Michael chui is a senior fellow of the mckinsey global institute mgi, where he leads research on the impact of information technologies on business, the economy, and society. The report is a brief for technology optimism, taking a strong stand in the current debate over the outlook for technologyfueled economic growth. Jul 23, 2015 mckinsey s michael chui discusses the latest research about the potential of the internet of things at the oreilly solid conference. The internets impact on productivity and growth, projects that new internet applications could fuel some 7 to 22 percent of chinas incremental gdp growth through 2025, depending on the rate of adoption. Mapping the value beyond the hype the internet of things digitizing the physical worldhas received enormous attention. The internet of things in short, the digitization of the physical world has. A new report from the mckinsey global institute, southeast asia at the crossroads. Our iot world is growing at a breathtaking pace, from 2 billion objects in 2006 to a projected 200 billion by 2020. However, iot is considered to be the cps technology with the largest expected economic impact mckinsey global institute 20. The top five industries in terms of automation potential are hospitality, manufacturing, logistics, agriculture, and retail. While the study was published last year, its findings present an interesting snapshot of the internets growing influence over time.
Three paths to sustained economic growth in southeast asia. Mckinsey unlocking the potential of the internet of. The connection symbol in the cloud on the left hand side represents the network typically the internet used to connect these objects, which are connected. Unlocking the potential of the internet of things mckinsey. The data generated by such intelligent technology can be analyzed to extract valuable information about the physical world, such as when an. Mckinsey global institute our mission is to help leaders in multiple sectors develop a deeper understanding of the global economy. Five years ago the mckinsey global institute mgi released big data. How do you go about finding one that is right for your business. The connection symbol in the cloud on the left hand side represents the network typically the. Perspectives on manufacturing, disruptive technologies. Mckinsey finds hard work to do in big data revisited report. The global economy has become deeply interconnected as huge volumes of goods, services, capital, people, and data move across borders. This digitization of the physical worldor internet of things iot creates new value for our clients and for their customers.
Mckinseys michael chui discusses the latest research about the potential of the internet of things at the oreilly solid conference. Three paths to prosperity, finds that the region can address its productivity challenges and find new catalysts for growth by pursuing the opportunities associated with three global megatrends. A report from the mckinsey global institute estimates that the iot could have. Sei 2018 the internet of things national science foundation. These networks churn out huge volumes of data that flow to computers for analysis. Disruptive technologies by 2025, usd trillions, annual lowestimate highestimate iot will the most 1 internet of things 3. The internet of things has vast economic potential, mckinsey. An executives guide to the internet of things by mckinsey. By 2020, 21 billion 1 the internet is undergoing a revolution, from a place to store and share data into an information ecosystem that connects all aspects of modern. Hilbert and lopez, the worlds technological capacity to store, communicate, and compute information, science, 2011 global installed, optimally compressed, storage analog digital 50 300 250 200 150 100 0 data. The internet of things presents an enormous opportunity to transform the way we live and do business. The internet of thingssensors and actuators connected by networks to computing systemshas received enormous attention over the past five years. A new report from the mckinsey global institute mgi, chinas digital transformation.
The next frontier for innovation, competition, and productivity 156 pp. Making sense of internet of things platforms mckinsey the iot platform space is important, but crowded and confusing. Over the past two years, semiconductor players have joined forces with hardware, networking, and software companies, and with a number of industry associations and academic consortiums, to develop formal and informal standards for internet of things applications. Niccolo machiavelli, one of historys great futurists, might have predicted the internet of things iot when he wrote, there is nothing more difficult to take in hand, more perilous to conduct, or more uncertain in its success, than to take the lead in the introduction of a new order. Internet of things sensors and actuators connected by networks to computing systemshas received enormous attention over the past five years. In a june 2015 report entitled, the internet of things. In 2011, the mckinsey global institute published a landmark report on big data that captured the attention of clevel executives in a manner unusual for an it topic the firms research wing.
Mckinsey global institute analyzed where and how iot technology. James manyika extracts from mckinsey global institute research. April 22, 2020 the industrial internet of things can help companies navigate the current crisis and emerge. Reports mckinsey businessmarketing bibliographies cite. Unlocking the potential of internet of things with hiotron. In whats called the internet of things, sensors and actuators embedded in physical objectsfrom roadways to pacemakersare linked through wired and wireless networks, often using the same internet protocol ip that connects the internet. Technologies like digital manufacturing, the internet of things, big data, but also other innovations like crowdsourcing, circular. Mckinsey global institute perspectives on manufacturing, disruptive technologies, and industry 4. Industrial internet of things 2019 impact and adoption 541. These objects are grouped based on the primary user. Industrial internet of things 2019 impact and adoption 441. Mapping the value beyond the hype, attempts to determine exactly how iot technology can create. For example, see this article on the fundamentals of workplace automation. Apr 23, 2017 the mckinsey global institute has released a variety of research reports on topics related to ai, automation, and jobs.
There are platforms for specific industries like commercial real estate and family health. With that question in mind, a may 2011 mckinsey global institute study has provided an evaluation to more precisely show how the internet contributes to national economies. Mapping the value beyond the hype, attempts to determine exactly how iot. Dec 18, 2016 five years ago the mckinsey global institute mgi released big data. It is made up of billions of smart devicesfrom miniscule chips to mammoth machinesthat use wireless technology to talk to each other and to us. Mckinsey global institute analysis the internets contribution to gdp is already significant and likely to grow internet contribution to gdp growth %, 20042009 0. The world is being transformed as connected devices and equipment, embedded with sensors and software, communicate with one another and the cloud.
Making sense of internet of things platforms mckinsey. Cybersecurity and the internet of things weblogs at harvard. The impact of the internet on economic growth and prosperity james manyika and charles roxburgh october 2011 introduction the internet is changing the way we work, socialize, create and share information, and organize the flow of people, ideas, and things around the globe. Globally, an estimated 127 new devices connect to the internet every second. Mapping the value beyond the hype, the mckinsey global institute analyzed where and how iot technology will be able to create significant. To address these challenges, china will need to accelerate the evolution from innovation. Our work builds on a june 2015 report, unlocking the potential of the internet of things, by the mckinsey global institute mgi. The mckinsey global institute mgi manyika, chui, bughin, dobbs, bisson, and. The economic opportunity created by the socalled internet of things has barely been scratched, according to a report released wednesday. Mapping the value beyond the hype, attempts to determine exactly how iot technology can create real economic valueincluding for healthcare.
Mckinsey report on how to capture the value of iot telecom circle. In this research, the mckinsey global institute set out to look beyond the. It also draws on expert interviews for insights on videoanalytics technologies and customer segments. How will internet of things, mobile internet, data analytics. Mapping the value beyond the hype users of iot technologies will capture most of the potential value over time as the internet has evolved, value has consistently flowed to users, often in the form of consumer surplus, such as better products and services, and greater convenience. The mckinsey global institute defines the iot as sensors or actuators embedded in physical objects that are linked through wired and wireless networks manyika et al. Industrial internet of things 2019 impact and adoption. The internet of things sensors and actuators connected by networks to computing systemshas received enormous attention over the past five years. A new mckinsey global institute report, the internet of things. Mar 05, 2016 reports mckinsey businessmarketing bibliographies in harvard style. Jun 24, 2015 the economic opportunity created by the socalled internet of things has barely been scratched, according to a report released wednesday.
Mckinsey global institute the china effect on global innovation 3 chinese cities by 2020, which will create a need for 10 million urban jobs every year, even as manufacturing employment drops. Mgi, company annual reports, capital iq, machina, expert interviews, global insight, census 1 personal computers, tablets, and smartphones excluded billions of connected endpoints 3. Mapping the value beyond the hype the internet of thingsdigitizing the physical worldhas received enormous attention. The mckinsey global institutes latest research with mckinsey analytics on the state of the big data revolution measures the progress various. The internet of things has vast economic potential. While the study was published last year, its findings present an interesting snapshot of. Mapping the value beyond the hype, attempts to determine exactly how iot technology can create real economic value.
Mckinsey global institute iot now how to run an iot. The next frontier for innovation, competition, and productivity mckinsey global institute contents executive summary 1 1. May 26, 2017 making sense of internet of things platforms mckinsey the iot platform space is important, but crowded and confusing. In this research, the mckinsey global institute set out to look beyond the hype to understand exactly how iot technology can create real economic value. The internet of things in short, the digitization of the physical world has received tremendous hype in the past few years due, in great part, to its vast and seemingly unquantifiable potential. Perspectives on manufacturing, disruptive technologies, and. Our flagship business publication has been defining and informing the seniormanagement agenda since 1964.