In a previous article we summarized the things to know about IoT from Microsoft’s IoT Signal 2021 report. Organizations use IoT to maintain quality, secure technology, optimize resources, enhance employee productivity, and provide worker and workplace safety. Organizations that adopt IoT for cloud security, supply chain management, and sustainability see IoT as even more critical. One third of the organizations use IoT for improving products and services for customers, and those that do benefit from a stronger bottom line. Half of companies using IoT for this purpose report increased revenue.
Organizations primarily use IoT for automation and efficiency, with a secondary focus on workplace and employee safety. Almost half of manufacturing companies cite industrial automation as a key use of IoT, with a similar number of power & utilities companies using IoT for smart grid automation. IoT is also used to enhance workplace safety across industries. In oil & gas industry, with its 45% result, workplace safety is the first reason for IoT adoption, while for power & utilities organizations it is the fifth most important reason with 37%. As the second most important adoption reason, 42% of smart places businesses adopt IoT for building safety, meanwhile in the mobility field, IoT is not only used for safety, but also for surveillance, as the third reason for adoption.
Organizations are reaping the benefits of focusing their IoT use on safety and efficiency. Companies say that the top three advantages of IoT adoption are increased efficiency of operations (55%), improved safety conditions (51%), and increased employee productivity (50%). The least often cited benefits of IoT adoption include increased revenue, as well as the ability to create new revenue streams and customer offerings, but these are more indirect benefits, as it takes longer for organizations to realize them.
The percentage of projects in the use stage is consistent across industries, with roughly a quarter of projects in this phase, and projects in all industries take around 13 months. Future dedication to IoT is also consistent across fields, nearly 70% of companies in each field plan to use IoT more in the next two years.
Sustainability in IoT
One third of the organizations say they’re prioritizing sustainability goals as part of their progress in the next year. Among adopters who focus on sustainability, half expect to reach carbon net zero by 2025, whereas the other half see it as a longer-term goal. Sustainability is often a side benefit of IoT adoption: when organizations adopt the technology for other reasons, such as to reduce costs or increase efficiency, they often find that they use fewer natural resources.73% of adopters with near-term sustainability goals view IoT implementation as very important for progress toward sustainability goals, but only 43% are adopting it to achieve those goals. These results align with sustainability as a side benefit of IoT adoption, rather than a main motivation.
Ask for Softline’s expert for IoT adoption
IoT Signal 2021 results show that two in three organizations outsource at least a part of IoT implementation. Those who choose to outsource IoT implementation reap greater benefits from the technology, also report a reduced chance of human error and improved safety conditions. In addition, those who outsource IoT implementation have fewer business-related challenges. Almost a third of companies find it too complex to implement IoT in-house because of the business transformation that’s needed to do so. Other in-house IoT implementers don’t have buy-in from senior leadership. Companies who outsource IoT implementation prefer to collaborate closely with the organizations they work with, customizing the implementation process to their needs.
Softline has a huge experience in IoT adoption with several references. Contact us and our IoT experts will guide you through all implementation process.
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