Industrial IoT cannot be realized without Government and Business Actions-Accenture

According to new research by Accenture, the Industrial Internet of Things could contribute US$14.2 trillion to world output by 2030 during the time of uncertain economic growth. But these potential gains are at risk because neither companies nor governments are taking sufficient actions to put in place the conditions necessary for the wide adoption of new digital technologies.

The Industrial Internet of Things (IIoT), which enables new digital services and business models based on intelligent connected devices and machines, is expected to particularly boost growth in mature markets, according to the report titled “Winning with the Industrial Internet of Things”.  By 2030, capital investments in the IIoT and the productivity gains that should follow are expected to add US$6.1 trillion to the United States’ cumulative GDP.  If the U.S. were to invest 50 per cent more in IIoT technologies and improve enabling factors, such as its skills and broadband networks, the gain could reach US$7.1 trillion by 2030, raising its GDP 2.3 per cent higher in 2030 than trend projections.

However, the report   reveals that these gains are at risk, in part because 73 per cent of companies have yet to make concrete plans for the IIoT, according to a survey of more than 1,400 global business leaders, of whom 736 are CEOs.  Only seven per cent of those surveyed have developed a comprehensive strategy with investments to match.

"The Industrial Internet of Things is here today, helping to improve productivity and reduce costs,” said Paul Daugherty, Chief Technology Officer, Accenture. “But its full economic potential will only be achieved if companies move beyond using digital technology to make efficiency gains alone and unlock the value of data to create new markets and revenue streams. That means radically changing how they do business:  working with competitors, forming partnerships with other industries, redesigning organizational structures and investing in new skills and talent."

The lack of commitment to the Industrial Internet of Things is largely due to the difficulty of applying it to generate new revenue streams, according to the research.  Although a majority (57 per cent) of business leaders say that new revenues will be the greatest opportunity of the IIoT, fewer than one in seven (13 per cent) think their company will actually benefit in this way. Instead, their companies are focussed on using the IIoT to make efficiency gains and see employee’s productivity and reduced operational expenses (cited by 46 and 44 per cent, respectively) as the most likely benefits for their companies.