Execs bet on industrial IoT but firms lag in readiness
Many companies are unprepared for the Industrial Internet of Things (IIoT), but most executives at those companies realize that the future of their business depends on it, according to a new study from the Business Performance Innovation (BPI) Network.
The study also suggests that large-scale integrators and other channel partners will be among the biggest IIoT beneficiaries over the next several years.
The study was based on a global survey of some 350 global executives and interviews with innovation leaders at large global enterprises, including companies such as Airbus, Balfour Beatty, Embraer, Philips Lighting, Whirlpool, LafargeHolcim, TVH, Hitachi and others.
“Executives are telling us that IIoT technologies are about to play a significant role in business and industrial performance, delivering significant improvements in operational efficiency and uptime, as well as growth from new business models, products, services and customer experiences,” said Dave Murray, head of Thought Leadership for the BPI Network.
“Nevertheless, less than 2% of large companies say they have a clear vision for how to move forward or have large-scale implementations underway,” said Murray. “That dichotomy suggests we are experiencing the lull before the storm of IIoT transformation. This is an opportunity for real competitive differentiation and advancement.”
The IIoT survey shows that 52% of executives at large enterprises—and 41% of executives at all companies—expect IIoT to have a significant or major impact on their industry within three years.
Also, 55% of all executives say IIoT is gaining adoption within their industries, including both pilots and larger-scale adoption.
However, just 1.5% of executives at large companies say they have a clear vision with implementation well underway, while another 57% are either beginning implementation, have pilots underway or are committed and in the planning stages.
New products and services lead as the area most companies say they will focus their IoT investments (35%), followed by customer touchpoints (29%), and manufacturing (23%).
More cost-efficient operations (47%), product and service differentiation (36%), and improved customer engagement and satisfaction (34%) are seen as the top benefits of IIoT.