The Economist Intelligence Unit recently published a comprehensive report that offers valuable insights into our industry.
Report summary
The Internet of Things Business Index: A Quiet Revolution Gathers Pace is an Economist Intelligence Unit report, sponsored by ARM. Its primary aim is to assess the current and future adoption of the Internet of Things (IoT) within the global business community.
The inaugural IoT business index is based on a survey of 779 executives from around the world, conducted by The Economist Intelligence Unit in June 2013. Survey respondents were asked to indicate the extent to which their companies currently make use of the IoT in their external products and services, and separately in their internal operations and processes (see Research Methodology for a full explanation).
The index operates on a scale of 1 to 10, representing five distinct “stages” of IoT utilization. The highest and most advanced stage, indicated by a score of 9 or 10, signifies extensive IoT use. In contrast, the lowest stage, with a score of 1 or 2, indicates non-existent or virtually non-existent IoT utilization. Scores falling between these extremes denote businesses in a transitional phase from one stage to another.
Fig 1. Stage of IoT Use Index
At present, businesses across the globe predominantly find themselves in the research stage, marked as point 4 on the 10-point scale. Additionally, they are more inclined to employ IoT in internal operations and processes rather than in external products or services. By region, European businesses are fractionally out in front. Meanwhile, manufacturing leads the way among industries, with financial services bringing up the rear.
Why you should read this report
- Three-quarters of companies (75%) are actively exploring the IoT or already integrating it into their operations.
- Businesses worldwide are currently situated in the research stage of the IoT Business Index (point 4 on the 1 to 10 scale).
- The prevailing sentiment among senior executives (61%) is that companies slow to embrace IoT in their business strategies will fall behind their competitors.
- Since 2012, only around 30% of organizations have witnessed double-digit growth in IoT investments.
- Looking ahead three years, nearly all senior executives (96%) anticipate their businesses will incorporate IoT in some capacity.
"These IoT products evolve into platforms for new business services, presenting opportunities for generating new revenue streams. Whether you take this path yourself or leave it to others is a critical decision."
"The continuous increase in the number of patent applications serves as a compelling indicator of the paramount importance of the IoT within the realm of Honda."
"Any organization can integrate IoT into their products. The key lies in finding a business model that suits your objectives."
ei3's role in driving IoT adoption for businesses
In line with these insights, as an Industrial IoT solutions provider, ei3 plays a pivotal role in enabling companies to transition from a “non-existent” to an “extensive” IoT adoption stage by offering a comprehensive range of end-to-end, no-code IoT solutions. In addition to optimizing manufacturing operations, ei3’s thirteen years of expertise in IoT equips businesses with the tools they need to stay competitive and foster growth and profitability in their industry.
