FORRESTER CONSULTING INTERNET OF THINGS SURVEY - KEY FINDINGS. Building Value from Visibility: 2012 Enterprise Internet of Things Adoption Outlook
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1 FORRESTER CONSULTING INTERNET OF THINGS SURVEY - KEY FINDINGS Building Value from Visibility: 2012 Enterprise Internet of Things Adoption Outlook
2 SURVEY RESPONDENTS WERE PROVIDED WITH FOLLOWING DEFINITION OF THE INTERNET OF THINGS INTERNET OF THINGS DEFINITION: Smart interconnected devices (e.g. RFID, sensors, etc.) that businesses use to get more visibility into the identification, location, and condition of products, assets, transactions, or people, to drive more effective, timely business decisions or to improve customer interactions 8 of respondents completely or strongly agree with the provided definition of Internet of Things Over 70% of respondents have a positive perception of the term Internet of Things 2
3 MOST FIRMS ARE IN THE EARLY STAGES OF INTERNET OF THINGS IMPLEMENTATION, BUT MANY PLAN FUTURE INITIATIVES In the following timeframes, please indicate when you are most likely to implement an Internet of Things solution for your organization? (please select one) Not sure/don t know We are not planning to implement an Internet of Things after 5 years We are planning to implement an Internet of Things solution between 2-5 years We are planning to implement an Internet of Things solution between months We are planning to implement an Internet of Things solution in the next 12 months 14% 2 2 We already have a solution in place 1
4 MANY DIFFERENT TYPES OF DEVICES ARE CONSIDERED VALUABLE TECHNOLOGIES TO ENABLING INTERNET OF THINGS SOLUTIONS Thinking about your company, on a scale of 1 to 5, with 1 being not at all important to bring value and 5 being very important to bring value, please rate the following technologies on how necessary each is to enable Internet of Things solutions. 5 - Very Important To Bring Value Not At All Important To Bring Value Barcodes Real time location tracking Wi-Fi Mobile Computing GPS tracking Security sensors Passive RFID Condition sensors Near Field Communications (NFC) CDMA/GPRS/4G Grid sensors Mesh Networks Telematics % % 31% % % % % % 23% 4% 4% 2% 3% 22% % 34% 33% 4%
5 LOCATION OF TRACKED OBJECTS AND CONTAINERS ARE LEADING INTERNET OF THINGS FUNCTIONS From your understanding of Internet of Things please select the functionality you believe it delivers. (Select all that apply) Location of tracked objects 8 Location of tracked containers 72% Autonomous identification Contents of tracked containers Tracked transactions Location of tracked personnel Condition of tracked objects Data driven actionable insight Condition of monitored environment 5 54% 52% 50% 50% 4 41% Status of tracked personnel 33%
6 SUPPLY CHAIN VISIBILITY, TRANSACTION TRACKING AND ASSET LOCATION ARE ISSUES ADDRESSED BY IOT SOLUTIONS Which of the following issues, if any, would your organization address by implementing Internet of Things solutions? Supply chain visibility Tracking customer, partner, or supplier transactions Asset location Asset identification Reduce inventory levels Proactive alerts Minimise theft and unnecessary damage of object or assets Asset utilisation Security or surveillance Fleet management or telematics applications Improving labour utilisation Asset condition Reducing new asset purchasing Tracking a person's status or condition 1 50% 50% % % 30% 2 5
7 A WIDE RANGE OF BENEFITS CAN BE ACHIEVED FROM INTERNET OF THINGS SOLUTION IMPLEMENTATION What are the business benefits that can be achieved by implementing Internet of Things solutions? Supply chain visibility Loss prevention Improved customer experience Improved delivery process Supply chain optimization and responsiveness Cost efficiencies 71% 70% % Improved forecast accuracy Facilitate collaboration with employees, partners, suppliers, and customers Improved safety Improved regulatory compliance Risk management 5 54% 51% 4 4 Increased revenues 3 Data driven actionable insight
8 KEY BENEFITS INCLUDE SUPPLY CHAIN OPTIMIZATION, COST EFFICIENCIES, AND IMPROVING CUSTOMER EXPERIENCE Based on the following definition, please select the top 5 categories in which your company will benefit from using the Internet of Things in the next 1 to 2 years? Supply chain optimization and responsiveness 13% Cost efficiencies Improved customer experience 13% Improved delivery process Supply chain visibility Loss prevention Facilitate collaboration with employees, partners, suppliers, and customers Improved forecast accuracy 4% Improved safety Risk management Increased revenues 4% Improved regulatory compliance 3% 4% Data driven actionable insight 3% 2% 2% 3% 4%
9 SYSTEM INTEGRATION, INFRASTRUCTURE, AND DEVICE INVESTMENT ARE TECHNICAL CHALLENGES TO IMPLEMENTATION Looking at the technical implementation of an Internet of Things solution for your organization, on a scale of 1 to 5, with 1 being not at all a challenge and 5 being a significant challenge, please rate the following on how much of a challenge each will be for implementing an Internet of Things solution. 5 - A Significant Challenge Not At All A Challenge Don t know Systems integration 34% 21% 3% 3% Infrastructure/ Networking investment Investment in sensing devices % 2 2 4% 4% 4% 4% Data analytics 1 30% 4% Event oriented application software 14% 2 13% 3% Value chain collaboration 1 31% 2% Middleware applications 13% 2 3% 14% Dashboards 2 1
10 FIRMS IN ASIA AND LATIN AMERICA HAVE MORE AGGRESSIVE INTERNET OF THINGS IMPLEMENTATION TIMELINES In the following timeframes, please indicate when you are most likely to implement an Internet of Things solution for your organization? (please select one) We already have a solution in place We are planning to implement an Internet of Things solution in the next 12 months We are planning to implement an Internet of Things solution between months We are planning to implement an Internet of Things solution between 2-5 years We are not planning to implement an Internet of Things after 5 years Not sure/don t know Asia 21% 51% 1 0% 3% Latin America 30% 30% 1 North America 20% Europe 1 14% 2 1 1
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