IoT Early Adopters Share Insights – Successful Implementations
IoT early adopters have developed an IoT strategy but are at the define and or build stage of execution.
Key considerations for an ideal IoT platform include:
- Security 95%
- Data Analytics 89%
- End-to-end support 89%
- User Interface 87%
- Scalability 86%
- Agility 86%
- Interoperability 83%
47% of respondents have no formal IoT program in place yet but almost half (46%) state that they are currently defining or evaluating their IoT platform.
Of respondents whose organizations are planning to implement IoT, 73% say that they plan to outsource at least some of their implementation.
IoT Early Adopters Share Insights – Expected Business Outcomes
Of respondents whose organizations are using or planning to use IoT, over 60% are looking to improve business process efficiency
Over 50% are focused on improving the use of data to drive insights
47% believe their organization would benefit by the use of value added service and the 47% believe they would gain a competitive advantage
IoT Early Adopters Share Insights – How Much IoT Data is Analyzed
On average, only 48% of data collected by respondents’ organizations is analyzed.
IoT Early Adopters Share Insights – Challenges
Respondents communicate that they struggle to leverage the large quantities of data that they collect.
91% of respondents report that they have challenges in turning data into insights.
46% state that they are not using the right platform
31% point to the platform as not being scalable
On average, it currently takes respondents 9 days to convert data into useful insight, which is more than4X longer than they would like (two days is their average ideal time).
IoT Early Adopters Share Insights – Role of Service Providers
IoT early adopters believe their is value to be derived by using a service provider. Over 50% of respondents stated that IoT service providers are instrumental to ensure that their IoT devices are secure.
49% believe IoT service providers add value by assisting in defining what IoT solutions can be used and by providing ongoing support
48% feel IoT service providers help maintain IoT devices.
Technology & Innovation for the Future of Production: Accelerating Value Creation
- The internet of things (IoT) is an evolution of technologies that were developed more than 15 years ago
- Operations and automation technologies are coalescing with sensors, the cloud and connectivity devices of the information technology (IT) industry
- Information Handling Services (IHS) projects the number of those devices are expected to grow to almost 80B by 2025, up from 17B today
- The immediate opportunities for producers are in smart enterprise control, asset performance management in real time and smart and connected products and services.
- Cybersecurity and interoperability challenges are hindering producers from embracing IoT on the factory floor and in their supply chains, with 85% of assets still unconnected
- Artificial intelligence (AI) enables producers to make sense of the overwhelming data that their factories, operations and consumers generate, and to transform that data into meaningful decisions
- Today, 70% of captured production data goes unused
- Applying AI to the connectivity of IoT, producers are able to orchestrate and streamline business processes from desktops to machines, across department walls and tiers of suppliers
- The most promising immediate opportunities for applying AI in production systems are in quality management, predictive maintenance and supply chain optimization
- AI-enabled products will be a game changer for value propositions addressed to customers, and producers must be ready to orchestrate the value networks required to deliver these
Gartner – Diversity of IoT Analytics Systems
Gartner summarizes the Analytics temperatures for:
- Sensor and actuator analytics systems
- IoT device analytics systems
- Gateway analytics systems
- Platform and streaming analytics systems
- Enterprise analytics systems
Gartner – IoT Extends IT Into the Physical World to Sense, Analyze, Act and Communicate
The marriage between the physical world and IT poses major challenges for technical professionals.
Integrating physical assets or control systems into the broader IT context is a complex undertaking that involves many heterogeneous and complex technologies.
Significant challenges arise for testing, quality and monitoring requirements.
Technical professionals must approach this opportunity with the right plans, architectures and practices to surmount these challenges and successfully deploy IoT solutions.
These are the 3 top priorities to achieve this goal
- Develop an IoT technical strategy to manage complexity proactively
- Architect and design for successful IoT execution
- Build expertise in IoT architectural components
Gartner – Steps for Developing and Executing an IoT Technical Strategy
It’s important to approach IoT technology planning from a strategic perspective upstream in the process – before individual business units initiate efforts and then pull in IT to approve purchases.
Gartner’srecommended process of developing and executing an IoT technical strategy includes the key steps needed to address this priority:
- Identify the team
- Define the architecture
- Govern the delivery process
- Deliver solutions
- Operate, manage and improve
A best practice is to establish an IoT center of excellence (COE) to ensure that the organization has the right staff in place, understands the desired business outcomes and has the right people involved in IoT strategy planning and execution sessions.
Gartner’s Three Tiers of an IoT Architecture
Organization sare expected to deploy multiple IoT solutions.
Rather than making and implementing Iot technology solutions in a one off, ad-hoc manner, address the opportunity in an integrated, holistic manner.
IoT solutions should be planned and deployed within a managed, repeatable framework to ensure they are executed consistently and in a manner that leverages institutional IP.
As an organization develops its IoT deployment competency, it will become more productive, efficient and cost-effective – avoiding chaotic and inefficient IoT implementations.
Develop an IoT architecture that can meet the needs of the organization holistically:
- Process layer
- Functional layer
- Informational layer
- Communication layer
- Device layer
IoT Barometer Report – Executives Are Researching & Launching IoT Projects
Vodafone’s fifth annual IoT Barometer Report, 2107
82% of companies who have adopted IoT define its role as integrating analytics, artificial intelligence (AI) and key digital initiatives
84% of respondent’s agree that their adoption and use of IoT solutions have grown in the last year
According to the Barometer study, 46% of IoT adoption companies have integrated with their Customer Relationship Management (CRM), Enterprise Resource Planning (ERP)
IoT Barometer Report – Business Benefits
The greatest benefits of IoT can be achieved when IoT is taken beyond a project and integrated within the business
51% of adopter state that IoT is increasing revenue or generating new revenue streams
36% of respondent’s communicated that there organization saw an increase in revenue based on IoT and that growth was in excess of 20%
29% of IoT adopters reported cost reductions and that the decreases were in excess of 20%
Executives Are Researching & Launching IoT Projects
In 2017, 73% of Executives Are Researching & Launching IoT Projects
Manufacturing-based IoT connections grew fastest between 2016 and 2017 – 84%
73% of executives stated that they are either researching or currently launching IoT projects
The IoT platform market is expected to grow 35% a year to reach $1.16B in revenues by 2020
B2B uses are expected to account for nearly 70% of the potential value enabled by IoT
Go to Market IoT Research From McKinsey
- 75% of IoT experts communicate that IoT security is either important or very important, and that its relevance will increase
- Only 16% of IoT experts stated that their company is well prepared for the challenge – insufficient budget allocated to IoT cybersecurity is a key barrier
- When it comes to prediction capabilities, 16% of IoT experts interviewed felt well prepared, compared with 24 – 28% on prevention, detection and reaction
- More than 1/3 of organizations lack a cybersecurity strategy that also covers the IoT
Computerworld Forecast Study – IoT
Go to Market IoT Research – Mary Meeker Internet Trends Report
Go to Market IoT Research – Forrester Summarizes Greatest Impact for IoT
Forrester Go to Market IoT Research – IoT Is A Business-Driven Tech Trend That I&O Will Support for Each Use Case
- A majority of global enterprises are using or planning to use IoT — but that doesn’t mean I&O leaders should rush to construct IoT infrastructure for the business. IoT tech is enormously varied and complex because it is designed to address a wide range of business applications that span many industries. I&O leaders must support business leaders as trusted advisors to support business-led use cases.
Forrester Go to Market IoT Research – Organizations Must Prioritize Your Firm’s IoT Applications And Use Cases
- Forrester suggests that firms evaluate opportunities to deploy IoT-enabled applications and use cases based on three factors specific: (1) IoT use case applicability and maturity, (2) physical asset intensity, and (3) information and communications technology (ICT) spending.
Forrester Go to Market IoT Research – Evaluate The Impact Of IoT Application Deployment On Processes And Skills
- Forrester believes that implementing IoT requires I&O executives to reassess technology solutions that is expected to help deploy, manage, and secure their organization’s connected devices and processes.
- In addition, Forrester communicates that organizations will need to invest in new employee skill sets to enable IoT applications and analyze data captured from these connected products and applications.
Go to Market IoT Research – Forrester’s IoT Geographical Analysis
Go to Market IoT Research – Forrester’s IoT Industry Analysis
Go to Market IoT Research – Forrester’s IoT Use Cases
Go to Market IoT Research – Bain Defines the Battlegrounds of the Internet of Things
Go to Market Research – IoT – Consumer
- As leading mobile platform providers expand into new markets with new products (wearables, smart homes, cars) many software and hardware companies will find their niche in the IoT ecosystem.
- Companies that invest in learning which platforms offer the best market opportunities, depending on their region, industry, use case and capabilities.
- Serious competition among a small set of platform providers is expected as they will use scale, developer communities, device partnerships and businesses subsidized by data as competitive weapons. Creating platform stickiness and bridging customers across industry segments will be the critical to go to market plans.
Go to Market Research – IoT – Enterprise & Industrial
- As industrial and enterprise equipment and devices become connected, incumbents will focus on specific industries to build on their domain expertise and customer relationships by expanding into broader offerings.
- Many companies are expected to form partnerships, either to improve their capabilities (especially in analytics & security) or to acquire expertise in adjacent industries.
- Companies that can build scale and make partnerships work have the opportunity to shape platform standards. Given the diversity of industries, expect a wide range of vendor platforms that may share common features but are tailored for particular uses.
Go to Market Research – IoT – Network & Gateway
- Connecting devices through the network provides opportunities for new products and services.
- Edge analytics and real-time (or low-latency) services will become increasingly important – close to sources of data rather than in the data center.
- Many companies will look to their long-standing relationships with network equipment makers and telecom service providers to capitalize on market opportunities.
- Telcos are expected to try and capitalize on the proliferation of devices and apps in several ways. First, they will improve connections with better directory services to locate, authenticate and connect remote devices. Second, they will offer life-cycle management services to maintain, upgrade, secure and provision the complex device and sensor networks.
Go to Market Research – IoT – Analytics
- Analytics are expected to emerge as a critical platform battleground.
- Traditional analytics vendors, cloud service providers and system integrators could successfully extend their customer relationships and scale into tailored products and services.
- On the other side of the coin, new pure play vendors will offer custom analytic solutions in which limited integration with broader data sources is needed.
- Partnerships with industry incumbents will be important for both horizontal and pure play vendors.
Go to Market Research – IoT – Autonomous
- Robotics, drones and autonomous driving are among the most greenfield of all these applications.
- Robotics, drones and autonomous driving differ in that most sensor information is collected locally and processed on board, with less (though not zero) connectivity back to the cloud, creating different demands on local vs. remote data storage and processing than other Internet of Things applications.
- Real-time capabilities and technologies such as computer vision and machine learning will be important differentiators for success.