McKinsey Global Institute recently put out a 142-page report called, “The Internet of Things: Mapping the Value Beyond the Hype.” And they found a lot of extra value where the Internet of Things is not being used to its fullest potential.
To begin with, only 1% of the data constantly being sent by sensors and RFID tags is actually being utilized. There is a whole world of optimization and prediction that we are not going near; instead, most of our information is used for basic controls, like checking for errors in the item’s process.
The major focus of the Internet of Things is, in fact, too wide according to McKinsey. Instead of zooming out and seeing one industry as a whole, the report suggests breaking each one down into subcategories such as the item, the item’s environment, and the people who are using the item.
We can also consider the efficiency improvements that could be made when a single business’s machines can “talk” to each other via sensors and RFID tags. Errors in one machine could be sent to another, which in turn could repair or halt the process. Or, with people, one’s wearable fitness device could contact your doctor directly if major health problems are detected. Such an advancement could cut treatment for chronic diseases in half!
Another thing that McKinsey says is under-considered would be the positive effect on developing countries. With such broad, immediate communication, developing economies can learn and grow off of the achievements of developed ones.
Finally, there will need to be whole new business models when the Internet of Things spreads. Prices can be set on a charge-by-use basis, and new companies will grow just by selling the sensors, tags, and programs that go with them.
Not a bad spread, overall, if you don’t mind everything being connected and monitored 24/7.
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