In our last post, we shared how teams can benefit from implementing IoT as a disruptive and innovative technology in their organizations. While it’s a specific use case that usually drives IoT projects at a high level, companies tend to choose particular technology for business, financial or technical reasons. In this post, we discuss these three drivers behind implementing IoT in more detail.
Of the 600 survey respondents in the 2018 TIBCO CXO Innovation Survey, 39.47 percent identified increased revenue as the primary business driver for their implementation of IoT. Respondents identified customer acquisition and retention as second at 38.6 percent, and increase product quality third at 35.96 percent. Not only do businesses benefit from the drivers mentioned with IoT, but they also aim to better serve their customers and partners, gain greater insight into processes, and optimize their operations.
According to survey respondents, lower operational costs is the top financial driver behind implementing IoT at 44.3 percent. Next to that is better customer service and support at 39.91 percent, and eliminating downtime at 38.18 percent. Organizations turn to IoT with the hope that it will save them money, reduce waste, and fix safety issues. This comes by way of better-optimized processes, which contribute to the overall performance of the company.
When it comes to technical drivers, the primary technical reason that organizations implement IoT is to integrate data and applications, making up 56.46 percent of respondents. Organizations looking to implement IoT to leverage cloud technology to utilize IoT data came in second at 48.03 percent. The last primary driver behind IoT implementation for organizations is to reduce data security risks with 47.6 percent. As mentioned in previous posts, IoT is a technology that builds upon basic technologies, so organizations already need to have a foundation for application integration, cloud and business intelligence to be able to utilize IoT and reap a return on the investment..
Organizations aren’t only implementing technologies because they have a specific use for them. Oftentimes, organizations can see the business, financial, and technical benefits of using advanced technologies, which drive implementation. The organizations who recognize this need are likely to use IoT technology to their advantage to innovate and disrupt in their industry.