By 2020, Internet of Things Will Create $1.9 Trillion of Economic Value Add
In 2020, Over 30 Billion Connected Devices Will Be In Use
With the digital world upon us, digitalization will significantly change the technology market through the Internet of Things While IT spending in Europe, the Middle East and Africa (EMEA) will show an average annual growth rate of 2.2 percent through 2017, the Internet of Things (things, people, places and systems) will create new markets and a new economy.
The Internet of Things will create greater economic value for all organizations, and for the global economy. Gartner predicts that the total economic value add for the Internet of Things will be $1.9 trillion dollars in 2020, seen across a number of industries. The verticals that are leading its adoption are manufacturing (15 percent), healthcare (15 percent) and insurance (11 percent).
For example, the manufacturing sector will benefit from producing billions of devices and from more efficient tracking of materials and components leading to cost efficiencies. In healthcare, smart slippers and other wearable devices for elderly people contain sensors that detect falls and various medical conditions. If something is amiss, the device will alert a doctor via e-mail or text message, possibly preventing a fall and a costly trip to the emergency room. Another example includes installing sensors in cars that provide a pay as you drive insurance that links the insurance premium to the individual’s risk profile.
We can advise and work with your business to develop solutions that are optimized for your customer and enable you to adopt innovative business models. This will allow you to move away from blanket pricing to more tailored solutions which provide you with the differentiation that builds customer loyalty.
The Internet of Everything will re-invent industries at three levels: business process, business model, and business moment.
At the first level, digital technology is improving our products, services and processes, our customer and constituent experiences, and the way we work in our organizations and within our partnerships. We do what we normally do, but digitalization allows us to do it better or develop better products within our industry.
As companies digitalize products and process, completely new ways of doing business in industries emerge.Nike, playing on the edge of the healthcare industry with its connected sporting clothes and gear, and Google having a visible presence in autonomous vehicles. These organizations had no business in these industries and are now re-inventing them.
We can help you realize opportunities in markets not traditionally on your radar or roadmap.
The third level of digital re-invention is created by the need to compete with unprecedented business velocity and agility. the“business moment.”
Take large hotel chains such as Starwood, Hilton, and Hyatt hotels that keep competing against first wave of digital business models from the e-commerce era from sites such as Hotels.com. However, the new digital business model created by companies such as AirBnB is causing these hotel chains to compete against an expanding inventory of rooms, not in other hotels, but in their customer’s own homes.
With these new models, the source and inventory of room changes every single night – creating competition at the business moment level.A ‘business moment’ can come from nowhere, yet are increasingly everywhere, and are almost never the same in product, time frame or competitor.”
The Internet of Things will create tens of millions of new objects and sensors, all generating real-time data. “Data is money,” Businesses will need big data and storage technologies to collect, analyze and store the sheer volume of information. Furthermore, to turn data into money business and IT leaders will need decisions. As they won’t have the time or the capacity to make all the decisions themselves they will need processing power. Computers can make sophisticated decisions based on data and knowledge, and they can communicate those decisions in our native language. To succeed at the pace of a digital world, you’ll have to allow them to do so.
We will help you develop your internal platforms to embrace and benefit from all big data has to offer
Now that digital is embedded in everything we do, every business needs its own flavor of digital strategy. Vanilla is off the menu,Digital is not an option, not an add-on, and not an afterthought; it is the new reality that requires a comprehensive digital leadership.
Business needs digital leadership that can recognize the huge opportunities in shifting business models; leadership that can create the freedom and agility to capture business moments, and leadership that extends itself beyond company boundaries to guide and shape the ecosystem.
We can be your trusted advisor in that leadership!