60% of IoT initiatives stall at the Proof of Concept (PoC) stage and only 26 % of companies have had an IoT initiative that they considered a complete success, according to a new study by Cisco. And then, a third of all completed projects were not considered a success. However, 64 % agreed that learnings from stalled or failed IoT initiatives have helped accelerate their organisation’s investment in IoT.
Cisco released the findings at IoT World Forum (IoTWF). “It’s not for lack of trying,” said Rowan Trollope, senior vice president and general manager, IoT and applications, Cisco. “But there are plenty of things we can do to get more projects out of pilot and to complete success, and that’s what we’re here in London to do.”
One of the interesting observations was about the significance of human factors like organisation, leadership and culture for the success of IoT projects. Three of the four top factors behind successful IoT projects had to do with people and relationships. Collaboration between IT and the business side was the number one factor, cited by 54 % of respondents; followed by a technology-focused culture, stemming from top-down leadership and executive sponsorship, which was called key by 49 %; and IoT expertise, whether internal or through external partnership, was selected by 48 %.
Top five challenges across all stages of implementation were revealed to be: time to completion, limited internal expertise, quality of data, integration across teams, and budget overruns. The study found that the most successful organisations engage the IoT partner ecosystem at every stage, implying that strong partnerships throughout the process can smooth out the learning curve.
Inbar Lasser-Raab, VP of Cisco enterprise solutions marketing said:“Where we see most of the opportunity, is where we partner with other vendors and create solutions that are not only connected but also share data. That shared data is the basis of a network of industries – sharing of insights to make tremendous gains for business and society, because no one company can solve this alone.”
On a positive note, 73% of all participants are using data from IoT completed projects to improve their business. Globally the top three benefits of IoT include improved customer satisfaction (70%), operational efficiencies (67%) and improved product / service quality (66%). In addition, improved profitability was the top unexpected benefit (39%).
More information about the survey can be found here.