Now, another report from Schneider Electric called „IoT 2020 Business Report“ delivers some new findings on how large organisations will leverage Internet of Things technologies as a serious business tool by 2020. Their study is based on feedback by 3,000 business leaders from twelve countries.
According to their global survey, 75% of respondents were optimistic about the opportunities IoT presents this year. Almost every second out of three (63%) companies use IoT to improve their customer experience and analyze customer behaviour in 2016. They hope to solve problems faster, achieve better customer service and customer satisfaction ranking.
Furthermore, cost savings in automation seem to be high on the agenda, above all building (63%) and industrial automation (62%). As results showed the improvements in automation technologies almost half of the companies (42%) say they want to implement IoT-enabled building automation systems within the next two years.
The key driver for IoT is mobile for two out of three companies (67%). Thus, they plan to implement IoT via mobile applications this year, and 32% even in the next six months. Again, cost savings of up to 59% is the major driver for IoT implementation.
The confidence is the value of knowledge gathering and sharing already exists inside most companies surveyed. 81% feel that the data and/or information generated by the IoT is being shared effectively throughout the organisation. Fears are lower than expected. Only 41% of respondents connect cybersecurity threats with IoT business challenges.
„We’re past the point of questioning whether IoT will deliver value. Businesses now need to make informed decisions to position themselves to maximise IoT’s value in their organisation.“ Dr. Prith Banerjee, Chief Technology Officer, Schneider Electric
However, Schneider Electric does not only publish numbers of their study but also provides the following predictions that business leaders might take into consideration.
1. The next wave of digital transformation.
IoT will bring operational technology (OT) and IT together while fueling a mobile and digitally enabled workforce: As more companies both expand and deepen their digitisation programmes enterprise-wide, IoT will increasingly take centre stage. This new wave of transformation will be enabled by more affordable “connected” sensors, embedded intelligence and control, faster and more ubiquitous communications networks, cloud infrastructure, and advanced data-analytics capabilities.
2. Insightful data.
IoT will translate previously untapped data into insights that enable enterprises to take the customer experience to the next level: When thinking about the value proposition of IoT, most businesses point to efficiency and cost savings as the key benefits. Yet access to data – including previously untapped data – and the ability to translate it into actionable insights, the hallmark of IoT, will deliver greater customer-service transformation and new opportunities to build brand/service loyalty and satisfaction.
3. Premise-to-cloud confidence.
The IoT will promote an open, interoperable and hybrid computing approach, and it will foster industry and government collaboration on global architecture standards that address cybersecurity concerns: While cloud-based IoT solutions will grow in popularity, no single computing architecture will monopolise their delivery. IoT instead will flourish across systems, both at the edge and on premise, as part of private cloud or public cloud offerings. Making IoT available across heterogeneous computing environments will help end users adopt IoT solutions in the way that best suits their security and mission-critical needs while also offering entities with legacy technology infrastructures a logical and manageable path forward, allowing them to transform over time.
4. Innovations that leapfrog existing infrastructure.
IoT will function as a source of innovation, business model disruption and economic growth for businesses, governments and emerging economies: Just as the Industrial Revolution, birth of the Internet and mobile revolution have driven advancement, innovation and prosperity, so will IoT. Businesses and cities alike will deliver new IoT-enabled services; new business models will emerge; and, in particular emerging economies will have a significant opportunity to quickly leverage IoT without the constraint of legacy infrastructure, essentially leapfrogging old ways. In fact, McKinsey forecasts that 40 percent of the worldwide market for IoT solutions will be generated by developing countries.
5. A better planet.
IoT solutions will be leveraged to address major societal and environmental issues: IoT will help countries and their economies respond to the biggest challenges facing our planet, including global warming, water scarcity and pollution. In fact, survey respondents identified improved resource utilisation as the number one benefit of IoT to society as a whole. In concert with the private sector, local and national governments will embrace IoT to accelerate and optimise current initiatives to curtail greenhouse gas emissions in accord with the breakthrough COP21 climate agreement, whereby 196 countries pledged to keep global warming under the threshold of two degrees celsius.
The Internet of Things has been seen as the main revolution from a technology perspective. The hype seems to be at an all-time high. Real business value is not only saving money though. Customer service improvements, better process optimization and smarter work and life opportunities will have big potential to bring IoT business value to enterprises in the future.
What is your experience on the value of IoT for your business?
The Internet of Things is said to have a major impact on the business world according to Jared Newman. Goldman Sachs even thinks that IoT opportunity for industrials could amount to $2 trillion by 2020. Connected cars, connected utility, connected houses, connected vineyards, connected streets, connected everything – the opportunities seem incredable bearing in mind that with IoT everyting can be addressed in the future.
Now, a recent report called „State of the Market: Internet of Things 2016,“ shows that the Internet of Things (IoT) is already mainstream.
The motivation behind the high adoption rate is quite obvious: The opportunity for revenue growth drives many managers towards IoT adoption with data being the monetization engine behind it. Still, just 8% of the respondents make use of more than 25% of their IoT data these days.
Not suprisingly, the report also highlights that enterprises are turning to startups to help accelerate their IoT growth. In 2015, enterprise IoT startup companies outpaced funding for consumer startup companies by 75%.
Verizon’s experts think that IoT will continue to be a revenue driver for businesses both large and small due to the confluence of five macrotrends:
1. Consumer usage of smartphones.
High expectations to automation possibilities as of simplified interface. 81% of IoT adopters in the public sector believe that their citizens increasingly expect them to offer enhanced services from data and IoT.
2. Data monetization is wanted.
By 2018, almost 50% of businesses expect to be using more than 25%of their data. Descriptive data collection will become predictive and prescriptive data analytics. Paradigm shift from „big data“ to domain experts expected.
3. Regulatory landscape will bring right ecosystem partners together to drive industry standards.
In the US, with the Drug Supply Chain Act manufacturers until late 2017 will implement systems to electronically transfer and store transaction histories for their prescription drugs including shipment information across their distribution and supply chain. Result: Thwart counterfeiting drugs and savings of $75 billion annually according to the World Health Organization.
4. Democratization of innovation by network connectivity, low power devices and IoT platforms.
Businesses can scale their IoT deployments from millions to billions of connections more cost-efficiently. With the new 5G, autonomous solutions such as cars and robotics will become a reality and new categories of uses cases will evolve, such as virtual and augmented reality for IoT deployments.
5. Security experts keep up with the development of technology by looking to arising threat vectors
Some old, some new – that will impact IoT deployments and ongoing operations. Data privacy, protection and processing will remain the biggest challenge for security experts.
Sometimes reports do not look at the data challenge of the IoT development in my eyes. The interesting aspect is that IoT offers some incredible opportunities to improve our lives, simplify our ways of health tracking and be informed about the status of our cars and houses. However, most of the use cases are often based on some cloud services that people do not trust in as the generated data is stored in some unknown data center somewhere in the world. I sometimes wonder, why companies don’t start to save the data in a personal private cloud that can be added as an add-on service to the IoT business.
But hey, maybe I am asking for too much at this stage of the IoT status. Thoughts?
The Internet of Things (IoT) has become on of the most discussed topics in the digital landscape these days. Based on sensors, mechanisms, processes, the cloud and big data sets, companies as well as people try try to rethink how we can better use the Internet for our homes, our cities and the daily business.
We have collected the three most impressive pieces of content that came up lately to give you an overview of the potential and the challenges involved when using IoT.
1. IoT and legislation
A recent post by Cyberlex is discussing in details the approach of the European Union with their „Alliance for Internet of Things Innovation“ (AIOTI) and Digital Agenda for Europe on IoT against the American Federal Trade Commission with their Staff Report on the Internet of Things in order to deriver some logic for a Canadian IoT approach.
While the European guideline makes clear that the future regulations will lie on security, privacy, consumer protection, functioning competition and choice. The American discusses the issues of privacy, security and is trying to give guidance whether legislation is required to regulate the Internet of Things.
2. IoT and Social Media
Over at WT Vox a post is discussing the opportunities and the challenges that the combination of the IoT with social media generates. Although we might be seeing the power of commerce data to understand the mindset of the next customer, there might be more business impact on the image, machine and health data for our future lives when it comes to the value of IoT. However, they make clear that the all deciding question on the future of IoT will be how everybody is handling their „digital persona“ over the next years and whether we open up or step back from giving out personal data to people and companies we have got no idea what, how and why they derive data via smart health, smart home technology or smart city.
Gartner sees a more and more connected world and predicts there will more than 6.4 billion connected devices by the end of 2016. Cisco goes even further and forecasts that by 2020 even 37 billion connected devices will be in the world. McKinsey even estimates that IoT is expected to have an economic impact of $3.9 trillion to $11.1 trillion per year by 2025 (representing up to 11% of the world’s economy).
3. IoT and Investments
The infographic that delivers data by Venture Scanner that we came across via the guys at Appcessories gives some good impression of how much investment goes into the IoT development and in which industry sector most most investments and innovations are produced.
In all of those posts it becomes clear that there is a demand for companies to enable and ensure processes that make people aware of how they use data and technology to understand the consumers development and movement. Furthermore, it is wanted to see a continuous progress in monitoring and improving peoples‘ privacy and security. And finally, the question is whether companies and regulation units need to give clearer guidance and legal advice on compliance and data collecting and processing laws in order not to loose the trust of customers and consumers.
With their annual study called „Mobile Elite“ (2013 and 2014 versions here) CNBC has been focussing in the last two years on how executives use their mobiles for business, and when and how it helps them doing their business more effectively. A survey that is tracking senior business executive’s use of mobile devices across Europe, Asia and the US.
Now, they have come up with their latest update „Mobile Elite 2015“ that more or less global executives have become mobile in terms of reaching a mobile device saturation point. Already more than 9 out of 10 business executives access the mobile web to get the latest business content and news updates via their tablets or smartphones (of which they have in average 6 (!) devices at home). Compared to last year, the access to „news feeds“ has shown the highest growth for smartphones (45% to 60%). Their main time of reading the news is in the morning of weekdays (87%), predominantly with interest in financial news and stock prices (71%). Six in ten business leaders say they access the news via mobiles in the morning.
However, when we think that the weekend is a „news off time“ for business execs, we might prove wrong. More than over six in ten business decision makers check their news and business content over the weekend. It is their time to deep-dive into content as time allows them to. Like last year’s results it becomes clear that as of the mobile options most of the top management does not differentiate between weekday and weekend any longer. Mobiles keeps them in the business all days. Furthermore, the second screen phenomenon can also be seen at business executives. TV might still be their main source of content delivery in the morning (51%), but three out of four (75%) watch TV at the same time as using their mobile device (6% more than in 2014), or maybe on their mobile devices.
„With mobile saturation at an all-time high, we’re now seeing business executives shifting their attentions towards a more connected lifestyle. With a slowdown in hardware innovation in 2015, the survey suggests that global executives are unlocking the potential of their technology to be more connected, more of the time. We could be witnessing the start of the next mobile renaissance.“
Mike Jeanes, Director of Research, EMEA, CNBC
Even more interesting to see is that the Internet-of-Things (IoT) has found their way into the business executives homes. Just about four in ten business leaders operate apps at home via their mobiles. This means that top decision makers become „early drivers“ of technology by the use of mobile devices and wearables. More than every second respondent (54%) claimed to like the idea of hands free technology. This means they do not want to end their mobile journey with smart homes and smart security systems. Still, when it comes to cyber security business leaders are now „extremely concerned“. More than three out of four (82%) value mobile data privacy and security a „concern“, while admitting (41%) it is the most important technological influencer for 2016, followed by cloud technology (35%) and mobile e-commerce (34%).
The study shows that the C-Suite might be fully mobile but also understands and respects the responsibilities it needs to create a sustainable future.
Would you agree?
The forecasts sound almost incredible. Gartner estimates that Internet of Things (IoT) products and services suppling companies will generate incremental revenue of over $300 billion by 2020.
The analyst company IDC sees the worldwide market for IoT solutions to grow from $1.9 trillion in 2013 to $7.1 trillion in 2020.
Brands like the electric company GE predict the Industrial 4.0″ will add somewhat between $10 to $15 trillion to the overall global GDP over the coming 20 years.
Samsung will invest more than $100 million for IoT startups that will help the technology manufacturer establish new ecosystem for connected devices.
The Internet of Things is at an all-time high until today. Companies want to connect consumer devices, appliances, and services in order to connect their services with devices and then generate some smart data to leverage their value chain.
Interestingly enough Google owns some of the most promising IoT companies (Nest and Dropcam) already which will make some people look sceptic how the search giant will move more and more into their lives.
Smart devices are definitely the big trend for 2015. Whether it will be Jawbone though. After testing the wristband and it’s usability, I am not quite sure if this will be the way into the future. The car industry seems to be catching up though with their smart watches replacing keys and other driver necessities.
Even the whisky industry works with smart bottles now telling us how old the whisky really is, according to Venturebeat.
The guys at WRIKE just recently pulled together the 11 most ambitious IoT start-up companies should have an eye on. Furthermore, they added to their infographic three established brands which they think will have their big breakthrough in 2015.