After endless cycles of promotion and exaggeration, it seems most business executives are still excited about the potential of the Internet of Things (IoT). In fact, a recent survey of 200 IT and business leaders conducted by TEKSystems ® and released in January 2016 determined that 22% of the organizations surveyed have already realized significant benefits from their early IoT initiatives. Additionally, a full 55% expect a high level of impact from IoT initiatives over the course of the next 5 years. Conversely, only 2% predicted no impact at all.
Respondents also cited the vital areas in which they expect to see some of the transformational benefits of their IoT efforts, including creating a better user and customer experience (64%), sparking innovation (56%), creating new and more efficient work practices and business processes, (52%) and creating revenue streams through new products and services (half).
So, with the early returns indicating there are in fact real, measurable benefits to be won in the IoT, and the majority of executives expect these benefits to be substantial, for what reason are some organizations still reluctant to move forward with their own IoT initiatives?
As could be expected, security is the biggest concern, cited by approximately half of respondents.
Increased exposure of data/information security – half
With the World Wide Web as an example, people today are well aware of the dangers inherent in transmitting data between nodes on a network. With many of these giải pháp iot organizations working with key proprietary operational data that could demonstrate advantageous to a competitor whenever exposed, the concern is truly understandable.
return for money invested/making the business case – 43%
This is a classic example of not knowing what you don’t know. Without an established example of how similar initiatives have impacted your organization in the past – or even how similarly sized and structured organizations have been impacted – it can be extremely challenging to demonstrate in a tangible way exactly how these efforts will impact the bottom line. Without being able to make the business case, it will be difficult for executives to sign off any new initiatives. This is likely why larger organizations ($5+ billion in annual revenue) are much more likely to have already implemented IoT initiatives, while smaller organizations are still in the planning phase.
Interoperability with current infrastructure/systems – 37%
Nobody likes to start over, and many of the executives surveyed are dealing with organizations who have made enormous investments in the technology they are currently using. The notion of a “tear and replace” type of implementation is not extremely appealing. The cost is not only related to the downtime incurred in these cases, but the wasted cost associated with the expensive equipment and software systems that are being cast aside. In most cases, to gain any traction at all a proposed IoT initiative will have to work with the systems that are already in place – not replace them.