Skip to main content

Internet of Things

A McKinsey study attempts to quantify the economic impact of IoT....

Patrick Thibodeau

Predictions that the Internet of Things (IoT) will usher in a new era of prosperity get some backing in a new study by consulting firm McKinsey & Company.

The study estimates that the annual value of IoT applications may be equivalent -- in the best case -- to about 11% of the world's economy in 2025. That's based on a number of assumptions, including the willingness of governments and vendors to enable interoperability through policies and technologies.

IOT is expected to deliver improvements to the reliability of machines, as well as to individual health and life overall. But it may also be intrusive on privacy, and while the IoT will create new jobs, it will cost some as well.

Here are five major points from this report:

Business IoT applications, not consumer uses, will create more business value, according to McKinsey. No surprise here. Consumer applications such as connected toasters, coffee pots and home entertainment systems offer little in terms of real value -- but they do get attention. Enterprise IoT is being used to predict and avoid failures in high-value machinery, such as locomotives and magnetic resonance imaging (MRI) devices. It also allows business to switch from scheduled maintenance programs to condition-based maintenance, where service is performed as needed,l not based on a calendar. This increases equipment reliability and efficient deployment of personnel.

A major share of the IoT's financial gains are through avoided cost. For instance, doctors can use IoT to monitor a patient's health. If the person is a diabetic, careful monitoring may prevent hospitalizations. This includes the use not only of wearables but of devices that can be implanted, injected and ingested.

Virtual reality is part of IoT. Virtual reality goggles will observe and guide you step-by-step through an installation process at home and work. This capability will likely arrive first on factory floors and equipment repair shops, but eventually it'll be available at home.

McKinsey estimates that IoT's potential economic impact at between $3.9 trillion and $11.1 trillion globally per year by 2025. But interoperability accounts for about 40% of this potential value. Equipment makers now collect data performance info from their own machines, but interoperability with other systems will give an integrated view and improve predictive analysis in environments that use multiple systems. In a municipal setting, for instance, interoperability means that video, cell phone data and vehicle sensors could be used to monitor and optimize traffic flow.

The efficiency gains delivered by IoT will deliver a mixed bag of benefits for human workers. Better equipment monitoring and ubiquitous deployment of sensors may reduce injuries. It could also help eliminate some travel for employees who have to go to remote sites. But McKinsey warns, "some IoT applications in worksite environments substantially reduce the number of employees needed."

Patrick Thibodeau — Senior Editor

Patrick Thibodeau covers cloud computing and enterprise applications, outsourcing, government IT policies, data centers and IT workforce issues for Computerworld.

Popular posts from this blog

Overview of Social Media Marketing

Social media marketing refers to the process of gaining traffic or attention through social media sites. Social media itself is a catch-all term for sites that may provide radically different social actions.

Use social media marketing to listen, analyze, publish, and engage across networks. Align your marketing, customer service, and sales efforts on social — strengthening customer relationships.


Listen and analyze. Hear conversations from over 650 million different sources with social listening tools. Discover what consumers are saying about your brand, your products, and your competitors. Discover trending topics and influential conversations — then use that information to inform your marketing decisions.
Plan and publish. Plan, execute, and track social media marketing campaigns. Customize and craft your content from multiple sources, while protecting your brand with configurable approval rules and a full audit trail. Manage social strategy, tailor campaigns, and drive social awareness…

Why Digital Marketing and Web 2.0 Important To Business?

DIGITAL MARKETING

Digital marketing technology helps you understand and reach your audience most effectively so you can generate the most revenue.  For advertising campaigns, ad serving technology makes it possible to serve the right ad at the right time to right person.  That means your advertising is being as productive as possible. When technology is working for you, you’ll understand your audience at a whole new level, and it will show up on your bottom-line.


NEED FOR THE STUDY The pace of change in today’s business environment is faster than ever. New markets, technologies, and opportunities are arising on a daily basis. Current ways of doing business need to be adapted or they will become outdated. Organizations and enterprises have to become agents of evolution to be successful; as victims of evolution they risk failure. With so many dynamics operating in the global economy, Digital Marketing is now more than ever an effective tool to make a company stand out from the pack.

The pe…

Rural and Urban Marketing Linkage

MARKET LINKAGES
Some general principles need to be clarified to provide a basis for understanding food-marketing systems within a development context. In order to make any effective interventions in a marketing system it is necessary to define the types of marketing channels, their linkages and functions.
The term “market linkages” is often referred to in the literature on rural development. what precisely does it mean? The term linkage obviously implies a physical connection between the producer and the ultimate consumer. Linkages also involve financial transactions - the selling and buying of goods - and can be broadly defined in four different ways:
by the form of financial transactions or type of intermediaries who undertake the transactions;by the channels through which transactions occur and the type of facilities used for transactions;by how they are linked together by transport and communications networks;by the spatial distribution of transactions - where they occur and whethe…