Despite experts claiming that the Internet of Things (IoT) will revolutionise the business-customer relationship, businesses are still lacking confidence in IoT technology, a new study suggests.
New research by IT staffing firm TEKsystems reveals that although 42% of firms have carried out preliminary talks about how IoT could impact their business, only 17% have then put pilot programs in place.
It's little surprise, then, that less than a quarter of businesses say they have got to a stage where IoT has started to impact their organisation in a meaningful or measurable way.
It seems the sticking point for many is establishing ROI and a sound business case for IoT, making it difficult to encourage funding and support.
Nearly half (43%) of the 200 IT and business leaders polled said they had concerns over ROI and demonstrating to decision-makers that IoT investment is profitable. There were also concerns raised over integration with existing business systems, with 37% stating they weren't confident regarding IoT compatibility with current networks and technology deployed in the office.
However, businesses would be wise to see the bigger picture, says TEKsystems research manager Jason Hayman.
"IoT will enable the collection and aggregation of data that will drive digital transformation deeper within organizations, enabling better insight into customer experiences and sparking innovation. IoT is going to change the business-customer relationship in ways organizations haven't even thought of yet," he explained.
It is apparent, however, that it is not just the technology itself over which leaders have concerns. Fewer than one in ten said they were entirely confident that their business was ready for IoT adoption, with the majority saying they were not yet convinced that communication between departments was strong enough to facilitate the technology.
Hayman says that leaders are right to scrutinise internal communications, suggesting anything less than complete harmony between departments will see an IoT initiative fail.