Are You Ready for the Next Revolution?

BY: RYAN PARKER

“The Internet of Things will create new winners and leave in its wake a host of losers,” reported Goldman Sachs in 2014.[1] The business world is changing dramatically as the Internet of Things becomes increasingly more prominent. Change can be difficult, but it brings with it new opportunities for growth and progress. What are these new changes, and how can your business adapt to them?

What is the Internet of Things?

The Internet of Things (IoT) is a vast network of data-producing devices that are connected to the internet. These devices range from the smartwatch on your wrist, to the WiFi-enabled thermostat in your home, to a machine on an assembly line. Due to the nearly-limitless applications of such technology, the number of IoT connected devices is growing at an alarming pace and will exceed 50 billion by 2020 [see chart below].

What does it mean for my business?

The accelerating deployment of IoT technology brings a host of ways to add value; changing the way businesses develop and deliver products and services, interact with customers, and streamline operations.

The primary advantage of IoT-enabled devices and products comes from the real-time data they generate on any number of metrics. Management can use that data to drive purposeful product development, respond proactively to customer needs, or produce new operational efficiencies. By capitalizing on IoT technology, the company will create value and ride the revolution to further growth and success.

How can my business capitalize on the IoT?

Like any revolutionary change, the IoT requires a new way of doing things. Companies must build new business models around the IoT, leveraging its new technologies in value creation and in value capture.

The Internet of Things is poised to dramatically alter our world and the businesses within it. To find out more about how your business can grow with this revolution, read my full article here.

Notes:

[1] Jankowski, S., CFA, Covello, J., Bellini, H., CFA, Ritchie, J. & Costa, D. 2014, The Internet of Things: Making Sense of the Next Mega-Trend, Goldman Sachs Global Investment Research, http://www.goldmansachs.com/our-thinking/outlook/internet-of-things/iot-report.pdf, accessed November 2016.