Commentary

Businesses Bullish On IoT, Cautious On Security

The Internet of Things can increase efficiency in an organization but it also can drive an increase in revenue.

For companies already using IoT, expectations are high with security remaining a top concern.

These are among the findings of the fifth annual Vodafone IoT Barometer, comprising interviews with 1,300 executives at companies in 13 countries by Vodafone Internet of Things.

The majority (79%) of IoT adopters expect that the impact of the Internet of Things will have an enormous impact on the economy in the next five years and 78% expect it will have the same effect in the competitiveness of individual businesses.

However, business execs are cautious up front. The majority (75%) say security is the top consideration when choosing IoT projects.

One of the notable findings in the study is the attitude of businesses toward IoT. Compared to 12 months ago, 80% of executives are more positive about the potential of the Internet of Things and 84% are optimistic about the possible business outcomes of connecting almost everything.

The majority (85%) also see IoT as critical for the future success of any organization.

There also is upside, with 51% of businesses who adopted IoT saying it has increased revenue or generated new revenue. Of those who reported an increase in revenue, more than a third (36%) saw it grow by more than 20%.

There are plenty of benefits seen. Here are some reported by adopters:

  • 47% -- Better collection of accurate data, business insights
  • 47% -- Reduced costs
  • 45% -- Improved employee productivity
  • 41% -- Increased revenue
  • 41% -- Enhanced customer experience
  • 40% -- Increased competitiveness in the market

The number of companies using IoT has more than doubled, from 12% in 2013 to 29% this year. Retail has grown to 26%, meaning consumers are likely to be impacted in one way or another by IoT in the course of their shopping experience.

Those deploying, using and expanding IoT are learning and adapting. Those not are likely to eventually find themselves in another company’s rear view mirror.

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