Report

December 2003

The X Internet And Business Profitability


Navi Radjou
The X Internet connects firms' IT systems to physical products, assets, and devices. Winners will proactively use it to transform their ops, processes, and business model -- and shut out rivals.
by Navi Radjou with Christopher Mines, Ryan Hudson, Natalie Lambert

THE LANDSCAPE
  • Cargill and Caterpillar track products/assets to boost margins.
  • But 81% of firms are disconnected from the physical world -- not for long, if the US Congress and Wal-Mart have their way.
ANALYSIS
  • X Internet technologies help businesses track the identity, location, and status of their assets, products, and employees.
  • Firms must scope X Internet implementation to match their unique business requirements and corporate culture.
ACTION
  • Intel must get its RFID act together -- or lose big.
WHAT IT MEANS
  • CIOs get demoted to a supporting role.
  • Manufacturers will spend $1.8 trillion on the X Internet.
 
Figures & Data
  • Figure 1.  Leaders Are Using The Net To Connect To Billions Of Non-PC Objects
  • Figure 2.  Few Firms Collect In-Depth Data About Physical Assets And Products
  • Figure 3.  External Factors Drive Physical-World Connectivity Requirements
  • Figure 4.  The X Internet Boosts Firms' Physical-World Awareness
  • Figure 5.  Conservative Firms Will Use X Internet For Functional Enhancement
  • Figure 6.  Efficiency-Seeking Firms Will Use X Internet To Optimize Processes
  • Figure 7.  Aggressive Firms Will Use X Internet For Business Model Reinvention
   
RELATED MATERIAL 
  • Methodology
  • Companies Interviewed For This Report
  • Related Research
 
GRAPEVINE
  • "Doorman, can you please turn off my kitchen light?"
  • Hey OEMs, how does it feel to be "Amazoned"?
  • The more mistakes a company makes, the richer it gets?

 

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