Delegates of Moscow Financial Forum – 2017, which will be held on September 8 in the Manege Central Exhibition Hall, will discuss global economic challenges and problems of long-term sustainability of financial system. PricewaterhouseCoopers (PwC), the Knowledge Partner of the Forum, supposes that the economic effect of the IoT introduction in Russia will amount to 2.8 trillion rubles.

IoT (Internet of things) is a leader among breakthrough technologies that can change entire industries and cut down expenses ahead of AI, augmented reality, unmanned aircraft technology management, blockchain, etc.
According to PwC experts, the economic effect of IoT implementation will be achieved primarily due to cost savings on technical maintenance and productive assets servicing, and also due to increase of energy efficiency of manufactures and buildings, optimization of transport and logistics flows and enhancement of efficiency of manufacturing process.

As Yury Pukha, Head of competence PwC in IoT field in Russia, notes, it’s important to consider multiplicative effect that IoT technologies have on branches of economy due to increase of labor productivity and reduction of expenses. Achievement of that effect depends on system approach to introduction of IoT in Russia. The main role in this process should be fulfilled by the government, as it has various instruments: development of IoT support mechanism, arrangement of conditions for human resources development, promotion of Russian experience abroad. In case of well thought out and systematic approach IoT might become one of the growth factors of Russian economy in long-term perspective.

In power industry IoT introduction will significantly contribute to increasing efficiency of the branch and sustainability of its infrastructure. As a result of improving of the controllability of substations and power lines, operation and repair costs will be reduced, and technological and commercial losses will decrease. The economic effect from the IoT introduction in the electric power industry will amount about 532 billion rubles until 2025. IoT implementation will reduce fuel consumption that currently accounts for more than half of the operating costs of the stations.

"Smart farming" and IoT greenhouses in the agricultural sector will help to increase yield capacity (using seeds, agrochemicals and water on demand and it’s more sufficient usage), increase the quality of products, reduce fuel consumption for agricultural machines and water in agricultural fields, reduce loss of harvest during storage and transportation. Under these conditions, minimal economic effect from the introduction of IoT in agriculture sector can reach 469 billion rubles by 2025.
Introduction of IoT to healthcare system allows reaching the new level of diagnosis of diseases, accuracy of treatment and monitoring of patience health with the help of nanoparticle sensor and other "smart devices". The economic effect in this area is estimated at 536 billion rubles.

In the logistic sector vehicles connected to the Internet and remote monitoring of the fleet will allow reducing of operational expenses due to optimization of repair and maintenance of machinery expenses. Anticipated savings – 542 billion rubles.
"Smart house" devices will increase efficiency of home security system due to smoke and water alarm, and reduce housing and communal services expenses with "smart" counters and "smart" bulbs. The economic effect of the introduction of "smart house" devices will amount about 387 billion rubles for the period until 2025.

Appliance of IoT in Russia currently presents severe difficulties and limitations due to economic, technological, legislative, geographical and cultural specifics of the country. Constraining factor at the consumer market is low income of the population, in the market of commercial companies the factors are: the length of the decisional process concerning introduction of new technologies, a short planning horizon, the complexity of internal processes, regulations, workflow and approaches towards obtaining and processing information changing.
"We believe that IoT is not only a technology, but the basis of new production system for companies in different branches," says Yury Pukha, "as any other production system IoT requires significant transformation of methods, inner business-processes, production and management culture of companies."

That is why, according to PwC experts, the main task of IoT introduction – not to shift to new technology and IT-solutions, but to change business models.