Big data is about to get even bigger.
As the Internet of Things (IoT) grows – connecting everything from our cars to our FitBits and inventory pallets to coordinated networks – so does the need for sophisticated data analytics processes like behavioral analytics.
First, it is important to note that the Internet of Things places the onus on dynamic analysis. What do we like about self-driving car? They process information instantaneously to produce the most efficient, and safe, outcome possible for the rider.
The days of gathering data to inform business decisions to be made in the next quarter are over. Companies now need a direct input-analysis-output vector to satisfy customers or make strategic decisions. And on the other hand, customers also expect quick results. The days of waiting for customer’s next visit to the site are over – companies need to capture their attention and sell a product during their first digital touch.
Additionally, machines are better at predicting not only large-scale outcomes – like the state of the traffic on your local interstate – but also individual human behavior.
That’s what a team of MIT professors proved last year in an experiment that compared how a computer system fared in creating predictive algorithms for unfamiliar dataset.
The computer finished ahead of 615 human teams out of 906 – and worked exponentially faster. It even produced better results in predicting human behavioral outcomes, like dropout rates, by selecting more relevant data than its human competitors.
This is all good news, because not only will IoT make behavioral analytics processes stronger by increasing the data pool by several orders of magnitude. It will also make it more valuable.
Take your FitBit. Imagine, after the company has gathered ten years of data on millions of users, what a sophisticated algorithm will be able to infer from your heart rate, monitored hour after hour, day after day.
FitBit will have enough information to create advanced counterpart identification models to not only diagnose users’ health problems – but also estimate what they are at risk for.
Tesla Motors has over 1 billion miles of customer driving behavior data so they can design a better car and feed the data into a smarter autonomous car.
That’s the beauty of behavioral analytics, synced to IoT. It should make your heart race with excitement.