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.

Video

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

Connected Products and Services

Product connectivity and sensor augmentation allow companies to envision and launch completely new products and services

Next-Gen Operations

Digitizing operations offers the potential for step-change improvements in quality, productivity, and safety

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

Report

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

November 9, 2021 -

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.

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.

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