− N ChandrasekaranCEO and Managing Director
"Most of the companies we studied are committed to investing big in their IoT initiatives this year−an average $86 million per company. What sets IoTleaders apart is what they are investing in, and how they are changing the way they do business to capitalize on the investment."
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based on a TCS survey of
795companies
with $22b average revenue
from 13industries
in 4 regions of the world
8 Key
$ $ $ $
Findings
on how they use IoT technologies for
PremisesMonitoring
ProductMonitoring
CustomerMonitoring
Supply ChainMonitoring
$ $ $
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IoT has Arrived
Four out of five companies use IoT technologies to track their products, customers, premises, or supply chains
1 in a Big WayKEY
FINDING
Already significant, averageinvestments in IoT set to grow
$103mn
$86mn2015
2018
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Companies with higher priced offerings are
investing more in the IoT
Average Expenditure on the IoT
> $10mn< $100
$39mn
$335mn
Sticker Price DrivesIoT Investments2KEY
FINDING
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Track consumer behavior using mobile apps
47%
Track goods moving through production and distribution on their way
to customers
45%
Track products after sale using
embedded sensors
26%
Monitor business locations withdigital sensors
25%
Mobile Apps Most FrequentlyUsed IoT Technology3KEY
FINDING
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NorthAmerica
Europe
LatinAmerica
4KEY FINDING
Percentage of total revenue spent on IoT initiatives by companies across four regions
North American &European CompaniesLead in IoT Adoption
0.45%0.40%
0.23%
0.34%
Asia Pacific
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Average rise in revenues in 2014
Rise in revenues for9% of companies
16%
60%
Impact Areas
More customized offerings
Better tailored marketing campaigns
Faster product improvements
More effective customer service
The Impact
IoT Initiatives DriveRevenue Growth5KEY
FINDING
$
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Have and project more than 25% revenue growth from IoT initiatives
Lead in the use of the IoTto monitor products sold, with around 40% companies doing so
Second in average IoT spend ($121 mn) across sectors, only next to travel industry ($129 mn)
Industrial Manufacturers Ahead of Other Sectors6KEY
FINDING
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Strategic & Cultural FactorsKey to IoT Adoption;7KEY
FINDING Technology a Key Challenge
Strategic CulturalIdentifying NEW business opportunities made possible by the IoT
Changing how managers THINK about customers, products, and processes
Determining the RIGHT data to collect using the IoT
Having top executives who BELIEVE in the IoT
Handling BIG DATA
Deciding which IoT systems to DEVELOP internally vs. externally
Technology
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Digitally reimagine their businesses to create value for customers—not just for themselves
Deliver value through new business models, product and service offerings, product bundles, and data
Understand the breakthrough potential of the IoT in delivering real insights on how products and services perform and are used by customers
Respond swiftly to insights revealed by data
Deal better with organizational resistance to the truth IoT technologies can reveal
Make the IoT reliable in the field by reducing security risks
Invest selectively before making large, across-the-board commitments
7 Things that SetIoT Leaders Apart8KEY
FINDING
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What IoT Pioneers Say
William Ruh, VP and Global Technology Director, General Electric Co.
The two primary things we look at as success: enabling a change in the services business at GE and enabling the outcomes we see with our customers. Everything is based on an outcome. Do we make pipelines safer? Do we save fuel for a customer?
Jonathan Ballon, VP, IoT Group,Intel Corp.
We are using image analytics to detect defects in about a tenth of the time it takes through manual inspection.
Naresh Shanker,CIO, HP Inc.
Hyper integration offers endless possibilities... There are now millions of HP printers that can provide services in homes.
John Canosa, Chief Strategist, Connected Products at ThingWorx, PTC
A company that’s doing IoT right is putting together cross-functional teams that involve R&D and IT at a minimum...
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TCS Global Trend Study – July 2015
Internet of Things:The Complete Reimaginative Force
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