Mass Adoption of the Internet of Things is Coming Quickly
The Internet of Things (IoT) is a world in which everyday items, such as refrigerators, cars and thermostats, are connected to the web. Many people are already using these smart devices, but we are not yet living in a world where these items are the norm.
New research from Aruba, a Hewlett Packard company, indicates that IoT will reach mass adoption by 2019, as 85% of businesses plan to adopt these devices by then to increase efficiency.
To compile The Internet of Things: Today and Tomorrow, researchers talked to 3,100 IT and business decision makers in 20 countries. Nearly all of the business leaders (98%) understand IoT, but many are unclear about the exact definition and what these devices could do for their business.
Kevin Ashton, one of the researchers, found that IoT can produce better-than-expected results for most businesses. Only 16% of business leaders projected a large profit from their IoT investment, but after adopting the technology, 32% saw profit increases. Similarly, just 29% believed IoT would make their business more efficient, yet 46% saw efficiency gains after adoption.
“With the business benefits of IoT surpassing expectations, it’s no surprise that the business world will move towards mass adoption by 2019,” said Chris Kozup, vice president of marketing at Aruba. “But with many executives unsure of how to apply IoT to their business, those who succeed in implementing IoT are well positioned to gain a competitive advantage.”
Aruba studied multiple industry sectors, including enterprise, industrial, healthcare, retail and government. Taking one example, the study found IoT can help retailers better engage with customers and boost sales. Less than half (49%) of retailers are using IoT technology, but of those who are using it, 81% reported improved customer experiences, which can positively impact customer loyalty.
In the retail sector, IoT can present personalized offers and product information for customers. It can also help merchants monitor for theft or maintenance issues.
As companies transition to this new technology, they will need to make sure they are considering security. Aruba found 84% of organizations faced an IoT-related security breach. Of those waiting to adopt the technology, over half said security attackers were the main barrier to embracing IoT.