Our Pulse Check series highlights the key news and takeaways in Connected Industry for each month. The intention of these Pulse Checks is to see how quickly things happen - digitalization subsumes IoT, AI and Machine Learning goes mainstream, energy transforms to clean and decentralized while the emergence of autonomous vehicles, smart spaces and new tech like blockchain and 5G are taking off. As the industry is moving faster and continues to evolve, we share the stories you need to know to keep abreast with IoT news from around the world.
Summer is typically a slow season for new products and major developments, and 2019 is no exception. What’s different this year is that US-China trade tensions continue to ratchet the pressure on American companies to explore alternatives to Chinese manufactured goods and components. For Connected Industry, this creates challenges for supply chain planning – and the unpredictability of tariff policy has a silver lining in that the need to seek out alternative suppliers will help bolster the resiliency of business operations over time.
One of the dynamics about the Industrial IoT market that’s explored in a new report from BCG is that incumbent firms often have more sustainable competitive advantages against startups in IoT. Rather than risk being completely disrupted, large established firms can more effectively extend their business lines and diversify revenue models by partnering with startups. This changes the dynamics of investing from the VC perspective, which we explore in our Webinar "The Venture Industrialist; Investment Strategies for Connected Industry". There are ample opportunities for incumbents and new entrants to grow together around new opportunities.
We hope that the resolution of US-China trade tensions will occur in the near term – but ongoing challenges are forcing creative solutions to the fore. Looking into the rest of the year, the solid economy in the US appears to be resilient despite fears of recession, and we expect investments and adoption of IoT to continue apace.
Momenta Partners encompasses leading Strategic Advisory, Talent, and Venture practices. We’re the guiding hand behind leading industrials’ IoT strategies, over 200 IoT leadership placements, and 25+ young IoT disruptors. Schedule a free consultation to learn more about our Connected Industry practice.