Daily Management Review

IoT technology encounters problems with industrial enterprises


01/30/2019


Bain & Company published a report on the introduction of the Internet of things in the industry. It is noted that several years after the advent of such technologies and bright forecasts, the industry faced problems of a psychological and technological nature, which slowed down their implementation. Nevertheless, experts believe that the Internet of things in the industry has great prospects, and they expect that by 2021 this market will grow to $ 200 billion.



Mirko Tobias Schäfer
Mirko Tobias Schäfer
In their latest study, Bain & Company notes that in recent times many industrial companies have been faced with the fact that practical implementation and integration of the Internet of Things (IoT) into existing production systems is fraught with more difficulties than expected.

In 2016, 60% of surveyed companies expected the practical implementation of IoT in their production by 2020, but now their share has decreased to 50%. In addition, respondents said that the practical application of such technologies in production will require more time than previously expected.

Researchers note that introduction of IoT in forecast maintenance was considered one of the most promising areas two years ago. However, according to a survey of more than 600 top managers of high-tech companies, it turned out that their industrial clients had cooled somewhat towards the introduction of such technologies. From surveys it became clear that introduction of predictive maintenance was more difficult than expected. In addition, difficulties were caused by the process of extracting the necessary data obtained when applying IoT in this area. Bain & Co notes that the difficulties in implementing the Internet of Things in predictive maintenance are typical of other forms of IoT use in production. Researchers add that industrial customers are also worried about the safety of data security and transmission, the payback of such investments and the difficulty in integrating the “Internet of things” solutions into the existing IT systems of companies and operating systems.

Researchers at Bain & Company believe that technology companies involved in IoT technology in production need to be more active in meeting needs of their customers, reducing their concerns and using a more adapted approach in teaching such technologies.
The experts are sure that technology companies need to focus their efforts in four areas, particularly, on the specific problems and concerns of each individual client, whether it is data security issues or the technical integration of new systems. Only by understanding how to solve the specific problems of individual customers, you can apply a systematic approach to the introduction of new products in a broader market.

Researchers consider the second task to be involving outside experts and specialists in specific problems, including by forming joint expert technical groups or alliances. The third step is work with financial directors of client companies who need to bring real terms of practical benefits from new technologies with the understanding that this may be a long-term investment. The fourth direction is to search in client companies for new talented employees who could help their colleagues to adapt to new technologies and new approaches in business models.

source: bain.com






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