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Businesses realise IoT benefits, but refuse to invest

Here's an interesting research into the Internet of Things. Businesses know it can help them improve their bottom line, but they aren't willing to invest any serious money into the development of either IoT devices, or platforms for the new technology.

Those are the results of a new study by SAP (opens in new tab), based on a poll of 100 senior executives in the UK manufacturing sector.

According to the report, less than a fifth (19 per cent) expected no investment in IoT technologies this year. Looking at the overall anticipated IT spend, IoT takes up only 8 per cent.

On the other hand, businesses are very well aware of what IoT can do for them. More than half (51 per cent) believe it could cut costs, and 38 per cent mentioned improvements in product development. Another 30 per cent listed procurement and supply chain management.

“IoT is set to have a major impact on the manufacturing sector and it’s encouraging that businesses see the potential benefits technology can bring to provide better insights, proactive actions and improved outcomes,” said Nayaki Nayyar, GM & Head of IoT Go to Market for SAP.

“Industry 4.0 and the Internet of Things can enable end-to-end transformation for manufacturing companies and connect the shop floor to the top floor, optimising supply chains and manufacturing operations and ultimately helping them stay competitive.”

The IoT is predicted to make close to $2 trillion in economic benefit by 2020, based on more than 25 billion internet-connected devices, expected to be active by that time.

Image Credit: A-Image / Shutterstock

Sead Fadilpašić is a freelance tech writer and journalist with more than 17 years experience writing technology-focussed news, blogs, whitepapers, reviews, and ebooks. And his work has featured in online media outlets from all over the world, including Al Jazeera Balkans (where he was a Multimedia Journalist), Crypto News, TechRadar Pro, and IT Pro Portal, where he has written news and features for over five years. Sead's experience also includes writing for inbound marketing, where he creates technology-based content for clients from London to Singapore. Sead is a HubSpot-certified content creator.