The Business Performance Innovation (BPI) Network has released a new report on the Industrial Internet of Things (IIoT). The report, titled “The Impact of Connectedness on Competitiveness,” details the results of the BPI Network’s survey on the IIoT initiatives of global business leaders in industries including aerospace, agriculture, automotive, manufacturing and construction. The BPI Network has also published an infographic summary of these results, which can be found at the bottom of this article.
The main takeaways of the report are in line with some observations we’ve made before: The IIoT is ready to explode in value, yet many businesses aren’t prepared for it. Here are some of the specifics from the report:
The value of IIoT:
- Forty-one percent of all executives surveyed expect the IIoT to have a major impact on their industry within three years. When considering only executives of large companies, this number increases to 52 percent.
- Fifty-five percent of executives report increasing adoption of IIoT within their industries.
- The top benefits of IIoT adoption are viewed as better cost-efficiency (47 percent), product and service differentiation (36 percent) and increased customer satisfaction (34 percent).
A lack of IIoT strategy:
- Only 1.5 percent of large-company executives have a clear IIoT vision that’s already well into implementation. Another 57 percent of executives are, at best, just beginning to implement their plans, with some undergoing pilot projects and others still in the planning stages.
- Only 12 percent of executives rated their company as “excellent” in their ability to develop and deploy IIoT solutions. Thirty-five percent of executives rated their ability as “good,” and 33 percent responded “moderate and improving.”
- Executives expect a number of IIoT barriers, and here’s what they believe are the top requirements to overcome them: new technical skills in the workforce (51 percent), improved data integration and analytics capabilities (41 percent) and rethinking the business model (33 percent).
- Executives also expressed concerns about security and data privacy, as well as the cost of IIoT adoption.
“For industrial companies, staying competitive requires embracing IIoT,” said Brian Buntz, editor of the Penton IoT Institute. “There really is no plan B. Implementing IIoT, however, means not just navigating uncharted waters, but also keeping track of an array of technologies, workforce challenges, security concerns and unprecedented business considerations.”
Despite the challenges to IIoT adoption, the so-far underwhelming IIoT strategies of many businesses present a rich opportunity. As Dave Murray of the BPI Network explained, “Executives are telling us that IIoT technologies are about to play a significant role in business and industrial performance … Nevertheless, less than 2 percent of large companies say they have a clear vision for how to move forward or have large-scale implementations underway. 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 message is clear: Now is the time to be proactive, not reactive, about implementing IIoT solutions. “The key to moving confidently into this new space is starting with small, focused efforts or bringing experts to start to build the required skills, behaviors and business models,” advised Chris Locher of The Nerdery.
The BPI Network report was developed in partnership with the CMO Council, the Penton IoT Institute and The Nerdery. Below is the infographic summary.
To learn more about IIoT, read “Wireless Device IIoT Trends for 2017.”