Impact of the Internet of Things (IoT)
- December 1, 2015
- Posted by: Hyde Park
- Category: Innovation
So the Internet of Things (IoT) is changing the dynamics of product functionality and delivery as more devices get interconnected over the internet. This will mean that PPM will have to take it into account. An estimated 6.4 billion devices were connected to the internet in 2016 up 30% from the prior year of 2015. Predictions are that an estimated 3.8 billion more devices will be connected to the internet yearly over the next 5 years excluding the 7.3 billion smartphones, mobile and PC devices.
These statistics alone make a compelling case, for a need to have a coordinated approach to business positioning in a complex and uncertain market driven by globalization, competition and regulations Oracle EPLM report.
Some would say the Internet of Things (IoT) is still embryonic and that there aren’t many opportunities. But already there are project managers working on the IoT. And there will be many more IoT projects in the pipeline for the future. McKinsey Global Institute researchers estimate the potential economic impact of IoT technologies to be USD$2.7 trillion to USD$6.2 trillion annually by 2025.
All of these projects create the need for programs and many companies will have a large overlap of IoT projects. A program manager will be needed to drive the strategy of the IoT program to benefit the company’s bottom line. It may even be likely that there will be sub-programs and maybe even more than one IoT program. The Internet of Things is so broad, it will be the program managers who define the benefit realisation plans and roadmaps and may even decide their program is too broad and needs to be subdivided or spun off into new programs.
It may well take years for companies and internal business units to determine what IoT will do for them and how they will drive it. But either way, this requires a lot of project management, starting in the research and development stage and going through development and upgrades. HPS can help you look at the impact of the internet of things on your business.