We’re all being bombarded by statistics on the Internet of Things (IoT), that fuzzy category that has come to mean different things to different people. It’s actually quite simple. IoT is connecting sensors. When data-collecting sensor devices are installed in cars, doors, traffic lights, wearables (like smart watches), medical equipment and appliances, for example, these devices convey information (transmit data) through the Internet about location, health status, temperature, operating efficiency and so much more. Think about sensor-embedded doors that can monitor movement and lock automatically if there’s an unwanted visitor, or wearable sensing technology that tracks a student from the bus to the classroom. The applications and use cases, across all verticals, are limitless.
One of the most in-depth resources we’ve discovered so far is the Vodafone Business IoT Barometer, an annual survey of carefully selected businesses spread across various world regions and vertical markets. The survey queried company professionals and managers who are involved in shaping their company’s IoT strategy and technology requirements.
It’s a lot to comb through, but you’ll find plenty of insightful statistics about IoT adoption and trends. As you would expect, the survey reveals that IoT adoption is accelerating, with 34% of companies now using IoT, up from 29% in Vodafone’s previous IoT Barometer. You can download the full report here.
How does your organization fare in terms of your IoT strategy and implementation? Have you developed a strategy, but have been slow to implement this? Do you have any IoT projects in place? Have you already begun to realize benefits that IoT and data analytics can bring to your business operations and your ability to compete in the market?
To help with this assessment, Vodafone introduced a new IoT Sophistication Index that looks at how well-developed a company’s IoT strategy is, and how far along a company is in terms of actual implementation of IoT projects and pilots. Companies fall into one of five sophistication bands:
- Most Sophisticated (Band A).Your company sees IoT as mission-critical and is an early adopter of IoT, with multiple full-scale projects already underway.
- Very Sophisticated (Band B).Your company sees IoT as mission-critical and has been scaling up IoT investments in the last 12 months; you are using IoT in conjunction with analytics to support decision-making.
- Intermediate (Band C).Your company has at least one full-scale IoT project in place, but so far, your focus has been on achieving only a single objective.
- Beginners (Band D).Your company is making plans to adopt IoT within the next two years; you may have a pilot or small-scale trial, but have not rolled IoT out fully or integrated it with your core business systems.
- Still Considering (Band E).Your company has not yet adopted IoT; you have no firm plans to implement IoT within the next two years.
The Vodafone survey shows a clear correlation between the level of sophistication and benefits to a business in terms of an increase in revenue and/or a reduction in costs. Some 87% of organizations in Band A (Most Sophisticated) report significant returns on their IoT investments, versus only 17% of those in Band D (Beginners). One survey respondent puts it into perspective this way, “Without IoT, our market competitiveness would become nothing. We need to incorporate IoT into every one of our products to stay competitive.”
For many companies, the question is no longer whether or not to implement IoT, but how.
So, what’s your IoT sophistication index? Where are you on the IoT journey? If you are just beginning to craft an IoT strategy, or need advice on what steps to take next, IoT Futurists™ can help. Consult with experienced Thought Leaders and Advisors for expertise that will ensure the success of your new or growing IoT business.
