IoT initiatives have stalled, suggesting challenges are impeding success
Less than one-quarter of organizations have reached the stage where IoT initiatives are transforming business processes, services and products. The vast majority are in the preparatory (consideration and planning) or pilot stages.
Half of organizations surveyed cite increased exposure of data / information security as the biggest challenge to realizing IoT potential.
Other early stage concerns, such as return on investment / making the business case and interoperability with current infrastructure/systems, round out the top three risks/challenges on IT and business leaders’ minds.
One-third of respondents indicate finding the right staff / skill sets is also a challenge.
Despite lagging implementation, significant digital transformation is expected
The majority of organizations (55 percent) expect IoT initiatives to have a high level of impact on their business over the next five years.
Long-term expectations for IoT include outcomes that will drive digital transformation within the business, such as creating a better user and customer experience, and sparking innovation.
Technology (e.g., data management and analysis, and infrastructure management) is the top focus for nearly one-third of organization’s IoT initiatives, followed by products or services.
Most organizations are not highly confident in their in-house preparedness
Less than 4 in 10 IT and business leaders think their organization’s internal resources are very well prepared to complete each phase of an IoT initiative.
External partnerships are critical for IoT success
Approximately one-third of IoT project needs will require support from external vendors versus internal resources.
Eighty-five percent of respondents would value a services provider that can guide internal IT and business teams through IoT initiatives.