By Chuck Martin
Most major companies have Internet of Things initiatives in place today and they’re reaping rewards from those investments.
Businesses investing in IoT initiatives are reporting significant revenue increases as a result, with an average increase of 16% last year, based on a new global study.
About one in 10 (9%) saw a rise of at least 30% in revenue for IoT projects.
The major global trends study is called Internet of Things: The Complete Reimaginative Force by Tata Consultancy Services (TCS).
The study comprised a survey of 800 executives from large, multi-national corporations and examined the impact of IoT technologies across a range of industry sectors around the world.
Consistent with other studies, TCS found that companies see IoT as a growing area, with 12% of the companies planning to invest $100 million this year with 3% expecting to invest more than $1 billion.
The majority (79%) of companies already use IoT technologies to track their customers, products, locations where they conduct business or supply chains.
Companies predict their IoT budgets will increase 20% to $103 million within three years.
How companies use IoT technology varies, with the most common use currently involving a smartphone. Here are the ways companies use IoT technologies:
- 47% — Through mobile apps that customers use on smartphones, tablets or other digital devices
- 45% — In production and distribution operations to track product flow to customers
- 26% — Through digital sensors in products that send data to the company on how those products are performing
- 25% — Through digital sensors and other devices in locations where business is conducted
- 14% — Through digital devices that customers can wear, which allow the company to track customer usage of products and services
Depending on the geography, companies track customers through mobile devices to different degrees. Here’s the breakdown of tracking via mobile device by region:
- 51% — North America
- 45% — Latin America
- 44% — Europe
- 39% — Asia-Pacific
North American firms reported greater than average use of mobile apps to monitor customers. However, those businesses were less likely to use wearable devices to monitor customers, at least at the moment.
Meanwhile, companies in the Asia-Pacific region were more likely to lean on wearable devices for tracking. Companies there also are more likely to place sensors in physical locations where they interact with customers.
Overall, companies making the largest IoT investments are seeing the largest returns.
The Internet of Things will involve not just big data, but also big dollars.