IoT 2020

Business
Report
The future of the Internet of Things:
From sensor to business sense

schneider-electric.com/iot

Table of contents
A new era of
meaningful
opportunities

How can
organizations drive
IoT at every level?

Five predictions for

the future of IoT

Four ways to realize

immediate IoT value

An ecosystem of
partnerships and
platforms

Three observations
of success

The Internet-connected, Internet-dependent

world already is upon us.
Connected sensors. Control from the field. An astounding level of granularity to real-time data.

A new era of

MEANINGFUL
OPPORTUNITIES

Business decision-makers are taking note. What can a

single chip embedded deep within a device do for the
enterprise at large? In the recent Schneider Electric
Global IoT Survey of more than 2,500 business
decision-makers indicated that they believe IoT makes
business sense. It will ...

70%

create new opportunities for their

companies in the near future
improve the efficiency of their
businesses and others
deliver long-term business benefits
become the critical interface between
companies and their customers

of decision-makers
see the business
value of IoT.

01

Advancements from
product to planet ...

The future of IoT:

OUR FIVE PREDICTIONS

The next wave

of digital
transformation

03

02

Site-to-cloud
confidence

Insightful data

04

Innovations that
leapfrog existing
infrastructure

05

A better planet

2/3 of organizations plan to

implement IoT solutions via
mobile applications in 2016.

01

The next wave of

DIGITAL TRANSFORMATION

A robust network of connected devices. The cost of

connected sensors has plummeted, allowing companies
to deepen their digitization programs and leverage a highly
mobile work force. IoT enables ...

faster, more agile communication networks

quicker adoption of cloud and edge computing
advanced data analytics
speedy delivery of meaningful information at the
right time

63%

of surveyed organizations plan

to leverage IoT to better analyze
customer behavior and improve
service levels.

02

INSIGHTFUL data

Taking the customer experience to new levels. Access to

data including previously untapped and highly granular
data and the ability to translate it into actionable insights
is the hallmark of IoT. Expect ...
the transformation of customer service
new opportunities to build brand/service loyalty
highly enhanced customer satisfaction

03

SITE-TO-CLOUD confidence

41%

Meeting mission-critical computing needs. IoT will promote

an open, interoperable, and hybrid computing approach,
fostering collaboration on cybersecurity standards. As a
result, IoT will ...
flourish across systems, both at the edge and on
premises, as part of both private and public clouds
help end users adopt IoT solutions in the way that best
suits their security and mission-critical needs
offer those with legacy technology infrastructures a
logical and manageable path forward, allowing them
to transform over time

of respondents
anticipate that
cybersecurity
threats will be a
critical challenge.

04

IoT in use by country

Innovations that
LEAPFROG INFRASTRUCTURE

This data is aggregated for all types of IoT use.

55%

Russia

Fueling disruptive innovation. IoT enables enterprises,

cities, and emerging economies to work with systems
of the past in ways that don't preclude them from
integrating systems of the future. Look for:

32%
53%

Brazil

40%
52%

Spain

37%
51%

US

new business models and spurred growth

37%

India

46%
43%

China

46%
44%

profitable and productive IoT-enabled services

freedom from weighty, legacy infrastructure
particularly in emerging economies
Currently use
Plan to use

14 | IoT 2020 Business Report

Optimism for IoT 18%

Survey respondents identified the top societal benefits of IoT:

Increased safety

12%

16%

10%

20%

14%

10%

Enhanced consumer
experiences

Improved resource
utilization

Changing the way

we work and live

Connected living

Increased leisure
time

Reduced pollution

05

A BETTER planet

Solving societal and environmental issues.

IoT empowers countries and their economies to
respond to the biggest challenges facing our planet.
Global warming. Water scarcity. Pollution. IoT can
help the 195 countries that pledged their commitment
to the COP21 agreement meet their objectives.

From energy savings to

improved productivity ...

Immediate IoT value:

FOUR OPPORTUNITIES

01

Maximum energy
efficiency and
sustainability

03

02

Smart,
productive,
profitable
operations

Optimized asset
availability and
performance

04

Mobile insight
and proactive
risk-mitigation

01

Maximum energy
EFFICIENCY AND SUSTAINABILITY

Energy and sustainability professionals, as well as IT and operations

management leaders alike, must balance energy and operational
efficiency at all times. Buildings, factories, global supply chains, cities. IoT
gathers precise data from these environments, turning it into actionable
information that enables:

quick knowledge of the efficiency status of an

individual machine on a production line

ON TRACK
Do you know where your shoes and clothes come from?
You should. The Sustainable Apparel Coalition (SAC)
represents more than one-third of the global market share of
the apparel and footwear industry. Leveraging
Schneider Electric's Resource Advisor, it created a
common approach to measuring and evaluating social and
environmental sustainability throughout the retail industrys
supply chain.

the collection of operational intelligence through IoT

and data analytics
enhanced decision-making capabilities to
prioritize projects
the development of business strategies that drive
profitability and performance within the context
of sustainability

IoT enabled SAC to turn cumbersome

spreadsheets into a powerful, Web-based,
user-friendly platform, thus encouraging
greater adoption throughout the apparel and
footware industry.

02

Asset availability
AND PERFORMANCE

IoT delivers value in asset availability and performance. Through predictive

analytics, mission-critical machinery can operate continuously, avoiding
costly shutdowns. It also can run more efficiently, using less power and
performing within specifications, to extend product life.

TAKING ACTION
A major power utility in the U.S. is experiencing great success
using IoT-enabled software to enhance asset performance
through conditional monitoring and predictive analytics. With
sensors on critical equipment throughout its operations, the
utility has been able to translate data (such as temperature
change patterns) into actionable information, preventing
downtime and saving millions.

Thanks to the predictive modeling enabled

by IoT, the utility initially saved over 397,000
in estimated avoided costs and ultimately
uncovered opportunities to save more than
4.4 million.

03

Smart, productive,
PROFITABLE OPERATIONS

CHEERS TO IoT

IoT delivers the long-standing barriers between the worlds of OT and IT,
opening up better ways to operate a business. Essentially every asset
across an enterprise now has a voice," shedding light on every corner of
operations. Valuable information from field operations reaches the the CEO
suite for effective decision making.

IoT is something that could create new business

opportunities for our company in the near future.

As demand for its products grew, the

New Belgium Brewing Company wanted to find a way to
get more from its existing process rather than making large
new investments in additional production lines. IoT-enabled
manufacturing software lets the company analyze asset
and production capacity utilization and overall equipment
effectiveness in real time for quick decision making. A worthy
investment.

IoT is a great way to improve business efficiency.

IoT is something that will deliver long-term
business benefits.
IoT will become the critical interface
between companies and their customers.

"We decreased our machine downtime by more than

50 percent. We now have technicians on shift 24/7
addressing issues identified by the software."

IoT is potentially the biggest innovation in supply

chain management since the Internet was invented.
Somewhat agree
Strongly agree

Survey results: Perceptions of IoT

Joe Herrick
Packaging Systems Manager
New Belgium Brewing Company

04

Mobile insight and

PROTECTIVE RISK-MITIGATION

One of the toughest jobs in any plant is troubleshooting and fixing

machine problems. IoT facilitates a more user-centric plant. For
example, dynamic QR code maintenance allows plant workers to
access information about the product at their fingertips, thereby
optimizing field service operations and productivity. The operator
can know immediately what needs attention or service.

AT YOUR PUBLIC SERVICE

Carson City, Nevada (U.S.) public works department
leverages IoT advancements to maintain and repair the city's
water, wastewater, transportation, landfill, vehicle fleet, and
renewable power systems. Smart devices run software that
provides centralized, real-time equipment status and job
scheduling.

Managers and workers have found that the initial

investment in digitization and IoT has made
them more mobile, increased their situational
awareness, and improved their responsiveness
and efficiency.

HARNESS the possibilities

in incremental steps.

AT EVERY LEVEL?

The future of IoT is clear.

But where can organizations
begin?
The Schneider Electric
Global IoT Survey indicates
that organizations are
struggling with this question.
No enterprise can just rip
and replace existing IT/OT
infrastructure.

Apps, Analytics, and Services

Cloud

Cybersecurity

How can
organizations drive IoT

Innovation at every level makes it possible to

harness the power and possibilities of the IoT
revolution in incremental steps.

Local Control

Connected Products

At every level Schneider Electric provides tailored solutions to our focus segments:

Data Centers

Buildings

Homes

Industries

Electrical Utilities

BEST PRACTICES toward IoT integration

IoT integration, especially in the industrial world, requires incremental changes that supplement legacy
investments while delivering significant transformation in business processes and results over time.

01

Start small with

pilot projects and
stay focused.

02

Evaluate
ROI before
broadening
project scope.

03

Make early
strides with
energy efficiency
projects.

Survey respondents who plan to start using

IoT in mobile applications within 6 months

04

Integrate asset
monitoring and
management
projects.

31 | IoT 2020 Business Report

05

Move to
comprehensive
asset coverage
within a dynamic
network.

32%

We have an opportunity
to leverage IoT as our
world becomes ...

Co-creating
THE FUTURE

More electric
2x faster growth of
electricity compared to
energy demand by 20401

More decarbonized

More digitized

82% of the economic

potential of energy
efficiency in buildings and
more than half in industry
remains untapped3

4x as many connected
devices by 2020 compared
to 20102

More decentralized
50% of new capacity
additions accounted by for
solar PV and storage4

IEA, World Energy Outlook 2014

Cisco IBSG April 2011/Internet World Statistics
3
IEA, World Energy Outlook 2012, internal analysis
4
Bloomberg New Energy Finance
1
2

The power of COLLABORATION

Strong partnerships are essential to advancing
IoT solutions.

An ecosystem of:

PARTNERSHIPS AND
PLATFORMS

IoT has many facets. Connectivity. The cloud. Big data.

Cybersecurity. Industrial automation. Engineering.
Integration. The list goes on. A dynamic ecosystem of
partnerships and platforms that develops, implements,
monitors, and services IoT solutions can lead to additional
value more quickly and cost effectively than going it alone.

Industry
leaders

Government and
standards bodies

Technology
innovators

Academic
institutions

Three
observations
of success

01

Companies are piloting IoT initiatives to get more from

their existing OT and IT investments and processes
and this approach is working.

02

Adopters are finding asset and energy management

to be fertile ground for IoT initiatives that deliver
meaningful results quickly and at relatively low cost.

03

Businesses are closing the gap between OT and IT

and are gaining access to a rich new data set that will
produce higher quality insights across the enterprise.

Looking ahead, IoT must be used to connect the entire enterprise to enable truly
informed decisions that are made in collaborative, digital ecosystems.

FROM SENSOR TO BUSINESS SENSE,

IoT indeed has transformative value.

schneider-electric.com/iot

To learn more about the transformational impact of IoT,

explore this sampling of Schneider Electric white papers.
The Industrial Internet of Things: An Evolution to a Smart Manufacturing Enterprise
Predictive Maintenance Strategy for Building Operations: A Better Approach
How the Convergence of IT and OT Enables Smart Grid Development

schneider-electric.com/iot

Schneider Electric
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92500 Rueil Malmaison - France
Phone: +33 (0) 1 41 29 70 00
Fax: +33 (0) 1 41 29 71 00
www.schneider-electric.com

April 2016
2016 Schneider Electric. All Rights Reserved.
Schneider Electric | Life Is On is a trademark and the property of Schneider Electric SE, its subsidiaries, and affiliated companies.
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This survey was commissioned by Schneider Electric in November 2015 to gather information on
how businesses are currently using or plan to use Internet of Things. With input from Schneider
Electric, Redshift Research conducted 2,597 online interviews amongst business decision makers in
companies employing 100 or more people. The research was conducted in 12 countries, including:
Australia, Brazil, China, France, Germany, India, Italy, Russia, Spain, Sweden, the U.K., and the U.S.
The survey, which provided respondents with a uniform definition of Internet of Things, comprised 18
multiple choice questions. Responses have been analyzed by Redshift Research in association with
Text100.

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