Learning from the Leaders

Overview

Companies that increased revenue the most from IoT technologies (a group we’ll refer to as the IoT Leaders) will invest more than three times what the companies with the lowest revenue gain (IoT Followers) will in 2015: $229 million vs. $68 million. However, investing heavily in IoT technologies does not guarantee benefits. In fact, nearly two-thirds of the Leaders will spend less than $75 million each in 2015 on IoT, while 6% of the Followers will invest more than $250 million apiece.

IoT Leaders differ from Followers in seven primary ways:

  1. They digitally reimagine their businesses to produce substantial value for customers in the form of lower costs, fewer product problems, products more tailored to their needs, and other benefits (not just value for themselves)
  2. They deliver that value through new business models, product and service offerings, product bundles, and data
  3. They see the breakthrough potential of the IoT – to get the ultimate truth on how their products and services perform and are used by customers
  4. They organize themselves to act rapidly based on this performance and customer usage data
  5. They are better at dealing with organizational resistance to the truths that IoT technologies reveal about their performance for customers
  6. They make IoT reliable in the field, especially in reducing the risks of security breaches
  7. They invest deliberately, earning small project wins before making broad investments