A new Trend Report from Cisco and DHL suggests that the Internet of Things will create $8 trillion in value worldwide in Value at Stake over the next decade.
The report found that there will be 50 billion devices connected to the Internet by 2020, compared to 15 billion today.
Particular drivers of the windfall will be in innovation and revenue, which will produce $2.1 trillion, and asset utilisation, producing the same figure.
Meanwhile, employee productivity improvements will bring in $1.2 trillion and enhanced customer and citizen experience $700 billion.
In addition, IoT use in supply chain and logistics will realise benefits of $1.9 trillion. Cisco and DHL are currently collaborating on a project to improve decision-making in the warehouse operations using near real-time data analytics based on wi-fi location data of devices.
The boon in logistics will mostly come from higher operational efficiency as the IoT connects shipments being moved and tracked each day.
"Digital disruption is all around us and it’s having massive implications for business," said Chris Dedicoat, president, EMEAR for Cisco.
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Dedicoat added: "Digitisation and the expansion of the Internet of Things is a catalyst for growth, which is driving new economic models and enabling organisations to remain competitive and embrace the pace of change happening globally.
"This report clearly demonstrates that digitisation and the IoT will deliver long term efficiencies and growth opportunities across a wide range of industries."
Markus Kückelhaus, Vice President Innovation & Trend Research, DHL Customer Solutions & Innovation, commented: "The Internet of Things is the connection of almost anything – from parcels to people – via sensor technology to the web and both Cisco and DHL believe this will revolutionise business processes across the entire value chain including supply chain and logistics.
"To get the maximum global economic benefit, we’ll need to understand how all components in the value chain converge and this will require a comprehensive collaboration, participation and the willingness to invest to create a thriving IoT eco system for sustainable business processes.
"The new Trend Report is another step towards making sure DHL delivers the benefits of IoT to our customers."
