This very interesting article from the New York Times describes a world where products become fused with data as the explosion in the use of sensors changes our way of thinking. Large companies such as GE, Amazon and Microsoft have very publicly pours billions of investment into the mathematical technologies of data analytics. The impact is that terms such as machine learning, a mathematical technology that can identify patterns in huge quantities of data and help make prediction of future performance, is coming into the everyday business vocabulary.
But these large tech companies are now going further and starting to offer these services to the wider industrial community, through a new range of data services. The Data Scientists who develop these technologies are far and few between. So the question is, will smaller companies be able to compete with these giants. As the power of these analytical technologies is often linked to quantity of data, it is probably the mega companies who will dominate commodity data analysis. However value comes from a deep domain knowledge and this is where smaller companies can plough their own path. Through Service Thinking (see our blog article ‘The IoT is worthless without Service Thinking’), a key is understanding the business model and processes of customers, in order to identify the profit pools where value can be added. So it is clear the tech giants with their vast technology assets will play an important role in developing this new fuzzy world where product & service become blurred. However the deep domain knowledge will give space to the little guy to develop as well.
Categories: IoT, Technology and Digitization