COVID-19 Revival and Sustenance Strategies-Fast-Tracking Digital Transformation With The Internet of Things

COVID-19 Revival and
Sustenance
Strategies—Fast-
Tracking Digital
Transformation with
the Internet of Things
S m art B ui ldi ng s and
We arabl es Wi l l He lp
Bus in ess es Retu rn to
N o rm al Op erat i on
Global Information and
Communication Technologies
Research Team at Frost & Sullivan
The Growth Pipeline™ Company MFAB-67

Powering clients towards a future shaped by growth
December 2020
COVID-19 Revival and Sustenance Strategies—Fast-Tracking Digital Transformation with the Internet of Things
Table of Contents
TM
The Strategic Imperative 8 ................................................................................................................................. 4
Innovative Business Models............................................................................................ 4
Costumer Value Chain Compression ............................................................................... 5
Transformative Mega Trends .......................................................................................... 5
Internal Challenges ......................................................................................................... 5
Competitive Intensity ..................................................................................................... 5
Geopolitical Chaos .......................................................................................................... 5
Disruptive Technologies ................................................................................................. 5
Industry Convergence ..................................................................................................... 5
Strategic Imperatives to Fast-Tracking Digital Transformation with the IoT ........................................................... 6
Growth Opportunity Analysis................................................................................................................................. 9
Resetting Digital Transformation Scope and Pace ......................................................... 11
Growth Opportunity Universe ............................................................................................................................. 18
Growth Opportunity 1: Virtual Workplaces to Meet Mandates .................................... 18
Context and Definition ................................................................................................................................. 19
Call to Action ................................................................................................................................................ 20
Growth Opportunity 2: Smart Buildings for Safe Return to Business ............................ 21
Call to Action ................................................................................................................................................ 22
Growth Opportunity 3: Smart Wearables for Real-Time Information Access ................ 23
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Call to Action ................................................................................................................................................ 25
Growth Opportunity 4: Remote Tracking and Monitoring For Business Continuity....... 25
Call to Action ................................................................................................................................................ 27
Growth Opportunity 5: Intelligent Automation for Seamless Operations ..................... 27
Call to Action ................................................................................................................................................ 29
Growth Opportunity 6: IoT-as-a-Service for Faster Access ............................................ 30
Call to Action ................................................................................................................................................ 31
TM
Growth Pipeline Engine .................................................................................................................................... 32
Legal Disclaimer ................................................................................................................................................... 33
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The Strategic Imperative 8TM

Frost & Sullivan has identified the key strategic imperatives to manage COVID-19 by fast-tracking Digital
Transformation with IoT.
Innovative Business Models

A new revenue model that defines how a company creates and capitalizes economic value, typically
impacting its value proposition, product offering, operational strategies, and brand positioning
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Costumer Value Chain Compression

Customer value chain compression as a result of advanced technologies, internet platforms, and other
direct-to-consumer models that enables reduction in friction and the number of steps in customer
journeys
Transformative Mega Trends

Transformative, global forces that define the future world with their far-reaching effects on businesses,
societies, economies, cultures, and personal lives
Internal Challenges
The internal organizational behaviors that prevent a company from making required changes
Competitive Intensity
A new wave of competition from start-ups and digital business models that challenge the standing
conventions of the past, compelling established industries to re-think their competitive stance
Geopolitical Chaos
Chaos and disorder arising from political discord, natural calamities, pandemics, and social unrest that
impact global trade, collaboration, and business security
Disruptive Technologies
New, disruptive technologies that are displacing the old, and significantly altering the way consumers,
industries, or businesses operate
Industry Convergence
Collaboration between previously disparate industries to deliver on whitespace cross-industry growth
opportunities
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Strategic Imperatives to Fast-Tracking Digital Transformation with the

IoT
Internal Challenges
COVID-19 is a rare global pandemic in terms of magnitude and scale. Previously unheard-of
measures, such as social distancing, closure of workplaces, restrictions on travel, lockdowns, and
continual evaluation of risks, have made it difficult for businesses to formulate medium- or long-
term plans or initiate action. Most companies relied on existing contingency plans during the early
days of restrictions, making changes on-the-go, as new regulations and stipulations to deal with
COVID-19 were announced. Preparedness was tested, and business continuity and resource
Why? optimization became primary challenges, exacerbated by long-term uncertainties, the lack of quick
response plans, and paucity of accurate information. Managing internal challenges has been a
strategic imperative, and some of the internal organizational behavioral changes have included:
shorter decision-making cycles that are adequately decentralized and localized; the ability to analyze
data and information for smarter decisions; rapid go-to market strategies driven by technology and
a continuous focus on innovation and data security; and an agile and flexible strategic framework
that can enable better decision-making in times of acute crisis.
COVID-19 tested the short- and long-term strategies of companies. In the next few months,
companies must adopt technology-enabled capabilities, such as remote management of resources,
short-term partnerships with existing technology associates to initiate business continuity steps, and
technology-enabled solutions to balance compliance requirements and execute business activities.
Companies can rely on their current ecosystem of partners and hasten proofs of concept (PoC) and
pilots. Focus should be on avoiding quick fixes that may compromise on data security, since any kind
When?
of security breaches will have a long-term impact.
For a medium- to long-term focus, companies must align more closely with their extended
ecosystem of clients, vendors, partners, peers, and consultants to devise plans and strategies.
Developing an agile and flexible model is important to ensure that dynamic pieces are set in motion
rapidly.
The concepts of “fail fast” and “elevate success” are gaining traction as companies realize that
innovation is the cornerstone of successful business outcomes. For these concepts to succeed, a
dynamic, agile, and flexible framework to achieve digital transformation is critical. Companies must
work with experts. To deal with internal challenges, companies need to alter both long- and short-
term strategies and policies. During the initial weeks, most efforts were focused on adjusting to
Next significant and ongoing changes, which was the right approach. Going forward, companies must
Steps double down on agile and flexible approaches, and eliminate those that are inefficient or risky.
Depending on the current state of business operation efficiency, companies can devote time and
resources to identify approaches with long-term relevance. For instance, investments in IoT-driven
solutions already in the market can be prioritized and loaded upfront, rather than spreading out
investments over the next two years.
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Geopolitical Chaos
COVID-19 disrupted normal business activities, bringing many to a complete halt. The impact of the
pandemic was abrupt, and coping mechanisms deployed and enforced by governments were very
strict. According to the World Trade Organization (WTO), world trade is expected to decline
between 13% and 32% in 2020, and there is no certainty about its revival in 2021. A health crisis that
evolved into a humanitarian crisis has left businesses with unused inventories and no access to raw
materials due to inadequate and unreliable supply chains, which is further complicated by the lack
of reliable vendors and no way to transport goods to potential customers facing their own set of
Why?
hardships. With few or no employees to perform routine tasks, core and non-core business
functions were severely affected. Businesses struggled to perform in the new business scenario, as
ecosystems went through a significant restructuring. Companies had to either rapidly scale-up or
scale-down and develop immense flexibility in a matter of days. Realignment of partnership and
market strategies became imperative. With a compressed value chain, digital collaboration saw a
rapid evolution and the entry of new industry participants, in the form of technology providers, was
inevitable.
Having operated for almost nine months under conditions that were less than ideal, companies have
developed a better understanding of strategies that are likely to work and those that may need
changes. Business scenarios will continue to be challenging in the near term. Even as economic
activities resume, the pace is not nearly close enough to pre-COVID-19 days. While assumptions on
post-COVID-19 days are rampant, there is no certain timeline that one can subscribe to about their
arrival. The scope of operations and verticals that companies operate in will determine recovery
When?
trajectories. Stakeholders in eCommerce, digital solutions, and service providers can expect growth;
those in verticals, such as travel and hospitality, will continue to lag significantly. In the long term,
COVID-19 will continue to impact business scenarios as markets and governments align their
strategies to deal with extraordinary circumstances and create technology-based contingency plans
that can cover issues such as the closure of borders, mass immigration, the breakdown of transport
logistics, and supply chains.
Long-term strategies need to include significant restructuring of revenue and business models,
optimization of asset utilization, partnerships with technology-focused entities, and new business
continuity plans. Identifying new and alternate markets and incorporating flexibility and agility into
Next
business operations is critical to deal with issues that can completely halt business transactions.
Steps
Incorporating IoT-enabled systems, such as asset tracking, fleet management, or virtual reality into
plans will ensure that companies always know where their goods are and are able to re-route or
take decisions based on existing circumstances, should there be a need to changes plans suddenly.
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Industry Convergence
The increase in the use of the IoT across industries has led to greater access to data. As data
analytics, machine learning (ML), and artificial intelligence (AI) have enhanced data-based insights, it
has also meant that the same data sets can be used for other applications that may not have
seemed possible earlier. For instance, using telematics data to offer better deals to vehicle insurance
customers brings together automotive and insurance verticals, and both can use the same data sets
to enhance products and services. In business-to-business (B2B) scenarios, companies prefer to
work with a single vendor that can offer multiple services. The expanse of the IoT industry makes a
Why? strong case for providers to develop a robust ecosystem and offer end-to-end services to their
clients for ease of deployment and better management of outcomes. New revenue streams, moving
beyond core services, and gaining access to partner clients are some of the benefits that providers
will gain. COVID-19 has forced verticals to look for innovative ways to leverage the IoT to be able to
deal with unprecedented situations. For instance, facility management providers can use data from
healthcare and other connected devices and sensors to understand and implement cleaning
frequency requirements.
In the short term, most deployments were implemented to develop coping mechanisms. Despite
fears of data security and privacy, the underlying criticality of requirements, many of them related
to healthcare and business continuity, have forced companies to bridge gaps with short term
innovative measures, without significant investment in PoC. Going forward, focus and partnerships
When?
to explore innovative methods to cover white spaces will continue. IoT deployments are already
gathering data, and any measures will need to focus on how to exploit that data to launch products
and services with rapid go-to-market strategies. Similarly, customer data will guide companies on
changing preferences to ensure product and service relevance.
Business models such as IoT-as-a-service, and new revenue streams, such as the use of cold-storage
data from the food industry to initiate innovations in agritech, indicate new approaches/business
models that can help organizations to adapt, enhance preparedness, and create opportunities. Self-
sufficiency will be in demand, given how COVID-19 wreaked havoc on supply chains globally. For
Next
instance, micro-grid is a self-sufficient energy system that can meet the requirements of a distinct
Steps
area, such as a college campus, factory premise, or hospital complex. An IoT-enabled system that
relies on proactivity powered by integrated ML and data analytics can be used to forecast problems
and enhance performance. This will also make it easier to maintain and provide field services, should
the need arise.
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Growth Opportunity Analysis

Digital transformation is a long, drawn-out process that takes years of strategizing, finding the right
partners, and ensuring a seamless transition. With COVID-19, companies had little or no warning about
the scale of disruption. As crisis management efforts initialized, technology adoption curves became
steeper, companies scaled up faster, and decision-making cycles compressed, many reluctant adopters
finally turned the corner. While adjusting to new stakeholder expectations, the prioritizing of digital
transformation took on more urgency. Going forward, companies will need to display better
preparedness and enhance digital capabilities to refine operations, increase productivity, and enable
business growth, even under adverse circumstances.
Estonia started to aggressively pursue digitalization about a decade ago and had capabilities already in
place across all essential services. During the restrictive lockdowns imposed to contain the spread of
coronavirus, Estonia’s education, healthcare, and civic services functioned without the major upheavals
experienced by many other countries. According to the World Economic Forum (WEF), the level of
preparedness displayed by Estonia goes beyond deploying the requisite technology; the foundation for a
successful digital transformation lies in user comfort, culture of continuous innovation, and private
public partnerships (PPP). The following facts provide an insight into why Estonia was more successful in
managing the disruption imposed by COVID-19:
 99% of government services remained available online
 43.8% of votes submitted electronically in the 2019 parliamentary elections
 87% of schools were using e-solutions before the crisis
Until recently, digital transformation was considered pivotal to being future proof. It took a few weeks
of trying to operate during COVID-19 to establish that digital transformation was essential for survival.
Even as companies with robust business continuity policies were tested, those with internal
inefficiencies were completely exposed. Company health and digital strategies determined the level of
success in managing operations in unfamiliar business scenarios that emerged as a result of COVID-19.
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Exhibit 1 below captures the altered environment in which companies must now function. Adjusting to
changing business scenarios has to be complemented with strategies and internal processes that must
be aligned to seamlessly integrate the new business rules and operational modifications.
Exhibit 1: Business Environment Transition due to COVID-19
Impact on External Business Scenarios
- Demand and supply realignment Localized/just-in-time supply chains, integration of tech

- Virtual and digital-centric solutions such as robots, verticalization of digital goals (retail,
- Dynamic customer behavior healthcare), cybersecurity, redesigning contracts, business
- Regulatory intervention models based on virtualization, recreated business scenarios
Idenitifcation of Changes Required
- Agile and flexible, beyond the buzz The succes of remote working was largely due to enterprise
- Security across the board solutions. Transitioning to a digital workplace was possible
- Data-driven decisions due to digital communication tools, intelligent and secure
- Seamless transition to digital edge devices, and a scalabale mobile work environment.
Preparing for New Ways of Doing Business
- Flexible capacity utilization New areas of investment will include collaborative work with
- Automation to realign resources spatial computing, IoT digital twins, immersive visualizations
- Agile response systems and experiences, smart working tools, automation of
- Digital workflows processes, and adopting cloud and secure infrastructure.
Source: Frost & Sullivan
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Resetting Digital Transformation Scope and Pace

As expectations from all sides—customers to stakeholders—develop a trajectory of their own,
companies must reset their digital transformation scope and pace.
Exhibit 2 captures the different areas where companies must incorporate changes.
Exhibit 2: Resetting Digital Transformation Strategies
•The threat to businesses persists, and remaining idle is not an option as

Ideate economies open and businesses must ideate next steps and execution plans.
and Operational challenges continue and companies must monitor business scenarios,
Execute take corrective actions, plan ahead, and set in motion future-looking strategies,
leaving adequate scope for intervention.
•The pace of digital transformation goes beyond the adoption of "digitalization". It also
means faster reviews and faster decisions, followed by rapid operational
Scope implementation. Strategizing to ensure that digitalization happens across all functions,
and Pace from core to peripheral activities, and incorporating the capacity to change when the
need arises will be essential. To ensure the sustainability of strategies, a focus on
designing around data-based insights and customer-centricity is critical.
•The pace of digitalization had rendered many business models redundant,

Reinvent however, companies were slow when it came to making changes. As enterprises
and deal with the paradigm shift to "pivot or perish", relinquishing "status quo" and
Flourish reinventing to offer top-notch digital services can help companies to succeed,
despite exponential changes in the business scenario.
Fast-Tracking Digital Transformation Investment: Once the scope and pace of digital transformation is
reset, the next decision is to outline investment.
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Exhibit 3 below indicates changes that companies must make to relegate the days of long-winded
decision-making processes in order to transform digitally, as decisions around resources and actions
must take prominence.
Exhibit 3: Change in Approach to Accelerate Digital Transformation
•The use of data analytics and data-driven insights to improve processes, increase
Data-
efficiency, and enhance productivity is set to become the norm. Predictive
driven
insights, pattern recognition, and optimizing solutions are areas where ML and AI
Decisions
add a lot of value.
•The ability to alter business models based on exisiting and predicted business
scenarios using analytics-driven insights will be transformative for organizations. Not
Business all organizations can sustain long disruptions in business, and a change of course, such
Model as moving the bulk of business from brick-and-mortar stores to digital, became an
existential decision for many. Investing in digital capabilities that can enable such
decisions is crucial.
•Before COVID-19, the approach to digital transformation was incremental at best. As

companies now front-load digital-first strategies, the significant change is in the
Digital-
quantum of resources being deployed. Stakeholders will continue to expect digital
first
offerings beyond the crisis, which underscores investments in digital transformation
to fine-tune operations, and enhance productivity and business growth.
COVID-19 forced the introduction of new rules that organizations had to comply with before they were
able to open for operation after lockdown. Challenges ranged from ensuring business continuity to
accessing information, adequate distancing between workers, cleaning and disinfecting premises, and
being agile when it came to making decisions on how operations needed to adjust to changes in the
severity of infections.
The healthcare sector never shut down. Caregivers continued to work despite risks, making changes and
adjusting along the way. Automation, robots, and real-time information via connected devices and
dashboards went from instruments that enhanced efficiency to life-saving tools.
The developments in Exhibit 4 outline solutions that were used to deal with COVID-19 and helped
companies to keep working environments operating:
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• Safely,
• Functioning, and
• Executing continuous improvements.
Exhibit 4: IoT-enabled Solutions to Deal with COVID-19

Developments Examples
 Ford tested radio frequency identification device (RFID) buzzing wristbands that
use vibration and color-coded screens to maintain social distancing protocols.
The system sends alerts to supervisors to monitor worker compliance with social
distancing protocols. The company uses Samsung Electronics Co. smartwatches
equipped with Radiant’s RFID.
 Baiid Auto Technologies, an incubated start-up in India, has developed an IoT-
IoT for Safety
based smart face mask. It prevents exposure to infection and helps caregivers
Applications
monitor health parameters, such as temperature and blood oxygen levels,
remotely. A feature known as oxy-breathe ventilators (OVBs) attached to the
smart mask expels heat and manages humidity levels.
 Companies such as TMiRob, UVD, and Xenex Disinfection Services are using wi-fi-
based self-driving robots, which can be controlled via apps, to clean, sanitize, and
disinfect medical facilities. The robots emit high-intensity ultraviolet light to
destroy the virus.
 Three IoT providers—WMW (IoT framework), Abeeway (location intelligence

solution), and Actility, (LPWAN networking solutions)—collaborated to launch
multiple IoT-enabled solutions to meet COVID-19 challenges. One of these is
quarantine monitoring that registers breaches and sends information to relevant
IoT for Remote
authorities when people who are supposed to be isolating break rules, posing a
Management risk to effective virus containment.
 Spanish police used drones to ask people to move indoors and stay inside their
houses when they were found violating the state of emergency rules. Police were
able to monitor the city remotely without exposure and communicate with
people via speakers mounted on drones.
 A smart field hospital in Wuhan, China used artificial intelligence of things (AIOT),
a combination of IoT and AI, enabling robots and other IoT devices to perform
routine tasks such as checking temperatures of incoming patients, cleaning and
disinfecting, and providing food and medicines to quarantined patients. Smart
bracelets and rings enabled real-time monitoring of vitals, such as temperature,
IoT for Automation
heart rate, and blood-oxygen levels of patients.
 COVID-19 saw an uptick in eCommerce, yet companies needed to reduce the
number of workers in warehouses. Körber, the global supply chain technology
provider, launched Körber InSight Contact Tracer to mitigate risks in distribution
operations by tracking locations of people, devices, and equipment in
warehouses to protect workers.
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 Having worked across post and food delivery services, Antwork, a China-based
start-up started delivering medicines in 2019. A group company of the Japanese
entity, Terra Drone, it delivered medical samples and quarantine materials in
some of China’s worst affected areas.
IoT for Last-mile  Last-mile optimization is a critical component, and, with COVID-19, in addition to
Delivery cost, service, and inventory, it now encompasses “safety”. The omnichannel
approach to last-mile delivery has enabled the inclusion of drones and smart
parcel storage boxes for contactless delivery. Koloni, a mobility start-up in the
United States, is using smart lockers to deliver parcels and food to eliminate
human contact. Using an app and automated text message, users can gain access
to the contents of the locker.
IoT for Process  IoT solutions enable enhanced process efficiency with better transparency,
Efficiency maintenance scheduling, remote management and assistance, and performance
management.
Over the last few months, organizations have experimented with different methods to cope with the
situation they found themselves in due to COVID-19. While some relied on making process changes,
others operated at limited capacity. Accelerating digital transformation to deal with COVID-19 has
revealed some trends, which are covered in Exhibit 5.
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Exhibit 5: COVID-19 Coping Mechanisms
Vertical
Specifications Different rules for essential and non-essential services
•COVID-19 coping mechanisms were in favor of delivery of essential products and services to
consumers. This meant many companies adopted changes not considered possible pre-COVID-19, such
as allowing contact centers handling sensitive consumer data to be able to work from home.
Disruption in Supply
Chain Greater reliance on decentralization and localization
•Global supply chains were completely reset across industries as inventories piled up and customers
started to look for alternate suppliers.
•Demand for flexible and agile supply chains to initiate immediate changes increased.
Changing Business Increase in popularity of solutions that do not require upfront investment
Models
•As companies try to adopt new technologies, lower cost of operations, enhance operational efficiency,
and achieve strategic innovation all at once, preference for everything-as-a-service will increase.
•Providers will need to incorporate significant flexibility and customization capabilities into solutions.
Continuous Evolution IoT solutions have to be agile and flexible and fit in seamlesly with strategies
of Expectations
•The changes in business scenarios will force companies to align their business strategies, and they
will expect solutions to be equally capable of helping them to achieve their objectives.
•Outsourcing of managed services will see an increase as companies divest control to experts.
Demand for Data
Driven Insights Exponential increase in data and associated services
•The importance of data has been realized, however, as adoption of technology increases, the demand
for data will have to be matched with an increase in storage, computational capabilities and security,
and immediate access to insights.
Investments in IoT have been increasing over the last few years, however, the disruption caused by
COVID-19 was a wake-up call for many to speed up their IoT adoption plans. IoT-enabled solutions
helped many companies across industries to optimize their resources rapidly and reinitiate operations
after the sudden halt.
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Exhibit 6 captures some of the drivers.
Exhibit 6: Drivers to Increasing Investment in IoT, Global, 2021–2030

Driver 1–2 Years 3–4 Years 5–10 Years
IoT enables a seamless ecosystem: As companies, their vendors,
partners, and clients resume operations, IoT has been used to
drive efficiencies, collaborate digitally, and initiate advanced
High High High
analytics and engagement with customers to ensure business
continuity. The benefits will drive continued focus on the
adoption of IoT.
IoT enables flexibility and agility: IoT-enabled devices provided
near real-time information from factory shop floors, hospitals,
machines, trucks on the road, wearables, monitors, and
cameras. Timely access to information proved to be crucial for
decision makers about asset allocation, changing routes, High High High
identifying high risk areas, and making operational adjustments
based on rules and regulations. As economies around the world
start to open up, companies will need to be flexible and agile to
incorporate changes into workflows.
Current demand and future-proofing: Though digital
transformation has been a long-term strategy for most
companies, the current situation demands that immediate
changes be made. Demand for IoT has been driven by the High High High
realization that not only is this essential for business continuity
under the current circumstances, it has, within a matter of
weeks, evolved into an inevitable requirement.
New demands and requisites: COVID-19 led to new rules and
regulations being imposed on workplaces and other public
areas. Mandates such as social distancing and health monitoring
increased demand for solutions that could enable remote
High High Medium
monitoring, controlling, digital collaboration, and self-service.
This will lead to an increase in demand for connected products
and devices capable of transmitting information to a central
location and sending guidelines back to users.
Infrastructure: Adequate connectivity infrastructure is crucial for
the IoT to deliver without disruption. Many operators were able
to work with their clients and enable the requisite infrastructure
to support the added requirements. However, the quality and Medium Medium Medium
availability of connectivity infrastructure varies across regions
and countries. For global companies this can be a challenge that
affects efficiency.
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The IoT ecosystem is complex, and it can be challenging to negotiate for those that want to start the
process themselves. In addition, a lack of understanding about outcomes is another reason why many
companies fail in their attempts. COVID-19 has established that IoT is an important component in tech-
strategies if companies want to future-proof themselves, however, they will need to work with experts
to transform digitally.
Exhibit 7 captures some of the restraints that companies are likely to face.
Exhibit 7: Restraints to the Use of the IoT to Deal with COVID-19, Global, 2021–2030
Restraint 1–2 Years 3–4 Years 5–10 Years

Slow pace of deployment: Companies found themselves
underprepared when COVID-19 struck. Digital transformation
plans and strategies have had implementation timelines being
developed over many years, and companies are at different High High Medium
stages of adoption. For most companies, deploying IoT-enabled
solutions to restart business and reach levels that are pre-
COVID-19 will take more than a year.
Integration with existing systems will take time: One of the
challenges that companies have found difficult to overcome is
the integration of IoT-enabled solutions with existing legacy
systems. The cost of upgrading these systems outweighs the
High High Medium
benefits, which is why companies hesitate to invest. Providers
need to develop IoT solutions that can be integrated easily.
Additionally, many companies have little or no alignment with
customers and vendors systems.
Cybersecurity and data privacy: As working from home seemed
to be the only option when governments mandated the closure
of workplaces, companies suddenly had to deal with an
immense surge of devices that were accessing company systems
from unsecured devices, networks, and locations. This rendered High High Medium
the systems vulnerable, and those with sensitive user data were
at especially high risk. The risk continues to be high, though
companies have, over the last few months, tried to put in place
security protocols.
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Data deluge: IoT-enabled systems and solutions mean a

significant increase in data. Not all data is in a format that can be
consumed as soon as it is sourced; different data formats mean
that companies need access to adequate and appropriate tools
High Medium Medium
to analyze the data and draw insights from it. Increase in data
means that companies must make storage arrangements or
invest in edge-computing capabilities. IoT is a complex
ecosystem, and any change will have a domino effect.
Dealing with new mandates: Social distancing, closure of

workplaces, closure of borders, and lockdowns are some of the
unforeseen mandates that companies have had to deal with on
a regular basis in the last few months. Even as restrictions start
High Medium Medium
to ease, companies will continue to face new rules and
regulations based on government efforts to deal with COVID-19.
For global companies, they will also need to consider regional
differences.
Growth Opportunity Universe

Frost & Sullivan has identified 10 Growth Processes that serve as levers for determining and evaluating
new Growth Opportunities.
Growth Opportunity 1: Virtual Workplaces to Meet Mandates
Customer and Geographic Mergers and New Product Strategic

Branding Expansion Acquisitions Launch Partnering
Growth
Processes Distribution Vertical
New Product Competitive Technology
Channel Market
Development Strategy and IP
Optimization Expansion
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Opportunity Timeline for

> $1 B 2 Years Base Year 2020
Size in 5 Years Action
Relevant Industries for This Growth Opportunity Applicable Regions
Industrial
Smart Cities Energy
Automation
North America Europe
Chemicals and Communications
Environmental
Materials Technology
Shipping and Information
Oil and Gas
Distribution Technology
Latin America Middle East
Building
SCM and Logistics Public Sector
Technologies
Consumer Aerospace and
Healthcare
Electronics Defense
Africa Asia-Pacific
Mobility Retail BFSI
Context and Definition

 Social distancing was identified as one of the most effective methods to contain the spread of
COVID-19. As governments mandated complete shutdowns of workplaces, work across
companies and industries came to a halt.
 Many companies were equipped to enable remote working for their employees, and there were
others that were able to build capacity for remote workers over a period of a few weeks. Many
company offices have been completely shut for months now but have managed to conduct
business with remote working capabilities.
 To ensure effective virtual or digital workplaces, companies will need to enable employee’s
personal devices to connect to the systems. Voice assistants, fitness bands, smart lights, and
connected headphones/ear plugs are some of the devices that employees will increasingly bring
into digital workplaces.
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 Some sectors, such as healthcare, will especially rely on IoT to enable effective digital
workplaces. Caregivers will rely on connected devices in patient’s homes to enable access to
relevant data and take necessary actions or send instructions remotely, rather than have them
come into hospitals and clinics for routine check-ups.
 Remote management of assets will rely on IoT as employees will access platforms and
dashboards to locate, re-route, deploy, or manage allocation of resources.
 Some future-looking applications include augmented reality (AR)/virtual reality (VR)-enabled

field services and robotics-enabled remote assistance to surgeries in healthcare.
Call to Action
 The challenge for companies to introduce a virtual/digital workplace is enabling the
infrastructure. It will include sensors, devices, security, connectivity, differences in protocols,
managing data security, and privacy requirements. To manage this, companies will need to
invest upfront, and offer and utilize different business models to increase affordability.
 Companies will have to invest in connectivity infrastructure to ensure that IoT devices are able
to communicate without interruption. While devices will not relay data continuously, the entire
system will require adequate bandwidth, based on what it is to be used for.
 Another area where companies will need to take immediate action is security infrastructure. As
“bring your own device” (BYOD) becomes the norm, and connected devices join company
systems, vulnerabilities will increase. Multi-layered security will become mandatory, and
companies need to constantly stay alert to the possibility of breaches and work with security
companies to adopt state-of-the-art security protocols.
MFAB-67 20
Growth Opportunity 2: Smart Buildings for Safe Return to Business

Growth
Channel Market

Industrial
Smart Cities Energy
Automation
Environmental
Oil and Gas
Building
Technologies
Healthcare
Electronics Defense
Africa Asia-Pacific

 As restrictions imposed due to COVID-19 across the world ease, companies are able to allow at
least some of their employees to return to their workplaces. Similarly, people have started to
venture out and visit commercial and public spaces. To allay the persistent fears, and maintain a
strict vigil, identify clusters, and enable immediate action, facility management companies and
public authorities are looking at deploying technology effectively.
MFAB-67 21
 As flexible working becomes the norm, and companies use “mix and match” to ensure
employees are able to utilize workspaces safely, the basic premise to deploy smart building
technologies has evolved to add safety measures to others, such as energy savings, and
optimizing and monitoring occupancy. Insights from data about air quality, ventilation, and air
conditioning will optimize energy efficiency and monitor essential health parameters.
 Using technology to automate tasks such as cleaning schedules, managing disinfectants

remotely, use of robots to clean premises, and controlling and monitoring the opening and
closure of doors and windows will be necessary.
 Bosch’s IoT solution comprising connected building software, hardware such as building sensors,
and Bluetooth beacons enable smart building capabilities and outbreak preparedness. The
system can be customized with additional desk sensors, cameras, and other IoT devices,
depending on company policy of personal data protection and privacy rules. Some relevant
preparedness measures include wristband beacons to detect fever and send an alert, dynamic
people tracking, and real-time alerts to ensure safe distancing throughout the day.
 Smart building systems are capable of enforcing statutes such as monitoring and enforcing
safety protocols and rules, geofencing, monitoring people density, contact tracing, targeted
disinfection, and face mask usage monitoring.
Call to Action
 Smart building software and solutions may need to gather the personal data of employees. In
addition to deploying solutions before restarting workspaces, companies must formulate rules
and regulations that govern data gathering to ensure privacy and protection. This will help to
customize the available products and services in the market.
 Companies can extend the capabilities of their existing smart building systems to include
preparedness.
 Employee awareness needs to be increased in terms of how data is captured and used to ensure
that they are sensitized and are cognizant of the changes in their workplace environment.
Training on steps to be taken in case the system generates alerts will enable better compliance.
MFAB-67 22
Growth Opportunity 3: Smart Wearables for Real-Time Information Access

Growth
Channel Market

Industrial
Smart Cities Energy
Automation
Environmental
Oil and Gas
Building
Technologies
Healthcare
Electronics Defense
Africa Asia-Pacific

 The healthcare industry is overwhelmed with demand for care due to the ongoing pandemic. As
facilities are unable to cope with the steady increase in patients, healthcare workers want to
prevent other patients from unnecessary exposure to a potential infection. Smart wearables
have been used by the healthcare industry to reduce the cost of care and provide independence
to patients by monitoring vital parameters remotely. This has now been extended to include
out-patients who can receive guidance without visiting hospitals.
MFAB-67 23
 Wearable devices are also being deployed to monitor parameters such as heart rate, body
temperature, blood pressure, and movement that may aid in the early detection of coronavirus.
 Many other wearables have been launched in the market with additional features to adapt to
the myriad of needs of consumers. For instance, Estimote, a Bluetooth location beacon provider,
used its expertise to design a new product range called Proof of Health to contain the spread of
COVID-19. It helps in contact tracing and monitoring the potential spread of the coronavirus. In
addition to smart bands, wrist watches, and rings, companies are also investing in smart clothes,
shoes, skin patches, and smart goggles.
 Companies and individuals need to monitor, follow concurrent regulations, and prepare for
continuous changes in the guidelines for the foreseeable future. Using portable and accurate
devices will ease compliance. Something as simple as a vibrating smart band when social
distancing norms are not met can enable people to take control of their own well-being. Hong
Kong deployed electronic tracker wristbands to alert authorities when home quarantine rules
were flouted by individuals.
 Real-time access to information can enable timely remedial actions to reduce risks. Use of cloud
and data aggregation will enable insights, and different stakeholders can enhance products and
services in the immediate future and use these to design better products. Going forward,
innovations such as physIQ (a US-based start-up) will add value, as wearable sensors with AI
combine to detect subtle, mostly pre-symptomatic, changes to physiology to help healthcare
workers better understand the different trajectories of coronavirus among patients.
MFAB-67 24
Call to Action
 Smart wearables are a fast-growing segment of the connected devices market. As COVID-19
popularizes the trend of BYOD in workplaces, the acceptance of wearables as valid health
monitors and their use as preventive measures increases, the number is set to grow further.
Companies must be prepared to deal with many more end-points connecting their systems.
 The increase in the number of devices also means an increase in vulnerabilities and higher risks
to data security. The fragmentation and rapid pace of innovation means that security will not be
considered as a high priority by many stakeholders. The shared responsibility for security
increases risk. A lot of personal information is captured by these devices and transferred to the
cloud or other data centers. Companies must enable better security measures as they allow
different connected devices to be a part of their systems.
 The value of smart wearables lies in the data that they collect. Companies must invest in
building an ecosystem that can draw insights from the data captured by devices. Advanced
analytics and AI are some of the technologies that can enhance the value of data captured. They
will also pave the way for future applications such as AR and VR.
Growth Opportunity 4: Remote Tracking and Monitoring For Business Continuity

Growth
Channel Market
MFAB-67 25

Industrial
Smart Cities Energy
Automation
Environmental
Oil and Gas
Building
Technologies
Healthcare
Electronics Defense
Africa Asia-Pacific

 One of the most deployed technology applications powered by IoT has been remote tracking
and monitoring as companies tried to deal with the disruption caused by COVID-19. Remote
tracking and monitoring have been used to follow and account for people, assets, processes,
and environmental conditions.
 While tracking and monitoring people may be considered intrusive, the pandemic has resulted
in the acceptance of some unprecedented changes in terms of what is acceptable. Connected
cameras, wearables, movement sensors, and drones are some of the devices deployed for
remote tracking and monitoring. The convenience accorded, in terms of managing health or
crowd movement, rendered these applications almost indispensable.
 The trends can be expected to continue going forward, as companies gradually open
workplaces, modes of transport return to normal, and other shared spaces are opened to the
public. Sensors will be able to detect clusters or trace contact history and help in improving the
management of the disease.
MFAB-67 26
 The other major benefit of remote tracking and monitoring has been business continuity despite
imposed mandates, such as social distancing and the closure of workplaces. Companies that
were using IoT-enabled logistics, supply chains, and warehouses were able to reopen their
businesses faster, as they could monitor their assets remotely. Similarly, another technology
deployed was 3D digital twin to keep factories operational. With access to visual, online, and
real-time data on a specific line, or a machine, at all times enables operators and management
to make fact-based decisions.
Call to Action
 Companies must set up a robust data collection and processing system to initiate and
successfully implement remote monitoring processes. IoT and smart devices can work as
human-machine interfaces to collect data, followed by computing capabilities enabled by an IoT
platform. Creating a compatible and workable IoT solution can take time, and companies need
to work with providers that can offer an integrated solution.
 Providers are already exploring futuristic solutions equipped with technologies such as VR and
AR to optimize the performance of factories. Working with them from an initial stage will help
fast track the development of solutions.
 Digital twin software can provide interface to model facilities, operations, and data enabling
remote management. Access to real-time information via dashboards, such as the availability of
material or production output, along with insights to enhance operations enabled by predictive
analytics, advanced planning, and predictive maintenance allow companies to manage with
limited resources. This is especially crucial in the current situation and immediate future.
Growth Opportunity 5: Intelligent Automation for Seamless Operations

Growth
Channel Market
MFAB-67 27

Industrial
Smart Cities Energy
Automation
Environmental
Oil and Gas
Building
Technologies
Healthcare
Electronics Defense
Africa Asia-Pacific

 COVID-19 rendered many organizations unable to conduct operations as staff were forced to
stay at home. Additionally, business was unpredictable as supply and demand was restructured.
 Intelligent automation can help businesses remain functional despite disruption in staff
availability. Some of the early applications where automation can be used to release staff for
more strategic and value-adding work are day-to-day repetitive work activities and manually
intensive rule-based processes.
 Technologies such as IA and robotic process automation can be integrated into the existing
enterprise information technology (IT) systems that companies possess.
 Applications such as conversational AI, bots, and frequently asked questions (FAQs) can be
powered by intelligent automation to increase speed, scalability, and a seamless transition to
digital transformation.
MFAB-67 28
 In the contact center industry, companies can deploy virtual agents to support work-at-home
agents. IT chatbots can be used to verify caller identity, identify and resolve issues, and update
the requester with little or no manual intervention. This will enhance productivity, increase the
volume of requests, manage workload with fewer employees, and make employees available for
value-added tasks.
 What companies need is the ability to traverse information between devices, to automate
processes, and reduce reliance on human intervention. In addition to meeting the extraordinary
demands that COVID-19 has placed on companies, other advantages include improved accuracy
and up-time.
Call to Action
 Companies must look at alternate models such as software-as-a-service to integrate automation
into their systems.
 Companies must decide on necessary outcomes so that deployment of automation solutions can
deliver immediate results. Rule-based automations make it easier for companies to remain agile
and make changes on the go.
 Intelligent automation can aid in managing internal functions, such as human resources, as well
as production schedules, enabling a wide variety of applications.
 Companies can decide on priorities and implement solutions that they can scale in the future to
improve performance across the entire operational spectrum. For instance, with healthcare and
public services overwhelmed as the COVID-19 crisis does not abate, IoT can reduce the burden
by automating contact tracing, cluster identification, and compliance of quarantine.
MFAB-67 29
Growth Opportunity 6: IoT-as-a-Service for Faster Access

Growth
Channel Market

Industrial
Smart Cities Energy
Automation
Environmental
Oil and Gas
Building
Technologies
Healthcare
Electronics Defense
Africa Asia-Pacific

 For faster deployment of IoT solutions at a lower cost, companies will demand solutions without
having to significantly invest upfront. Building on existing technology and infrastructure,
solution providers need to enable capabilities that are interoperable and compatible with other
systems.
MFAB-67 30
 The complexity of the IoT ecosystem has been a deterrent, and in addition to fast deployment,
companies need solutions that are easy to implement and use. An integrated solution with
hardware, modules, software, and services can speed up adoption. For instance, Telit’s
packaged plans offering IoT-as-a-service include connectivity and Telit OneEdge. The opex
model comes with a cellular module, software, services, and network connectivity that can
accelerate IoT applications cost-effectively.
 Other companies are offering IoT technology stacks that enable even late starters to leverage
benefits of IoT. For instance, the IoT business unit of HCL Technologies IoTWoRKS aids in faster
time-to-market and cost savings. Another example is Microsoft’s Azure IoT Central, which helps
companies achieve lower costs of development, management, and maintenance of enterprise-
level IoT solutions. It can offer vertical-specific solutions with scenario-based templates for
retail, energy, government, and healthcare.
Call to Action
 Companies must identify short- and medium-term outcomes so the solutions can be customized
based on their specific needs and requirements.
 A strategy that includes long-term requirements must be put in place so that it is easier to
integrate additional modules and services later.
 An understanding about the existing and future infrastructure will help in designing a future-
proof solution.
 Security must be layered into the design, so that data privacy and security protocols are adhered
to throughout the life cycle.
MFAB-67 31
Growth Pipeline EngineTM
Frost & Sullivan’s Growth Pipeline Engine™ supports clients through all 5 phases of growth: from
developing, evaluating, and prioritizing opportunities to building and implementing go-to-market
strategies and optimizing opportunities. The objective of this study is to be a client’s first step on a
growth journey.
MFAB-67 32
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COVID-19 Revival and Sustenance Strategies-Fast-Tracking Digital Transformation With The Internet of Things

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COVID-19 Revival and Sustenance Strategies-Fast-Tracking Digital Transformation With The Internet of Things

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COVID-19 Revival and

The Growth Pipeline™ Company MFAB-67

Innovative Business Models............................................................................................ 4

Costumer Value Chain Compression ............................................................................... 5

Transformative Mega Trends .......................................................................................... 5

Internal Challenges ......................................................................................................... 5

Competitive Intensity ..................................................................................................... 5

Geopolitical Chaos .......................................................................................................... 5

Disruptive Technologies ................................................................................................. 5

Industry Convergence ..................................................................................................... 5

Strategic Imperatives to Fast-Tracking Digital Transformation with the IoT ........................................................... 6

Growth Opportunity Analysis................................................................................................................................. 9

Resetting Digital Transformation Scope and Pace ......................................................... 11

Growth Opportunity Universe ............................................................................................................................. 18

Growth Opportunity 1: Virtual Workplaces to Meet Mandates .................................... 18

Context and Definition ................................................................................................................................. 19

Call to Action ................................................................................................................................................ 20

Growth Opportunity 2: Smart Buildings for Safe Return to Business ............................ 21

Context and Definition ................................................................................................................................. 21

Call to Action ................................................................................................................................................ 22

Growth Opportunity 3: Smart Wearables for Real-Time Information Access ................ 23

Context and Definition ................................................................................................................................. 23

Call to Action ................................................................................................................................................ 25

Growth Opportunity 4: Remote Tracking and Monitoring For Business Continuity....... 25

Context and Definition ................................................................................................................................. 26

Call to Action ................................................................................................................................................ 27

Growth Opportunity 5: Intelligent Automation for Seamless Operations ..................... 27

Context and Definition ................................................................................................................................. 28

Call to Action ................................................................................................................................................ 29

Growth Opportunity 6: IoT-as-a-Service for Faster Access ............................................ 30

Context and Definition ................................................................................................................................. 30

Call to Action ................................................................................................................................................ 31

Legal Disclaimer ................................................................................................................................................... 33

The Strategic Imperative 8TM

Innovative Business Models

Costumer Value Chain Compression

Transformative Mega Trends

Strategic Imperatives to Fast-Tracking Digital Transformation with the

Growth Opportunity Analysis

 99% of government services remained available online

 43.8% of votes submitted electronically in the 2019 parliamentary elections

 87% of schools were using e-solutions before the crisis

Exhibit 1: Business Environment Transition due to COVID-19

Impact on External Business Scenarios

- Demand and supply realignment Localized/just-in-time supply chains, integration of tech

Idenitifcation of Changes Required

Preparing for New Ways of Doing Business

Source: Frost & Sullivan

Resetting Digital Transformation Scope and Pace

Exhibit 2: Resetting Digital Transformation Strategies

•The threat to businesses persists, and remaining idle is not an option as

•The pace of digitalization had rendered many business models redundant,

Source: Frost & Sullivan

Exhibit 3: Change in Approach to Accelerate Digital Transformation

•Before COVID-19, the approach to digital transformation was incremental at best. As

Source: Frost & Sullivan

• Executing continuous improvements.

Exhibit 4: IoT-enabled Solutions to Deal with COVID-19

 Three IoT providers—WMW (IoT framework), Abeeway (location intelligence

Source: Frost & Sullivan

Exhibit 5: COVID-19 Coping Mechanisms

Source: Frost & Sullivan

Exhibit 6 captures some of the drivers.