Few Organizations Have Established Clear Leadership for Their IoT Efforts
More than 40 percent of organizations expect the Internet of Things (IoT) to transform their business or offer significant new revenue or cost-savings opportunities in the short term (over the next three years), rising to 60 percent in the long term (more than five years), according to a recent survey by Gartner, Inc. However, those surveyed said that many of their organizations have not established clear business or technical leadership for their IoT efforts.
The survey, which was carried out in October 2014 among Gartner Research Circle Members (a Gartner-managed panel), was composed of 463 IT and business leaders who had knowledge of their organization's IoT strategy.
"The survey confirmed that the IoT is very immature, and many organizations have only just started experimenting with it," said Nick Jones, vice president and distinguished analyst at Gartner. "Only a small minority have deployed solutions in a production environment. However, the falling costs of networking and processing mean that there are few economic inhibitors to adding sensing and communications to products costing as little as a few tens of dollars. The real challenge of the IoT is less in making products 'smart' and more in understanding the business opportunities enabled by smart products and new ecosystems."
A useful indicator of the degree to which organizations are prepared for the IoT is whether they've identified technical and business leadership for their IoT efforts. The survey found that less than one-quarter of survey respondents has established clear business leadership for the IoT, either in the form of a single organizational unit owning the issue or multiple business units taking ownership of separate IoT efforts.
"Organizations need executives and staff to understand the potential of the IoT if they're going to invest in it," said Steve Kleynhans, research vice president at Gartner. "While a single leader for the IoT is not essential, leadership and vision are important, even in the form of several leaders from different business units. We expect that over the next three years, more organizations will establish clear leadership, and more will recognize the value of some form of an IoT center of excellence because of the need to master a wide range of new technologies and skills."
Even respondents who expect the IoT to have a significant or transformational impact are often working for organizations that haven't established clear leadership. The situation here is a little better than average, however, with 35 percent of respondents from organizations that expect the IoT to be transformational having some form of leadership in place.
Many survey respondents felt that the senior levels of their organizations don't yet have a good understanding of the potential impact of the IoT. However, attitudes toward the IoT vary widely by industry. For example, board of directors' understanding of the IoT was rated as particularly weak in government, education, banking and insurance, whereas the communications and services industries scored above-average ratings for senior executive understanding of the IoT.
"New domains such as the IoT inevitably pose new risks and challenges and survey respondents were acutely aware of the possible factors that could inhibit IoT deployment," said Mr. Jones. "Security and privacy are, unsurprisingly, top issues and industries dealing with intangibles were more concerned with security and privacy than those dealing with tangibles because many operate in very security-aware areas such as banking. Obtaining staff and skills is another major inhibitor for many respondents, particularly those who expect the IoT to be transformational because they are likely to need sophisticated skills relatively urgently."
More detailed analysis is available in the Gartner report "Survey Analysis: The Internet of Things Is a Revolution Waiting to Happen." The report is available on Gartner's website at http://www.gartner.com/document/2965320.
Gartner, Inc. (NYSE: IT) is the world's leading information technology research and advisory company. The company delivers the technology-related insight necessary for its clients to make the right decisions, every day. From CIOs and senior IT leaders in corporations and government agencies, to business leaders in high-tech and telecom enterprises and professional services firms, to technology investors, Gartner is the valuable partner to clients in approximately 10,000 distinct enterprises worldwide. Through the resources of Gartner Research, Gartner Executive Programs, Gartner Consulting and Gartner Events, Gartner works with every client to research, analyze and interpret the business of IT within the context of their individual role. Founded in 1979, Gartner is headquartered in Stamford, Connecticut, USA, and has 7,900 associates, including more than 1,700 research analysts and consultants, and clients in more than 90 countries. For more information, visit www.gartner.com.
Comments or opinions expressed on this blog are those of the individual contributors only, and do not necessarily represent the views of Gartner, Inc. or its management. Readers may copy and redistribute blog postings on other blogs, or otherwise for private, non-commercial or journalistic purposes. This content may not be used for any other purposes in any other formats or media. The content on this blog is provided on an "as-is" basis. Gartner shall not be liable for any damages whatsoever arising out of the content or use of this blog.