Gartner Research

Key Impacts to Consider When Building an IoT Service Sourcing Strategy for Digital Business Success

Published: 15 July 2015

ID: G00274080

Analyst(s): Jim Longwood , DD Mishra , Ruby Jivan


The Internet of Things enables generating new revenue streams and transforming business processes. Sourcing managers must develop an IoT sourcing strategy that addresses a multivendor integrated ecosystem, balances risks and rewards, and integrates the enterprise information strategy.

Table Of Contents
  • Impacts


Impacts and Recommendations

  • Cost optimization and increased investment in new business models are driving the adoption of IoT solutions, requiring sourcing managers to understand how to integrate IoT endpoints and platforms with relevant technology systems
  • There are no dominant IoT platforms, requiring buyers to assemble IoT solutions from multiple providers, and sourcing managers to manage an integrated delivery
  • Adopting IoT solutions in innovation initiatives tends to be much more iterative, requiring pilots, sandboxes or test trials, which sourcing managers need to address in their sourcing, evaluation and selection processes
  • IoT initiatives should align with the organization's EIM strategy, so sourcing managers must ensure that data and information requirements are well-documented and compatible with enterprise systems

Gartner Recommended Reading

©2021 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its affiliates. This publication may not be reproduced or distributed in any form without Gartner’s prior written permission. It consists of the opinions of Gartner’s research organization, which should not be construed as statements of fact. While the information contained in this publication has been obtained from sources believed to be reliable, Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. Although Gartner research may address legal and financial issues, Gartner does not provide legal or investment advice and its research should not be construed or used as such. Your access and use of this publication are governed by Gartner’s Usage Policy. Gartner prides itself on its reputation for independence and objectivity. Its research is produced independently by its research organization without input or influence from any third party. For further information, see Guiding Principles on Independence and Objectivity.

Already have a Gartner Account?

Become a client

Learn how to access this content as a Gartner client.