Mar/Apr 19 - ChannelVision Magazine

Of the companies that have moved beyond pilot projects, the report continues, only about one-sixth have seen an aggregate cost and revenue impact of at least 15 percent. McKinsey refers to these companies as IoT “leaders.” About one-sixth of IoT “laggards,” mean- while, have yielded an aggregate revenue and cost improvement of less than 5 percent. This is a growing concern for companies selling IoT hardware and software solutions, which are banking on playing the long-term game as far as building loyal IoT customers and driving repeat sales. The reality is that while IoT is very promis- ing, it’s not for every company – at least not yet. We are still in the very early stages of the IoT, and so it’s important to be somewhat discerning when qualifying prospects to avoid wasting time and disappointing those that may not be a great fit. McKinsey’s report provides some useful in- sights about what separates IoT leaders from laggards. As the report explains, luck has little to do with success in this field. “[Leaders] are aggressive: by pursuing a large number of IoT applications, they quickly climb the IoT learning curve and pass the point at which new applications consistently generate a great deal of value,” the report says. “They develop a clear idea about the commercial opportunities associated with IoT, and they align everyone in the organization, from the executive suite to the front lines, toward a common set of goals. And they’re pragmatic about how they implement their IoT plans, building their functional roles (C-suite, engineering, finance, HR, IT and operations).” IoT Interrupted By Gerald Baldino EMERGENT A ccording to a new McKinsey report, less than 30 percent of enterprises that have launched pilot projects for the IoT have moved beyond the pilot phase. There’s no denying the massive growth potential surrounding the IoT, as analysts predict the market will now reach $520 billion by 2021. Not all companies are having success with the IoT, though. Many are abandoning their projects before seeing any real returns. 12 Channel Vision | March - April, 2019