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Stand Out or Stand Back

Technology and communications companies have an unprecedented chance to seize the IoT moment. If they place the right bets, the payoff will be enormous. If they stumble, they will likely lose millions to competitors who made wiser strategic choices.

Understandably, many technology and communications companies are looking to develop IoT platforms. That’s probably not the smartest play. The greatest opportunity may lie in developing the software and analytics capabilities in those parts of the information chain they have already mastered. By building on their strengths, they can zero in on winnable—and lucrative—pockets of value.

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Stand Out or Stand Back

  1. 1. Copyright © 2016 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. In the age of IoT: Technology and communications companies need to stand out or stand back
  2. 2. A high stakes game Copyright © 2016 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. By some estimates, the IoT (Internet of Things) market will be worth more than $14 trillion by 2022.
  3. 3. Copyright © 2016 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. But is it a game you cannot win? Few platforms will actually gain traction. Accenture Strategy believes no more than 10% of today’s IoT platforms will succeed. Technology and communications companies are staking their claim by building end-to-end platforms. However, some 300 platforms already exist, and more are being introduced every year.
  4. 4. Copyright © 2016 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. Snatching victory from the jaws of defeat So what’s a technology or communications company to do? Invest in the truly winnable opportunities that lie in the software products and analytics capabilities that drive actions and derive insights and intelligence from data.
  5. 5. Copyright © 2016 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. “When everyone is looking for gold, it’s a good time to be in the pick and shovel business.” Technology and communications companies need to realize that they hold valuable tools for all the other players looking to extract value from the IoT opportunity.
  6. 6. Copyright © 2016 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. 1 Suppress their platform obsession. Honestly assess whether you have what it takes to succeed in the platform wars. Walking away may be the wisest strategy of all. Deciding where to compete Technology and communications companies should do three key things when placing their IoT bets:
  7. 7. Copyright © 2016 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. 2 Identify winnable pockets of value. Focus on making data more valuable and accessible. Build on existing strengths to create solutions and services that add value to the data as it flows through the value chain. Deciding where to compete Technology and communications companies should do three key things when placing their IoT bets:
  8. 8. Copyright © 2016 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. 3 Pick the right teammates. Data is most valuable when it’s part of a system that combines People, Products and Processes (PPP). Identify the right ecosystem partners to create win-win PPP opportunities. Deciding where to compete Technology and communications companies should do three key things when placing their IoT bets:
  9. 9. LEARN MORE about how technology and communications companies can stake their claim in the IoT space with our full report Copyright © 2016 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. In the age of IoT: Technology and communications companies need to stand out or stand back @AccentureStrat Follow us on Linkedin

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