Industrial Internet of Things
New business models for industrial companies with a sustainable effect on operating profit
The Internet of Things (IoT) has shifted the basis of competition within industries – away from individual products and services and towards systems comprising networked products. The Internet of Things is also extending the industries themselves, by linking inherent industry systems with industry-related systems.
The best practice analyses showcased in the new goetzpartners "Industrial Internet of Things" study demonstrate that the introduction of Internet-of-Things products and services has a long-term effect on the financial result. "Industrial companies could raise their EBIT margins in the service business by up to 50% by utilizing IoT services", says study author Marc Ziegler, Head of Digital Business at goetzpartners. "In the hardware-based core business, our results even show a potential improvement of 100%."
A further study finding: In contrast to leading US American industry and technology companies, German companies have essentially recognized the potential of the Internet of Things, but in all relevant areas of competence (including digital strategy, products and services, business models, big data analytics, partnerships) there is still potential, sometimes significant potential, for development.