The IBM INSTITUTE FOR BUSINESS VALUE (IBV) has recently released a report titled, “THE ECONOMY OF THINGS,” which proposes the idea that the Internet of Things will evolve into the Economy of Things. The report begins by noting how the internet completely transformed industries such as music and newspapers, but its impact on physical industries, such as manufacturing and retailing, has been much less.
It notes the Internet of Things is now bringing the same immediate information to physical world industries, enabling searching, managing and monetizing assets. It will turn physical assets into “participants in real-time global digital markets.”
This evolution will create the Economy of Things, the report continues. This economy of things will disrupt markets in three ways, by enabling the creation of asset marketplaces, better management of risk and improving efficiency.
Airlines, commercial real estate and financial services are three industries where the report offers examples of the improvements IoT can provide. In commercial real estate, there are 12 billion square feet of space in the U.S. alone, with just 67 percent utilized. Supply tends to be concentrated, with 90 metropolitan areas accounting for nearly half of all available space. Large tenants, defined as those occupying more than 50,000 square feet, account for just over one-third of all rented space.
IoT can improve efficiency in this market by digitally tagging space to better understand how it is used and to offer plans such as renting space during off hours or using conference rooms as classrooms.
Central to the expansion of IoT into a wider range of industries is the power of the analytics. IoT analytics are the enabler to creating asset marketplaces, managing risk and improving efficiencies. With powerful analytics, information collected about how real estate is used, for example, is just big data. An important feature of an IoT analytics solution is the ability to work with many types of structured an unstructured data. This capability ensures the solution will be effective in the widest possible range of applications.
Do you have an innovative use of IoT and IoT analytics? If so, we’d like to hear from you.