Friday, 28 August 2015 22:00

IoT's True Value to Business May Go 'Beyond the Hype'

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A new McKinsey Global Institute report, “The Internet of Things: Mapping the Value Beyond the Hype,” finds that the hype may actually understate IoT’s full potential — but that capturing it will require an understanding of where real value can be created and a successful effort to address a set of systems issues, including interoperability.

According to McKinsey research, IoT has a total potential economic impact of $3.9 trillion to $11.1 trillion a year by 2025.

MGI’s Michael Chui believes that these factors will determine how successful businesses are at unlocking trillions of dollars in value during the next decade:

  • Interoperability between IoT systems is critical.

  • Currently, most IoT data are not even used for optimization and prediction, which provide the greatest value.

  • Business-to-business applications will probably capture more value—nearly 70 percent of it—than consumer uses.

  • IoT users (businesses, other organizations, and consumers) could capture 90 percent of the value that IoT applications generate.

 - Download the podcast and/or report: http://www.mckinsey.com/insights/business_technology/the_internet_of_things_the_value_of_digitizing_the_physical_world?cid=other-eml-nsl-mip-mck-oth-1507

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