2. linking the physical world to the Internet and other data
networks
monitoring and managing operations thousands of miles
away, tracking goods as they cross the ocean, or detecting
changes in the blood pressure of a diabetic that might be a
sign of a heart attack
redefining how we engage with the physical world and
making possible computer-mediated ways of doing
business, managing public infrastructure, and organizing
people’s lives
IoT Features
3. HUMAN
two broad categories:
Improving health
Raising productivity
HOME
energy management
Security
automation of domestic chores
IoT Value creation
4. RETAIL ENVIRONMENTS
online shopping
OFFICES
principally managing energy and security systems by
excluding commercial spaces
FACTORIES
predictive maintenance
inventory optimization
WORKSITES
oil and gas exploration and production, mining, and
construction (most advanced user of IoT) e.g. heavily
instrumented equipment and advanced robotics on board,
often connected to a real-time command center half a world
away
5. VEHICLES
IoT sensors and connectivity can improve how vehicles
are serviced, maintained, and designed
CITIES
improve services, relieve traffic congestion, conserve
water and energy, and improve quality of life
OUTSIDE
Outdoors between urban environments, such as in
vehicular navigation, container shipping, and package
delivery
condition-based maintenance of rail lines and other
transportation infrastructure
6. having certain technologies, organizational
capabilities, and policies in place
collaboration among supplier companies and among
suppliers, users, and policy makers to set the
standards and protocols for the interoperability of IoT
systems that maximize value
ENABLERS AND BARRIERS
7. Software and hardware technology
Interoperability
Intellectual property, security, privacy and
confidentiality
Business organization and culture
Public policy
Types of Enablers
Using IoT systems to convince healthy people to change their living habits and to help sick patients adhere to doctors’ prescriptions would be a true breakthrough.
Predictive maintenance involves using sensors to monitor machinery continuously to avoid breakdowns and determine when maintenance will be required, rather than relying on regularly scheduled maintenance routines. IoT can improve inventory management by automatically restocking parts bins based on weight or height data recorded by sensor
Five types of enablers are needed for maximum IoT impact
SOURCE: McKinsey Global Institute analysis
Software and
hardware technology
▪ Low-power, inexpensive sensors and computers
▪ Ubiquitous connectivity/low-cost mesh connectivity
▪ Additional capacity and bandwidth in the cloud
▪ Confidence in security across entire IoT ecosystem
Interoperability
▪ Standardization in the technology stack and ability to integrate
across technology vendors
▪ Standard protocols for sharing between IoT systems
▪ Standard access to external data sources
Intellectual property,
security, privacy,
and confidentiality
▪ Establishing trust with consumers for sharing data
▪ Collaboration across companies and industry verticals
▪ Horizontal data aggregators
▪ Data commerce platforms
Business
organization and
culture
▪ Industry structure, e.g., organized labor cooperation, third-party
servicing
▪ Hardware-focused companies developing core competency in
software
▪ Companies committing to up-front investment based on clear
business cases
Public policy
▪ Regulation for autonomous control of vehicles and other
machinery
▪ Government and payer subsidy of health-care IoT
▪ Agreements on fair practices for data sharing and use
