Today’s IoT Opportunity: B2B or B2C?

With Alexa, Google Home, smart TVs and connected cars, consumer IoT applications are getting a lot of buzz. But it is too early to gauge the actual value of these solutions beyond their “cool” factor—we are still experimenting with the connected home value propositions in terms of building end-user loyalty and data mining opportunities for vendors. And we’re still asking, is having your washing machine ordering detergent really something consumers want to do?

In the business-to-business (B2B) sector, however, IoT is quietly generating measurable and substantial value. How much value? The estimates of IoT impact vary widely, with several analysts projecting trillions of dollars in value over the next five to 10 years. By 2020, IDC forecasts IoT global spending will reach $1.29 trillion. But for you, what matters is the value of IoT in your own organization. Specifically, you can expect fast payback of your IoT investments generated by reduced labor costs, lower production costs, increased productivity, improved quality, and better, faster decision making. Subsequent projects can lead to new value propositions (such as mass customization or personalization), new markets, and better understanding of the needs and concerns of the people who use your products or services.