In about 4-5 years, there will be 50 billion “things” connected to the Internet of Things. GE estimates that convergence of machines, data, and analytics will become a $200 billion global industry over the next three years. The IoT is huge: huge opportunity and huge potential.
A new McKinsey Global Institute report, The Internet of Things: Mapping the value beyond the hype, states “Our bottom-up analysis for the applications we size estimates that the IoT has a total potential economic impact of $3.9 trillion to $11.1 trillion a year by 2025. At the top end, that level of value—including the consumer surplus—would be equivalent to about 11 percent of the world economy.”
Corporate Social Responsibility programs are no longer just great socially, they are clearly great business. 93% of the world’s largest 250 companies now publish annual corporate responsibility reports. The initiatives included in CSR programs at huge companies like Walmart achieve powerful objectives for conserving natural resources while increasing corporate profits and improving brand reputation..
The Internet of Things and Corporate Social Responsibility are enormous trends that are shaping the world we live in and the business we conduct. By synergizing these two important trends, we create a result that is far greater than the sum of its parts.
CSR and Energy
Every successful corporate social responsibility program has energy efficiency as a key component. It often takes the form of reducing carbon emissions like Nikon, optimizing operational procedures like Mattel, or reducing waste like Cisco.
Energy, both literally and figuratively, powers our businesses and using it more efficiently is both a social responsibility and a fiscal opportunity.
IoT and Energy
By connecting 50 billion devices, many of them the types of things that have never been connected before (think cars, to store registers to industrial machinery), some may fear that the Internet of Things will be a drain on the electrical grid and the natural resources the fuel it.
Not so, says Google, which consumes 260 million watts and emits 1.46 million metric tonnes of carbon dioxide a year. Given these colossal figures, does it surprise you to learn that Google’s carbon footprint is 0?
In fact, by connecting the 50 billion devices, we create an opportunity to relieve the burden on the energy grid. You can read more about in on this post.
Achieving IoT & CSR Synergy
When we approach CSR as a goal, with IoT as the means, we create breakthroughs in productivity and efficiency.
When we connect businesses’ critical devices and systems through the Internet of Things, our clients get unmatched real-time visibility. Think of a process manufacturing plant like Pfizer that can connect all of its product line devices. The McKinsey report shows that factories can be impacted somewhere between $1.2 – 3.7 trillion in 10 years. By monitoring the energy consumption profiles of their equipment and optimizing it in real time, they can create the same (or greater) output with more efficient energy use.
This enables them to:
- Adopt a predictive maintenance model, which funnels services to the devices that need to be serviced. Compared to traditional preventative maintenance, this saves unnecessary down time and direct costs of service that is not warranted.
- Increase production yields, which can result in more product shipped quicker. Increases in both quantity and speed improve bottom line profits.
- Calculate cost of production per equipment/production line, which enables them to maximize the energy savings of every device and entire plants. Being armed with such granular data, which is aggregated and analyzed automatically, enables executives to make educated decisions that drive change (and profits).
IoT and CSR: a perfect match
If the IoT and CSR were young singles on the dating scene, Panoramic Power would be the matchmaker. By helping companies connect their socially responsible visions and plans with IoT-empowered energy management solutions, we give businesses the ability to eliminate waste, increase profit, and be the change they (and we) want to see in the world.