This post is part of a series of 5 posts that I intend to write on how M2M and Bigdata are made for each other. I will start with covering the benefits in HealthCare industry and then address Automotive, Utilities and Retail. In the final post I will go through some of technology requirements needed to properly address these opportunities.
Exponential growth in device generated data
This is the start. Connected devices are becoming ubiquitous to out daily lives, whether it is consumer devices like smartphones or smart TV’s, everything else is becoming smart as well, and everything is somehow connected to the global cloud. This applies also to most enterprise equipment. From smart meters, to smart cars, ehealth devices, everything that benefits from a connection is today getting one.
The data generated by these connected devices is skyrocketing. In its report “The Digital Universe in 2020, IDC, a market analysis firm, predicts the amount of data produced by connected devices will grow to 40,000 exabytes by 2020. M2M is the biggest source of the data that will be generated in the coming years.
Much of the data produced by connected devices will be unstructured and gaining insights from this data will need a different approach than what we get from conventional databases and traditional analytics tools.
Gain insights and act on them or somebody else will…
Gaining actionable insights from the huge amount of data will be a key success factor for any company. With the right insights it will be easier to create value to a specific value chain. And with the right insights at the right point in time, service providers can get closer to their customers, companies can reduce cost, improve efficiency, deliver upon the needs and expectations of their customers. In the long-run better insights means improved competitiveness.
Digitalization has already lead to disruption in current value chains as we have for instance seen it with the music industry. Similarly bigdata will have a huge impact on current value chains. Companies embracing big data opportunities will gain a competitive advantage in the value creation game and will also use that to enter brand new markets. So let’s start to have a look at what these opportunities are and why bigdata is key.
Medical Data from improving healthcare quality to quantified self
Healthcare is probably one of the most interesting areas both due to the amount of data generated as well as the opportunities it creates. From reducing healthcare costs to improving life quality the opportunities are real.
It is estimated that by 2015 the average hospital will generate about 665TB of data. 80% of this information will be unstructured data in the form of videos, images and emails. The amount of data is huge and untapped.
To put things in perspective a single CT scan represents about 1GB of data, while an X-ray takes about 30MB. Doctors around the world would benefit from instantly accessing patients records, comparing it with other patients.
Soon the analytical tools to mine this data will be there. The opportunities are in predictive medicine and preemptive measures. Predictive medicine will allow earlier and better treatment. Comparing data which is normally contained in different silos, will allow doctors and hospitals to infer new insights and improve the decision process. For instance, people genetically predisposed to certain diseases will get faster diagnosis and more accurate treatment. It will be possible to better asses the risk profile of patients and hence better understand the optimal time to release a patient from the hospital. According to a Mc Kinsey report up to $70 billion could be saved by otpimizing discharging timings in hospitals. Monitoring different patient behaviors could also help doctors to recommend pre-emptive actions to avoid future illness or complications.
Telco’s are moving into healthcare value
Now with all this data needed to better process patient treatments and the increasing connectivity requirements between patients, doctors and hospitals, their is an opportunity for telco’s to play a major role in healthcare.
Orange is probably one of the best examples of how an operator has successfully managed to take a major role in healthcare. They are today providing data centers to doctors and hospitals to instantly share patient records including all imagery, they are working with hospitals to improve efficiency by improving supply management and are optimizing flow of patients by automatically delivering orders to staff and supporting vehicles. Orange is also providing telehealth solutions to improve the interaction and communication with patients. The next level of value creation for telco’s will be the ability to create additional value through analytics as a service.
Healthcare going over the top…
Now beside the genetic predisposition to certain diseases, the lifestyle and activity a person performs has also a lot to do with how that person’s health develops. So how much information can we actually capture about these habits and behaviors that could really affect our health, and how much of this are we actually sharing with our physician?
Sport brands and Fitness companies are probably among the first that recognized this. From Nike fuelband to fitbit, which boht started measuring fitness activity, there is now a whole range of companies that have gone beyond and have the ambition to become every consumer’s health and fitness partner (see for instance health score application from dacadoo.com on the left). Sensors, self-testing devices are becoming reasonably priced and people start investing in their own health through technology rather than relying only on the existing healthcare system.
I wouldn’t be surprised if in a few years from now a big part of the healthcare industry goes over the top. As an individual I might be investing in a number of monitoring devices, that will give me real insights on my health and might even give me more accurate diagnosis than my local physician, since I cannot lie to a device. When connecting all of this information to the cloud, by identifying patterns and similarities between different users, a lot of insight can be collected and recommendations can be given, maybe even for free. If I am a device vendor/sensor vendor, I might just do this to boost sales of devices. This is similar to the approach apple has taken with its ipod and itunes and has that way disrupted much of the music industry.
One example of how such approaches could replace some of today’s approaches is food allergies. Proper allergy tests are still damn expensive but by recording for instance what i eat, how I feel, and comparing that with other patients records and foods databases, I am pretty sure you could infer mild form of allergies and treat them in time and with better quality.
This philosophy or starting to measure everything about yourself and sharing it in exchange of advice is pretty much at the heart of the quantified self movement. Quantified self is an interesting trend since it means that individuals are investing time and money to monitor themselves with the ultimate goal to improve their quality of life.
Finally, medical records, tests made, genetic profile could also be overlaid with earlier mentioned lifestyle related insights: combined with fitness levels, food consumptions, spleeping patterns or even mood or feelings could provide even more insights if analyzed and mined properly.
So in ten years from now who will be your first choice for healthcare?
My best bet is that it will be whoever gives me the best insights on what my health is, gives truly personalized advice and treatments, and interacts with me in a way that conveys both trust and empathy.
With global connectivity and emerging cloud services, this provider does not necessarily need to be local. Global connectivity and cloud means that the cost of providing diagnosis will fall and that might lead to traditional boundaries for healthcare slowly falling. National and regional Healthcare providers will have to step up to the challenge and probably join forces with Telco’s to stay competitive. If they don’t then movements like Quantified Self will sooner or later create the “Skype” or “Whatsapp” of the healthcare industry.