Decision-makers believe that 30% of their company’s revenue two years from now will come from the Internet of Things, yet almost a third of projects aren’t moving beyond the initial phase.
Adoption of the Internet of Things (IoT) and its supporting technologies is growing rapidly, with the IDC forecasting that there will be 41.6 billion connected devices globally by 2025.
However, the industry faces a significant IoT skills gap, as well as complexity and security challenges that may compromise business benefits if not addressed.
That’s according to a new research report – IoT Signals – published by Microsoft. More than 3,00 IoT decision-makers in enterprise organisations were surveyed in order to provide a holistic, market-level view of the ecosystem, including adoption rates, related technology trends, challenges, and benefits.
IoT Signals key findings:
- 85% of respondents are in IoT adoption, and 75% of these have projects in planning
- Among IoT adopters, 88% believe it is critical to business success
- IoT adopters believe they will see a 30% ROI, inclusive of cost savings and efficiencies, two years from now
- Nearly all adopters (97%) have security concerns when implementing IoT, but this is not hindering adoption
- 38% of adopters cite complexity and technical challenges to using IoT as a barrier to furthering their adoption
- Lack of talent and training present challenges for half of adopters, and 47% say there are not enough available skilled workers
- Respondents believe critical technology drivers for IoT success in the next two years are AI, edge computing and 5G
- Nearly one-third of projects (30%) fail in the proof-of-concept stage, often because implementation is expensive or bottom-line benefits are unclear
The key to unlocking the promise of IoT lies in addressing the skills shortage, complexity and security
Carrie MacGillivray, group vice president, IoT, 5G and Mobility at IDC, commented: “As the market continues to mature, IoT increasingly becomes the fabric enabling the exchange of information from ‘things’ to people and processes.
“Data becomes the common denominator — as it is captured, processed, and used from the nearest and farthest edges of the network to create value for industries, governments, and individuals’ lives.”
Through its partnership with global enterprises including Starbucks, Chevron, thyssenkrupp, BMW, Volkswagen and Toyota Material Handling Group , Microsoft has identified seven ‘key ingredients’ for success in IoT: business strategy, leadership and organisation, a technology roadmap, talent, operations and core business processes, partnerships, and security.
To further advance what’s possible across industries, Microsoft has announced that it will be investing $5bn (£4.5bn) in IoT and intelligent edge technologies and ecosystem by 2022.
Top five uses manufacturers have for commercial IoT:
- Industrial automation
- Quality and compliance
- Production planning and scheduling
- Supply chain and logistics
- Plant safety and security