A recent study presented by McKinsey framed the analysis to determine what separates IoT leaders from other peers, and how do they drive better outcomes for their companies. The survey was conducted among 300 IoT executive level professionals from the companies having $500 million revenues which excelled from pilot to production in terms of establishing large scale IoT strategies.
The report discovered that 16 percent of organizations have IoT programs in production, delivering mean cost and revenue impacts of at least 15 percent. It also discovered that 16 percent of enterprises are lagging, gaining aggregate revenue and cost modifications of less than 5 percent.
Let’s have a quick look at the practices which differentiate laggards from leaders:
According to the survey, IoT leaders are comparatively more aggressive when it comes to pursuing greater accounts, scopes, and variations than their peers. They rapidly adapt to steep IoT learning curve. Leaders find IoT use cases typically have a modest payback with the average payback accelerating till around 30 use cases have been accomplished. They expect their IoT use cases to boost gross profit by 13 percent over the next 3 years.
As per the report, IoT leaders are more willing to bring about changes in the business process than their peers. Such leaders are determined on the fact that managing changes to business processes are an important capability for IoT implementation. Along with the leaders, CEO’s also exhibited peculiar contribution further progress of IoT programs by removing barriers and roadblocks.
The study stated that IoT leaders create, initiate and proceed towards production IoT use cases that depend on advanced endpoints far more than the laggards. In comparison to their peers, IoT Leaders are more visionary. They are attaining expertise and mastery of creatively using advanced endpoints, reporting higher bars of satisfaction and optimistic results.
McKinsey discovered that these leaders transparently projected that how IoT will generate value and excel in designing effective business cases. Also, IoT leaders are 75 percent more likely than their peers to narrate the preparation of a strengthened business case which contributes as a critical success factor for their IoT programs. IoT leaders do not leave any stone unturned when it comes to defining IoT’s business delivering values be it in any form – greater revenue or reduced costs.
Involvement of C-suite executives and their support are vital contributions in success with IoT. A proportion of 72 percent of professionals agreed that C-suite leaders play an essential role and behave as a catalyst for any organization providing their commitment towards IoT success.
The McKinsey survey depicts that IoT leaders credit strong alignment with strategies and priorities organization-wide as an important key in their success. The leader needs to stay up front with executives, managers, frontline employees to learn new skills and pave the way towards successful production.
Additionally, the study illustrates that IoT leaders commence by adding a capability to existing products and services first. In this regard, such leaders have three times more clearly prioritized their product capabilities. The key area they focus on is the ways in which they can turn the prevailing scale they have accomplished with suppliers, selling and service networks into an alarming competitive advantage. The ability to capitalize on current customer relationships proves their proficiency in the business ecosystem.
McKinsey finds IoT leaders excel at tapping into, scaling and depending on an environment of partners for better strategical innovation inculcation than their fellow peers. Rather than attempting to create disruptive technology innovation completely on their own, they depend more on partners for the same.
Experience and Preparation
The survey discovered that nearly 30 percent of organizations asserted that they have been through some serious cyber-attacks that led to severe damage. 57 percent of IoT leaders had been the target center for such attacks whereas 44 percent of peers survived the same. Leaders are the main target for these attacks because the more distributed and various IoT use cases are the higher the risk of privileged credential abuse also. Therefore, to foil the privileged credential abuse certain measures are needed to be adopted. Such preventive measures include least privilege access approach, minimizing each attack surface, improving audit and compliance visibility while reducing risk, complexity, and costs.