What is the impact of IoT in businesses?

by bold-lichterman

By 2021, IoT should be part of our daily lives, according to some industry experts. What is the real impact of IoT on businesses? Asked about the question, the precursors of the field cite 40% improvement in their operational efficiency, and 36% improvement in the user experience, according to the results of the study “Internet of Things, Visualize the Impact” produced by SAS, an analytics software publisher.

Another observation is that nearly a third of respondents believe that the IoT will allow the development of new products or services, or even improve the quality of existing products. And a quarter believe that this technology will allow them to improve resource management.

Conducted with 75 large companies that have already adopted IoT, whether to improve their internal operations or to offer new products or services, this study provides their initial feedback.

Very diverse uses

sas-iot-October2016-2Beyond the immediate impact of IoT on businesses “early adopters», The authors of the study were interested in the way in which the latter actually use this technology. The responses provided by companies thus reveal a wide range of applications, ranging from internal process improvement to the development of new ways of getting around.

Applications linked to the emergence of a “connected client” thus rank in the top 3 of the priorities of 20% of respondents. 17% use IoT for self-diagnosis, and just over 15% to track and manage their assets. Three other types of applications top the priorities of 13% of respondents: the development of healthcare applications, control of their supply chain, as well as a transition to a smart factory.

The challenge of data

Asked about the main lessons they learned from their IoT experience, respondents first mentioned the importance of design thinking (at 27%) and that of having an experimentation and testing process (at 26%). Barely one in five respondents cites the importance of having access to in-depth analytics, and less than 10% that of developing a data management system.

The main challenge for these companies early-adopters However, IoT has a good impact on data, with 21% of respondents who believe that they have difficulty analyzing data in real time, and 21% of them who say they face security issues. Another point of difficulty for the companies questioned is the management of culture change in a company, cited by one in five respondents.

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Outsourcing of key skills

Beyond the difficulties encountered by the precursors of IoT, the study also looked at the question of the skills to be mastered to carry out a project in this field. 15% of respondents first cite the ability to collaborate with external consultants with skills that the company lacks. 13% of respondents cite skills related to process automation, and 12% engineering skills.

To compensate for a lack of in-house skills, more than a third of respondents say they resort to external partnerships with technology companies, and 14% opt for training their own employees. An equivalent proportion declares that they are betting on recruiting skills outside their company.

Finally, the authors of the study sought to determine what would be the consequence for a company of not embarking on IoT. The three main risks, identified by 18% of companies, are the loss of market share to a competitor, loss of efficiency, as well as non-optimal management of their costs.

** Methodology: 75 large companies were surveyed by SAS in the summer of 2016. 16% of them are industrial companies (including in the automobile), 16% in retail and consumer goods, 12% transport, logistics and travel, 12% health and life sciences, 9% engineering, 9% public service, 8% construction and real estate.