Tuesday, May 25, 2021

Is IoT Digital Transformation?

The global IoT market is projected to reach $1.5 trillion by 2030, says Ericsson. Presumably that includes the value of devices, software and services used to support IoT. Ericsson also links that growth to possibilities for “digital transformation.” 


Ericsson does not specifically define the term, but suggests it has to do, at least in part, with listening to customers; focusing on users; using data to generate insights and applying insights to create new products. 


It is that last suggestion--creating new products--that is the connection to “digital transformation.” One working definition of DX is that it is the application of technology to change current business models.


A business model is everything an organization does to make a profit, including customers, products, sales methods, fulfillment and monetization methods. To the extent that IoT creates new customers and products; uses different sales methods or fulfillment or new revenue sources, IoT is applied digital transformation.  


By 2026, there will be almost 27 billion connected devices, says Ericsson.


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