15 May 2017

The Economy of Things: Extracting new value from the Internet of Things

Written by IBM Institute for Business Value
15 May 2017

Thanks to the Internet of Things (IoT), physical assets are turning into participants in real-time global digital markets. The countless types of assets around us will become as easily indexed, searched and traded as any online commodity. While some industries will be tougher to transform than others “ those with physical limitations, such as manufacturing, will be harder to digitize“ untold economic opportunities exist for growth and advancement. Our research shows this will create a new "Economy of Things" with significant consequences.

While industries like newspapers and music have already been completely transformed, the impact on some industries has been much less, and many still retain their essential structure and participants even if the Internet has brought great transparency to the business as a whole. The industries least transformed by the Internet are the ones with the most unstructured or unavailable information. The IoT is now poised to bring the same real-time information and liquid marketplaces by enabling searching, managing and monetizing assets in the physical world. That won't just mean smart homes that light up when you arrive or washing machines that text you when the cycle is done. The IoT will turn physical assets into participants in real-time global digital markets.

Publication Date: 07.2015

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