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Internet of Things

Internet of Things

We help clients unlock value by digitizing the physical world

Sensors and ubiquitous connectivity, combined with data and analytics, open up new opportunities to innovate products and services and to increase the efficiency of operations. This digitization of the physical world—or Internet of Things (IoT)—creates new value for our clients and for their customers.

The Internet of Things presents an enormous opportunity to transform the way we live and do business. McKinsey’s Global Institute predicts IoT will have an economic impact of between $4 trillion and $11 trillion by 2025. Companies can capture value by creating new revenue streams from providing connected solutions and services to consumers and enterprises and by reducing costs in operations. Much of the IoT data currently captured, however, is under leveraged. We take an integrated approach to digitizing the physical world to create new insights and business models and to unlock real 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.

125+ large client engagements

in the past 2 years

100+ IoT-dedicated senior practitioners

and partners across industries and geographies

10+ industries served

on IoT-related engagements

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 Insights

Article

Ten trends shaping the Internet of Things business landscape

– Experience working on the Internet of Things indicates where the value lies.

Featured Videos

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

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

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

Our people

Venkat Atluri
Senior Partner, Chicago
Builds and transforms businesses by pursuing cutting-edge technologies and cross-sector opportunities
Mark Patel
Senior Partner, San Francisco
Advises clients across sectors on IoT, analytics, and digital. with a specific focus on the industrial, high tech, and semiconductor...
Karel Eloot
Senior Partner, Shanghai
Focuses on industrial Internet of Things and digital transformation in the industrial sectors, particularly for companies in China
Michael Chui
MGI Partner, San Francisco
Leads research on the impact of information technologies and innovation on business, the economy, and society
Bodo Koerber
Partner, Düsseldorf
Serves companies in advanced industries, specializing in leading digital and IoT transformations and bringing new digital opportunities...
Eric Lamarre
Senior Partner, Boston
Serves clients across industry sectors on issues related to strategy, technology-enabled transformations, and large-scale productivity...
Brett May
Digital Vice President, Silicon Valley
Serves as chief operating officer and general manager of our Internet of Things work within McKinsey’s New Ventures group
Naveen Sastry
Partner, Silicon Valley
Brings expertise in digital transformations and helps organizations become more agile with technology; has extensive domain expertise...
Anand Swaminathan
Senior Partner, San Francisco
Shapes the growth agenda powered by digital solutions and platforms to help accelerate speed to impact
Jan Wüllenweber
Senior Partner, Cologne
Advises consumer and advanced industry clients on operations-related challenges, including IoT, procurement transformations, cost...

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