During the next three years, technology supporting the Internet of Things will dramatically change the way companies track their customers, products, the places in which they do business with customers as well as their supply chains.
A recent report from Tata Consultancy Services, entitled, “Internet of Things: The Complete Reimaginative Force,” studied 13 industries, and found that roughly 80% of companies use the IoT for tracking in that manner.
According to the report:
This year, companies with IoT initiatives that completed all our survey questions will invest $86 million – or 0.4% of revenue – apiece to further their projects. They expect their IoT budgets to rise by 20% by 2018 to $103 million.
Again, that’s $86 million each. And among the biggest spenders? The industrial segment.
Industrial manufacturers were second in IoT spend, at an average $121 million per company, not from from the travel industry’s $129 million. That’s likely because the segment has been reaping the rewards from the IoT investment. Industrial manufacturers reported the largest average sales boost from their IoT initiatives last year (29%), and predicted they’d have the largest revenue increase from the IoT by 2018 (27% over 2015). Forty percent of the industrial responders to the survey said they use sensors and other digital technologies to monitor the products they sold to customers; they are more likely to use IoT technology that way than other verticals.
Wouldn’t you continue to invest in something that paid dividends?
That’s exactly why IoT technology can be profitable for solution providers. Machine to Machine (M2M) communication is a centerpiece of industrial IoT, and it can provide data by which companies can plan manufacturing, control building temperature, adjust supply chain demands. Storing and analyzing big data is also increasingly important, as what is gathered must be translated into usable information and then archived. IoT also requires cloud computing and vast networks of data-gathering sensors; it is virtual, mobile and offers real-time connection; and it has the potential to make machines, buildings, utilities and even cities smarter.
Coincidentally, those areas are in solution providers’ wheelhouses. Moreover, the challenges within implementing these solutions are ones that solution providers are familiar with: security, reliability and interoperability come to mind. Those years spent perfecting solutions in business intelligence, high performance computing and virtualization have laid the foundation for the Internet of Things.
Welcome to your next chapter.