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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In the age of IoT:
Technology and communications companies
need to stand out or stand back

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. 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.

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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.

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“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.

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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:

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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:

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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. 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
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