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Arthur D. Little

Arthur D. Little has been at the forefront of innovation since 1886. We are an acknowledged thought leader in linking strategy, innovation and transformation in technology-intensive and converging industries. We enable our clients to build innovation capabilities and transform their organizations. ADL is present in the most important business centers around the world. We are proud to serve most of the Fortune 1000 companies, in addition to other leading firms and public sector organizations. For further information, please visit


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Defining the battlegrounds of the Internet of Things – Bain Report

Article Synopsis :

Carriers are increasingly aware the Internet of Things (IoT) means the digitization of risk which eventually changes everything.

 The Digital Insurer reviews Bain & Company’s Report on Defining the battlegrounds of the Internet of Things

Insurance execs agree IoT is a disruptive force but few have concrete IoT strategies in place

In “Defining the battlegrounds of the Internet of Things“, Bain  asserts by 2020 there will be 20 billion IoT devices generating 5 trillion gigabytes of data annually creating more than $300 billion in opportunities for tech vendors, telcos and device makers.

Per the report, many executives are overwhelmed by these numbers finding it difficult to get their heads around IoT let alone develop a winning strategy. Many are investing significantly in the technologies and related research but few have a clear roadmap linked to business outcomes.

To help industry leaders formulate effective IoT strategies the report outlines five major battlegrounds with a discussion on unique platform dynamics and growth opportunities within each:

1.     Consumer – The onus is on building effective ecosystems targeting the right customers at the right time via the right engagement strategy.

2.     Enterprise and Industrial – Partnerships, collaborations and M&A for building platforms will be requisite.

3.     Network and gateway – Wearable devices will be important fueled by analytics to better engage customers offering superior services.

4.     Analytics – Analytics will gain more importance and the industry will see increasing investments and collaborations with third-party vendors.

5.     Autonomous – Robotics, drones and driverless vehicles are the leading greenfield areas for start-ups and incumbents.

The report concludes with five questions executives can ask themselves to help sharpen their focus in designing IoT strategies:

  • What segments should we prioritize? Where can we generate revenue and profits along a visible timeline?
  • What do our customers need? Who will we compete against and how can we differentiate ourselves?
  • What part(s) of a solution should we deliver on our own, and where will we need partners? What standards should we support?
  • What capabilities will we need? Where should we invest?
  • What are the risks of not acting? Sometimes doing nothing is a strategy.

The Internet of Things, it’s important to remember, is not one market but a set of overlapping markets with strong connections to the data center and analytics. Understanding where battlegrounds are emerging, how platform dynamics will shape competition and profitability, and what barriers exist to adoption (for example, security and interoperability) will help companies determine where to invest and what capabilities are required to win.

Link to Full Article:: click here

Digital Insurer's Comments

As IoT enables customers to engage with their bodies, vehicles and homes, among other things, the growing expectation is that increasingly ‘smart’ lives will see new insurance offerings reflective of new risk paradigms.

Most insurance executives agree IoT will ultimately upend the industry. Less clear is whether legacy carriers will disrupt themselves or have others – such as OEM automakers or digital natives such as Google – thrust disruption upon them.

The key is to get started, investing in research and partnerships and contingency plans as this game will play out over a 3-5 year period. Think of IoT offensively, as a growth strategy, not something to fear as an eroder of existing revenue streams.

Link to Source:: click here


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