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Here’s How Companies Benefit From The Internet of ThingS in THREE charts
The Internet of Things will bring massive benefits to consumers.
We can connect our cars, homes, wearable devices, etc. to the Internet to automate processes and track data better.
But it’s not just consumers who will benefit from the Internet of Things (IoT).
There’s a lot at stake for companies too.
A survey by Accenture shows that top-level executives and CEO’s believe the IoT brings three main benefits for businesses.
Source: Accenture. Top 3 IoT Benefits for Companies(in percentage of executives surveyed)
These benefits are more than just a future expectation.
Employee productivity is already increasing thanks to the Internet of Things.
Microsoft’s IoT solutions have helped a stone-cutting business boost productivity by 33%, and revenue by 70%.
And helped a Jeep factory crank out a new truck body every 77 seconds.
“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
But the IoT brings much more than employee productivity.
Utilizing company assets (asset optimization) is also a big part of the Internet of Things.
While “asset optimization” is kind of a boring term, lots of industries are learning its true value.
Because implementing simple technologies -- like sensors -- can make companies much more efficient.
Source: PricewaterhouseCoopers. Industries Investing in IoT Sensors for Their Businesses
For example, Verizon placed hundreds of wireless sensors across 24 of its data centers.
The result has been an electricity decrease of 55 million kWh annually, and a reduction of 66 million pounds of greenhouse gases each year.
And Intel added predictive maintenance technology to its own factory in Malaysia, and saved the company $9 million as a result.
But that’s not all.
All of that asset management leads to the last main benefit: cost savings.
General Electric uses its Industrial Internet (part of the IoT) software, Predix, to improve asset management.
The company believes a 1% increase in Industrial Internet efficiency will equal billions of dollars in saving for companies.
GE says the savings comes from making assets more reliable, longer lasting, safer, and better performing.
And Cisco agrees. The company says one of the key drivers of IoT value is cost reductions.
Cisco estimates that $19 trillion will be created from IoT profits and cost savings over the next decade.
Unfortunately, 73% of companies haven’t made any substantial investment in the Internet of Things.
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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