Original Author: Rachael Everly
Let’s imagine a busy four-way intersection in the middle of a city like Los Angeles, during rush hour. Hundreds of thousands of cars, trucks, buses, and Lorries are speeding off in all four directions, carrying their passengers on their designated routes.
This scenario is usual, as most of us, who dwell in the major cities, see this every day, but a crucial bit of detail is missing from that description. There is no traffic signal regulating the crossover movement of the cars, and interestingly, no vehicle is crashing onto the other oncoming vehicles, and yet even more surprisingly, there is no traffic jam.
Sounds like an impossible scenario, right? Think again! This can be done and in the next few years, don’t get surprised if you see this occurrence as normality.
The scenario above is what scientists, researchers and more accurately, AL led firms want to achieve through the establishment and strengthening of the “Internet of Things,” i.e., a way to induce machine to machine interaction on a more concrete level. This action can eliminate the need to counter in for inefficiencies, bringing us to the most utopian society since the dawn of mankind.
To solve the most complex problems we face as a global civilization in today’s world, we need machines that can “Act” on what they “Think.” While making “Thinking machines” was an engineering and scientific problem that required ingenuity and disruptive thought, providing these devices with the capability to act depends more on connectivity than anything else and thus the concept of “The Internet of Things” was born.
Even if we have driverless cars that far exceed the capabilities and safety quotient of human drivers, they would be of little use to us. However, things can improve if these unique vehicles can communicate to each other and transfer data related to their current speed, direction, and size, real-time. Infact, this can make it possible to achieve the dream scenario of an intersection without a signal through which hundreds of cars pass each second without posing a danger to each other.
Why will the IOT be so crucial towards future Industrial Strategies?
Driverless or Autonomous cars, if they become commonplace, will provide an unprecedented economic advantage to economies across the globe, powering $5.6 trillion, in savings, to the global economy each year.
But the important thing to remember is that driverless cars and other such smart devices and machines will only be able to provide these sorts of benefits if they are well and truly connected to the IOT (Internet of Things).
With so much economic incentive on offer, the IOT revolution is definitely poised to power the next segment of growth to the fledgling world economy, so the interest of governments around the world is certainly palpable concerning the building of their future industrial strategies using the IOT as its basis.
IOT will power unprecedented efficiency, decrease costs and empower devices, working in tandem, with humans, to achieve more than they possibly can right now. A McKinsey Global Institute research suggested that by 2025, IOT could provide benefits of up to $6.2 trillion to the world economy. While businesses will be the leading users of this new revolutionary disruption, the government would need to play a central role in making this economic opportunity attainable, by developing future industrial strategies using the internet of things.
The next generation industrial policies will be doomed towards failure if they follow conventionality and only focus on growth using traditional means. Technologies like IOT have the capabilities to alter value pools and create significantly volatile economic scenarios, where things can stand changed fast in the business world, only benefitting those who will stand prepared for carving and capturing value out of them.
How can we build more suitable industrial strategies using the IOT?
Tesla, the quintessential electric automobile manufacturing firm, recently announced a Master Plan to develop electric semi-trucks, long-haul trucks & even commercial buses. The company has only manufactured electric cars up till now, but this new move would allow it to have a plan to grow as it heads into the future. Tesla has also proposed to inculcate even better driver-assistance-systems within its future vehicles, ensuring that it is prepared for the future before it even arrives by having goals that align with emerging, breakthrough technologies.
And all of those plans have brought an unprecedented success, with the firm raking in a share price that is just as much as the industry’s leader General Motors, with a fraction of the cars sold as compared to General Motors.
You know why?
Tesla’s plans align with future tech breakthroughs while General Motor’s plans have been nothing out of the ordinary, making people believe that Tesla will be the place which will see immense amounts of growth in the upcoming future powered by products that are more feasible to those times.
Our next industrial strategies would need to be similarly poised because in the future it will be less about what you produce, but more about what your products can achieve. This achievement will be powered in large part by the Internet of Things which will make all of this progress possible, making it the essential cornerstone of all the successful future industrial strategies.
Governments can initially start off building plans using the IOT by pushing legislation that asks firms to use them as much as they can just like they did, although in small part, by implementing the ELD mandate which requires truck drivers to deploy electronic logging devices to register their data related to hours driven & worked.
The ELD mandate will allow trucking companies to save huge amounts of money in fuel costs, insurance premiums and at the same time, increase driver productivity. ELDs are a small consequence of IOT as they will directly be connected to the truck’s internal systems like the engine. They will also relay all data to fleet managers via fleet management systems powering better planning and lowering costs. If more legislations like these are compiled to form an exhaustive industrial strategy, the economic benefits that could result will be enormous. Future growth of major economies around the world lies in building industrial strategies, mandated by governments that mainly focus on the IOT to increase economic competitiveness.
Those who don’t do this will find themselves in a reactive mode when such technologies finally arrive. Sadly they will have to take whatever comes their way which is a dangerous way to proceed further indeed.