Unlock the full potential of IoT investments with our guide. Maximize economic value, overcome challenges, and achieve interoperability. Essential for IoT research. (75+ pgs)
The Internet of Things (IoT) has become a fundamental trend underlying the digital transformation of business and the economy. Various estimates exist on the economic potential of the IoT. This research analyses how much of that value had been captured, how the potential value of the IoT could evolve in the coming decade and the factors that explain both. The report provides insights into the potential economic value of the IoT, its concentration in certain settings and use-case clusters, and the challenges associated with capturing its full value.
- The economic potential of the IoT: An overview of the potential value that the IoT could generate globally by 2030.
- Concentration of value: Examining the concentration of value in certain settings and use-case clusters.
- Capturing value from the IoT: A discussion of the challenges associated with capturing the full value of the IoT and recommendations for addressing these challenges.
- Interoperability: A discussion of the importance of interoperability and recommendations for achieving it.
- Policy implications: A discussion of the policy implications of the IoT, including privacy and cybersecurity implications, fostering technical talent, and advocating for interoperability.
The IoT has a large and growing economic value potential, but capturing this value has proved challenging, particularly in B2B settings. Many enterprises have struggled to transition from pilots to capture value at scale successfully. The value-capture picture varies across settings, and interoperability is crucial to achieving maximum impact for the IoT. The technology needed to implement the IoT is available and sufficient, but current technology stacks are fragmented and siloed, with many walled-garden, proprietary systems.
To achieve the maximum potential of the IoT, IoT technology providers must improve installation, interoperability, and cybersecurity. This applies to the market for consumers and small and medium-sized businesses as much as it does to large enterprises. Players need an effective channel strategy to help increase product awareness and installation. Managers must crack the code on a scalable go-to-market model for small and medium-sized businesses. Policymakers should consider establishing regulatory frameworks that enable the use of the IoT while being mindful of privacy and cybersecurity implications, help foster the technical talent that is the bedrock of the IoT, and advocate for interoperability.
This report found the following:
- The IoT has a large and growing economic value potential, but capturing this value has proved challenging, particularly in B2B settings.
- The value-capture picture varies across settings, with adoption and impact growing faster than expected in the Home setting and slower than expected in Factories, Outside, Retail Environments, and Vehicles.
- The most value can be created in B2B applications, but the value of B2C applications is growing quickly, spurred by the faster-than-expected adoption of IoT solutions within the home.
- Interoperability is crucial to achieving maximum impact for the IoT, and current technology stacks are fragmented and siloed, with many walled-garden, proprietary systems.
- IoT technology providers must improve installation, interoperability, and cybersecurity, and players will need an effective channel strategy to help increase product awareness and installation.
- Policymakers should consider establishing regulatory frameworks that enable the use of the IoT while being mindful of privacy and cybersecurity implications, help foster the technical talent that is the bedrock of the IoT, and advocate for interoperability.
CIOs can use the information provided in the report to address real-world problems their organizations face in several ways:
- Identify opportunities: CIOs can focus on the settings and use-case clusters where IoT can deliver the most value and identify B2B and B2C applications based on their organization's business goals.
- Address interoperability: CIOs can seek technology providers that prioritize interoperability and collaborate with other organizations to establish common standards.
- Improve installation: CIOs can improve installation processes to ensure that IoT solutions are implemented effectively and capture the full value of the technology.
- Strengthen cybersecurity: CIOs can focus on strengthening cybersecurity measures to protect IoT systems and data against potential threats.
- Develop a channel strategy: CIOs can develop an effective channel strategy to increase product awareness and installation for B2C applications of IoT.
- Understand the economic potential of IoT: The report provides a comprehensive analysis of the global economic potential of IoT and estimates the value it could unlock by 2030.
- Address challenges in capturing the full value of IoT: The report highlights the challenges and provides actionable recommendations for improving installation, interoperability, and cybersecurity.
- Foster technical talent: The report emphasizes the importance of policy frameworks that support interoperability and foster technical talent for IoT development.
By implementing the recommendations provided in the report, CIOs can help their organizations fully leverage the potential of IoT while addressing the challenges that come with it. This report provides readers with a comprehensive understanding of the economic potential of IoT, its challenges, and actionable recommendations to drive digital transformation and innovation within their organizations.
Conclusion:
The IoT has a significant economic value potential, but realizing that potential requires overcoming challenges related to interoperability, installation, cybersecurity, and scaling. By improving these areas, IoT technology providers can achieve the maximum potential of the IoT, which will help businesses drive growth and innovation. Policymakers can play a critical role in enabling the use of the IoT by establishing regulatory frameworks that support interoperability and foster technical talent. The full potential of the IoT can be realized by working together to overcome these challenges.
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