The Internet of Things: Connectivity is a key driver for growth
2020 has seen further maturing of IoT/connectivity, as organizations strive to implement the technology to save costs and develop new offers and services.
Our 2020 European Technology Index reveals:
There has been a shift in perception, with more focus on innovation than a short-cut to cost reduction
Companies acknowledged and understood the risk of having their market position undermined by more efficient suppliers who – through IoT solutions – can leverage a more productive technical infrastructure, supply chain, and delivery system with better quality control systems.
The main drawback of IoT implementation is the level of investment required
The considerable cost reduction of sensors and analytics services in recent years might lead companies to hold back their investments. But the tax benefits that several governments are granting for IoT investments might change their perspective. Privacy-related costs have been substantial recently, and potential fines are much higher due to GDPR.
Internal IT teams are still the primary driver for the implementation of IoT technologies
However, given the size of investments, top management will be involved, and we’ve seen a shift from wariness to understanding the value of IoT solutions and the timing of their adoption.
The first adoption of IoT technologies requires a considerable reliance on third parties
Inevitably, given the reported lack of staff expertise (52%, fig. 26), the adoption of IoT technologies requires a considerable reliance on third parties, at least until the necessary resources are created internally through a process of employee evangelization and knowledge transfer, or as a result of recruitment or acquisition activity.
For further information about our global Internet of things (IoT)-focused team click here.