A new report from Forrester advises CIOs to leverage machine learning to turn the tsunami of data obtained in Internet of Things (IoT) deployments into actionable insights.
Successful companies in the industrial sector that are doing this are not only predicting problems and opportunities before they occur, but are also developing new revenue streams during their digital transformation.
Large volumes of data are required to train and then exploit machine learning algorithms, and fortunately that data is now easily accessible, especially as IoT gains traction in industries. According to Forrester’s Paul Miller, senior analyst serving CIO professionals and lead author of the report, “Put Data to Work in the Industrial Internet of Things,” machine learning is becoming a powerful tool in efforts to win, serve, and retain customers.
“It’s easy to focus on automating or augmenting existing processes with IoT, and this can deliver real cost savings and efficiency gains. But the bigger opportunity is using IoT and machine learning to drive entirely new business models, with far-reaching implications for the way in which your products are built, sold, used, and maintained,” explains Miller in the report.
Some organisations are already seeing good results by combining machine learning with IoT:
- Ocado, one of the UK’s online-only grocers, has augmented its human packers with robots that swarm and cooperate. Average picking times have dropped significantly from two hours to just 15 minutes.
- HUK-Coburg, a German car insurer, has partnered with IoT and telematics company Robert Bosch to develop a usage-based insurance and rescue solution which monitors driving patterns and rewards safe driving habits. Good drivers have seen premiums drop by as much as 30 percent.
- Siemens’ claimed that shortly after giving control of the turbines to a set of machine learning algorithms at a gas-fired power station, emissions of nitrogen oxides reduced by almost 20 percent beyond the best engineers could achieve.
Miller also points out that Forrester currently identifies three core scenarios driving IoT adoption: designing connected products and experiences; operating connected business processes; and consuming connected insights. He also says that Forrester is now observing three broad classes of adoption for IoT.
Asset monitoring and control
Although basic asset monitoring and control is rarely exciting, the report points out that this is often the first experience of IoT within the industrial sectors. Moreover, Miller writes that when the experience is done right, its return on investment could free up the resources to pay for future developments.
Some examples of these uses include smart meters to monitor energy usage; keeping track of movable assets in the transport sector; and managing temperatures in smart buildings.
Prediction and action
The report acknowledges that the migration from asset monitoring and basic control to prediction and action is a big step, particularly for manufacturing firms that have typically focused on the physical aspects. Forrester advises that in order to succeed, companies must gather data from their own systems and from the environment in which those systems operate. They should extract insights from that data, (perhaps using the digital twin concepts that most IoT platforms support), and then interpret those insights and take action.
According to Miller, data and the insights extracted from it, are key to digital ecosystems that so many organisations now try to control. IoT devices are an important source of data, but it’s vital that organisations understand and use the data in a timely and effective manner. Forrester believes that this is an important juncture where machine learning begins to play a real part in an organisation’s use of IoT.
Some examples where this next step in the IoT / machine learning can benefit companies include: Smart buildings which monitor weather and adjust temperatures in anticipation; transport companies anticipating failure as a means to better manage moveable assets; and building supply chains which are able to adapt to allow for customisable production, but still retain efficiencies and optimisation of resources.
Powering new business models
While the progressive use of IoT and machine learning is helping drive efficiencies as described above, Forrester believes the truly digitally minded CIO can make use of IoT and machine learning to imagine and implement entirely new business models.
Some examples of these new businesses models include: train-as-a-service offerings where the manufacturer owns and maintains the trains and simply sells their services to the rail companies; and compressor manufacturers selling compressed air by the litre to buildings. In both these instances, the manufacturer can monitor equipment, predict failures and ensure less downtime, while the customer gets exactly the service they need at a more competitive rate, without carrying the asset on their books.
Finally, Forrester cautions that while companies make the transition from physical to digital organisation, CIOs will need to ensure that they facilitate the transition and avoid putting a chokehold on the evolution – which could, ultimately, damn the organisation to irrelevance.
Now download a bank account
Absa has introduced an end-to-end account opening for new customers, through the Absa Banking App, which can be downloaded from the Android and Apple app stores. This follows the launch of the world first ChatBanking on WhatsApp service.
This “download your account” feature enables new customers to Absa, to open a Cheque account, order their card and start transacting on the Absa Banking App, all within minutes, from anywhere and at any time, by downloading it from the App stores.
“Overall, this new capability is not only expected to enhance the customer’s digital experience, but we expect to leverage this in our branches, bringing digital experiences to the branch environment and making it easier for our customers to join and bank with us regardless of where they may be,” says Aupa Monyatsi, Managing Executive for Virtual Channels at Absa Retail & Business Banking.
“With this innovation comes the need to ensure that the security of our customers is at the heart of our digital experience, this is why the digital onboarding experience for this feature includes a high-quality facial matching check with the Department of Home Affairs to verify the customer’s identity, ensuring that we have the most up to date information of our clients. Security is supremely important for us.”
The new version of the Absa Banking App is now available in the Apple and Android App stores, and anyone with a South African ID can become an Absa customer, by following these simple steps:
- Download the Absa App
- Choose the account you would like to open
- Tell us who you are
- To keep you safe, we will verify your cell phone number
- Take a selfie, and we will do facial matching with the Department of Home Affairs to confirm you are who you say you are
- Tell us where you live
- Let us know what you do for a living and your income
- Click Apply.
How we use phones to avoid human contact
A recent study by Kaspersky Lab has found that 75% of people pick up their connected device to avoid conversing with another human being.
Connected devices are becoming essential to keeping people in contact with each other, but for many they are also a much-needed comfort blanket in a variety of social situations when they do not want to interact with others. A recent survey from Kaspersky Lab has confirmed this trend in behaviour after three-quarters of people (75%) admitted they use a device to pretend to be busy when they don’t want to talk to someone else, showing the importance of keeping connected devices protected under all circumstances.
Imagine you’ve arrived at a bar and you’re waiting for your date. The bar is busy, and people are chatting all around you. What do you do now? Strike up a conversation with someone you don’t know? Grab your phone from your pocket or handbag until your date arrives to keep yourself busy? Why talk to humans or even make eye-contact with someone else when you can stare at your connected device instead?
The truth is, our use of devices is making it much easier to avoid small talk or even be polite to those around us, and new Kaspersky Lab research has found that 72% of people use one when they do not know what to do in a social situation. They are also the ‘go-to’ distraction for people even when they aren’t trying to look busy or avoid someone’s eye. 46% of people admit to using a device just to kill time every day and 44% use it as a daily distraction.
In addition to just being a distraction, devices are also a lifeline to those who would rather not talk directly to another person in day-to-day situations, to complete essential tasks. In fact, nearly a third (31%) of people would prefer to carry out tasks such as ordering a taxi or finding directions to where they need to go via a website and an app, because they find it an easier experience than speaking with another person.
Whether they are helping us avoid direct contact or filling a void in our daily lives, our constant reliance on devices has become a cause for panic when they become unusable. A third (34%) of people worry that they will not be able to entertain themselves if they cannot access a connected device. 12% are even concerned that they won’t be able to pretend to be busy if their device is out of action.
Dmitry Aleshin, VP for Product Marketing, Kaspersky Lab said, “The reliance on connected devices is impacting us in more ways than we could have ever expected. There is no doubt that being connected gives us the freedom to make modern life easier, but devices are also vital to help people get through different and difficult social situations. No matter what your ‘connection crutch’ is, it is essential to make sure your device is online and available when you need it most.”
To ensure your device lifeline is always there and in top health – no matter what the reason or situation – Kaspersky Security Cloud keeps your connection safe and secure:
· I want to use my device while waiting for a friend – is it secure to access the bar’s Wi-Fi?
With Kaspersky Security Cloud, devices are protected against network threats, even if the user needs to use insecure public Wi-Fi hotspots. This is done through transferring data via an encrypted channel to ensure personal data safety, so users’ devices are protected on any connection.
· Oh no! I’m bored but my phone’s battery is getting low – what am I going to do?
Users can track their battery level thanks to a countdown of how many minutes are left until their device shuts down in the Kaspersky Security Cloud interface. There is also a wide-range of portable power supplies available to keep device batteries charged while on-the-go.
· I’ve lost my phone! How will I keep myself entertained now?
Should the unthinkable happen and you lose or have your phone stolen, Kaspersky Security Cloud can track and protect your device from data breaches, for complete peace of mind. Remote lock and locate features ensure your device remains secure until you are reunited.