Business decision makers are hesitant to embrace IoT.
A new study by IT Staffing company TEKsystems suggests that many businesses are having difficulty seeing IoT concepts through to fruition. Only 17 percent of surveyed businesses had pilot studies in place, whilst over 40 percent are in early discussions about the potential benefits IoT technologies could bring.
TEKsystems research manager Jason Hayman argues that there are several reasons for slow IoT adoption, including the security challenges made inevitable by the increased exposure of data and concerns surrounding interoperability with existing infrastructure. Crucial though, is that many business leaders are still struggling to see a clear return on investment, at least at this initial stage of the IoT movement.
Although it’s clear that certain concerns are stopping business leaders from introducing IoT pilots, a large percentage (42 percent) of those surveyed believe that IoT will have a significant impact upon their business in the next five years.
No budget for IoT
While there appears to be some dissonance in these positions, a general sense of hesitancy can be explained.
Speaking exclusively to Internet of Business Sarat Pediredla, CEO of global app developer and post-PC technology consultancy hedgehog lab, said: “I have two to three conversations a week with brands and our customers on the potential of IoT and wearables but there is little appetite in investing budgets.
“I think this stems from the fact that while customers understand the benefits of the platforms and technology, there is concern about tangible immediate results. Everybody is waiting for someone else to come out with a credible case study but without serious investment and R&D efforts, it’s difficult to build something that has a real impact.”
“I think it’s also down to the real challenge of hiring specialists in this field as there are so few skilled people and suppliers that can fulfil this need in the current market,” continues Pediredla. “So, where there is appetite to invest and make the leap, many customers tell me that the supply side is lacking.”
The TEKsystems survey also suggests that despite initial doubts surrounding ROI, businesses have clear intentions regarding the use of IoT over the next five years. The primary objective for IoT in the long term is to improve the customer experience (64 percent). 56 percent of business leaders expect IoT to spark innovation, while other outcomes include creating more efficient business processes (52 percent) and developing new revenue streams (50 percent).
This news follows on from a number of other reports highlighting some of the problems facing companies looking to roll-out IoT strategies. Earlier this month, another report highlighted a skills shortage and cyber-security concerns as barriers to deployment, while Gartner mentioned the rising costs of security and the time to complete a roll-out.