Having an analytics or artificial intelligence software component in your IoT solution is not required, but it's really interesting to use them to process data collected from devices to extract patterns and insights that could lead to predictive maintenance, a better understanding of user behavior, and so on.

For example, let's look at some data that is captured through washing machines. Someone may have bought the appliance because it was supposed to save energy. However, after processing the data collected, it becomes clear that the appliance is consuming more energy than thought. The root cause is the lubricant as it was inadequate for its motor in non-tropical countries.

Later, let's say you compare that information with sales data and realize that 1 million washing machines were sold in Europe approximately eight months ago. The manufacturer of the washing machine can get the benefit of early shipping rates for the spare parts that must be exchanged. The manufacturer can also get a predictable amount of new lubricant for their supplier, and this could perhaps lead to a new appliance design.