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Businesses are setting their sights on adoption of IoT, but the rate of uptake of the technology has been slower than expected.
But the promise of IoT is huge. McKinsey estimates that IoT will have an $11 trillion annual economic impact.
Mike Milinkovich, executive director of the Eclipse Foundation, said that “Manufacturing organizations increasingly implement IoT solutions that tie industrial automation, asset management and logistics together; the most innovative of them also rely on IoT technologies to improve their customer value proposition by offering preventive maintenance features.”
A recent survey by the Eclipse Foundation found that 50 percent of manufacturing organizations are currently deploying or using IoT and another 22 percent say that they have plants to deploy IoT within the next two years. Although so far spending by these organizations have been conservative, with 30 percent planning to spend less than $100K on IoT in 2021.
The uptake of the technology may be slow because implementing new technology is hard and implementation projects are taking longer to complete than expected.
Mike Burkett, Gartner analyst, said that “IoT is in the trough because we see that many companies are implementing the technology, but they struggle to define the best opportunities for using its measurement and tracking capabilities.”
Another issue for IoT adoption is re-engineering. Processes that adopt IoT will almost certainly change. The change IoT brings will be for the better, but the short-term change can be painful. Burkett said that “in some cases, processes will have to be redesigned to accommodate IoT capabilities.”
Andrew Dunbar, general manager at Appnovation, said that “I think it’s inevitable there will be a teething process while the new ideas IoT proposes are bedded in. But once that phase is over, it will be exponential how things will then connect.”