An overwhelming majority of business executives (81 percent) believe that successful adoption of the industrial Internet of things (IIoT) is critical to their company’s future success, but only 25 percent have a clear IIoT strategy , according to a study released today by the Genpact Research Institute and IndustryWeek, in collaboration with GE Digital and the Industrial Internet Consortium.
The Industrial Internet of Things leverages the interconnectivity of machines and systems with sensors, intelligent data, and analytics to provide increased visibility and better insights into the performance of equipment and assets. IIoT transforms the way people and machines interact, with the potential to drive significant process improvements; enhance quality, productivity, and overall operational efficiency; as well as increase growth and profitability in manufacturing and other sectors.
The key obstacles that businesses face when leveraging IIoT technology include data security and privacy concerns (cited as problematic by 37 percent and 33 percent of respondents, respectively), insufficient skills of technology staff (35 percent), use of legacy systems (34 percent), and data quality (34 percent). Additionally, half of the business executives surveyed feel that the IIoT increases their company’s susceptibility to cyberattacks.
The majority of all respondents (77 percent) see the ability to spur growth as the top opportunity from an effective IIoT implementation. Agility is also a top expected benefit from the IIoT, cited by 75 percent of the respondents.
Despite the acute awareness of IIoT’s importance, underscored by nearly half of respondents who say their companies are currently developing a clear strategy, it is surprising that almost 30 percent will not have an IIoT strategy in the next 12 months. Moreover, 13 percent believe they never will use such technology or capabilities.
About the study
The study was developed by the Genpact Research Institute and IndustryWeek, and conducted by Penton Research in March-April 2016 via a survey that that resulted in 173 responses from C-suite (executive vice president and above), senior executives, managers, and other professionals at a variety of businesses, predominately based in North America.
The report is available at http://www.genpact.com/lp/industrial-internet-and-business-transformation