According to McKinsey’s forecast, Thirteen trillion dollars is how much economic growth potential there is in the global IoT market by 2030. To release this monetary value, companies must use the new standards correctly. When it comes to unlocking IoT potential, much of the decision-making currently spans scattered management levels, functions, and business units. However, successfully running IoT corporate strategies are distinguished above all by the precise definition of responsibility. McKinsey has examined 99 fields of application in this regard – and identified three central recommendations for action to bring the value potential into corporate reality. These are particularly relevant for the German economy with its large proportion of industrial companies.
B2C Area With Increased Growth Potential
According to the forecast, B2B applications will mark most of the expected IoT added value by 2030 at around 65 percent. The economic growth forecasts range from a low growth volume of approximately 3.4 trillion dollars to a significant growth scenario of roughly 8.1 trillion dollars. Compared to the B2B area, the development field in the end consumer market (B2C for short) appears to be much more dynamic for the end user. The developments here primarily drive IoT solutions such as innovative home systems for private households or smart wristbands for counting steps, tracking jogging routes, and measuring health indicators.
Companies have catching-up potential, especially B2B applications because the market has not developed as expected in the last six years. The successful market launch of IoT solutions was held back primarily by high costs, a lack of skilled workers, unclear use cases, and cyber security. The industrial sector mainly uses standardized production processes in manufacturing, hospitals, and other industries that can contribute up to 26 percent to the economic value in 2030. In second place is healthcare IoT solutions, which are expected to account for 10-14 percent of estimated economic value by then. This includes, for example, the treatment of diseases via intelligent devices.
Above all, the $13 trillion milestone requires smooth scalability in industrial IoT solutions. Companies should ask themselves: How can we scale our IoT application scenarios to match the company structure and business goal? Above all, three steps are crucial: getting beyond the pilot status with the right approach and the appropriate consistency, recruiting the right employees with the necessary skills, and finally, bringing all relevant applications together.
Go Beyond Pilot Projects With The Right Approach And Consistency
A success-critical factor is the right way of thinking, i.e., the right approach and the corresponding consistency in implementation, to increase the probability of success significantly and to ensure the scalability of projects and solutions right from the start. Innovative concepts such as agile thinking and acting and the existence of a corresponding process that requires consistent, fast, and entrepreneurial decisions are needed here. Companies get caught up in new technologies, decisions about the next development step are not made, and one does not trust themselves to the next scaling step. As a consequence, the pilot project got stuck.
Unfortunately, there is no panacea for the scaled use of IoT technologies. That’s why it’s crucial to examine multiple IoT use cases. For all of these cases to offer the company added value, decision-makers should check where they need to change operating models, workflows, and processes to ensure value creation. For this purpose, a consistent review of the achievement of the projects’ valuable contributions is fundamental, including the proactive control of deviations. That sounds like classic project management, but it is usually not set up as required.
Recruitment Of Tech Talent As A Bottleneck
A critical bottleneck can also be identifying and recruiting tech talents with the right skills – because these specialists are highly competitive with recruiters in the IoT environment. New specialist staff is an essential first step in closing the knowledge gap. For example, without data scientists, companies will struggle to succeed with the data produced in their IoT network. But acquiring new talent is not enough – existing employees must also be given basic knowledge of the latest technologies without becoming too technologically complex.
Unfortunately, too often, only the IT department deals with IoT adoption – while the rest of the company is excluded from it. But technology alone will never be enough to unlock the potential of IoT and enable maximum value creation. Real added value can only be created in the interplay between the possibilities offered by this technology and specific applications in the individual functions. This requires a different way of working together and the right skills and abilities on both sides.
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