By gathering data from a broad range of devices and sensors located throughout the world, the Internet of things has the potential to redefine how business decisions are made, how resources are deployed and how spending can be reduced. According to a recent survey from QuinStreet Enterprise, nearly 50 percent of business and technology decision-makers believe the IoT is critical to their organization’s growth and success.
The report, also revealed that IT and business decision-makers said innovation was the top motivator for rolling out an IoT initiative.
Innovation was also the top motivation across organizations large and small, although among large organizations operational efficiency, competitive reasons and revenue growth were also popular IoT motivators.
The survey of more than 600 professionals conducted in January explored decision-makers’ thoughts on the IoT, including motivations, benefits and obstacles. Seventy percent of respondents said they expect the IoT will have a considerable impact on their industry over the next five years.
The IoT is poised for major growth. IDC predicts worldwide IoT spending will reach nearly $1.3 billion in 2019, up from $698.6 million in 2015.
According to research by Gartner, industries such as utilities, energy suppliers, and manufacturers are leading the charge in the IoT, and these organizations are motivated by internal benefits such as optimizing operations, reducing costs and improving efficiency.
The QuinStreet survey results also indicated that skepticism comes from within the ranks of respondents with IT-related job titles. Those with IT titles were more likely than those with business titles to say they understood the concept of IoT and that it was important or worth exploring for their organizations. But those with IT titles were also more likely to say the IoT was not relevant to their organizations, a claim that no respondents with a business title were willing to make.
IoT by the Numbers
*75% of executives surveyed said they understand IoT concepts and how they can be applied to their organization “pretty well” or “very well.” Only 55% of app developers feel the same.
*52% said the IoT will have a “considerable” impact on their industry over the next five years, and 18% said this impact will be “huge” enough to change their entire industry.
*26% said collaboration between IT and tech ops teams is the primary driver of IoT initiatives, while 25% cited IT alone, and 24% said corporate leaders drive these efforts.
Motivators for Exploring the IoT
Curiosity about its possibilities: 15%
Competitive reasons: 12%
Revenue growth: 12%
New business opportunities: 11%
Operational efficiency: 11%
Not all organizations are rushing to plan and deploy projects that utilize the IoT, and survey respondents with no IoT plans had straightforward reasons why. Survey respondents with no IoT plans said the Internet of things was not relevant to their organization and that it was a concept they did not yet understand.