While Internet of Things (IoT) solutions and applications are gaining momentum, even early adopters have only used IoT as a means of generating operational efficiency, rather than transforming business models, according to a recent study conducted by Forrester Consulting and commissioned by SAP SE.
The study, titled ‘The Internet of Things Has the Potential to Connect and Transform Businesses’, surveyed 366 organisations in the UK, US, France, Germany, China, India, Brazil and Mexico that had either implemented or were planning to implement IoT solutions. Participants came from across departments, including IT, operations, engineering, marketing/sales and finance.
It found that 71 per cent of companies stated that improving the use of data and analytics to make better business decisions and outcomes was a critical/high priority in the next 12 months. More than two-third of companies surveyed also believe their use of IoT will make imperatives such as ‘improve the experience of customers’ easier to address.
The study also found that the majority of business leaders see greater operational efficiencies as the strongest benefit of IoT, while fewer are conceptualising new business models or service offerings. In what is perhaps a sign of the maturity of the market, only 31 per cent can envision new products specifically enabled by IoT.
Among the challenges in maximising value from IoT solutions are connecting operational systems and business systems across organisational boundaries. Further complicating matters is that organisations have not yet defined clear ownership of the IoT life cycle, with respondents reporting IoT fragmentation among three or more executive sponsors at 75 per cent of the companies surveyed.
“The Internet of Things allows companies to transform into digital enterprises, create previously unimaginable operational efficiencies and digital experiences for customers,” said Steve Lucas, president, platform solutions, SAP.
“SAP is a leader in the market in IoT-enabled solutions across industries, and we are well-prepared to help customers achieve tangible benefits such as real-time business insights and beautiful visualisations.”
The full study can be accessed here.
