At the convergence of IoT, Cloud Computing, Big Data, and AI is Digital Transformation. The benefits are breathtaking. McKinsey Global Institute estimates the value that industries and governments will create from IoT Digital Transformation will range from $3 trillion to $11 trillion per year in 2025.1 No industry will remain untouched.
Consider healthcare. Soon all medical devices will be sensored. Healthcare records and genome sequences will be digitized. Human populations will be sensored with wearable and implanted devices that remotely monitor pulse, blood chemistry, hormone levels, blood pressure, temperature, and brain waves. With AI, disease onset will be accurately predicted and prevented. Best medical practices will be more uniformly applied. Physician-augmented AI will attain increasingly accurate diagnoses and optimally efficacious treatment protocols. Pharmaceutical treatments will be patient and disease specific. United Healthcare insures more than 100 million people. Driven by the CEO of its Optum division, it is developing more than 1000 AI predictive analytic healthcare applications and micro-services to transform the healthcare industry.
Utility operators will produce safer, more reliable, low-cost energy with dramatically lower environmental impact. Francesco Starace, the CEO of Enel, the largest free-world utility, is transforming the utility industry in Europe with IoT, predictive maintenance, and fraud detection to drive new levels of reliability, cost efficiency, and clean energy.
Oil & Gas operators will use predictive maintenance to monitor production assets and predict and prevent device failures from submersible oil pumps to offshore oil rigs. The result is lower cost of production and lower environmental impact. The CEO of Origin Energy’s Integrated Gas Business in Australia is personally driving a digital gasfield transformation.
Manufacturers like Caterpillar employ IoT-enabled stochastic inventory optimization to lower inventory carrying costs, predictive maintenance to lower the cost of production and increase product reliability, supply network risk reduction to assure timely product delivery and manufacturing efficiency, and a new generation of AI-based CRM to engage and delight customers.
Isabelle Kocher, the CEO of Engie, the world’s largest integrated energy company based in Paris, is the architect of Engie Digital, a massive initiative to digitally transform her global integrated energy enterprise to assure its competitive leadership in the 21st century.
Automotive, aerospace, financial services, government services, defense, travel and transportation, telecom, entertainment, high tech – no industry will remain untouched by the tsunami of Digital Transformation.
$3.9 - $11 Trillion in Business Value from IoT
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1“The Internet of Things: Mapping the Value Beyond the Hype,” McKinsey Global Institute, June 2015.