Data shared by the Internet of Things (IoT) offers a powerful opportunity for businesses to design new customer offerings, deliver enhanced efficiencies, and provide unprecedented insight into how to deliver value to their customers. BCG helps organizations unlock new revenue streams, efficiencies, and possibilities.
IoT leaders understand that, at its core, IoT is a fundamental component—and enabler—of digital transformation.
Winning with IoT means connecting more than just devices. It means linking your strategy with your digital journey; employing the right emerging technologies, such as artificial intelligence (AI), augmented reality (AR), and blockchain; collaborating with the right partners and digital ecosystems; and establishing new processes and ways of working.
It’s a tall order for companies, but by understanding the new IoT trends, and how best to leverage them, organizations of all types—businesses, governments, and nonprofits alike—will find that the possibilities for innovation and value are virtually boundless.
Major developments will help companies stake new ground in IoT. The key trends include:
Many of IoT’s ingredients—sensors, bandwidth, processing power, and cloud storage—are dropping in price or delivering more bang for the buck.
Performing data processing and analysis closer to the devices—instead of at a central location—enables faster insights, responses, and decisions.
AI lets organizations extract more from the data they capture and do things today that they couldn’t do yesterday. AR visually integrates data and physical environments. Goggles, for example, can display real-time information about the equipment a technician is repairing.
Blockchain can enhance trust in IoT applications that involve multiple parties. In a supply chain, for instance, manufacturers, transporters, and retailers need reliable track-and-trace data. Blockchain’s shared, distributed ledgers create a single version of the truth that is accessible by all.
While 5G’s most novel features (such as ultra-low latency, which reduces delays in transmitting data) are still a bit down the road, solutions can already benefit from faster speeds.
To harness these trends—and create an IoT strategy that fuels true digital transformation—organizations need to consider a number of crucial questions:
BCG’s IoT consultants help organizations zero in on the answers—to unlock new revenue streams, efficiencies, and possibilities— using our approach that integrates strategy, technology, and human components to drive the best outcomes.
Our IoT consultants help leaders across all industries combine IoT with other emerging technologies to launch innovative solutions and spark digital growth.
The value of IoT data is hidden in plain sight. Using AR realizes its potential, as our app demonstrates. It’s critical that companies develop a joint IoT-AR strategy.