Close
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Logo
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home Cloud
    • Cloud

    Why Most Enterprises Not Taking Full Advantage of IoT Data

    By
    Chris Preimesberger
    -
    August 5, 2016
    Share
    Facebook
    Twitter
    Linkedin

      It’s only the first inning of the nascent internet of things market, but there are indications that valuable IoT-related data is already being wasted because connected-product manufacturers don’t know how to use it.

      Forrester Consulting, in conducting research commissioned by security authentication application maker LogMeIn, reported Aug. 4 that enterprises are missing a huge opportunity when it comes to their internet-connected products. Examples of these include items such as Nest temperature control, a Wi-Fi setup or a home security system.

      The research found that while 51 percent of 232 companies surveyed are collecting data from their connected products, only about one-third are using this data to create actionable insights to benefit customers and expand business opportunities.

      This is particularly interesting given that 61 percent of respondents declared product-monitoring features as being a key driver for creating connected products. This shows a clear disconnect between vision and ability to execute on that vision, researchers concluded.

      Companies Still Figuring Out the Processes

      Although 52 percent of respondents believe data analytics is an important capability to implement during the next one to two years, many companies today are not fully experiencing the full range of benefits IoT has to offer, Forrester said.

      Understanding how a product is being used can enable companies to continually personalize and enhance their customers’ experiences, open the possibility of new revenue streams and optimize internal processes.

      Yet, the results of the study continue to show how most product manufacturers are approaching IoT as a technology challenge rather than a business opportunity—focusing mostly on connectivity and less on realizing the business benefits.

      “There are a lot of components of a connected product for manufacturers to think about, but when initially entering the IoT space, their main focus is on connectivity,” according to the Forrester researchers. “When we asked manufacturers that currently have devices available how much time was spent on various product capabilities, connectivity was at the top of their list, representing about 20 percent of the total effort.

      “However, the reality is that many of the key drivers for IoT can’t be realized by just connecting a device.”

      Data Integration Not Seen as Major Challenge

      Despite so many product manufacturers not using IoT data, only 4 percent of those surveyed noted data integration and usage as a challenge. This presents an interesting dichotomy: Few of the surveyed companies reported that data management is a challenge, but at the same time a majority of them are not using IoT data to improve their business.

      Gartner, Forrester, IDC and a number of other IT market researchers have estimated there will be 6.4 billion connected devices globally by the end of 2016, with that number expected to skyrocket in the next several years. The data they produce will multiply along with the devices.

      The survey revealed a number of other challenges facing product manufacturers, including data security. Keeping data secure was identified as a difficult challenge for 60 percent of respondents, while 38 percent cited security as their absolute biggest challenge.

      However, only 33 percent reported they currently protect and secure sensitive data. Connected products can bring a variety of new security risks to companies, both in the technical implementation and in the business processes that are associated with those connected devices. As IoT-connected products continue to scale, these risks and gaps will need to be addressed through platforms, processes and standards.

      Other Findings in the Study

      Other key findings of the study included:

      — Sixty-two percent reported competitive differentiation as a key driver for getting involved with connected products;

      — Forty-three percent said the complexity and volume of devices was a key issue;

      — Thirty-four percent of surveyed manufacturers that already have deployed IoT-connected devices use platforms to manage their connected products.

      Forrester conducted an online survey of 232 manufacturing organizations located in the United States, Canada, U.K., Germany, France, Japan and South Korea, as well as five in-depth qualitative interviews with similar companies. The study began in April 2016 and was completed in May.

      Go here to download a whitepaper from Xively on “Simplifying the Complexity of IoT” (PDF format, registration required).

      Image: LinkedIn

      Chris Preimesberger
      https://www.eweek.com/author/cpreimesberger/
      Chris J. Preimesberger is Editor Emeritus of eWEEK. In his 16 years and more than 5,000 articles at eWEEK, he distinguished himself in reporting and analysis of the business use of new-gen IT in a variety of sectors, including cloud computing, data center systems, storage, edge systems, security and others. In February 2017 and September 2018, Chris was named among the 250 most influential business journalists in the world (https://richtopia.com/inspirational-people/top-250-business-journalists/) by Richtopia, a UK research firm that used analytics to compile the ranking. He has won several national and regional awards for his work, including a 2011 Folio Award for a profile (https://www.eweek.com/cloud/marc-benioff-trend-seer-and-business-socialist/) of Salesforce founder/CEO Marc Benioff--the only time he has entered the competition. Previously, Chris was a founding editor of both IT Manager's Journal and DevX.com and was managing editor of Software Development magazine. He has been a stringer for the Associated Press since 1983 and resides in Silicon Valley.

      MOST POPULAR ARTICLES

      Cybersecurity

      Visa’s Michael Jabbara on Cybersecurity and Digital...

      James Maguire - May 17, 2022 0
      I spoke with Michael Jabbara, VP and Global Head of Fraud Services at Visa, about the cybersecurity technology used to ensure the safe transfer...
      Read more
      Cloud

      Yotascale CEO Asim Razzaq on Controlling Multicloud...

      James Maguire - May 5, 2022 0
      Asim Razzaq, CEO of Yotascale, provides guidance on understanding—and containing—the complex cost structure of multicloud computing. Among the topics we covered:  As you survey the...
      Read more
      IT Management

      Intuit’s Nhung Ho on AI for the...

      James Maguire - May 13, 2022 0
      I spoke with Nhung Ho, Vice President of AI at Intuit, about adoption of AI in the small and medium-sized business market, and how...
      Read more
      Big Data and Analytics

      GoodData CEO Roman Stanek on Business Intelligence...

      James Maguire - May 4, 2022 0
      I spoke with Roman Stanek, CEO of GoodData, about business intelligence, data as a service, and the frustration that many executives have with data...
      Read more
      Applications

      Cisco’s Thimaya Subaiya on Customer Experience in...

      James Maguire - May 10, 2022 0
      I spoke with Thimaya Subaiya, SVP and GM of Global Customer Experience at Cisco, about the factors that create good customer experience – and...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2021 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×