Policy makers and business thinkers alike affirm that by 2025, the link up of physical and digital products could generate more than eleven trillion dollars a year. The Internet of Things (IoT) is at the heart of this with sensors and actuators within networks of computing systems. A report has been generated by the McKinsey Global Institute on areas where the IoT could have massive impacts. These have been identified as – factories, urban planning, healthcare, retail, logistics, work sites, mobility, real estate and offices. Among them, factories are expected to be the biggest revenue churners of up to 3.7 billion US dollars as an upper limit. A key finding of this McKinsey report is that majority of the data warehousing that takes place from IoT devices does not get utilized. Another key finding is the lack of alignment between various devices leading to erosion of economic value. IoT also has a massive scope for growth in the developing countries, yet the focus remains on developed and industrialized ones. Customers will gain massively if all this business intelligence gleaned from the data is used in the right manner to provide solutions in the healthcare segment. A lot of futuristic producers have already taken note and are developing products keeping this linking in mind. Policy actions are also taking place to ensure an ecosystem be created to best leverage this network of connected devices.

Source:https://www.mckinsey.com/business-functions/digital-mckinsey/our-insights/the-internet-of-things-the-value-of-digitizing-the-physical-world

Uploaded Date:23 June 2018