The industrial internet. That’s what could boost the global economy by $15 trillion, the size of the US gross domestic product (GDP).
Networks through which internet-connected machines communicate and operate automatically could deliver significant gains in efficiency.
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These machines could be used to better manage inventories and control deliveries while workers could stay better connected and productivity would be enhanced.
For example, the transportation industry could reduce management costs by 10%, producing savings of $5.6 billion per year.
Factors that need to come together for these efficiencies to happen include the coming together of three primary digital elements—intelligent devices, intelligent systems, and intelligent automation.
When those three elements merge with physical machines, fleets, facilities, and networks, the enhanced productivity, lower costs, and reduced waste will infiltrate the entire industrial economy.
If US companies improved their productivity by only 1.5%, it could generate $15 trillion over the next two decades.
Closer communications between computers and machines would enable businesses to better predict customer needs and also to become more responsive to consumer demands.
The reality is that our economy is undergoing a change that is not being currently recognized by the economic measures we use.
Naysayers on future economic growth are failing to acknowledge the new economic developments such as the US advantage
in oil and gas production and the industrial internet development described here.