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27 Mar 2017
 
IIoT transformation: part of a $1.7 trillion opportunity that will put CIOs to the test

PwC
PwC

The Chief Information Officer’s (CIO’s) role in defining a company’s strategy has become more important than ever, according to a new PwC report launched today, ahead of the Global Manufacturing and Industrialisation Summit (GMIS).
 
 
In its latest report, PwC said that managing the transition to the Industrial Internet of Things (IIoT) will be a highly complex task, which CIOs cannot afford to miss out on. It points to studies that show that by 2020, companies will likely spend $1.7 trillion a year on the combined industrial and consumer Internet of Things (IoT) [1]. That transformation to IIoT is materializing fast, cited a recent PwC Industry 4.0 Survey which found that industrial companies are planning to commit approximately $907 billion annually to their IIoT initiatives. Those companies expect $421 billion in cost reductions and $493 billion in increased revenues annually from the implementation of IIoT, with 55% expecting a payback within two years. [2]

 
Devising an IIoT Strategy
The sheer size of the Industrial IoT opportunity, which PwC says far outweighs all expectations of the consumer oriented IoT, means that CIOs will have to take centre stage in leading a digital transformation that aligns strategy and technology with the manufacturing environment and the manufactured product.

The six necessary steps for IIoT Transformation, as per PwC’s report are:

  • Map out an Industry 4.0 Strategy: evaluate your company’s digital maturity and set clear targets for the next five years. Then prioritize pilot programmes, capabilities, and architectural revisions that will bring the most value to the business and align with overall strategy
  • Create initial pilot programmes: to establish proof of concept and demonstrate business value
  • Define the capabilities that will be needed: building on lessons learned from pilots, map out in detail what distinctive capabilities are needed to achieve business vision.
  • Become a virtuoso in data analytics
  • Transform into a digital enterprise: capturing the full potential of Industry 4.0 will require company-wide transformation
  • Actively plan an ecosystem approach: develop complete products and solutions for customers and use partnerships to align with various platforms

 

-------------------------------
[1] Source: “IDC’s Worldwide Internet of Things Forecast, 2015-2020” IDC, May 2015
[2] PwC 2016 Global Industry 4.0 Survey: Building the Digital Enterprise, April 2016



About PwC
At PwC, our purpose is to build trust in society and solve important problems. We’re a network of firms in 157 countries with more than 208,000 people who are committed to delivering quality in assurance, advisory and tax services. Find out more and tell us what matters to you by visiting us at www.pwc.com​.

PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure​for further details.

 



 







Last update 1 Dec 2017
November PMI signals robust manufacturing growth
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