It’s official: The Internet of Things is not a fad. Businesses are engaging with the IoT in a big way, and implementation is a top priority for the majority. This is according to a recent study* conducted by technology market research company Vanson Bourne.
The study revealed that 98% of respondents identified IoT as an important initiative for their organization. In fact, 25% of them said it was the most important initiative, even above boosting production capacity (16%), upping revenues (12%), or launching new products and services (9%).
So, unlike the Hula-hoop® or Pet Rock®, the IoT is not a here-today-gone-tomorrow phenomenon. “One thing that is certain… the IoT is no longer optional, nor is it an IT ‘buzzword’ or ‘fad,’” said the paper.
Not only do businesses realize what a powerful tool IoT is, they are already making money on it. The vast majority of respondents (98%) said their organizations are realizing value from IoT, as they measure the ROI from their initiatives.
So, what is driving this adoption? Boosting revenues is, of course, important (43%), as is improving operational efficiency (50%). Upping productivity (44%) and optimizing operations (41%) also feature as top drivers.
IoT can also have a positive direct impact on customer satisfaction; and 43% said that they are implementing IoT to this end, with 39% already seeing an improvement in this area as a result.
But, with the rush to adoption come challenges. Successfully implementing and integrating the IoT into your business is not as easy as it sounds; 90% of respondents admitted that their organization is seeing challenges and barriers.
The most commonly encountered challenge was a lack of internal expertise and skills (31%), trailed by the inability to manage and process large volumes of data (29%) and integration issues (28%).
Other challenges included too many legacy systems (28%), the company being too slow to make changes (27%) and inability to scale its network to meet IoT demands and disruption to business (26%).
See the chart for more:
Overall, the message is clear: Implementing IoT can positively impact the customer-facing end of your business as well as the bottom line. Businesses need to put steps in place to overcome these barriers effectively. A comprehensive IoT platform is a big part of the solution.
In my next post, I will discuss the merits of buying an IoT platform versus building in-house.
*The research, commissioned by Software AG, interviewed 800 IoT decision makers at organizations with global revenues of $500 million plus over 13 different countries.