Thanks to the Internet of Things (IoT), streaming analytics is beginning to make its way into more mainstream industries.Long the “ace up the sleeve” closely held by innovative financial markets players, streaming analytics is now entering a new phase of popularity. Telecoms, retail and capital markets are using it for customer experience, real-time promotions and fraud detection.
But the real catalyst for take-off is the Industrial IoT (IIoT) and machine-to-machine (M2M) connectivity, according to a market report by analyst firm Bloor*.
“The Industrial Internet of Things and connected devices have the potential to topple financial services as the leading market,” said the report.
The manufacturing industry is already connected with sensors on the factory floor helping manufacturers to keep an eye on production and quality. Streaming analytics works well with the time- and location-based data that arises from this data and gives manufacturers the ability to filter, aggregate and transform real-time data across a range of platforms. Predictive analytics helps them to anticipate machinery breakdowns and fix them before they happen.
In supply chain, everything that moves and can be sensored is being sensored; from truck engines, to determine optimal fuel usage, to railcars, to determine whether they are in the right place to deliver on time. The merchandise itself is sensored, both for supply chain reasons and to give retailers full visibility of their inventory.
In retail, RFID sensors have helped drive customer experience, inventory visibility and real-time pricing. Wearables are now finding a place there, too, and could offer greater revenue potential.
In transportation, Uber showed the market how to deploy usage-based pricing. Telematics are in use for usage and location-based insurance pricing, and can be used to give drivers feedback to cut fuel costs. In energy, smart electricity meters and real-time sensoring of wind farms are places where streaming analytics can drive efficiency.
According to Bloor, it is clear that there are new, revenue-generating use cases coming into focus. So where is this potential new revenue growth to come from? Again, we circle back to IoT driving the growth in streaming – and predictive analytics – particularly in manufacturing.
“Predictive maintenance could well be the silver bullet for streaming analytics in IIoT,” said the report. From using sensors in oil rigs to predict equipment problems, or on pipelines to detect and seal leaks before they occur, the use cases are many.
“The value to the customer is clear,” said the Bloor report, “to reduce operational and equipment cost by minimizing unplanned outages, and to reduce the requirement for expensive site and maintenance visits that could be avoided.”
Operation efficiencies, reduced costs, new revenues; streaming analytics delivers real-time actionable intelligence on fraud, service quality, customer experience, and real-time promotions – and that is just the beginning. If you thought streaming analytics was only for financial markets, it is time to think again.
The IoT is changing everything: “Sensor data volumes have already reached a level where streaming analytics is a necessity, not an option,” said the Bloor report.
*Software AG’s Apama Streaming Analytics Platform has attained the highest score in Bloor Research’s Streaming Analytics 2016 Market Report.