DAVOS: The industrial internet of things (IIOT) could add $14.2 trillion to world output by 2030 and produce radical changes to how businesses operate according to a new study.
Consulting firm Accenture surveyed 1,400 C-suite decision makers from some of the world's largest companies, including 736 chief executive officers, for its report Winning with the Industrial Internet of Things.
The survey found that 84% of respondents believed the IIOT would generate new, service-based income streams, but a mere 7% had developed a strategy with investments to match.
This lack of commitment was attributed to the difficulty of applying the IIOT to generate those new revenue streams; most business leaders see it rather as a way of making efficiency gains through improved employee productivity (46%) and reduced operational expenses (44%).
According to Paul Daugherty, chief technology officer, Accenture, the full potential will only be achieved if companies radically change how they do business. That means "working with competitors, forming partnerships with other industries, redesigning organisational structures and investing in new skills and talent".
The Telegraph noted that this signalled a move beyond simply supplying an item for purchase as businesses would have an ongoing relationship with a buyer and the product, as in the case of connected car tyres that report their status back to the manufacturer.
Daugherty elaborated: "As businesses move to this notion of the outcome economy, a company selling products, such as machinery or appliances, will change to a service company. This creates a major strategic shift."
It also relies heavily on data. As tech research specialist ARC Advisory Group recently noted: "IIoT projects often become Big Data projects."
Accenture advised establishing interoperability and security standards to ensure data can be shared with confidence between companies.
Further, new financial models will also be needed to support pay-per-use and other services-based offerings, it said.
Data sourced from Accenture, ARC; additional content by Warc staff