The Internet of Things (IoT) space has been going through a period of acceleration recently. In fact, the results have been better than expected and we’re heading for mass adoption. But is your company prepared?
Experts predict that IoT will have a global impact of approximately $11 trillion by 2025 across multiple sectors. Further, most of this (as much as 70%) will probably come from swarm intelligence and sensor technology for B2B users.
According to HP’s report “The Internet of Thing: Today and Tomorrow,” approximately 57% of companies have already adopted IoT technology. By the year 2019, this number is expected to reach 85%. So from here on out, we can expect IoT to go from doing good things to great things.
Early signs indicate that the payoff can surpass expectations, but this journey won’t be easy because there are plenty of roadblocks ahead. So it’s important that companies tread carefully as there are some major security concerns associated with this technology.
So how do global organizations capitalize on the IoT phenomenon? Let’s dive deeper into HP’s report and find out.
1. Boost Productivity and Efficiency by Building Smart Workplaces
According to HP’s findings, 72% of the companies surveyed had already implemented IoT sensors and devices in the workplace from smart lighting and air-conditioning systems (56%) to personal mobile devices (51%).
Further, enterprises often cited indoor location-based services and utility monitors as key drivers of IoT. As a result, important assets can be tracked by location and information can be easily shared with other smart devices nearby.
It has proven to be a great success as building smart workplaces can boost the effectiveness of IT teams, overall productivity, and profitability.
2. Reduce Risk and Address Downtime in Manufacturing
The industrial sector has been utilizing IoT technology long before it became a buzz word. This trend has continued to grow in recent years with IoT devices like picking systems and chemical sensors used to diminish operation risk and address downtime.
IoT has also had the most impact in the industry when utilized to maintain and monitor operating infrastructure (something they have been doing for decades). The industry also continues to benefit from adoption with significant increases in efficiency (83%), visibility across the organization (80%), and innovation (83%).
This also indicates that IoT can play an important role in helping industrial enterprises scale and expand into new markets.
3. Enhanced Innovation while Reducing Costs in Healthcare
The healthcare space has been racing to incorporate IoT in several areas from patient monitoring to connected main devices to the connected network. But the biggest benefit to the sector comes from using sensors to maintain and monitor medical devices.
According to HP’s study, the healthcare sector is facing growing pressure to increase efficiency. As a result, the adoption of remote tracking of assets by location is also growing. In fact, 22% of respondents had stated that this was their number one IoT use case.
According to IBM, IoT in healthcare also enables crucial cost savings to the bottom line. Further, as more resources are saved, the creation of new services in also on the rise. This is evidenced by 80% of healthcare leaders who reported an increase in innovation since the adoption of IoT.
4. Enhanced Customer Experiences
Global retailers are also going through a period of transformation as about 49% have now deployed IoT technology. Over half of these businesses are now enabling personal mobile devices to access the network to create new and engaging retail experiences.
This means that IoT has helped develop store location services to deliver personalized product information and real-time offers to shoppers. About 18% of retailers are also utilizing IoT to remotely control environmental factors like lighting and heating.
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Further, 88% of respondents stated that IoT had helped them boost business efficiency while 81% cited an overall improvement in customer experience. All this is happening at a critical time for retailers as customer experience has become the key differentiator.
Although this is great news for global business, the same can’t be said for governments around the planet. According to research, 42% of governments surveyed were found to be lagging behind in IoT adoption.
Further, around 35% of IT decision makers in government bodies also had little to no understanding about IoT. But it’s not completely negative as there are some positive signs of progress.
There have been some government initiatives to adopt IoT for street lights, building security systems, and vehicles to help realize the dream of a future smart city. The most popular application in government IoT (about 27%) has been remote monitoring and control of devices around city boundaries.
A key challenge faced by governments is the limitation of legacy technology. In fact, almost half of government IT departments are struggling to integrate older technology with IoT systems.
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But it’s important to pursue adoption as 71% of public sector IoT adopters reported significant cost savings. Another 70% also claimed that it enhanced the visibility of their organization.
HP’s findings show that IoT adoption will continue to accelerate and pretty soon we will all be living in smart cities and driving smart cars. But the pace of growth will be relative to the company, industry, and country.