The Internet of things (IoT), the term used to describe the use of sensors and other Internet-connected devices to track and control physical objects, is opening up entirely new ways of doing business. However, the changing customer demands is challenging skill requirements and even the supplier landscape, thereby throwing up immense challenge to business leaders. Two recent studies detail why enterprises continue to struggle with IoT.
Researchers at the McKinsey Global Institute found that key IoT application – and they examined over 100 – could have a total economic impact of $3.9 trillion to $11.1 trillion per year in 2025. More than two-thirds of value will be generated in business-to-business settings and that business customers and consumers will likely capture more than 90% of the value created, they said.
To capture this value, however, businesses need to overcome three significant obstacles: They need to push technology vendors to provide connected, interoperable components and systems, with analytics; they must address security and privacy concerns; and most importantly, they must make organizational changes to maximize the operating and strategic benefits that IoT data can provide. Here’s a look at these obstacles in detail.
“As a result of rapid adoption of IoT across verticals, enterprises are forced to undergo and manage change across multiple dimensions,” said Zinnov in the report. These changes are occurring at five levels -products, people, process platforms and partnerships.
Big businesses are not only facing a challenge in terms of adapting their traditional models to fit a world increasingly moving to IoT, but are also facing competition from nimbler rivals such as Chinese companies. While several of these companies have research and development operations based out of India, the growing market can also spell good news for the Indian IT service industry. Read more