A new study from LogMeIn and Forrester Consulting has found that two-thirds of companies are not fully utilising their IoT data.
The study found that 51% of companies surveyed are collecting data from the connected products they offer. However, just around a third are actually using the data for creating actionable insights to benefit customers and expand their business opportunities.
The results are interesting, especially since 61% of respondents said that product monitoring was a key driver for their development of connected products. This indicates that there is a mismatch between these companies' vision and execution.
Although 52% respondents noted that data analytics was a key capability that they will implement in the coming one or two years, several companies are missing out on the full benefits of IoT. Analysing their IoT data can help them continually personalise and improve customer experience, explore new revenue streams and optimise internal processes.
Despite the potential benefits and uses, most product makers approach IoT as a technology challenge and not as a business opportunity. They are focusing on connectivity rather than reaping the business benefits. Connectivity was the top product capability that companies spend time on, representing 20% of their total effort.
Even more interesting was the finding that just 4% of the surveyed companies found data usage and integration to be a challenge, despite most companies not managing and leveraging their data for business improvements.
Estimates indicate that the year 2016 will end with 6.4 billion connected devices worldwide, and the number will rise exponentially in the coming years. As the number of devices rise, so will their produced data, further amplifying the challenge.
The survey also highlighted other challenges that product makers are facing. For 60% respondents, data security was a difficult challenge and 38% cited security as their biggest challenge. Just 33% said that they protect and secure sensitive data at the moment. The report highlighted the need for platforms, processes and standards to address security risks and gaps that will arise as IoT products continue to scale up.
The report can be found here (registration required).
Interested in hearing industry leaders discuss subjects like this and sharing their IoT use-cases? Attend the IoT Tech Expo World Series events with upcoming shows in Silicon Valley, London and Amsterdam to learn more.