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The IoT industry is 30 times more valuable than the Internet
Release time: 2015-11-19 Click times: Times

At present, the Internet of Things has become a strategic consensus in various countries. Developed countries have already actively promoted the development plan of the Internet of Things. After the financial crisis, the U.S. government actively responded to IBM's "smart earth" concept as its national strategy, emphasizing the application of sensing technologies such as sensing, and proposed the construction of smart infrastructure; the EU in June 2009 set the IoT milestone 2020 Plan (I-Europe). The plan is specific and pragmatic. It emphasizes the widespread application of RFID and focuses on information security. The ubiquitous network in Japan and South Korea has also been developed for many years. Japan launched the I-Japan strategy in August 2009. On the basis, it emphasizes the application of e-government and social information services.


Recently, consulting firm McKinsey just released an Internet of Things report. The focus of this report is the "new sensor-based business model" brought by the Internet of Things.

McKinsey divides emerging IoT applications into two broad categories: information and analytics, and control and automation. The report lists many examples of applications in large companies or specific industries such as the automotive industry. But ordinary consumers should also pay attention, because a lot of information about us is also spread online.

McKinsey defines the Internet of Things as connecting sensors and actuators (actuators) embedded in objects through wired or wireless networks, usually using network protocols with the Internet.

In the "Information and Analysis" category, McKinsey first mentioned tracking behavior. For example, an insurance company can install a positioning sensor in a customer's car, so that it can set a reasonable price according to the driving method and driving location. Another example of McKinsey mentions Tesco's use of sensors to collect shopper data through loyalty cards. McKinsey said that doing so could provide more shopping or discount information and reduce checkout time.

On the B2B side, McKinsey cited examples of tracking RFID tags with sensors, which are placed on products and flow as the supply chain flows.

The next application of information analysis is improved situational awareness. Deploy a large number of sensors on infrastructure such as roads or buildings to get instant environmental information (weather, temperature, etc.).

Sensor-based decision analysis shows the revolutionary significance of sensor technology, which most consumers will not even notice. The report states that some retailers are working on ways to collect and process shopper data as they shop. The sensor's reading and video capabilities can understand how long shoppers spend in front of each individual display and record the final purchase, which McKinsey claims will help optimize retail product placement and increase revenue.

The second major category of applications for the Internet of Things is control and automation. McKinsey called it "transforming the analysis data collected through the Internet of Things into instructions that can feedback information to the actuators over the network, and in turn, the actuators can change the process."

McKinsey first mentioned process optimization, such as chemical production and assembly lines.

McKinsey then listed optimized resource consumption. For example, power companies use smart meters to allow consumers to manage their electricity consumption more rationally. This is especially useful for large power consumers, as they can move high energy consumption processes and pipelines from high-priced peak hours to low-peak hours.

Finally, McKinsey mentioned complex autonomous systems, which McKinsey claims is the biggest use of the Internet of Things because it can quickly and instantly sense unpredictable environments. For example, the automotive industry is developing a system to detect emergency collisions and then take corresponding safety measures.

The report concludes that the Internet of Things has a bright future, but there are also many issues, such as privacy, law, the cost of sensors and drives. But McKinsey believes that energy efficiency improvement and process optimization are early positive targets that companies using the Internet of Things can expect.

Overall, this is very useful for companies planning to enter the Internet of Things.


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