IoT projects in industry are on the rise

IoT on the advance - more projects, more success

IDG study "Internet of Things 2020". Image: IDG.

Tailwind for the Internet of Things (IoT): The number of companies that have implemented IoT projects has risen again. The “Internet of Things 2020” study by IDG, which was carried out in collaboration with the QSC subsidiary Q-loud, determined an increase of five percentage points compared to the previous year. Whereas in 2018 only 44 percent of companies implemented projects in the Internet of Things, in 2019 it was almost half with 49 percent.

Apparently there are no longer any IoT objectors in the German economy, because none of the 444 companies surveyed for the study stated that they would forego IoT projects or initial initiatives. In 2018 this value was just over one percent, in 2017 it was even 17 percent.

Another result: the number of companies implementing IoT projects has risen again. The researchers determined an increase of five percentage points compared to the previous year. Whereas in 2018 only 44 percent of companies implemented projects in the Internet of Things, in 2019 it was already almost half with 49 percent.

 

The relevance of the IoT is slowly increasing

Small leap forward: The relevance of the IoT for companies has increased somewhat again. Source: IDG study "Internet of Things 2020"

Overall, it can be seen that both the relevance and the use of the IoT in the economy are growing - albeit comparatively slowly. Analysts and investors are used to exponential growth from numerous B2C solutions, which often cannot be achieved in the B2B sector. Especially in medium-sized industry, entrepreneurs and managers tend to think in longer periods of time and only introduce IoT solutions in small steps.

Accordingly, the relevance of the IoT for companies is only increasing in small steps, but has been steadily increasing for years. 56 percent rate them as very high or rather high for their own business. For comparison: In the previous study it was 51 percent and in 2017 only 47 percent. With a view to the next two to three years, however, the values ​​look completely different: at the end of this period, a good 90 percent of companies expect the IoT to be highly to very high relevance for their own businesses.

 

Used primarily in quality control and networked production

Due to the growing number of IoT projects, companies now have a wide range of experience with different application scenarios. Next industrial applications like logistics or networked production, there are also scenarios for retail or service concepts such as smart home.

However, the frontrunners have been the same for years, with one remarkable change: 40 percent of companies use the IoT for quality control. This area of ​​application replaced the previous front-runner networked production (37 percent), followed this year by Smart Connected Products and Sales / Sales Control with 35 percent each.

IoT application mainly in production. Source: IDG study "Internet of Things 2020"

 

93 percent are very satisfied

The study identified a number of indicators on companies' experience with IoT projects. First the satisfaction with the results of the previous IoT projects, which remained roughly the same: Almost all companies (93 percent) are very satisfied, satisfied or somewhat satisfied.

The respondents then reported on the Success rate of the projects. It is still high and even increased by around 88 percent. In the previous year, 15 percent of the companies saw no added value in the IoT projects, in 2019 it is only eight percent. One percent of IoT projects failed (2018: two percent). However, "quick wins" are still rare; Only nine percent of the successful companies saw the added value immediately. The criteria for determining IoT success are still higher productivity (55 percent), followed by cost reductions (46 percent) and increasing sales (41 percent).

The experiences with the previous projects also have an impact on the expectations, which were discussed in another question. A general cost reduction is at the forefront of the greatest opportunities offered by the IoT, which was identified in another question. Higher customer satisfaction and competitive advantages only come in second and third place. New or improved service offerings, on the other hand, are in the middle of the field and are only considered by around one in six companies IoT opportunities called.

 

Optimization brings the greatest benefit

Increasing success rate in IoT projects. Source: IDG study "Internet of Things 2020"

The study also looked at the question of what the companies are doing Added value of the Internet of Things see. Around 42 percent named the optimization of existing business processes and almost as many (39 percent) mentioned the improvement of existing products or services.

This means that the focus continues to be on product improvement (“incremental innovations”). The establishment of new business models or the offering of smart products and services only attracts the interest of a small group of companies. But since all the curves point upwards, this minority should also grow.

 

Additional Information:

IoT study 2020:To download the study

IoT study 2020 - Article series in the QSC blog:

IoT study 2019 - Article series in the QSC blog:

Q-loud GmbH

 

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