What kind of sport is the Internet of Things?
McKinsey recently released its latest report named “ The Internet of Things: Mapping the value beyond the hype” on the Internet of Things world: following some interesting observations, the consulting firm shares its prediction: by 2025 the potential economic impact of IoT could be between $4 trillion and $11 trillion, with manufacturing counting for the majority of this potential.
It could be. There are, in fact, some conditions for this to happen:
- IoT needs interoperability, which is more than just standards, especially if imposed from above. This includes regulations, essential ingredients for making it a sustainably growing and thriving market;
- IoT needs to be fostered in B2B: while B2C still struggles in finding a reasonable business model, B2B is where opportunities — huge ones, for customers, integrators and vendors — can be found;
- IoT needs applications, as leveraging data — currently 90% of generated data is not actually used — is the key to unleash the full potential.
The analysts gloss by noting that a dynamic industry — made by incumbents and startups — is evolving around IoT technology but to capture the full potential of IoT applications it will required to innovate in technologies and business models, as well as investment in new capabilities and talent.
Back to the title of this post, according to McKinsey the Internet of Things is definitely more heptathlon than hurdling…