The single most influential game changer for corporations is the Internet of Things (IoT). With predicted value creation and growth of over 11 trillion, and over 1.5 trillion in new investment, there will be over 30 billion devices connected to the internet in the next 10 years. The industrial internet/internet of things is not only changing how firms and industries are structured, but also how firms compete. Firms that fail to embrace this revolution may not be in business within the next 10 years.
The Internet of Things refers to the set of devices and systems that interconnect real-world sensors and actuators to the internet. These sensors provide so much data to organizations that many companies are unsure of what to do with all of it. This interconnectedness can create a competitve advantage for companies who can understand and use it to drive value for customers. Those who can only collect the data but not use it correctly will continue to struggle in a world where the actions a company takes are dependent on data collected from both their customers and competitors.
IoT is changing traditionally product-based companies into service companies, and service companies into big data and predictive analytics firms.
There is a confluence of key technology-enablers in the early 21st century. Breakthroughs never seen before, including developments in miniaturization, performance, battery capacity, size, and efficiency, new materials and sensors, bandwidth and wireless connectivity. The new Internet Protocol (IPv6) allows for 340 trillion,trillion,trillion new internet addresses. These converging technologies have created new market forces. This perfect storm is now converging to change how markets respond to pressures on suppliers, incumbents, new entrants, changing barriers to entry, and the power of buyers within markets.
Companies need to innovate in order to achieve competitive differentiation. This means not only gathering as much relevant and rich data as possible, but also using these data-sets to enhance their company's market-position strategies via predictive analytics to more quickly create optimal solutions. In previous times simply using analytics to be more efficient or cut costs would have been sufficed. However, these analytical insights must now be used to improve customer profits and make targeted investment decisions. The choices of what markets to enter and when to release certain products will be determined by not only the data that companies receive, but how they use it to their advantage. Firms unable to use these insightful analytics to effectively drive their decision making will be left behind.
Beyond effect on markets, products, services, and industry structures, company cultures will undergo drastic changes in the new world. From a talent management standpoint, firms will need to adjust their hiring strategies to attract and retain the right people. From a skills and competency standpoint, employees will need new education and training programs to help them understand how to interpret the vast amounts of data being collected and turn it into meaningful information to enable more rapid and accurate decisions. Quick-thinkers who can respond to the anticipated changes in the work environment and adopt the skills necessary to provide their firms with a competitive spark will be in high-demand. Any company seeking to maintain or increase its profits will require these types of employees.
Methods of monetizing and creating value are changing faster than ever. Ivory Bridge Group can help position your firm to capitalize on the Industrial Internet and the Internet of Things as they enable revolutionary approaches to product development, customer experience and management. These new approaches will require the integration and application of big data and predictive analytics in a human-centered design process.
Ivory Bridge Group has expertise in all the areas your firm needs to reevaluate in order to stay competitive, including Strategy & Execution, Innovation in new products, processes, and services, and the entire breadth and depth of human capital management.