According to the report published by Cisco in 2008 the number of devices connected to the internet now exceeds the number of people in the world. The number of devices that are connected to the internet is rising. This growth is not only from computers and smartphones: with the help of sensors every physical item on this planet can be connected to the internet. This phenomenon is called the Internet of Things and it will change our society as much as the industrial revolution once did.

The Internet of Things will revolutionize many industries. Sensors, big data, robotization and hyperconnected systems will all alter the ways in which we have done business in the past. When for example locks and keys become digital services – instead of physical items – the locks’ manufacturers will have to become experts in online services too.

The companies of today will have to be able to reshape their businesses along the way or simply step aside. The five things listed below will change the future of business. Read them carefully.

1. Digital and physical worlds will collide

The number of devices produced for using the Internet won’t grow alone. In the future the digital world and the physical world will become one. Many physical items are already shared online: rides are shared with car-sharing service Uber and houses with Airbnb. This means that the Internet of Things will affect not just the tech industry but all businesses. For example the music industry hardly uses physical recordings anymore because producing digital content has proved to be more cost-effective than CDs.

2. Data is capital

There is an ever-growing amount of accessible data and information in this world. The ones who can collect, manage and handle this data in a meaningful way will hold the power in the future. The ability to use big data will help solve enormously complex problems and foster understanding of new intricate systems.

3. Ownership will lose its importance

Tangible objects will become more self-aware when they collect data and react to the changes of the environment. This enables new business models that will not be based on ownership. Instead of paying for owning things, we will be paying for the right to use certain things. In the so called mobility as a service model the users pay a monthly fee which allows them to use taxis, Ubers, buses and other forms of transportation. The user will just have to tell the application where he wants to travel. Owning a car is not necessary.

4. Routine jobs will disappear

Because of automatisation and digitalisation millions of people will lose their jobs in the manufacturing, farming and service sectors. The Research Institute of Finnish Economy ETLA forecasts that in 20 years time there will be no more jobs for shop assistants, secretaries or accountants.

The need for routine work will decrease in the future but the people working in shops and offices are still needed for tasks that require creativity and problem-solving skills. People will have to be able to identify their human capabilities and develop new skills.

5. Objects will be their own source of energy

The development of the Internet of Things is only possible when the sensors attached to various physical world objects will be able to harvest energy from their environment. In the future a physical world object will be able to harvest energy from light, motion and warmth surrounding it, and will not need any external sources of energy. This will revolutionize the energy market – which alone forms ten percent of global economy.

The Internet of Things is no science-fiction but a phenomenon that is already taking place. Understanding the change is essential for future businesses to succeed.

Read more in the “The Future as Told Through the Garden and the Streets” scenario publication, out now, and learn more about our Naked Approach strategic research project here.