Oct 09, 2020 IoT: Effectively Enabling Business Transformation
We’ve been discussing the rise of IoT for more than a decade. And in certain industries (such as manufacturing, transportation, and logistics) IoT has been deployed in some form for more than 30 years. But it’s legitimate to say that in a meaningful sense, 2020 marked the emergence of IoT.
Nemertes has been studying IoT deployment, use cases, and success factors since 2018. In our last study in 2019, we found that just 7% of successful IoT projects were in full deployment (defined as being rolled out to all potential devices).In our most recent research study, released last week, we found that 46.4% of successful IoT projects were in full deployment—an increase of over 500%.
Let’s talk about what that term “successful deployment” means. Our research study included participants from 406 companies that we interviewed and surveyed, across 12 countries and 24 vertical industries. We asked each participant whether or not they had an IoT project they considered “successful”. If they did, we drilled down into those success metrics: Was the primary goal to save money, generate revenue, or improve business processes? We then asked them to quantify those results. When analyzing the data, we dubbed the “successful” companies as those whose quantitative results placed them in the 69th percentile or higher.
The findings were significant.
In 2019 the best-performing companies generated $15 million in new revenue, $10 million in cost savings, or 50% improvement in business processes. By 2020, the new revenue generated had leaped to $100 million and the performance improvement had increased to 60%. (Cost savings stayed about the same, at $7 million).
The upshot? IoT has moved out of niche deployment and into mainstream operations. It’s now contributing in a major way to business transformation across a wide range of industries and use cases.
In our IoT Webinar series we’ll be discussing these use cases in greater detail, along with the technologies deployed by the most successful organizations and everyone else. We look at strategic vendor partnerships; interestingly, having a strategic partner aligns with success, but the type of strategic vendor matters. We look at which vendors align most closely with success, and which… don’t.
And finally, we assess the organizational and operational structures of successful and less-successful IoT initiatives: Everything from budgeting to buying personas to coordination with other technology groups within the organization.
To learn more about our findings, please register for the Webinar series here.
And you can always reach out to me directly, either on LinkedIn or via email.