By John R. Brandt
Here’s something I bet you didn’t know: The Internet of Things (IoT) isn’t just a digital revolution, but also a magical place in which the ordinary rules of business and finance don’t apply.
Don’t believe me? Just ask a bunch of manufacturing executives.[1] First, they’ll tell you that they and their companies aren’t yet ready for the IoT:
- Only 11% have an IoT process strategy in place,
- Only 12% have an IoT product strategy in place, and
- Nearly half (44%) have trouble identifying opportunities to use the IoT in their plants or products
Next, they’ll tell you that despite this thorough lack of preparation, they’re going to spend a lot more money on the IoT in the next two years:
- 77% will increase their investments in leveraging the IoT within their plants
- 67% will increase their investments in launching smart, IoT-enabled products.
Finally — and here’s where the magic happens — despite investing lots of money with no strategic plan or even ideas, these execs believe they’ll earn massive profits from the IoT in the next five years:
- 63% think they’ll increase profits by selling smart, IoT-enabled products
- 66% think they’ll increase profits by using the IoT in their facilities
Alas, if only it were so.
Let’s be clear: The IoT is revolutionizing business, and many companies are seeing improvements in productivity and profitability that seem almost magical. But it’s a practical magic grounded in old-fashioned process improvement: Strategic planning, testing of concepts, measurement, adjusting the original plan … repeat. In other words, hard work.
It’s not as fun as magic, but the rewards won’t disappear into thin air, either.
What’s your IoT plan?
[1] All data from The MPI Internet of Things Study, 2016.
© The MPI Group 2016