In his recent article published in Wired, Daniel Burrus, a leading technology forecaster and innovation expert, postulates that IoT is “far bigger than anyone realizes” and will drive “the most disruption as well as the most opportunity over the next five years.”
According to Burrus, the combination of data-tracking sensors, cloud-based apps translating this data into actionable intelligence, and machines on the ground responding in real time is a real game changer — providing “a major engine for creating new products and new services.”
Burrus is not alone in predicting big things for IoT. As reported in Forbes, analysts across the board are bullish on the rapidly emerging IoT category:
- Spending on IoT services will reach of $235 billion in 2016, up 22% from 2015.
- In terms of hardware spending, spending on consumer applications will total $546 billion, and the use of connected things in the enterprise will drive $868 billion in 2016.
- 6.4 billion connected things will be in use worldwide in 2016, up 30% from 2015, reaching 20.8 billion by 2020.
- In 2016, 5.5 million new things will get connected every day.
- More than half of major new business processes and systems will incorporate some element of IoT by 2020.
- 23% of enterprises use the IoT, with another 29% planning to do so within 12 months
- 92.1% of respondents to a World Economic Forum (WEF) survey believe that 10% of people will wear clothes connected to the Internet by 2025.
- 89.2% of respondents to a World Economic Forum (WEF) survey believe that 1 trillion sensors will be connected to the Internet by 2025.
- Worldwide spending on IoT will grow at a 17% compound annual growth rate (CAGR) from $698.6 billion in 2015 to nearly $1.3 trillion in 2019.
- By 2018, there will be 22 billion IoT devices installed, driving the development of over 200,000 new IoT apps and services.
- 2016 will become the “Year of the IoT Developer,” with 250,000 unique IoT applications developed by 2020.
- A study by the McKinsey Global Institute predicts that the IoT will create between nearly $4 trillion to $11 trillion in economic benefits globally in the year 2025.
SAP’s Latest IoT Moves
At SAPPHIRE NOW last May, SAP announced the launch of the SAP HANA Cloud Platform for the Internet of Things with the promise of helping customers and partners connect core enterprise applications to the furthest edges of their business, gaining operational efficiencies and driving a tsunami of new, innovative IoT-based business models, products and services.
Just last month SAP received a 2016 IoT Evolution Product of the Year award from IoT Evolution and IoT Evolution World, the leading magazine and website respectively covering Internet of Things (IoT) technologies. The award was given for SAP’s IoT connected store solution, an omnichannel, cloud-based solution that provides end-to-end, real-time consumer and operations management functions for consumer product, wholesale, retail, hospitality and telco companies. In addition to orchestrating a seamless, personalized customer experience, the solution streamlines operations and reduces costs through sensor technology to drive real-time, demand-based replenishment, truck scheduling and maintenance.
Topping off its commitment to advance IoT solutions for its customers, SAP just recently announced plans to invest more than $2 billion over five years to help business and government entities benefit from the proliferation of sensors, smart devices and Big Data that is transforming business with the Internet of Things (IoT).
Never resting on its laurels, just this week SAP launched two new Internet of Things (IoT) solutions, SAP Connected Goods software and the SAP Dynamic Edge Processing server. According to SAP, “These IoT innovations allow SAP customers to connect large volumes of IoT devices and real-time sensor data to core business processes for improved business outcomes including reduced bandwidth costs, greater visibility and insight, and enhanced revenue opportunities.”
What’s Your IoT Move?
The potential for IoT applications is boundless and extends across all industries: predictive maintenance or condition monitoring in manufacturing; inventory planning, recommendations and upsell/cross-channel marketing in retail; alerts, diagnostics and proactive management in healthcare; aircraft maintenance and scheduling, customer-complaint resolution and dynamic pricing in travel and hospitality; risk analytics, fraud detection and customer segmentation in financial services; smart grid management and power-usage analytics in energy and utilities… The list of potential IoT use cases is as endless as existing business models, and well beyond.
Make no mistake about it, for SAP customers, the IoT explosion they’re experiencing today is in large part the fruit of underlying SAP HANA-powered solutions.
Mastering IoT big data begins with SAP HANA. What makes HANA appealing to many firms seeking to fuel IoT innovation is its capacity to access and deliver information up to 65% more efficiently than what was traditionally possible, its unparalleled ability to run transactions and perform analytics on a single architecture, and its dramatic simplification and cost reduction of IT landscapes.
Digging deeper, SAP Predictive Analytics, including its extensive library of statistical and data mining techniques and the SAP HANA predictive analytic library, combined with the SAP HANA Cloud Platform for IoT and SAP HANA Vora software provides a solid foundation for a new breed of IoT applications that can predict the future (and take appropriate action) in real time.
Look to NTT DATA for IoT Guidance
IoT projects are complex, involving the challenges associated with infrastructure, services, new business models and more. Truth be told, most businesses lack the internal resources required to develop and execute an end-to-end IoT solution.
Specific pain points include big data analytics, security, network operations, solution ideation, device management and integration with core business systems, to name a few.
To increase return on your SAP-powered IoT investment, NTT DATA offers a modular approach in which robust project management, governance and user experience strategies support your team during all implementation stages— from discovery and strategy to proof of concept (POC) to IoT solution development to support and continuous improvement.
Contact NTT DATA today to learn more about how SAP solutions for IoT delivered by NTT DATA can help re-imagine, reinvigorate and reposition your business for sustainable, innovation-driven success.