In a time of uncertain economic growth, the Internet of Things in Industry can bring $ 14.2 trillion to global output by 2030, according to new research by Accenture .
These potential increases require both companies and governments to take sufficient steps to implement the conditions required for the widespread adoption of new digital technologies.
The Internet of Things in Industry (IIoT), which enables new digital services and business models based on smartly connected devices and machines, is expected to boost growth of mature markets in particular, according to the report entitled ‘Winning the Internet of Things in Industry’. By 2030 capital investments in IIoT and the resulting increase in productivity are expected to add US $ 6.1 trillion to the accumulated GDP of the United States of America. Yes I know. UU. invest 50 percent more in IIoT technologies and improve contributing factors, such as their skills and broadband networks, the increase could reach US $ 7.1 trillion by 2030, which would raise their GDP by one 2.3 percent more in that year than trend projections.
- Germany could add $ 700 billion to its GDP by 2030 if it took the same measures, which would increase its accumulated GDP of that year by 1.7 percent. Britain could increase its GDP by $ 531 billion by 2030 and raise its GDP for that year by 1.8 percent more than trend projections.
- China seems to be better prepared for economic improvements as a result of IIoT than Russia, India or Brazil. Once the IIoT improvements were incorporated, China could increase its GDP accumulated by 1.8 trillion by 2030, which would raise its GDP for that year by 1.3 percent more than trend projections.
However, the report reveals that these improvements are in danger, in part because 53% of companies in Argentina have not yet made concrete plans for IIoT (66% at LATAM level), as is clear from a survey of more than 1,400 global business leaders, of whom 736 are CEO. Only 13 percent of the respondents have developed a comprehensive investment strategy at that point in Argentina.
The lack of commitment to the Internet of things in industry is mainly due to the difficulty of applying it in generating new revenue streams, according to research. Although 28% of Argentine entrepreneurs say that the new revenues will be the IIoT’s biggest opportunity, only 13% believe that their company will benefit in this way. Instead, their companies are focused on using IIoT to improve efficiency and achieve employee productivity with lower operating expenses (mentioned by 57 and 53 percent, respectively) as the most likely benefits for their companies.
“The Internet of Things in the Industry is Here Today to Help Us Improve Productivity and Reduce Costs” said Adrián Mascheroni Managing Director of Accenture . “But their full economic potential can only be achieved if companies stop using digital technology for nothing more than to increase efficiency and exploit the value of data to create new revenue streams and markets. That means radically changing the way we do business: working with competitors, building partnerships with other industries, redesigning organizational structures, and investing in new skills and talents. “
LOW SUPPORT CONDITIONS KEEP BACK TO SOME COUNTRIES
Many countries have little support for the rapid adoption of the Internet of things in industry, according to Accenture’s analysis of 20 key economies. The United States of America, Switzerland, the Nordic countries and the Netherlands are at the top. Spain and Italy accompany Russia, India and Brazil as the countries with the most disadvantages. While in Argentina and Latin America, the most significant obstacles to developing IIoT are insufficient access to technology, followed by little information and scarce telecommunications infrastructure and lack of support from the government. The report suggests that companies should help governments identify improvements to these conditions to encourage more investment in IIoT and broaden their adoption.
“The Internet of Things in Industry has the potential to significantly boost the productivity and competitiveness of industrial economies, but the lack of support – in particular the lack of digital knowledge – will be a drawback for many countries,” he said. Adrián Mascheroni Managing Director of Accenture. “Companies must work together with policy makers to put in place the necessary factors, not only to unleash the innovative and entrepreneurial spirit required to create and apply digital technologies widely in all countries, but also to compete by foreign investors looking for ideal locations for their global operations. ”
POSITIVE IMPACT FOR THE FUTURE’S HAND OF WORK
Sixty percent of Argentine entrepreneurs believe that the Internet of Things in Industry will be a net creator of jobs, according to research. An accompanying report from Accenture and the World Economic Forum indicates that digital technologies will have a positive impact on tomorrow’s workforce by enhancing current skills and enabling workers to undertake more sophisticated tasks.
“The Internet of Things in Industry will make every worker a specialist, which will allow machine operators and other workers to use the data to achieve more with the equipment than they can do today.” , said Mascheroni. “It is not just about productivity but about being able to add more value with the help of data that is given to workers in different ways. The Internet of Things in Industry will not only increase work but will result in more virtual and collaborative work environments as well as the creation of brand new employment categories. “
3 WAYS TO ACCELERATE ADOPTION
Accenture identified three areas that companies must address to expand the Internet adoption of the things of the industry:
- Re-imagine industry models. Companies should redesign their organizations, partnerships and operations. For example, agrochemical companies collaborate with software providers, weather data providers and satellite operators to improve crop yields in specific locations and conditions. Manufacturers are also likely to see the need to decentralize their operations, as technologies such as 3D printing enable products to be manufactured closer to customers.
- Take advantage of the value of the data. This includes establishing interoperability and security standards to ensure that data can be confidently shared between enterprises. New financial models will also be needed to implement pay-as-you-go and other service-based offerings.
- Prepare for the future of work. With greater access to data, it will be necessary to have decentralized work environments to encourage the development of decision making for front-line workers.
