Here’s How Companies Benefit From The Internet of ThingS

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Here’s How Companies Benefit From The Internet of ThingS in THREE charts

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The Internet of Things will bring massive benefits to consumers.

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We can connect our cars, homes, wearable devices, etc. to the Internet to automate processes and track data better.

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But it’s not just consumers who will benefit from the Internet of Things (IoT).

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There’s a lot at stake for companies too.

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A survey by Accenture shows that top-level executives and CEO’s believe the IoT brings three main benefits for businesses.

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Source: Accenture. Top 3 IoT Benefits for Companies (in percentage of executives surveyed)

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These benefits are more than just a future expectation.

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Employee productivity is already increasing thanks to the Internet of Things.

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Microsoft’s IoT solutions have helped a stone-cutting business boost productivity by 33%, and revenue by 70%.

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And helped a Jeep factory crank out a new truck body every 77 seconds.

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“Productivity is the lifeblood of the Internet of Things (IoT). Our decades-long goal: above all, to create the services, technologies and tools that transform enterprise productivity.” - Barb Edson, Microsoft

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But the IoT brings much more than employee productivity.

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Utilizing company assets (asset optimization) is also a big part of the Internet of Things.

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While “asset optimization” is kind of a boring term, lots of industries are learning its true value.

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Because implementing simple technologies -- like sensors -- can make companies much more efficient.

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Source: PricewaterhouseCoopers. Industries Investing in IoT Sensors for Their Businesses

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For example, Verizon placed hundreds of wireless sensors across 24 of its data centers.

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The result has been an electricity decrease of 55 million kWh annually, and a reduction of 66 million pounds of greenhouse gases each year.

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And Intel added predictive maintenance technology to its own factory in Malaysia, and saved the company $9 million as a result.

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But that’s not all.

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All of that asset management leads to the last main benefit: cost savings.

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General Electric uses its Industrial Internet (part of the IoT) software, Predix, to improve asset management.

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The company believes a 1% increase in Industrial Internet efficiency will equal billions of dollars in saving for companies.

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Source: GE.

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GE says the savings comes from making assets more reliable, longer lasting, safer, and better performing.

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And Cisco agrees. The company says one of the key drivers of IoT value is cost reductions.

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Cisco estimates that $19 trillion will be created from IoT profits and cost savings over the next decade.

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Unfortunately, 73% of companies haven’t made any substantial investment in the Internet of Things.

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Once companies realize the IoT is more than just connected homes and smartwatches, that’s when the real benefits will begin.

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