AI and Data

IoT and Data Analytics: Unlocking the Power of Connected Devices

How streams of sensor readings are collected, stored, cleaned and analyzed to find patterns, from simple summaries to trend and comparison methods.

On this page
  1. The data piles up quickly
  2. Step 1: Collect
  3. Step 2: Store
  4. Step 3: Clean
  5. Step 4: Summarize and compare
  6. Step 5: Find patterns and unusual events
  7. Step 6: Present and act
  8. Common mistakes
  9. Starting small

The data piles up quickly

A single connected sensor produces a small, steady trickle of numbers. A deployment of many sensors produces a flood. Here is a hypothetical example: 50 sensors, each reporting once a minute, generate 50 x 1,440 = 72,000 readings a day, since a day has 1,440 minutes. Over a year that is over 26 million readings, from a modest installation. Nobody reads these one by one, which is why analysis is what makes the data useful.

The work of sensor data analytics is to turn that pile into answers: Is something drifting? Is usage changing? Which locations behave differently from the rest?

Step 1: Collect

Readings start at the sensor, travel through a local network, perhaps via IoT gateways, and are delivered to a platform that receives them. Many systems use a publish subscribe pattern, in which devices publish readings to named topics and any interested program subscribes to them. This keeps senders and receivers loosely coupled.

Two details matter more than they first appear. First, every reading needs a reliable timestamp and an identifier for the sensor that produced it, as well as the unit of measurement. Second, collection must tolerate gaps. Networks fail, and devices should buffer readings and send them later, a design discussed under offline operation.

Step 2: Store

Sensor data is a series of values ordered by time, and specialized storage is built for it. Reading about time series data explains why: it is written constantly, rarely changed, and usually queried by time range (“last week for this sensor”). Fast storage is usually kept for recent data, with older data summarized to save space.

Storage decisions involve cost and responsibility. Keeping everything forever is expensive and, for data about people, can create privacy risk. Deciding how long to keep raw readings, and when to keep only summaries, is part of a data retention policy.

Step 3: Clean

Raw readings are rarely ready to use. Typical problems include:

  • missing values from dropped connections
  • duplicated messages
  • impossible values, such as a temperature far outside any plausible range
  • a stuck sensor repeating the same number
  • clocks that are wrong or unsynchronized
  • mixed units, such as degrees Celsius from one device and Fahrenheit from another

These issues fall under data quality. An analysis built on uncleaned data can give confident-looking but wrong results. Cleaning should be recorded as a documented, repeatable step, not done by hand once.

Step 4: Summarize and compare

Much of the value comes from simple operations.

  • Aggregation. Collapse many readings into averages, minimums, maximums or counts per hour or per day. This smooths noise and makes trends visible.
  • Comparison. Compare one sensor with its peers, one day with the same weekday last week, or one building with a similar one.
  • Baselines. Establish what normal looks like, then measure change against it.
  • Correlation. Look for variables that move together, such as energy use and outdoor temperature. Be careful: two measures moving together does not show that one causes the other.

A useful habit is to plot the data before computing anything fancy. Gaps, steps and spikes are often obvious to the eye and point straight to problems.

Step 5: Find patterns and unusual events

Analysis is often described at four levels.

  1. Descriptive: what happened? For example, usage by hour.
  2. Diagnostic: why might it have happened? Perhaps usage rose after a schedule changed.
  3. Predictive: what is likely to happen next? Forecasts of demand are one example.
  4. Prescriptive: what should be done? Recommending a setting or action.

Each level needs more data and more care than the one before. Predictive work often uses machine learning, and flagging odd readings is its own topic under anomaly detection. For many practical problems, descriptive and diagnostic analysis already deliver most of the value.

Step 6: Present and act

Results only matter if someone sees them in time. Sensor dashboards show current values and trends, while alerts push attention to a person when something crosses a limit. Good presentation answers a specific question for a specific reader. A facility manager may want to see which rooms are out of range, while an executive might want a monthly cost trend. Too many charts and alerts bury the useful signal.

Analysis can also feed back into the physical world. A building system might adjust heating based on observed occupancy, or a maintenance team might schedule a visit to a machine whose readings have been creeping up, which is the basis of predictive maintenance.

Common mistakes

  • Collecting everything without a question. Data gathered with no purpose is costly to keep and rarely used. Decide what decision the data should support first.
  • Trusting uncalibrated sensors. A sensor that has drifted gives consistent but wrong numbers. Periodic sensor calibration protects the analysis.
  • Ignoring context. A reading means little without knowing the location, time, operating mode and weather.
  • Over-reading small samples. A pattern seen in a few days of data may be chance.
  • Forgetting people. Data from homes, vehicles and workplaces can describe individuals. Collect only what is needed and say clearly how it is used.

Starting small

A sensible first project picks one question, a handful of sensors, and a few weeks of data. Clean the data, plot it, compute simple summaries, and see whether the result changes any decision. Only then is it worth building more elaborate pipelines or models.

The complete guide to ai and data

IoT and Artificial Intelligence: A Powerful Combination for Innovation
Read the guide

Keep exploring

Guides from other topics

All topics →