Over the next five years, it is estimated that businesses will collectively spend nearly $6 trillion on IoT solutions and all signs point to this figure rising.
The reason? IoT technology provides a data-driven avenue through which today’s businesses can optimize their operations to meet tomorrow’s challenges.
Digital leaders have identified IoT technology as an integral part of their efforts to digitally transform the way they collect, store and analyze information and fuel top-to-bottom decision-making. And the latest IoT innovations offer capabilities that truly drive insightful value – forecasting, risk management, logistics and retail included – positioning adopters for market success.
For example, a COO can see the materials flowing into his production facility in real-time, and optimize to meet demand. A farmer can grow more food with fewer chemicals by assessing important agribusiness data throughout all operational layers. A quality manager can remove defective materials before they get to the manufacturing line, predicting and mitigating any issues that would have previously remained unseen. An oil refinery can improve the safety of all its workers through location tracking, vital sign monitoring and danger scanning (e.g. gas leaks) at all times.
With the latest and greatest implementations of device connectivity through big data and cloud capabilities, the Internet of Things turns into an Internet of Outcomes, reaching out to and helping end-users in ways never seen before.
Strategic IoT Industry Partnerships Will Push the Digital Economy Forward
The benefits of collective industry efforts and co-innovation partnerships are not unknown to many business markets, but they are a new endeavor in the IoT industry, as the need to fuel faster growth increases – innovation that will benefit customers immediately and truly reveal untapped potential in the field of IoT connectivity.
We’re already seeing many organizations turning to collaborative partnerships, partnering with other technology leaders to provide products and services that create better experiences for end-users. Case in point – SAP recently announced a new strategic partnership with Robert Bosch GmbH, a multinational engineering and electronics company, during the Industrial Internet Consortium (IIC) in Germany. The goal of this endeavor is to enable customers to use SAP S/4HANA in the Bosch IoT Cloud, providing customers to process enormous quantities of IoT data for applications in real-time, with truly impactful outcomes.
For our joint customers, this means secure and more efficient connectivity for vehicles, manufacturing machinery and tools that can be accessed on today’s leading opens platforms. For SAP and Bosch, two companies that put their customers first, this is an important milestone – one that goes beyond our individual gains. Both companies share the same vision: driving greater customer experiences, as all end-users will quickly benefit from stronger connected services that they wouldn’t be able to receive working with each company independently. We’re working closely to streamline our environments, learn from our joint engagements, which will only create more improvements and breakthrough projects for the future.
The ‘Internet Of Outcomes’ Is On The Horizon, And The Journey Starts Now
By harnessing the power of cloud computing, machine learning, artificial intelligence and predictive analytics, IoT has the capabilities to truly disrupt any industry. This means innovation will come from within and outside traditional industry definitions.
And this innovation is happing fast. It isn’t enough just to “sense” your surroundings by collecting information-consider that IOT phase 1. For IoT to live up to its $6 trillion expectations, it will need to move beyond being a “data source” and begin to deliver actionable insights. Just because a device is connected to a network does not mean that it necessarily delivers any value to an end-user. Better investments must push the Internet of Things into its next stage – the Internet of Outcomes – and produce quick, actionable outcomes out of sensor-driven monitoring. The possibilities are endless, but only if co-innovation and a shared industry agenda starts now.