Australian businesses are estimated to realise at least $36 billion in profits this year thanks to the ‘Internet of Everything’ – networking vendor Cisco’s umbrella term that incorporates connected objects (the ‘Internet of Things’), people and processes.
New research from Cisco estimates that the total potential to boost profits and cut costs are worth up to $74 billion in 2013, but the private sector risks leaving close to half of it untapped.
Australia found itself almost at the bottom of the vendor’s new ‘IoE Value Index’, ahead of only Russia and Mexico out of the 12 countries surveyed in terms of total economic value likely to be realised from the IoE this year.
The most potential value for Australian businesses would be realised through new or improved customer experiences, increased operational efficiency and acceleration of innovation.
The top three barriers, in order, hindering Australian businesses capitalising on the IoE are the inability of IT systems to keep pace, managing new potential security threats, and regulatory barriers.
The new index builds on previous research by Cisco, which estimated that the IoE is worth up to $14.4 trillion over the next decade. This year, up to $1.2 trillion in revenue gains and cost cutting could potentially be realised by the IoE.