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The kinks are still being worked out for how marketers and tech companies will use the Internet of Things, but the big-money investments are already starting to trickle in. Samsung Electronics Co. announced on Tuesday it plans to invest $1.2 billion in the U.S. on IoT over the next four years.
IoT has been receiving interest from marketers and technology companies across the world for its ability to tie previously unconnected devices into a connected system, giving a bevy of unique data points.
Samsung Electronics Vice Chairman and CEO Dr. Oh-Hyun Kwon said at the Internet of Things: Transforming the Future event in Washington, D.C., that the initiative will be led by Samsung Strategy and Innovation Center, Samsung Global Innovation Center and Samsung Research America.
Kwon said peers need to start “talking and thinking differently” when it comes to IoT, calling for a more human-centric approach. He said he is excited to move IoT to the center of the company’s strategy and believes people have the highest value at the company.
“The same must be true for IoT if we want to realize its full transformative power,” he said. “Today, IoT is changing individual lives—helping people to age in their own homes. But tomorrow, using IoT, we can give the same independence to millions of Americans. We can keep people out of hospitals and nursing homes. As our populations live longer, these benefits and cost savings for society cannot be ignored.”
In 2015, IDC reported that the IoT spending, which was $655.8 billion worldwide in 2014, will balloon to $1.7 trillion by 2020 with an annual growth rate of 16.9 percent.
Thus far, many companies still aren’t sure what to make of IoT. Marketing News previously reported 75% of businesses still have no industrial IoT strategy, even though 82 percent of business executives believe that adoption of IoT is critical to the future of their company.
Hal Conick is a staff writer for the AMA’s magazines and e-newsletters. He can be reached at [email protected] or on Twitter at @HalConick. For more of the latest in marketing news, please visit www.ama.org.