McKinsey & Company 10 Revenue impact Cost impact Negligible or negative 1- 5% 10%+ 5 -10% Unknown ▪ 58% reported 5% or more revenue increase from IoT SOURCE: 2018 Survey of 301 IoT practitioners; McKinsey Analysis Note: >75% of respondents were “well beyond pilot phase” and/or offered “mature IoT solutions” Impact ▪ 46% reported 5% or better cost reduction Economic benefit enjoyed by the 1/3 beyond pilot is solid