The Internet For Everything
According to a recent white paper, the Internet of Everything (IoE) creates $14.4 trillion in “Value at Stake” – the combination of increased revenues and lower costs that is created or will migrate among companies and industries, from 2013 to 2022. At this level, the IoE would seem to be the difference between success and failure for most every economy participant in the next decade.
The growth of the internet is unprecedented. However, we are only skimming the surface of the possibilities. For all that has been accomplished with the internet, consider that less than 1% of physical objects are connected to the internet. The diversity of these objects may be surprising.
The internet has welcomed trees, cows (connected cows transmit 200 MB per year), shoes, asthma inhalers (telling the doctor you’ve puffed), proteus chips (ingestible sensors that monitor your medication intake by transmitting data from your stomach), trains passing sensors. “Smart” may become the new buzzword of the IoE as we have smart grids, buildings, vehicles, healthcare and factories. There are many more unconventional nouns that may be off your radar today in terms of interest, but it’s all related at some level. It’s an internet for everything, an internet that is slowly becoming an internet of everything as the data for many things is moved there.
Companies and products are being formed now to utilize and capitalize on this real-time, detailed data. More products will expand their ecosystem to take advantage of this “data science”.
As enormous as the internet is, there is only one of them. Data there can be smartly triangulated across sources, creating exponential value. This will be required to reach the $14.4 trillion of value. Data is becoming the asset of the internet. As it is sold/shared/bartered across companies, coalitions and syndicators will form to share and analyze the data more broadly. Utilization of the IoE can help smaller companies outflank their larger competitors.
Analytics is an emerging, imperfect science being deployed with much more agility than the past. Analytics of IoE data will lead to imperfect results. People will be lumped into the wrong category and will have a difficult time getting out. It will be like changing a credit report item. The quicker your company can avoid this and get to better analytics from the IoE, the greater share of the Value at Stake will be yours.
This value will come in various forms. The IoE can reduce selling, general and administrative expenses and improve company execution and capital efficiency. The IoE can improve labor efficiency and eliminate supply chain waste. The IoE can attract customers with more potential and upsize the ones you have. It can remake a product development cycle through its feedback cycle and opportunity identification.
Your goal to thrive with the IoE is to:
• Consider the internet’s power in real-time feedback of all your product uses – from initial development to end-of-life
• Consider the value of your data to the IoE
• Consider the value of other data participating in the IoE to your company
This post was written as part of the IBM for Midsize Business program, which provides midsize businesses with the tools, expertise and solutions they need to become engines of a smarter planet. I’ve been compensated to contribute to this program, but the opinions expressed in this post are my own and don’t necessarily represent IBM’s positions, strategies or opinions.