- Connecting the IoT platform and the CRM to implement a one-to-one marketing campaign
- Analyzing and aggregating data in the enterprise data warehouse
- Creating a predictive model for automated home security
Talend would be the bridge between the IoT platform solution and the consumer systems in this scenario. Using application integration, we can trigger desired actions on business applications. Big data jobs would be used to stream/batch data processing to desired NoSQL data stores. Finally, data integration is used for data migration and ETL tasks. Figure 3 illustrate this uses case.
Figure 3: Using Talend with an IoT platform solution
Now you have the choice to decide how to implement your IoT project. In both scenarios, Talend would help you to resolve data management challenges, extract insights from data, and be compliant with data regulation (ex: GDPR).