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article imageIoT adoption survey identifies leading key performance indicators

By Tim Sandle     Aug 19, 2019 in Business
A new survey finds that most organizations introducing connected technology have put in place key performance indicators (KPIs) to measure success. However, the actual KPIs differ considerably by industry.
The August 2019 survey comes from the International Data Corporation (IDC), and this represents the seventh time the trade body has assessed digital initiatives around investment trends in the Internet of Things (IoT).
IDC's 'Global IoT Decision-Maker Survey, 2019: First Look' focuses on both investment trends and current concerns of purchasers of IoT technology. This survey extended to 29 countries and covered six vertical industries, looking at enterprises with over 100 employees. Some 5,421 people at director, VP- and C-level were polled.
Discussing the survey, Carrie MacGillivray, group vice president and Global IoT Lead at IDC notes: "With this ongoing demand side insight, we can determine trends of adoption, drivers, and key pain points for end users as they make IoT investment decisions for their organization."
Who controls the IoT budget?
The survey found that the majority (85 percent) of business leaders polled have a budget allocated towards IoT projects. While there is a corporate budget, the survey challenged one misconception that digital transformation budgets are more diffuse through the organization. Instead budgets remain largely in the hands of Information Technology departments.
The KPIs that matter
In terms of the drivers for investment in IoT devices, these were cited as a desire to improve productivity; the necessity to reduce costs; and the goal of achieving improved product quality. These drivers represent a shift from the previous survey, where improving security was the primary reason cited by firms for adopting IoT technologies. based on this, the top metrics for success are:
Top KPIs:
Operational efficiencies
Productivity gains
Cost savings.
Another important KPI is with safety improvements in relation to why IoT might be adopted and what it is intended to delivery. The safety concern is notable with IoT projects, particularly with the healthcare, manufacturing, and public sectors. Further with different sectors, insurance represents a key growth area to meet the digital expectations of customers.
Challenges for IoT adoption
In terms of the major challenges in relation to incorporating IoT successfully, addressing skills shortages with personnel remains in the top three list of factors that can hamper digital transformation. The other key items are with the overall cost of a given project and the associated cybersecurity concerns.
One area of improvement was with the earlier detection of projects that were not succeeding or appeared as if they might not deliver the intended objectives. 56 percent of unsuccessful IoT projects are now identified within months, which enables firms to abandon the project and reassess.
More about internet of things, digital transformation, csuite, digital technology
 
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