Early adopters reaping strong cost returns on the IOT investments: Study
Australian companies with early experiences of Internet of Things projects are realising strong returns in the form of reduced costs according to a study by Telsyte involving 300 Australian companies.
While the number of companies engaged in IOT projects remains low – despite a fairly loose definiton of the Internet of Things by the study sponsors Microsoft – for those who have started the journey the majority saw cost improvements of over 25 per cent.
According to Lee Hickin, Internet of Things Group Lead, Microsoft Australia “There are clear signs that the Internet of Things is beginning to take off. The research tells us that two thirds of IT and business leaders have seen at least a five-fold increase in connected devices in their organisation over the past five years with that trajectory set to continue into the near future. The challenge for Australian businesses will be to integrate those devices in a meaningful way and harness the power of the generated data.”Among the headline findings;
- 65 per cent of organisations that have deployed IoT report operational cost savings at an average of 28 per cent
- 53 per cent of organisations that have deployed IoT have increased productivity and efficiency at an average of 29 per cent
- However 20 per cent of companies are still unaware of the concept of IoT
- Only 26 per cent of organisations have implemented any form of IoT
Impediments remain of course including technollogy barriers, cost concers and a lack of capabilities.
Telsyte managing director Foad Fadaghi said, “The real-time data generated from IoT devices will usher in a new era of productivity that will be critical for Australian companies looking at staying internationally competitive regardless of industry segment.”
Telsyte offered a number of recommendations for companies planning to embark on IOT programs, including;
- Start small then scale: The data explosion generated by IoT devices is creating an opportunity for Australia’s business leaders to cut costs and improve business insights. Inertia associated with rolling out unfamiliar technologies can be overcome if business leaders start small and grow their IoT deployments as business benefits such as boosted productivity and revenues and reduced costs are realised.
- Climb with the cloud: To overcome complexity, skills and cost barriers, Telsyte recommends exploring proven IoT cloud services or managed solutions, which can be procured on a pay-per-use basis and grown as requirements increase, reducing risk and accelerating deployments.
- Partner and scale: While IoT pioneers have often had to go it alone, the fast followers are working with experienced vendor partners to reduce risk, leverage skills and ultimately adopt tried and tested vertical solutions. As benefits grow with IoT scale Telsyte recommends investigating vendors that can handle the largest workloads and scale to meet future requirements.
- Keep it close: Most organisations (77 per cent) in Australia have some restrictions on where data is located, Telsyte recommends engaging with IoT solution providers that have an on-shore cloud service or with local managed-service providers that have experience in dealing with data location restrictions.
- Prepare for real time data: The Internet of Things will generate real-time data — not just large volumes of data — across a range of business processes. Real-time data is about immediacy, and brings with it the potential for fundamental disruption. When possible, Telsyte recommends processes be modelled around the availability of real-time data to build long-term competitive advantage.
There was of course the inevitable debate around the meaning of the Internet of Things. The ‘Things’ themselvess were largely missing from Microsoft’s announcement.
According to Telsyte’s Fadaghi, “In the consumer world it’s all about devices. But for businesses, devices are commodities. They are not where the value is contained. The value comes from the ability to make better decisions.”