The industrial sector is on the cusp of a technology revolution that could fundamentally change its economics and competitive dynamics. It’s all down to the Internet of Things (IoT), the advanced connectivity of industrial devices, systems and services that promises increased business value, higher efficiency, lower costs and better asset use by capturing, exchanging and understanding data to improve decision-making and use of resources.
This industrial IoT revolution promises to change the world. But while some businesses are embracing these changes to create significant competitive advantage, others are watching from the side-lines with a mixture of skepticism, confusion and fear.
That’s because for many businesses, the IoT is simply overwhelming. And with the pressure to outsmart their competitors in the race against time, it’s more important than ever to be prepared.
In this highly topical Executive Insights, L.E.K.'s John Goddard, Larry Verge and Philip Meier identify five key steps that they believe are necessary for businesses to prepare for the IoT revolution:
- Recognize that the IoT will be all pervasive
- Seek short-term savings and long-term advantage
- Focus on the apps
- Learn from the industrial IoT leaders
- Develop a robust IoT strategy
There’s no doubt that the IoT will impact the whole industrial value chain. Those who haven’t yet prepared for the coming changes still have time to adapt. But the longer they prevaricate, the greater the competitive advantage being enjoyed by those who have decided to be leaders, not laggards.
To read the next in our Executive Insights series on IoT, please see The IoT Opportunity: Is Your Go-to-Market Strategy as Smart as Your Product?.