A new independent survey from Vanson Bourne sponsored by Software AG found that one in four Global Fortune 2000 enterprises rank Internet of Things (IoT) deployment as the most important initiative in their organization yet 90% experience barriers to effective implementation and expansion due to lack of IoT expertise and skills in-house.
The survey queried 800 senior IT and business decision makers at organizations with a global annual revenue of $500M and higher across 13 different countries in North America, Europe and Asia Pacific. The respondents came from organizations that were deploying IoT platforms and the respondents themselves had some level of involvement and responsibility for selecting and maintaining those solutions.
98% of respondents stated that they are already generating some level of return from their IoT investments yet 89% still believe that they must improve their approach to IoT to further improve ROI.
Most respondents report achieving specific business benefits from their early IoT implementations with 39% citing production capacity increases and higher customer satisfaction and 38% making better informed business decisions. Respondents with the highest rate of satisfaction with their IoT deployments used a hybrid implementation approach – namely buying an IoT platform from an external vendor and then building upon it with customization done in-house, giving them the flexibility, they require within the framework of a reliable platform.
According to the survey, the biggest barrier to effective IoT implementation is lack of internal expertise and skills according to 31% of respondents. Other barriers include the inability to manage and process large volumes of data (29%), integration issues (28%), too many legacy systems (28%), inability to scale the network to meet IoT demands (26%) and cybersecurity challenges (25%).
The majority of respondents (93%) employed some level of hybrid approach to IoT implementation – both buying an IoT platform from an external vendor and then adding customization internally. When evaluating IoT platform vendors, respondents stated that they are looking for an innovative partner (46%), with a solution that an be easily integrated across an entire organization (40%), with customization that suits their specific needs (39%).
“Organizations know they cannot deliver IoT with off-the-shelf packaged applications or with ground-up in-house builds. They need to rapidly deploy IoT in way that is easy to customize, open enough to seamlessly integrate with their existing landscape while remaining proven, secure and robust. This points to the need for a platform with rich functionality out-of-the-box that still gives customers the ability to quickly create business solutions to suit their unique needs”, said Bernd Gross, Senior Vice President, IoT and Cloud, Software AG.