Internet of Things and Big Data: the disruption of the value chain and the rise of new software ecosystems

Abstract

IoT connects devices, humans, places, and even abstract items like events. Driven by smart sensors, powerful embedded microelectronics, high-speed connectivity and the standards of the internet, IoT is on the brink of disrupting today’s value chains. Big Data, characterized by high volume, high velocity and a high variety of formats, is a result of and also a driving force for IoT. The datafication of business presents completely new opportunities and risks. To hedge the technical risks posed by the interaction between “everything”, IoT requires comprehensive modelling tools. Furthermore, new IT platforms and architectures are necessary to process and store the unprecedented flow of structured and unstructured, repetitive and non-repetitive data in real-time. In the end, only powerful analytic tools are able to extract “sense” from the exponentially growing amount of data and, as a consequence, data science becomes a strategic asset. The era of IoT relies heavily on standards for technologies which guarantee the interoperability of everything. This paper outlines some fundamental standardization activities. Big Data approaches for real-time processing are outlined and tools for analytics are addressed. As consequence, IoT is a (fast) evolutionary process whose success in penetrating all dimensions of life heavily depends on close cooperation between standardization organizations, open source communities and IT experts.