SINGAPORE—A new study carried out by global consulting and business solution company, Tata Consultancy Services, has revealed that more than 80 per cent of companies investing in Internet of Things technology saw an increase in revenue.
Foremost among these companies were manufacturers.
The study surveyed 795 executives from large multi-national companies and identified the huge potential for revenue increases from IoT, while also highlighting the significant challenges that lie ahead for businesses transitioning to the new model. Across the board, companies investing in IoT are reporting significant revenue increases as a result of IoT initiatives with an average increase of 15.6 percent in 2014.
“The age of IoT is well underway. The question is, whether businesses are ready to realize the full potential of this technology,” Natarajan Chandrasekaran, CEO of TCS, said. “Our latest global trend study found that leaders in using IoT technologies are using it to completely re-imagine their businesses by changing every aspect of them from business models and products to business processes and workplaces.”
In the industrial manufacturing sector, executives are reporting the largest increase in revenue from IoT investment of any industry. Manufacturers are seeing revenues climb an average of 28.5 percent due to investment in IoT.
Despite the encouraging data on IoT investment and its impact on revenue growth, the report also revealed that major challenges remain in realizing the promise of IoT for businesses across all sectors. The report found that the three biggest factors holding companies back were corporate culture, ambivalent leadership and corporate uncertainty around how the technology would benefit business.