Internet of Things

We help clients unlock value by digitizing the physical world
The Internet of Things (IoT) has the power to transform how we live and do business. By digitizing the physical world into seamless connectivity—and leveraging data—organizations can boost efficiency, launch innovative services and create lasting value.

The opportunity is enormous. By 2025, IoT could have an economic impact of up to $12.6 trillion.

Organizations that use IoT to develop new revenue streams can capitalize on this opportunity. But to succeed, they need to leverage the data that unlocks IoT’s true value.

As part of QuantumBlack, AI by McKinsey, we take an integrated approach to digitizing the physical world. Our methodology brings together strategic thinking, data expertise, and the latest technology to create new insights and business models—and unlock value for our clients.

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      Introduction to IoT Ventures

      Senior Partner Eric Lamarre discusses the three ways IoT Ventures helps clients capture Internet of Things opportunities: Connected Products, Connected Operations, and New Business Building.

      Our Key offerings

      IoT Connected products
      Connected Products and Services
      Product connectivity and sensor augmentation allow companies to envision and launch completely new products and services
      IoT Next Gen ops
      Next-Gen Operations
      Digitizing operations offers the potential for step-change improvements in quality, productivity, and safety
      IoT business building
      IoT Business Building
      IoT can also create opportunities to build completely new businesses, as part of a larger company or on a standalone basis

      How we work with clients

      We typically conduct the following five types of projects, partnering with clients wherever they are on the IoT journey.

      Use-case identification and prioritization

      Help clients understand the strategic context and full economic picture before embarking on an IoT journey

      Proof of concept

      Work with clients to build prototypes to demonstrate the IoT value and clarify their digital roadmap

      Agile lab: from idea to minimum viable product

      Empower client teams to deliver a fully-functioning commercial/ operational application

      Scaling up operations or business change

      Execute classic large-scale implementation of products/solutions through organizational change and capability building

      IoT/Digital Factory buildout

      Help clients become self-sufficient by standing up their IoT/Digital Factories through recruiting, training and organizational development

      Why McKinsey?

      Value-focused
      Our leading industry and functional expertise, combined with our understanding of technological possibilities, uniquely-position us to identify value creation opportunities from IoT for our clients
      Full-stack technology expertise
      We help companies develop IoT use cases and deliver solutions at-scale by augmenting their team with our end-to-end expertise and capabilities across the technology stack
      Transformation capabilities
      Scaling up successful IoT pilots to capture value at-scale can be challenging. We assure value delivery by bringing business transformation capabilities and underwriting the delivery risk.
      Technology-agnostic
      Our sole goal is to accelerate your scale-up by using the best technology or platform necessary. We don’t believe in a one-size-fits-all service model. Often the best solution may be completely customized, or it might involve incorporating a tool from one of the thousands of other solutions providers.
      Build-Operate-Transfer
      We help clients with standing up IoT/Digital Factories by providing a starting team by seconding experienced McKinsey partners and consultants. Then we help with further scaling up by recruiting talent, training and developing the organization.

      Featured Insight

      Hands holding electronic device
      Report

      IoT value set to accelerate through 2030: Where and how to capture it

      -
      New research shows that the Internet of Things offers significant economic value potential, particularly in standardized production settings, but companies must achieve scale to capture it.
      See all insights on IoT

      Featured Videos

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          Building an IoT business in 9 months

          How McKinsey helped a telecoms company launch an end-to-end IoT platform, build an ecosystem of partners, and launch the platform’s first product.
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              The promise of the connected home

              An interview with McKinsey Partner Kabir Ahuja on the outlook for the US connected-home market.
              Toward a sentient ecosystem
              McKinsey Global Institute Partner Michael Chui speaks with industry leaders about how humans, machines and the network might evolve together
              Watch the video on Techonomy
              Digital transformation, IoT and the future
              McKinsey Partner Mark Patel joins tech industry leaders in a discussion about how the IoT will shape the future
              Watch the video on Techonomy
              IoT cyber risks have to be managed
              Michael Chui sits down with CNBC's Sri Jegarajah to discuss cbyer security risks, the talent gap and other obstacles to capturing IoT's potential
              Watch the video on CNBC

              Our people

              Venkat Atluri
              Senior PartnerChicago
              Leads McKinsey’s technology and telecommunications work globally. Delivers large-scale performance improvement through technology,...
              Mark Patel
              Senior PartnerBay Area - San Francisco
              Advises clients across sectors on sustainability with a focus on climate technologies; leads client work across industrial, high-tech,...
              Karel Eloot
              Senior PartnerShenzhen
              Focuses on counseling metals and mining executives and creating value through digital transformations in the industrial sectors,...

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