In the manufacturing sector alone, the McKinsey Global Institute predicts that the Internet of Things (IoT) will drive combined revenue growth and cost savings of $900 billion or more annually over the next 10 years.
Recognizing they must embrace this opportunity to remain competitive, one in four manufacturers has already put an IoT system in place, according to The Economist Intelligence Unit’s “The Internet of Things Business Index” report.
For those that are still devising an IoT strategy or considering the shift, here are a handful of considerations from Kent Eriksson, IoT Business Consultant at PTC that you can take to your first IoT initiative to help ensure its success.
#1: Start small, but scale fast.
Companies need to start where they are today and leverage existing effort and add new value. By starting with one smart, connected product that delivers immediate return on investment through reduced costs and increased efficiencies, they can continue to expand and add value one step at a time.
#2: Focus on value provided.
Consider your current unique value proposition. Key to understanding the value is to understand the macro trends in the market, and go after low-hanging fruit with quick-win strategies without getting bogged down with excessive analysis.
#3: Get customer input and move to an outcome-based ecosystem.
In the future, there will be more outcome-based ecosystems competing with each other. For this reason, it is important for suppliers to understand what the most desirable outcomes are by asking for input from customers and then partnering with the best to deliver those outcomes.
#4: Pay proper attention to safety and security, however balance risk and reward.
It is not only important to meet and exceed customer expectations on safety and security, but it is also important to ensure security considerations are appropriate for the application and do not unnecessarily stand in the way of realizing value.
#5: Get organized around the new associated skillsets.
Because it is not a one-off event, you need roadmaps to lead the way you do business in future. You will need to evaluate your roadmap and be agile in ecosystems that will change faster than we have seen before.
To hear more real-world examples of companies that have added value by integrating IoT technologies, be sure to attend LiveWorx 2016, June 6-9 in Boston, MA. The agenda will feature authentic customer experiences, technology demos and hands-on training, and countless opportunities to connect and collaborate with 5,000 innovators who design, manufacture and service today's products as well as those who develop the applications and experiences that will unleash the future potential of those things.