The Internet of Things for All: How Mid-Cap Companies Can Shine in the Age of Connectivity


Nearly three-quarters of organizations have an Internet of Things (IoT) initiative. All but six percent of enterprises are looking at how they will leverage analytics, and virtually every organization is looking at how it can create new revenue streams from services enabled by connectivity. Indeed, a number of innovative startup companies, such as Uber and AirBnB, have radically disrupted well-established industries. And, to defend themselves, large-scale enterprises are moving forward with their own initiatives around IoT, rethinking products altogether in much the same way connected car makers are viewing the automobile – as a vehicle for delivering a new user experience rather than a vehicle for mere transportation.

There is an archetypal company that has yet to realize the opportunity of investing in the IoT as a way of differentiating themselves, and that is mid-cap companies of less than $5 billion dollars in valuation. The reason for this limited realization? It’s less about a lack of interest or need and more about a lack of resources and know-how required to develop and execute a robust IoT strategy.

To be sure, most of the world’s business is conducted by mid-cap companies. These organizations often have the agility and flexibility to respond quickly despite lacking some economies of scale. So, while they may suffer resource limitations, their ability to respond gives them a potential advantage over larger competitors. Additionally, many of the new products enabled by IoT are digital and therefore have a scalability element that does not necessarily tie itself to these companies’ physical infrastructure.

But combining these two factors can provide a pathway for mid-cap companies to leapfrog their larger competitors. IoT may just be the thing to help mid-cap companies level the playing field by helping them improve current products, create new service-based business models, reduce operational costs and improve brand image. A very real opportunity exists for them to revolutionize their industries through the use of IoT, but they first must overcome some common barriers:

  1. Developing a vision and roadmap
  2. Filling the skills gap
  3. Executing with velocity

This ISG white paper explores these challenges and the opportunity for mid-cap companies to take advantage of IoT in their digital transformation.

About the authors

Having assisted more than 40 of ISG’s largest global clients in developing strategies for optimal delivery alternatives to meet their most pressing business objectives, Tim is one of ISG’s most accomplished experts in evaluating complex global sourcing alternatives. His expertise spans all aspects of information technology, and he regularly advises senior executives on strategy and delivery. He is an expert in sourcing methodology, contract administration, contract financial management, performance management, relationship management, transition management, IT and applications assessments, enterprise modeling, service delivery models and sourcing strategies.