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The Internet of Things: Are Organizations Ready For A Multi-Trillion Dollar Prize?
2 
If you think of the Internet as a domain 
driven solely by humans, think again. 
Androids are the coming force. We are 
talking of the Internet of Things (IoT) – a 
world where sensors allow machines 
to talk to one another. And, as with our 
human-driven Internet, the IoT is a game-changing, 
hugely significant opportunity 
for the economy and business 
organizations. Various research studies 
have pegged the value of the IoT at 
multiple trillions of dollars. Cisco1 and GE2 
estimate that the size of the IoT pie is over 
$10 trillion. Research firm IDC estimates 
that, in 2020, over 40% of all data in the 
world will be data resulting from machines 
talking to one another3. Estimates may 
vary but the underlying message is loud 
and clear – the value at stake is too large, 
and the impact too wide-ranging, for any 
hint of complacency. 
But do organizations recognize the scale 
of the opportunity? Are they prepared 
to take advantage of the growing 
The Digital Universe is Expanding: 
Are You Ready for the Internet of Things? 
Cisco and GE estimate 
that the size of the IoT pie 
is over $10 trillion. 
wave of sensor data? In the following 
pages, we assess the current state of 
organizational readiness, examine why 
many organizations seem slow to react, 
and set out a roadmap for organizations 
that are determined to succeed in this 
next chapter of our ever-expanding digital 
universe. 
For Most Organizations, 
These are Early Days in the 
Adoption of IoT Solutions 
Most organizations are still in the early 
stages of adapting their offerings to the 
new IoT world. Our research – covering 
over 100 leading organizations in North 
America and Europe (see Research 
Methodology at end of paper) – revealed 
that IoT solutions, defined as sensor-enabled 
products offered in conjunction 
with services, vary significantly in their 
levels of sophistication (see Figure 1). The 
basic start point is connected products 
that generate alerts and notifications 
based on sensor readings. More advanced 
solutions allow remote operation using 
sensors. And the most mature solutions 
allow organizations to use sensor data 
to provide customers with high-value 
performance improvement insights. 
The majority of organizations provide 
solutions that offer only a basic level of 
functionality. Our research revealed that 
less than 30% support remote operability 
and fewer than 40% utilize sensor data to 
offer performance improvement insights. 
Delivery of alerts and 
notifications on product status 
Example: 
Whirlpool’s smart appliances notify 
users when a wash cycle is complete or 
the refrigerator door is open, via a 
smartphone app 
Ability to be controlled and 
configured remotely 
Example: 
GM’s OnStar system allows vehicle 
owners to remotely lock and unlock their 
car doors, and flash the horn and lights 
through a smartphone app 
Predictive maintenance and 
productivity enhancement 
insights based on sensor data 
Example: 
GE applies advanced analytics 
techniques to the data collected from its 
connected equipment to improve 
machine utilization and efficiency 
Basic Information Support 
Remote Operability Support 
Performance 
Improvement Support 
Figure 1: Levels of Maturity for IoT Solutions 
Source: Capgemini Consulting Analysis
3 
Our study also revealed significant 
differences across industries. For 
instance, industrial manufacturing and 
medical device companies are clearly 
ahead of other industries in the maturity 
of their IoT solutions. Utilities and auto 
manufacturing firms offer basic levels 
of functionality, but lag when it comes 
to more advanced offerings. Insurance, 
home appliance and pharmaceutical 
companies lag behind other industries 
in providing even basic functionality (see 
Figure 2). 
John Deere, a leading company in 
agricultural machinery, is among the few 
organizations that provide a full suite of 
functionality spanning basic information, 
remote operability as well as performance 
improvement support. With its 
PowerSight solution, for example, John 
Deere gathers data from its customers’ 
connected equipment, generates 
machine health alerts, allows equipment 
to be remotely programmed, and goes a 
step further by providing customers with 
Less than 30% of 
organizations generate 
service revenues from 
their IoT solutions. 
recommendations on improving machine 
utilization and lowering operating 
expenses4. 
Over Two-Thirds of 
Companies Do Not 
Monetize their IoT 
Solutions 
Early adopters of IoT solutions, such as 
GE and General Motors, have shown how 
connected products can be the platform 
for service revenues. General Motors has 
been a pioneer in the use of telematics 
to create new revenue streams. With its 
OnStar telematics system, the company 
generates nearly $1.5 billion in revenues 
annually, through several paid safety, 
security and navigation services5. 
Similarly, GE launched its “Predictivity” line 
of IoT services in 2012, to help industrial 
customers manage the data from their 
connected equipment. Within just a year 
of launch, “Predictivity” generated $290 
million in revenues for GE6. 
Figure 2: Maturity of IoT Solutions by Industry 
Source: Capgemini Consulting Analysis 
High Maturity : >60% of firms provide IoT solutions that support the feature 
Low Maturity : <40% of firms provide IoT solutions that support the feature Medium Maturity : 40-60% of firms provide IoT solutions that support the feature 
Industry Group 
Basic Information Support 
(Alerts and Notifications) 
Industrial Manufacturing 
Medical Devices 
Utilities 
Auto Manufacturing 
Insurance 
Home Appliances 
Pharmaceuticals 
Remote Operability Support 
Performance 
Improvement Support 
(Remote Control and Configuration) (Predictive Maintenance/ 
Productivity Enhancement Insights) 
However, these two organizations are 
the exception, and not the rule. Our 
research indicates that less than 30% of 
organizations generate service revenues 
from their connected products. And 
the concerns around monetization are 
clearly top of mind for organizations. An 
executive at a leading car manufacturer 
we interviewed said, “Offering the 
telematics hardware for free with the 
car is not a sustainable option. We need 
to have a clear strategy to generate 
revenues from services7.”
4 
Offering the telematics hardware for free with the car is not a sustainable option. We need to have a clear strategy to generate revenues from services. 
Only a small minority of companies are using acquisitions or development of platforms and APIs as a means of building Internet of Things capabilities. 
Our research uncovered two monetization models that are emerging in the IoT solutions space. In the first model, connectivity services are offered free for a limited period of time and charged- for subsequently through a tiered mechanism. The idea is to allow the customer to experience the service value before migrating to a more regular tiered package. For instance, Eaton, the US- based power management major, offers the “eNotify Remote Monitoring” service that provides 24x7 remote monitoring of connected Uninterrupted Power Supply (UPS) systems8. The service is offered free for one year after product purchase, but is charged for in subsequent years9. In the second model, organizations offer multiple tiers of services, where each tier is priced differently, based on the breadth of services offered. For instance, John Deere offers four different levels of remote monitoring services under its PowerSight range of telematics solutions10. 
Most IoT Solutions Do Not Play Well With Third-Party Products and Services 
The integration of connected products and sensor data with third-party solutions enables organizations to enhance their IoT solutions’ value. By integrating the service with larger platforms, organizations stand to tap into a larger ecosystem of services that can significantly enhance the customer experience. 
A few industrial manufacturing and automotive firms have taken initial steps in connecting their offerings with third- party services. For instance, German manufacturing major Bosch offers remote vehicle diagnostics services to vehicle owners and dealers through its telediagnostics system11. To make the service attractive and most effective for the consumer, Bosch’s system enables information exchange with third-party services such as car workshops and roadside assistance12. 
However, our research indicates that less than 15% of organizations offer IoT solutions that integrate with third-party products and services. 
— A leading car manufacturer
5 
Figure 3: Objectives of Internet of Things Partnerships 
Source: Capgemini Consulting Analysis 
Partnered with Vodafone to run 
a pilot for a usage-based insurance 
in-vehicle telematics device 
Collaborated with Ford and other 
players to launch the MyEnergiLifestyle 
initiative to demonstrate the benefits of 
a connected lifestyle 
Founded the “Bosch Internet of Things 
& Services Lab” – in collaboration with 
the University of St. Gallen 
Partnered with Quirky to develop 
a smart air conditioning unit 
Partnered with Miele, Stiebel Eltron, 
Microsoft, seluxit and IQuest to offer 
its SmartHome home automation service 
Licensed technology for smart ingestible 
pills from Proteus Digital Health 
Internet of 
Things 
Partnership 
Drivers 
Accelerate 
Product 
Development 
Expand 
Service 
Offering 
License 
Technology 
Create 
Awareness 
Run 
Pilots 
Acquire 
Technical & 
Business 
Know-How 
Many Organizations are 
Forging Partnerships 
but Other Options for 
Capabililty Build-Up Lie 
Unexplored 
Developing IoT solutions often requires 
capabilities that organizations do not 
possess. Partnerships, acquisitions and 
the opening up of platforms or APIs13 
can quickly arm organizations with the 
capabilities they need. Our research 
indicates that close to 60% of 
organizations are using partnerships as a 
viable approach to develop IoT solutions, 
with varying objectives (see Figure 3). An 
executive at a leading security systems 
firm provided affirmation of this approach, 
saying, “We certainly see the need to 
partner with Machine to Machine (M2M) 
technology providers and data mining 
specialists, as well as with our channel 
partners, to build future connected 
solutions14.” 
Some organizations have looked beyond 
partnerships to develop capabilities. For 
instance, Honeywell offers APIs that allow 
developers, product integrators and 
retailers to create custom applications 
that integrate with Honeywell’s Wi-Fi 
thermostats15. Another approach is 
seen with medical device manufacturer 
Medtronic, which has acquired 
Cardiocom, a provider of telehealth 
services, with the aim of using Cardiocom’s 
expertise to design telehealth services 
that work with Medtronic’s wireless 
patient monitoring devices. 
Honeywell and Medtronic are in the 
minority when it comes to using multiple 
approaches to skill development. Our 
research revealed that only 10% of 
companies use acquisitions, or develop 
platforms and APIs, as a way to build 
capability. 
The picture that is emerging is one where 
organizations are fighting shy of IoT, 
despite the disruptive impact it may have 
on their markets and despite the size of 
the trillion-dollar prize. In the next section, 
we look at some of the reasons for this 
surprising reaction, examining the key 
challenges that organizations face in the 
IoT sphere.
Are Organizations Exploiting theFull Potential of the Internet of Things? offer basicinformationsupportoffer remoteoperabilitysupportofferperformanceimprovementinsights10% are partnering todevelop IoT solutionsMethods of Capability Build-Upprovide IoT solutionsthat integrate withthird-party offeringshave madeacquisitionshave developedopen platformsor APIs of companies do not provide any IoT solutions42% Maturity of IoT SolutionsMaturity of IoT Solutionsby IndustryIntegration with Third-PartySolutionsMonetization of IoT SolutionsHome Applianceand Pharmaceuticals IndustrialManufacturingMedical Devices Utilities and AutomotiveManufacturingInsuranceIncreasing order of maturity57% 10% $ do not generate servicerevenues from theirIoT solutions34%58%27% 70% 13% Source: Capgemini Consulting Analysis
7 
IoT, like many attractive prizes, comes 
with its own unique and significant 
challenges. These issues, which mainly 
revolve around IT infrastructure and skills, 
are putting the brakes on the IoT train 
(see Figure 4). 
Why Have Organizations 
Been Slow to Get Off the Blocks? 
The Internet of Things 
Creates Significant 
Technical Challenges 
Existing IT Infrastructure is not 
Suited to Manage Rapidly Growing 
Volumes of Sensor Data 
Managing large volumes of sensor 
data from a widely distributed base 
of connected devices challenges 
the conventional data storage and 
management capabilities of organizations. 
For instance, nearly 60% of UK-based 
firms in a survey agreed that they do 
67% of organizations have 
little to no infrastructure 
for analyzing and acting 
on streaming Big Data. 
50% of US-based IT 
professionals report not 
being ready to secure an 
ecosystem of connected 
devices. 
not have the data centre infrastructure 
required to extract real-time insights from 
their Big Data sets16. This is a challenge, 
as research indicates that data from 
embedded systems will grow from 2% 
of the digital universe in 2013 to 10% in 
202017. 
Organizations Lack Real-Time Data 
Analytics Technologies Critical to 
Drawing Insights from the Internet 
of Things 
The volume and velocity of sensor 
data flowing into the organization 
makes drawing insights particularly 
challenging. Many organizations lack 
stream processing capabilities, which are 
essential for the collection, integration, 
analysis and visualization of data in real 
time. Sixty-seven percent of organizations 
in a survey reported that they lack the 
technology support required for analyzing 
and acting on streaming Big Data18. 
The Internet of Things Magnifies 
Data Security and Privacy 
Challenges 
Protecting Internet-connected devices 
from security threats, as well as dealing 
with data privacy risks, are key challenges 
in the IoT environment. Recent events 
have revealed the enormity of these 
challenges. A case in point is the global 
attack that took place in late 2013, 
where botnets were used to send more 
than 750,000 malicious emails from 
connected household appliances19. 
Research indicates that organizations 
are not adequately equipped to deal 
with these new security challenges. 
For instance, in a survey of US-based 
IT professionals, 50% of respondents 
reported not being ready to secure an 
ecosystem of connected devices20. 
Figure 4: Prerequisites for the Development and Rollout of IoT Solutions 
Source: Capgemini Consulting Analysis 
IT Infrastructure Skill Sets 
Service-Oriented Sales Force 
Product Management 
Big Data Analytics 
Real-Time Customer Support 
High Capacity, Scalable, 
Storage Systems 
Real-Time Streaming 
Big Data Analytics 
New Data Security and 
Privacy Frameworks
8 
Organizations Need New Skill Sets across a Range of Functions 
Traditional Product-Centric Organizations Lack Capabilities in Developing and Marketing Internet of Things Services 
The development of IoT solutions demands a new set of competencies from traditional product-centric organizations. They now need to be able to envision new services, develop commercial models and design service contracts that result in continuous revenue streams. Our discussions with senior executives revealed that these are not areas of strength for many product- centric organizations. A leading car manufacturer told us, “We need new skill sets to be able to offer connectivity services. We need to bring in people who are more used to developing and selling services21.” Similarly, a leading security systems company highlighted the need to complement existing product management capabilities - “The buyers of our IoT services could potentially be different from those of our products. Our product managers will have to understand and address the needs of these new customers22.” 
Today’s Product-Focused Sales Force is not Equipped to Sell IoT Services 
For IoT solutions, a sales force needs to be comfortable in articulating the value proposition and potential benefits, which is critical to convincing often-reluctant customers to pay for a new class of services. This is a challenge for today’s sales force. An executive at a leading medical technology company highlights this when he says, “Our sales force has been used to selling equipment, but now they need to sell IT solutions. They need to be able to convince customers on the value received by connecting their equipment23.” This sentiment is echoed by a director at a leading auto manufacturer, who said, “Training the sales force in selling connectivity services is certainly a challenge. In fact, we see this challenge intensifying in the future as we expect the services space to become even more complex24.” 
The Internet of Things Places New Demands on Customer Support Capabilities 
Our research indicates that IoT solutions are likely to increase the complexity of queries that reach customer support teams. Moreover, since connectivity reduces the time lag between the occurrence of an event and the time taken for information to reach the support center, customers are also likely to expect faster response times. A senior executive at a leading car manufacturer highlights the changing nature of customer requirements when he says, “The proliferation of Internet- enabled devices has raised customer expectations from service providers. Customers now expect to be informed about device problems and the required remedial action, in real-time25.” 
Organizations Lack Big Data Analytics Talent to Effectively Interpret Sensor Data 
Most organizations currently lack the analytics skill-sets required to effectively interpret sensor data. A survey reported that lack of employee skills/knowledge is the biggest obstacle facing their organizations in using IoT26. 
While these infrastructure and skills challenges are significant, they are not the only issues that organizations face. Resistance, for one, is a major problem. An executive at a medical technology company outlined how resistance can come less from the customer – and more from within the organization, explaining, “We only have 20% resistance from the customer and 80% from our own organization. Consequently, it is a significant challenge to align our existing 
Our sales force has been used to selling equipment, but now they need to sell IT solutions. They need to be able to convince customers on the value received by connecting their equipment. 
— A medical technology leader 
business processes with new IoT-based service offerings27.” 
The scale of the challenges organizations face – infrastructure, skills, resistance – is significant. Therefore, in the following – and concluding – section, we outline a roadmap that provides organizations with some clarity and direction for overcoming these hurdles and driving their IoT initiatives to success.
9 
How Can Organizations Build a 
Successful Internet of Things Solution? 
The IoT prize will be won by those who 
achieve a change in mindset, from 
a product world to a service world. 
However, that fundamental mind-shift is 
not the only requirement. Organizations 
need to get the right IT infrastructure 
in place, quickly acquire capabilities in 
analytics, and strengthen a whole host of 
functional capabilities. 
Put the Right IT 
Infrastructure in Place and 
Acquire Data Analytics 
Capabilities 
Organizations must invest in alternative 
data storage architectures that can be 
scaled quickly and cost effectively. This 
will allow the business to keep pace with 
rapidly growing volumes of sensor data. 
Open source distributed data processing 
frameworks, such as Hadoop, as well 
as cloud-based technologies, lend 
themselves to managing vast quantities 
Figure 5: How Can Organizations Strengthen Functional Capabilities? 
Source: Capgemini Consulting Analysis 
of data in an affordable and efficient 
manner. Organizations should also invest 
in stream processing applications that 
enable real-time analysis of sensor data. 
Analytics capability also needs to be 
acquired, with the CEO of a leading smart 
meter firm outlining their comprehensive 
approach to this need: “We recruited 
analytics professionals, developed 
internal training programs, established 
partnerships in the area of Meter Data 
Management (MDM) and even acquired 
a smart meter data management firm28.” 
Strengthen Functional 
Capabilities across Product 
Management, Sales and 
Marketing and Customer 
Support 
Launching effective IoT solutions will 
require organizations to strengthen their 
capabilities across a range of areas. 
Key among them are sales, product 
management, and customer support (see 
Figure 5). 
Use Trainings and Incentives to 
Prepare the Sales Force to Sell IoT 
Solutions 
Organizations must take active steps to 
stimulate their sales force to promote IoT 
solutions. However, training alone will 
not be sufficient and organizations must 
also offer adequate inducements in the 
form of additional sales incentives. Finally, 
organizations must actively promote early 
wins internally to create awareness as well 
as share best practices in driving sales 
conversions. An executive from a medical 
technology company explains how they 
encouraged their sales force to push 
IoT solutions, “We identified individuals 
within our sales force who could act as 
champions for our remote equipment 
monitoring services29.” 
Emphasize ease-of-use in IoT 
solution design to overcome 
barriers to adoption 
Augment product 
management capabilities 
with services expertise 
Recruit from 
service-centric 
industries 
Create specialized teams 
for IoT solution support 
Build capabilities in 
addressing complex 
customer queries 
Revise SLAs to meet 
customer need for reduced 
response time 
Share best practices on 
driving sales conversions 
Promote early 
wins internally 
Identify IoT 
sales champions 
Offer training in 
IoT solution sales 
Provide additional 
sales incentives 
Support Functional Capabilities with Scalable, Cost-Effective IT Infrastructure 
Open Source Distributed Data Processing | Cloud Based Infrastructure | Real-Time Analytics 
Sales 
Product Management 
Customer Support
10 
Augment Product Management Capabilities with Services Expertise and Emphasize Ease-of-Use in Product Design 
Organizations must augment their product management teams with the skill sets required to develop services. To do so, organizations should consider recruiting product management professionals from service-centric industries. Further, connected solutions must be designed with a focus on ease-of-use, to overcome barriers to adoption from internal sales teams, channel partners and customers. A senior executive at a leading auto manufacturer explains how this approach has proved successful for them - “We focused on making our fleet management offering as easy to use as possible, so that they could be handled by traditional product-focused salesmen. This has proved to be quite successful30.” 
Develop Customer Support Capabilities to Drive Real-Time Issue Resolution 
Organizations will need to create specialized customer support teams capable of responding rapidly to complex customer queries. At the same time, existing Service Level Agreements (SLAs) will need to be revised in order to meet customer expectations of reduced response times. Some organizations are already beginning to do this. A senior executive at a leading medical technology company explains their plans to build customer support capabilities for its remote equipment monitoring platform: “We are setting up a first response team consisting of experts and service engineers. Consumers calling in with issues related to their connected equipment will be directed to this team for faster and more effective resolution of queries31.” 
The IoT represents the next evolution of the digital universe. The speed at which nimble startups and Internet players are capturing IoT opportunities should serve as a wake-up call to larger, traditional organizations. Analyst estimates point to a world where startups will dominate the IoT market. Fifty percent of IoT solutions are expected to originate in startups less than 3 years old, by 201732. They may be less nimble, but bigger organizations need to step up to the plate. As with all digital disruptions, being an organization that is in catch-up mode will be a deeply uncomfortable place to be. 
Open source distributed data processing frameworks, such as Hadoop, as well as cloud- based technologies, lend themselves to managing vast quantities of data in an affordable and efficient manner. 
We are setting up a first response team consisting of experts and service engineers. Consumers calling in with issues related to their connected equipment will be directed to this team for faster and more effective resolution of queries. 
Research Methodology 
Analysis of IoT Solutions 
We conducted a comprehensive study of IoT products and services offered by over 100 leading companies in North America and Europe across 7 industry groups. The industry groups covered in our study included Home Appliances, Industrial Manufacturing, Utilities, Insurance, Pharmaceuticals, Healthcare Products, and Auto Manufacturing. We selected a representative sample of companies that cumulatively account for 50% of the revenues generated by all firms belonging to these industry groups, in North America and Europe. 
Our research covered four key areas. First, we analyzed the maturity of IoT solutions based on their use of sensor data. Second, we assessed how organizations are monetizing IoT services. Third, we evaluated the degree of integration of these IoT solutions with third-party products and services. Finally, we studied the approaches adopted by organizations to accelerate the development of IoT solutions. 
Internal Capability Assessment 
To understand the challenges in developing IoT solutions, we conducted wide-ranging interviews with senior executives from leading global organizations that have undertaken IoT-based initiatives. 
— A leading medical technology company
1 Bloomberg, “Cisco CEO Pegs Internet of Things as $19 Trillion Market”, January 2014 
2 GE, “Industrial Internet: Pushing the Boundaries of Minds and Machines”, November 2012 
3 IDC, “THE DIGITAL UNIVERSE IN 2020: Big Data, Bigger Digital Shadows, and Biggest Growth in the Far East”, December 2012 
4 John Deere, “John Deere Power Systems Unveils John Deere PowerSight at CONEXPO-CON/AGG”, March 2014 
5 Automotive News, “Not satisfied with OnStar’s steady profits, GM wants to create a global 4G powerhouse”, May 2013 
6 Business Wire, “GE Launches 14 New Industrial Internet Predictivity Technologies to Improve Outcomes For Aviation, Oil & Gas, Transportation, Healthcare and Energy”, October 2013 
7 Capgemini Consulting interviews 
8 Eaton website, “eNotify Remote Monitoring” 
9 Eaton website, “Eaton eNotify Remote Monitoring Model Connectivity Hardware Table” 
10 Worldhighways.com, “John Deere reveals PowerSight telematics for engines”, March 2014 
11 SearchAutoParts.com, “Bosch telediagnostics enhances service experience via remote vehicle diagnostics”, January 2014 
12 Autodata, “Bosch unveils remote diagnostics platform”, January 2014 
13 Application Programming Interface 
14 Capgemini Consulting interviews 
15 Honeywell website, “Honeywell Announces Cloud API Program With Home Automation Software Developers”, May 2013 
16 Computerweekly, “Inadequate datacentre infrastructure is a barrier to big data analytics”, June 2013 
17 EMC-IDC Research, “The Digital Universe of Opportunities: Rich Data and the Increasing Value of the Internet of Things”, April 2014 
18 Vitria, “The State of Real-time Big Data Analytics: 2013 Survey Results”, September 2013 
19 Computing, “Cyber attack launched through fridge as internet-of-things vulnerabilities become apparent”, January 2014 
20 PR Newswire, “SANS Announces Results of its 2013 Securing the Internet of Things Survey”, January 2014 
21 Capgemini Consulting interviews 
22 Capgemini Consulting interviews 
23 Capgemini Consulting interviews 
24 Capgemini Consulting interviews 
25 Capgemini Consulting interviews 
26 EIU, “The IoT Business Index: A Quiet Revolution Gathers Pace”, June 2013 
27 Capgemini Consulting interviews 
28 Capgemini Consulting interviews 
29 Capgemini Consulting interviews 
30 Capgemini Consulting interviews 
31 Capgemini Consulting interviews 
32 Gartner, “Forecast: The Internet of Things, Worldwide, 2013”, November 2013 
References
Rightshore® is a trademark belonging to Capgemini 
Capgemini Consulting is the global strategy and transformation 
consulting organization of the Capgemini Group, specializing 
in advising and supporting enterprises in significant 
transformation, from innovative strategy to execution and with 
an unstinting focus on results. With the new digital economy 
creating significant disruptions and opportunities, our global 
team of over 3,600 talented individuals work with leading 
companies and governments to master Digital Transformation, 
drawing on our understanding of the digital economy and 
our leadership in business transformation and organizational 
change. 
Find out more at: 
http://www.capgemini-consulting.com/ 
With more than 130,000 people in over 40 countries, Capgemini 
is one of the world’s foremost providers of consulting, 
technology and outsourcing services. The Group reported 2013 
global revenues of EUR 10.1 billion. Together with its clients, 
Capgemini creates and delivers business and technology 
solutions that fit their needs and drive the results they want. A 
deeply multicultural organization, Capgemini has developed its 
own way of working, the Collaborative Business ExperienceTM, 
and draws on Rightshore®, its worldwide delivery model. 
Learn more about us at www.capgemini.com 
About Capgemini and the 
Collaborative Business Experience 
Fredrik Gunnarsson 
Vice President 
fredrik.gunnarsson@capgemini.com 
Roopa Nambiar 
Manager, Digital Transformation 
Research Institute 
roopa.nambiar@capgemini.com 
Ashish Bisht 
Senior Consultant, Digital 
Transformation Research Institute 
ashish.bisht@capgemini.com 
Johan Williamson 
Managing Consultant 
johan.williamson@capgemini.com 
Jerome Buvat 
Head of Digital Transformation Research 
Institute 
jerome.buvat@capgemini.com 
Authors 
For more information contact 
Digital Transformation 
Research Institute 
dtri.in@capgemini.com 
The authors would also like to acknowledge the contributions of Florian Knollmann from Capgemini Consulting Germany, Jaap 
Bloem, Research Director VINT, Sogeti Netherlands, Rick Bouter from Sogeti Netherlands, Ron Tolido, Senior Vice President and 
CTO Application Services, Capgemini, and Subrahmanyam KVJ from the Digital Transformation Research Institute. 
The authors would also like to acknowledge the numerous executives who took time out of their schedules to share their views on 
the Internet of Things with us. 
For more information on the Internet of Things, please refer to the series of reports from Sogeti’s VINT Labs titled “Things”. 
You can find them at http://vint.sogeti.com/category/things/ 
Sweden/Finland 
Ulf Larson 
ulf.larson@capgemini.com 
Spain 
Christophe Jean Marc Mario 
christophe.mario@capgemini.com 
United States 
Jeffrey T Hunter 
jeffrey.hunter@capgemini.com 
Germany/Austria/Switzerland 
Guido Kamann 
guido.kamann@capgemini.com 
France 
Cyril François 
cyril.francois@capgemini.com 
Netherlands 
Albert Wiggers 
albert.wiggers@capgemini.com 
United Kingdom 
Stephen Pumphrey 
stephen.pumphrey@capgemini.com 
Capgemini Consulting is the strategy and transformation consulting brand of Capgemini Group. The information contained in this document is proprietary. 
© 2014 Capgemini. All rights reserved.

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The Internet of Things; a multi-trillion dollar opportunity

  • 1. The Internet of Things: Are Organizations Ready For A Multi-Trillion Dollar Prize?
  • 2. 2 If you think of the Internet as a domain driven solely by humans, think again. Androids are the coming force. We are talking of the Internet of Things (IoT) – a world where sensors allow machines to talk to one another. And, as with our human-driven Internet, the IoT is a game-changing, hugely significant opportunity for the economy and business organizations. Various research studies have pegged the value of the IoT at multiple trillions of dollars. Cisco1 and GE2 estimate that the size of the IoT pie is over $10 trillion. Research firm IDC estimates that, in 2020, over 40% of all data in the world will be data resulting from machines talking to one another3. Estimates may vary but the underlying message is loud and clear – the value at stake is too large, and the impact too wide-ranging, for any hint of complacency. But do organizations recognize the scale of the opportunity? Are they prepared to take advantage of the growing The Digital Universe is Expanding: Are You Ready for the Internet of Things? Cisco and GE estimate that the size of the IoT pie is over $10 trillion. wave of sensor data? In the following pages, we assess the current state of organizational readiness, examine why many organizations seem slow to react, and set out a roadmap for organizations that are determined to succeed in this next chapter of our ever-expanding digital universe. For Most Organizations, These are Early Days in the Adoption of IoT Solutions Most organizations are still in the early stages of adapting their offerings to the new IoT world. Our research – covering over 100 leading organizations in North America and Europe (see Research Methodology at end of paper) – revealed that IoT solutions, defined as sensor-enabled products offered in conjunction with services, vary significantly in their levels of sophistication (see Figure 1). The basic start point is connected products that generate alerts and notifications based on sensor readings. More advanced solutions allow remote operation using sensors. And the most mature solutions allow organizations to use sensor data to provide customers with high-value performance improvement insights. The majority of organizations provide solutions that offer only a basic level of functionality. Our research revealed that less than 30% support remote operability and fewer than 40% utilize sensor data to offer performance improvement insights. Delivery of alerts and notifications on product status Example: Whirlpool’s smart appliances notify users when a wash cycle is complete or the refrigerator door is open, via a smartphone app Ability to be controlled and configured remotely Example: GM’s OnStar system allows vehicle owners to remotely lock and unlock their car doors, and flash the horn and lights through a smartphone app Predictive maintenance and productivity enhancement insights based on sensor data Example: GE applies advanced analytics techniques to the data collected from its connected equipment to improve machine utilization and efficiency Basic Information Support Remote Operability Support Performance Improvement Support Figure 1: Levels of Maturity for IoT Solutions Source: Capgemini Consulting Analysis
  • 3. 3 Our study also revealed significant differences across industries. For instance, industrial manufacturing and medical device companies are clearly ahead of other industries in the maturity of their IoT solutions. Utilities and auto manufacturing firms offer basic levels of functionality, but lag when it comes to more advanced offerings. Insurance, home appliance and pharmaceutical companies lag behind other industries in providing even basic functionality (see Figure 2). John Deere, a leading company in agricultural machinery, is among the few organizations that provide a full suite of functionality spanning basic information, remote operability as well as performance improvement support. With its PowerSight solution, for example, John Deere gathers data from its customers’ connected equipment, generates machine health alerts, allows equipment to be remotely programmed, and goes a step further by providing customers with Less than 30% of organizations generate service revenues from their IoT solutions. recommendations on improving machine utilization and lowering operating expenses4. Over Two-Thirds of Companies Do Not Monetize their IoT Solutions Early adopters of IoT solutions, such as GE and General Motors, have shown how connected products can be the platform for service revenues. General Motors has been a pioneer in the use of telematics to create new revenue streams. With its OnStar telematics system, the company generates nearly $1.5 billion in revenues annually, through several paid safety, security and navigation services5. Similarly, GE launched its “Predictivity” line of IoT services in 2012, to help industrial customers manage the data from their connected equipment. Within just a year of launch, “Predictivity” generated $290 million in revenues for GE6. Figure 2: Maturity of IoT Solutions by Industry Source: Capgemini Consulting Analysis High Maturity : >60% of firms provide IoT solutions that support the feature Low Maturity : <40% of firms provide IoT solutions that support the feature Medium Maturity : 40-60% of firms provide IoT solutions that support the feature Industry Group Basic Information Support (Alerts and Notifications) Industrial Manufacturing Medical Devices Utilities Auto Manufacturing Insurance Home Appliances Pharmaceuticals Remote Operability Support Performance Improvement Support (Remote Control and Configuration) (Predictive Maintenance/ Productivity Enhancement Insights) However, these two organizations are the exception, and not the rule. Our research indicates that less than 30% of organizations generate service revenues from their connected products. And the concerns around monetization are clearly top of mind for organizations. An executive at a leading car manufacturer we interviewed said, “Offering the telematics hardware for free with the car is not a sustainable option. We need to have a clear strategy to generate revenues from services7.”
  • 4. 4 Offering the telematics hardware for free with the car is not a sustainable option. We need to have a clear strategy to generate revenues from services. Only a small minority of companies are using acquisitions or development of platforms and APIs as a means of building Internet of Things capabilities. Our research uncovered two monetization models that are emerging in the IoT solutions space. In the first model, connectivity services are offered free for a limited period of time and charged- for subsequently through a tiered mechanism. The idea is to allow the customer to experience the service value before migrating to a more regular tiered package. For instance, Eaton, the US- based power management major, offers the “eNotify Remote Monitoring” service that provides 24x7 remote monitoring of connected Uninterrupted Power Supply (UPS) systems8. The service is offered free for one year after product purchase, but is charged for in subsequent years9. In the second model, organizations offer multiple tiers of services, where each tier is priced differently, based on the breadth of services offered. For instance, John Deere offers four different levels of remote monitoring services under its PowerSight range of telematics solutions10. Most IoT Solutions Do Not Play Well With Third-Party Products and Services The integration of connected products and sensor data with third-party solutions enables organizations to enhance their IoT solutions’ value. By integrating the service with larger platforms, organizations stand to tap into a larger ecosystem of services that can significantly enhance the customer experience. A few industrial manufacturing and automotive firms have taken initial steps in connecting their offerings with third- party services. For instance, German manufacturing major Bosch offers remote vehicle diagnostics services to vehicle owners and dealers through its telediagnostics system11. To make the service attractive and most effective for the consumer, Bosch’s system enables information exchange with third-party services such as car workshops and roadside assistance12. However, our research indicates that less than 15% of organizations offer IoT solutions that integrate with third-party products and services. — A leading car manufacturer
  • 5. 5 Figure 3: Objectives of Internet of Things Partnerships Source: Capgemini Consulting Analysis Partnered with Vodafone to run a pilot for a usage-based insurance in-vehicle telematics device Collaborated with Ford and other players to launch the MyEnergiLifestyle initiative to demonstrate the benefits of a connected lifestyle Founded the “Bosch Internet of Things & Services Lab” – in collaboration with the University of St. Gallen Partnered with Quirky to develop a smart air conditioning unit Partnered with Miele, Stiebel Eltron, Microsoft, seluxit and IQuest to offer its SmartHome home automation service Licensed technology for smart ingestible pills from Proteus Digital Health Internet of Things Partnership Drivers Accelerate Product Development Expand Service Offering License Technology Create Awareness Run Pilots Acquire Technical & Business Know-How Many Organizations are Forging Partnerships but Other Options for Capabililty Build-Up Lie Unexplored Developing IoT solutions often requires capabilities that organizations do not possess. Partnerships, acquisitions and the opening up of platforms or APIs13 can quickly arm organizations with the capabilities they need. Our research indicates that close to 60% of organizations are using partnerships as a viable approach to develop IoT solutions, with varying objectives (see Figure 3). An executive at a leading security systems firm provided affirmation of this approach, saying, “We certainly see the need to partner with Machine to Machine (M2M) technology providers and data mining specialists, as well as with our channel partners, to build future connected solutions14.” Some organizations have looked beyond partnerships to develop capabilities. For instance, Honeywell offers APIs that allow developers, product integrators and retailers to create custom applications that integrate with Honeywell’s Wi-Fi thermostats15. Another approach is seen with medical device manufacturer Medtronic, which has acquired Cardiocom, a provider of telehealth services, with the aim of using Cardiocom’s expertise to design telehealth services that work with Medtronic’s wireless patient monitoring devices. Honeywell and Medtronic are in the minority when it comes to using multiple approaches to skill development. Our research revealed that only 10% of companies use acquisitions, or develop platforms and APIs, as a way to build capability. The picture that is emerging is one where organizations are fighting shy of IoT, despite the disruptive impact it may have on their markets and despite the size of the trillion-dollar prize. In the next section, we look at some of the reasons for this surprising reaction, examining the key challenges that organizations face in the IoT sphere.
  • 6. Are Organizations Exploiting theFull Potential of the Internet of Things? offer basicinformationsupportoffer remoteoperabilitysupportofferperformanceimprovementinsights10% are partnering todevelop IoT solutionsMethods of Capability Build-Upprovide IoT solutionsthat integrate withthird-party offeringshave madeacquisitionshave developedopen platformsor APIs of companies do not provide any IoT solutions42% Maturity of IoT SolutionsMaturity of IoT Solutionsby IndustryIntegration with Third-PartySolutionsMonetization of IoT SolutionsHome Applianceand Pharmaceuticals IndustrialManufacturingMedical Devices Utilities and AutomotiveManufacturingInsuranceIncreasing order of maturity57% 10% $ do not generate servicerevenues from theirIoT solutions34%58%27% 70% 13% Source: Capgemini Consulting Analysis
  • 7. 7 IoT, like many attractive prizes, comes with its own unique and significant challenges. These issues, which mainly revolve around IT infrastructure and skills, are putting the brakes on the IoT train (see Figure 4). Why Have Organizations Been Slow to Get Off the Blocks? The Internet of Things Creates Significant Technical Challenges Existing IT Infrastructure is not Suited to Manage Rapidly Growing Volumes of Sensor Data Managing large volumes of sensor data from a widely distributed base of connected devices challenges the conventional data storage and management capabilities of organizations. For instance, nearly 60% of UK-based firms in a survey agreed that they do 67% of organizations have little to no infrastructure for analyzing and acting on streaming Big Data. 50% of US-based IT professionals report not being ready to secure an ecosystem of connected devices. not have the data centre infrastructure required to extract real-time insights from their Big Data sets16. This is a challenge, as research indicates that data from embedded systems will grow from 2% of the digital universe in 2013 to 10% in 202017. Organizations Lack Real-Time Data Analytics Technologies Critical to Drawing Insights from the Internet of Things The volume and velocity of sensor data flowing into the organization makes drawing insights particularly challenging. Many organizations lack stream processing capabilities, which are essential for the collection, integration, analysis and visualization of data in real time. Sixty-seven percent of organizations in a survey reported that they lack the technology support required for analyzing and acting on streaming Big Data18. The Internet of Things Magnifies Data Security and Privacy Challenges Protecting Internet-connected devices from security threats, as well as dealing with data privacy risks, are key challenges in the IoT environment. Recent events have revealed the enormity of these challenges. A case in point is the global attack that took place in late 2013, where botnets were used to send more than 750,000 malicious emails from connected household appliances19. Research indicates that organizations are not adequately equipped to deal with these new security challenges. For instance, in a survey of US-based IT professionals, 50% of respondents reported not being ready to secure an ecosystem of connected devices20. Figure 4: Prerequisites for the Development and Rollout of IoT Solutions Source: Capgemini Consulting Analysis IT Infrastructure Skill Sets Service-Oriented Sales Force Product Management Big Data Analytics Real-Time Customer Support High Capacity, Scalable, Storage Systems Real-Time Streaming Big Data Analytics New Data Security and Privacy Frameworks
  • 8. 8 Organizations Need New Skill Sets across a Range of Functions Traditional Product-Centric Organizations Lack Capabilities in Developing and Marketing Internet of Things Services The development of IoT solutions demands a new set of competencies from traditional product-centric organizations. They now need to be able to envision new services, develop commercial models and design service contracts that result in continuous revenue streams. Our discussions with senior executives revealed that these are not areas of strength for many product- centric organizations. A leading car manufacturer told us, “We need new skill sets to be able to offer connectivity services. We need to bring in people who are more used to developing and selling services21.” Similarly, a leading security systems company highlighted the need to complement existing product management capabilities - “The buyers of our IoT services could potentially be different from those of our products. Our product managers will have to understand and address the needs of these new customers22.” Today’s Product-Focused Sales Force is not Equipped to Sell IoT Services For IoT solutions, a sales force needs to be comfortable in articulating the value proposition and potential benefits, which is critical to convincing often-reluctant customers to pay for a new class of services. This is a challenge for today’s sales force. An executive at a leading medical technology company highlights this when he says, “Our sales force has been used to selling equipment, but now they need to sell IT solutions. They need to be able to convince customers on the value received by connecting their equipment23.” This sentiment is echoed by a director at a leading auto manufacturer, who said, “Training the sales force in selling connectivity services is certainly a challenge. In fact, we see this challenge intensifying in the future as we expect the services space to become even more complex24.” The Internet of Things Places New Demands on Customer Support Capabilities Our research indicates that IoT solutions are likely to increase the complexity of queries that reach customer support teams. Moreover, since connectivity reduces the time lag between the occurrence of an event and the time taken for information to reach the support center, customers are also likely to expect faster response times. A senior executive at a leading car manufacturer highlights the changing nature of customer requirements when he says, “The proliferation of Internet- enabled devices has raised customer expectations from service providers. Customers now expect to be informed about device problems and the required remedial action, in real-time25.” Organizations Lack Big Data Analytics Talent to Effectively Interpret Sensor Data Most organizations currently lack the analytics skill-sets required to effectively interpret sensor data. A survey reported that lack of employee skills/knowledge is the biggest obstacle facing their organizations in using IoT26. While these infrastructure and skills challenges are significant, they are not the only issues that organizations face. Resistance, for one, is a major problem. An executive at a medical technology company outlined how resistance can come less from the customer – and more from within the organization, explaining, “We only have 20% resistance from the customer and 80% from our own organization. Consequently, it is a significant challenge to align our existing Our sales force has been used to selling equipment, but now they need to sell IT solutions. They need to be able to convince customers on the value received by connecting their equipment. — A medical technology leader business processes with new IoT-based service offerings27.” The scale of the challenges organizations face – infrastructure, skills, resistance – is significant. Therefore, in the following – and concluding – section, we outline a roadmap that provides organizations with some clarity and direction for overcoming these hurdles and driving their IoT initiatives to success.
  • 9. 9 How Can Organizations Build a Successful Internet of Things Solution? The IoT prize will be won by those who achieve a change in mindset, from a product world to a service world. However, that fundamental mind-shift is not the only requirement. Organizations need to get the right IT infrastructure in place, quickly acquire capabilities in analytics, and strengthen a whole host of functional capabilities. Put the Right IT Infrastructure in Place and Acquire Data Analytics Capabilities Organizations must invest in alternative data storage architectures that can be scaled quickly and cost effectively. This will allow the business to keep pace with rapidly growing volumes of sensor data. Open source distributed data processing frameworks, such as Hadoop, as well as cloud-based technologies, lend themselves to managing vast quantities Figure 5: How Can Organizations Strengthen Functional Capabilities? Source: Capgemini Consulting Analysis of data in an affordable and efficient manner. Organizations should also invest in stream processing applications that enable real-time analysis of sensor data. Analytics capability also needs to be acquired, with the CEO of a leading smart meter firm outlining their comprehensive approach to this need: “We recruited analytics professionals, developed internal training programs, established partnerships in the area of Meter Data Management (MDM) and even acquired a smart meter data management firm28.” Strengthen Functional Capabilities across Product Management, Sales and Marketing and Customer Support Launching effective IoT solutions will require organizations to strengthen their capabilities across a range of areas. Key among them are sales, product management, and customer support (see Figure 5). Use Trainings and Incentives to Prepare the Sales Force to Sell IoT Solutions Organizations must take active steps to stimulate their sales force to promote IoT solutions. However, training alone will not be sufficient and organizations must also offer adequate inducements in the form of additional sales incentives. Finally, organizations must actively promote early wins internally to create awareness as well as share best practices in driving sales conversions. An executive from a medical technology company explains how they encouraged their sales force to push IoT solutions, “We identified individuals within our sales force who could act as champions for our remote equipment monitoring services29.” Emphasize ease-of-use in IoT solution design to overcome barriers to adoption Augment product management capabilities with services expertise Recruit from service-centric industries Create specialized teams for IoT solution support Build capabilities in addressing complex customer queries Revise SLAs to meet customer need for reduced response time Share best practices on driving sales conversions Promote early wins internally Identify IoT sales champions Offer training in IoT solution sales Provide additional sales incentives Support Functional Capabilities with Scalable, Cost-Effective IT Infrastructure Open Source Distributed Data Processing | Cloud Based Infrastructure | Real-Time Analytics Sales Product Management Customer Support
  • 10. 10 Augment Product Management Capabilities with Services Expertise and Emphasize Ease-of-Use in Product Design Organizations must augment their product management teams with the skill sets required to develop services. To do so, organizations should consider recruiting product management professionals from service-centric industries. Further, connected solutions must be designed with a focus on ease-of-use, to overcome barriers to adoption from internal sales teams, channel partners and customers. A senior executive at a leading auto manufacturer explains how this approach has proved successful for them - “We focused on making our fleet management offering as easy to use as possible, so that they could be handled by traditional product-focused salesmen. This has proved to be quite successful30.” Develop Customer Support Capabilities to Drive Real-Time Issue Resolution Organizations will need to create specialized customer support teams capable of responding rapidly to complex customer queries. At the same time, existing Service Level Agreements (SLAs) will need to be revised in order to meet customer expectations of reduced response times. Some organizations are already beginning to do this. A senior executive at a leading medical technology company explains their plans to build customer support capabilities for its remote equipment monitoring platform: “We are setting up a first response team consisting of experts and service engineers. Consumers calling in with issues related to their connected equipment will be directed to this team for faster and more effective resolution of queries31.” The IoT represents the next evolution of the digital universe. The speed at which nimble startups and Internet players are capturing IoT opportunities should serve as a wake-up call to larger, traditional organizations. Analyst estimates point to a world where startups will dominate the IoT market. Fifty percent of IoT solutions are expected to originate in startups less than 3 years old, by 201732. They may be less nimble, but bigger organizations need to step up to the plate. As with all digital disruptions, being an organization that is in catch-up mode will be a deeply uncomfortable place to be. Open source distributed data processing frameworks, such as Hadoop, as well as cloud- based technologies, lend themselves to managing vast quantities of data in an affordable and efficient manner. We are setting up a first response team consisting of experts and service engineers. Consumers calling in with issues related to their connected equipment will be directed to this team for faster and more effective resolution of queries. Research Methodology Analysis of IoT Solutions We conducted a comprehensive study of IoT products and services offered by over 100 leading companies in North America and Europe across 7 industry groups. The industry groups covered in our study included Home Appliances, Industrial Manufacturing, Utilities, Insurance, Pharmaceuticals, Healthcare Products, and Auto Manufacturing. We selected a representative sample of companies that cumulatively account for 50% of the revenues generated by all firms belonging to these industry groups, in North America and Europe. Our research covered four key areas. First, we analyzed the maturity of IoT solutions based on their use of sensor data. Second, we assessed how organizations are monetizing IoT services. Third, we evaluated the degree of integration of these IoT solutions with third-party products and services. Finally, we studied the approaches adopted by organizations to accelerate the development of IoT solutions. Internal Capability Assessment To understand the challenges in developing IoT solutions, we conducted wide-ranging interviews with senior executives from leading global organizations that have undertaken IoT-based initiatives. — A leading medical technology company
  • 11. 1 Bloomberg, “Cisco CEO Pegs Internet of Things as $19 Trillion Market”, January 2014 2 GE, “Industrial Internet: Pushing the Boundaries of Minds and Machines”, November 2012 3 IDC, “THE DIGITAL UNIVERSE IN 2020: Big Data, Bigger Digital Shadows, and Biggest Growth in the Far East”, December 2012 4 John Deere, “John Deere Power Systems Unveils John Deere PowerSight at CONEXPO-CON/AGG”, March 2014 5 Automotive News, “Not satisfied with OnStar’s steady profits, GM wants to create a global 4G powerhouse”, May 2013 6 Business Wire, “GE Launches 14 New Industrial Internet Predictivity Technologies to Improve Outcomes For Aviation, Oil & Gas, Transportation, Healthcare and Energy”, October 2013 7 Capgemini Consulting interviews 8 Eaton website, “eNotify Remote Monitoring” 9 Eaton website, “Eaton eNotify Remote Monitoring Model Connectivity Hardware Table” 10 Worldhighways.com, “John Deere reveals PowerSight telematics for engines”, March 2014 11 SearchAutoParts.com, “Bosch telediagnostics enhances service experience via remote vehicle diagnostics”, January 2014 12 Autodata, “Bosch unveils remote diagnostics platform”, January 2014 13 Application Programming Interface 14 Capgemini Consulting interviews 15 Honeywell website, “Honeywell Announces Cloud API Program With Home Automation Software Developers”, May 2013 16 Computerweekly, “Inadequate datacentre infrastructure is a barrier to big data analytics”, June 2013 17 EMC-IDC Research, “The Digital Universe of Opportunities: Rich Data and the Increasing Value of the Internet of Things”, April 2014 18 Vitria, “The State of Real-time Big Data Analytics: 2013 Survey Results”, September 2013 19 Computing, “Cyber attack launched through fridge as internet-of-things vulnerabilities become apparent”, January 2014 20 PR Newswire, “SANS Announces Results of its 2013 Securing the Internet of Things Survey”, January 2014 21 Capgemini Consulting interviews 22 Capgemini Consulting interviews 23 Capgemini Consulting interviews 24 Capgemini Consulting interviews 25 Capgemini Consulting interviews 26 EIU, “The IoT Business Index: A Quiet Revolution Gathers Pace”, June 2013 27 Capgemini Consulting interviews 28 Capgemini Consulting interviews 29 Capgemini Consulting interviews 30 Capgemini Consulting interviews 31 Capgemini Consulting interviews 32 Gartner, “Forecast: The Internet of Things, Worldwide, 2013”, November 2013 References
  • 12. Rightshore® is a trademark belonging to Capgemini Capgemini Consulting is the global strategy and transformation consulting organization of the Capgemini Group, specializing in advising and supporting enterprises in significant transformation, from innovative strategy to execution and with an unstinting focus on results. With the new digital economy creating significant disruptions and opportunities, our global team of over 3,600 talented individuals work with leading companies and governments to master Digital Transformation, drawing on our understanding of the digital economy and our leadership in business transformation and organizational change. Find out more at: http://www.capgemini-consulting.com/ With more than 130,000 people in over 40 countries, Capgemini is one of the world’s foremost providers of consulting, technology and outsourcing services. The Group reported 2013 global revenues of EUR 10.1 billion. Together with its clients, Capgemini creates and delivers business and technology solutions that fit their needs and drive the results they want. A deeply multicultural organization, Capgemini has developed its own way of working, the Collaborative Business ExperienceTM, and draws on Rightshore®, its worldwide delivery model. Learn more about us at www.capgemini.com About Capgemini and the Collaborative Business Experience Fredrik Gunnarsson Vice President fredrik.gunnarsson@capgemini.com Roopa Nambiar Manager, Digital Transformation Research Institute roopa.nambiar@capgemini.com Ashish Bisht Senior Consultant, Digital Transformation Research Institute ashish.bisht@capgemini.com Johan Williamson Managing Consultant johan.williamson@capgemini.com Jerome Buvat Head of Digital Transformation Research Institute jerome.buvat@capgemini.com Authors For more information contact Digital Transformation Research Institute dtri.in@capgemini.com The authors would also like to acknowledge the contributions of Florian Knollmann from Capgemini Consulting Germany, Jaap Bloem, Research Director VINT, Sogeti Netherlands, Rick Bouter from Sogeti Netherlands, Ron Tolido, Senior Vice President and CTO Application Services, Capgemini, and Subrahmanyam KVJ from the Digital Transformation Research Institute. The authors would also like to acknowledge the numerous executives who took time out of their schedules to share their views on the Internet of Things with us. For more information on the Internet of Things, please refer to the series of reports from Sogeti’s VINT Labs titled “Things”. You can find them at http://vint.sogeti.com/category/things/ Sweden/Finland Ulf Larson ulf.larson@capgemini.com Spain Christophe Jean Marc Mario christophe.mario@capgemini.com United States Jeffrey T Hunter jeffrey.hunter@capgemini.com Germany/Austria/Switzerland Guido Kamann guido.kamann@capgemini.com France Cyril François cyril.francois@capgemini.com Netherlands Albert Wiggers albert.wiggers@capgemini.com United Kingdom Stephen Pumphrey stephen.pumphrey@capgemini.com Capgemini Consulting is the strategy and transformation consulting brand of Capgemini Group. The information contained in this document is proprietary. © 2014 Capgemini. All rights reserved.