- Over half of business and IT leaders now expect return on investment for IoT projects within three years
- Enterprises deploying IoT for a wide range of benefits including new revenue generation (45 percent), improving security and health, and enhancing safety (47 percent each)
- Survey identifies room for improvement among IoT services and equipment suppliers, especially in better support and closer collaboration
Munich, October 10, 2018 – According to a new Fujitsu survey1 published today, Internet of Things (IoT) technology has reached early mainstream, with business and IT leaders expecting tangible results in three years or less – signaling that the days of simply experimenting with IoT projects are now consigned to the past..
Fujitsu commissioned IDG Connect to better understand how IoT technology is maturing in the enterprise, and to gauge industry expectations. The results confirm that the IoT has already matured far beyond being an emerging technology and underline that enterprises are increasingly impatient when it comes to IoT delivering a boost to their bottom line.
Almost three quarters of respondents (73 percent) confirmed that IoT deployments have advanced well beyond the testing and market education stages, with almost half of these delivering results. Underlining this increased focus on payback, the Fujitsu survey conducted by IDG Connect found that almost a third (31 percent) expect a return from investments in IoT projects within one to two years, and 56 percent expect profitability within three years.
Due to the complexity of the IoT, enterprises are turning to services and equipment providers to assist with deployments. However, the survey also indicates that suppliers are failing to deliver. Major concerns are the need for better support (24 percent), closer collaboration so that vendors understand their customer’s unique needs (23 percent), a call for lower pricing (20 percent), greater contractual flexibility (17 percent) and more readily available as-a-service options (15 percent).
Yves de Beauregard, Head of Digital Business Solutions at Fujitsu in EMEIA, comments: “IoT technologies are entering the early mainstream across a wide range of vertical industries, as our survey confirms. To drive the greatest value from IoT, Fujitsu is focused on deploying long-lasting, robust technologies that will ensure a maximum return for our customers. We are leveraging our deep technology experience and combining this with our customers’ business know-how. It’s clear from the survey results that enterprises are already enjoying solid return on investment from IoT projects. This should be a compelling incentive to dip a toe in the water for any organization that’s still skeptical about getting any business value from the IoT.”
Fujitsu’s survey also reveals that businesses are using IoT for a wide range of purposes, far beyond the delivery of process efficiencies. In fact, the joint-highest survey responses were for improving health and safety (47 percent), enhancing security (47 percent), in using newly-available data to create smarter strategies (47 percent), as well as improving maintenance (46 percent).
In addition, 45 percent of businesses are already using IoT to generate new revenue-making opportunities, and a quarter of respondents consider the biggest opportunity to be the ability to charge premium prices for valuable additions to products, data or services. Furthermore, just over a fifth (22 percent) of respondents cited the ability to cost-effectively create better and more differentiated services to attract new customers.
Embracing IoT: CIOs’ Guide to Harnessing the Power of the Internet of Things
The Internet of Things (IoT) presents tremendous opportunities for organizations to enhance operational efficiency, improve decision-making, and drive innovation. As CIOs navigate the adoption of IoT, here is a guide to harnessing its power effectively:
Develop an IoT Strategy: CIOs should start by developing a comprehensive IoT strategy aligned with the organization’s goals and objectives. Identify the areas where IoT can bring the most value, whether it’s optimizing processes, improving customer experiences, or creating new revenue streams. Define the scope of IoT deployment, prioritize use cases, and create a roadmap for implementation.
Establish a Robust Infrastructure: Building a robust infrastructure is crucial for IoT success. CIOs need to ensure reliable and scalable connectivity to support the massive number of IoT devices and the data they generate. This may involve implementing low-power wide-area networks (LPWANs), leveraging existing Wi-Fi networks, or exploring cellular technologies like 5G. Additionally, the infrastructure should accommodate edge computing capabilities to process data closer to its source and reduce latency.
Focus on Data Management: IoT generates vast amounts of data, and effective data management is key to unlocking its value. CIOs should establish data governance policies, including data ownership, data quality, and data privacy and security measures. Implementing data analytics tools and techniques, such as real-time stream processing, data lakes, and machine learning, enables extracting actionable insights from IoT data.
Security and Privacy: With the proliferation of connected devices, CIOs must prioritize IoT security and privacy. Implement strong authentication and access controls to prevent unauthorized access to IoT devices and networks. Encrypt data both in transit and at rest, and establish mechanisms to detect and respond to security breaches. Additionally, comply with data protection regulations and ensure that IoT devices and applications adhere to privacy guidelines.
Collaborate and Partner: IoT implementations often require collaboration with various stakeholders. CIOs should collaborate with business units, operational teams, and external partners to identify IoT use cases, gather requirements, and develop solutions. Engaging with IoT ecosystem providers, sensor manufacturers, and industry consortia can help leverage expertise, access specialized technology, and stay updated on industry standards and best practices.
Data Integration and Interoperability: Integration of IoT data with existing systems and processes is crucial for deriving maximum value. CIOs should ensure interoperability among IoT devices, applications, and enterprise systems. Adopting standard protocols, leveraging APIs, and implementing integration platforms facilitate seamless data exchange and enable cross-functional insights.
Address Regulatory and Compliance Requirements: IoT deployments may be subject to specific regulations and compliance requirements. CIOs should understand and address these requirements, such as privacy regulations, industry-specific standards, and cybersecurity frameworks. Implement appropriate controls, perform risk assessments, and ensure compliance with relevant regulations to avoid legal and reputational risks.
Enable Scalability and Flexibility: CIOs need to design IoT solutions with scalability and flexibility in mind. As the number of connected devices grows, the infrastructure should be capable of handling increased data volumes and device management. CIOs should also consider cloud-based platforms that provide scalability, elasticity, and ease of management for IoT deployments.
Embrace a Culture of Innovation: IoT presents opportunities for innovation and digital transformation. CIOs should foster a culture that embraces experimentation, encourages creative thinking, and supports agile development practices. Promote cross-functional collaboration, provide training and resources, and establish mechanisms to capture and evaluate new ideas to drive IoT innovation within the organization.
By following this guide, CIOs can harness the power of IoT to drive digital transformation, optimize operations, and create new value for their organizations.
The Future of IoT: Interoperability, Standards and Scalability Challenges
While the Internet of Things (IoT) holds immense potential for transforming industries and our daily lives, there are several challenges that need to be addressed for its future success. Interoperability, standards, and scalability are among the key challenges that need to be overcome. Here’s a closer look at these challenges and their implications for the future of IoT:
Interoperability: Interoperability refers to the ability of different IoT devices, platforms, and systems to seamlessly communicate and work together. Currently, the IoT landscape is fragmented, with numerous proprietary protocols and technologies. This lack of interoperability limits the ability to create integrated and cohesive IoT solutions. To unlock the full potential of IoT, there is a need for standardized communication protocols and frameworks that enable interoperability across devices and platforms. Efforts are underway to develop open standards such as MQTT, CoAP, and OPC UA, which aim to address this challenge.
Standards and Security: The absence of universal standards for IoT devices and systems poses security risks and hampers the adoption of IoT solutions. As IoT devices continue to proliferate across various industries, the lack of standardized security measures makes them vulnerable to cyberattacks and data breaches. Establishing robust security standards and protocols is crucial to protect IoT ecosystems and the sensitive data they handle. Additionally, privacy concerns related to the collection and use of personal data by IoT devices need to be addressed through strong regulatory frameworks.
Scalability: IoT involves the deployment of billions of devices that generate massive amounts of data. Scaling IoT systems to accommodate this vast number of devices and handle the exponential growth of data is a significant challenge. It requires robust infrastructure, including network bandwidth, cloud computing resources, and data storage capabilities. Building scalable IoT architectures that can handle the increasing demands of data processing, analytics, and storage is essential for the future growth and sustainability of IoT applications.
Power Management: Many IoT devices are battery-powered and operate in resource-constrained environments. Power efficiency and management are critical factors for the successful deployment and operation of IoT systems. Optimizing power consumption in IoT devices, implementing low-power communication protocols, and exploring energy harvesting technologies are essential for extending the battery life of devices and reducing the need for frequent maintenance or replacements.
Data Management and Analytics: The massive influx of data generated by IoT devices poses challenges in terms of data management, storage, and analysis. Effectively handling and extracting actionable insights from this vast amount of data require advanced data management and analytics techniques. IoT platforms need to incorporate efficient data processing and analytics capabilities, including real-time data streaming, edge computing, and machine learning algorithms, to derive meaningful insights and enable intelligent decision-making.
Ethical and Social Implications: As IoT becomes more pervasive, ethical and social considerations arise. Issues related to privacy, data ownership, and the impact of automation on employment need to be carefully addressed. Clear regulations and guidelines must be in place to ensure responsible and ethical use of IoT technologies and protect the rights and privacy of individuals.
Addressing these challenges requires collaboration among industry stakeholders, policymakers, and standards organizations. Efforts to establish interoperability standards, enhance security measures, and develop scalable IoT architectures are already underway. As IoT continues to evolve, it is crucial to prioritize these challenges to foster innovation, ensure trust, and create a sustainable and interconnected IoT ecosystem that delivers value to businesses, individuals, and society as a whole.
IoT and Smart Grids: Revolutionizing Energy Distribution and Management
The integration of IoT (Internet of Things) technology with smart grids has revolutionized the way energy is distributed and managed. Smart grids leverage IoT devices, sensors, and advanced data analytics to enable real-time monitoring, control, and optimization of energy generation, distribution, and consumption. This integration offers several benefits in terms of efficiency, reliability, and sustainability. Here’s how IoT and smart grids work together:
Real-time Monitoring and Control: IoT devices and sensors are deployed across the grid infrastructure to monitor various parameters such as electricity flow, voltage levels, power quality, and equipment health. These sensors collect real-time data, which is transmitted to a centralized system for analysis and control. Operators can monitor the grid’s performance in real-time, detect anomalies, and take proactive measures to ensure efficient energy distribution and optimal grid operation.
Grid Optimization and Load Balancing: IoT-enabled smart grids utilize data analytics and machine learning algorithms to optimize energy distribution and balance the load across the grid. By analyzing real-time and historical data, these algorithms can predict electricity demand, identify potential grid congestions, and optimize the routing of energy to minimize power losses and maximize grid capacity. This results in a more balanced and efficient distribution of energy, reducing wastage and improving overall grid performance.
Demand Response and Peak Load Management: IoT devices and smart meters installed in homes, buildings, and industrial facilities enable demand response programs and peak load management. By monitoring energy consumption patterns in real-time, smart grids can send signals to consumers to adjust their electricity usage during peak demand periods or when there is a strain on the grid. This helps reduce stress on the grid, avoid blackouts, and promote energy efficiency by incentivizing consumers to shift their energy consumption to off-peak hours.
Distributed Energy Resource Integration: IoT facilitates the integration of distributed energy resources (DERs) such as solar panels, wind turbines, and energy storage systems into the grid. IoT devices and sensors installed in these resources enable real-time monitoring of energy generation and storage levels. This information can be used to optimize the utilization of renewable energy sources, manage energy flows bidirectionally, and support the efficient integration of DERs into the grid.
Fault Detection and Self-healing Capabilities: IoT devices and sensors deployed throughout the grid enable early detection of faults, equipment failures, and power outages. Real-time data from these devices can trigger alerts and notifications, allowing operators to quickly identify and locate issues, reducing downtime and improving grid reliability. Additionally, IoT-enabled smart grids can employ self-healing capabilities, automatically rerouting power and isolating faulty sections to minimize the impact of outages.
Energy Efficiency and Conservation: IoT-enabled smart grids empower consumers with real-time information about their energy consumption. Smart meters and IoT devices provide detailed insights into energy usage patterns, allowing consumers to make informed decisions about their energy consumption and implement energy-saving measures. This promotes energy efficiency and conservation at the consumer level, contributing to overall sustainability and reducing greenhouse gas emissions.
Integration with Renewable Energy Markets: IoT and smart grids facilitate the integration of renewable energy sources into the grid and enable the participation of consumers in renewable energy markets. Real-time monitoring and data analytics help balance the supply and demand of renewable energy, allowing for efficient integration and utilization of green energy sources. IoT devices can also enable peer-to-peer energy trading platforms, where consumers can buy and sell excess energy generated from renewable sources, promoting a decentralized and sustainable energy ecosystem.
The integration of IoT with smart grids has transformed the energy sector by enabling real-time monitoring, control, and optimization of energy distribution and consumption. By leveraging the power of IoT devices, data analytics, and advanced control systems, smart grids offer enhanced efficiency, reliability, and sustainability in energy management, paving the way for a more intelligent and sustainable energy future.