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IoT STRATEGY :
INSIGHTS
FROM
EARLY IoT
ADOPTERS
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GLOBAL IoT REPORT 2017

Executive Summary

Technology and trends come and go, but IoT has what it takes to transform organizations and shape the next generation
of industry. This research, based on robust, thorough and exciting data from independent research specialists Vanson
Bourne, finds that around four in ten (38%) have already implemented IoT and a further 57% plan to in the future. What is
also impressive is that 50% of respondents’ organizations are either ahead of or in line with the IoT curve.

IoT is bringing huge benefits to organizations who have taken the plunge, and many more desire this. 100% of respondents
would expect to see benefits if their organization were able to increase their use of IoT. But organizations are facing
challenges in scaling up their IoT adoption, with 93% who see challenges with the security, among other areas such as
scalability and interoperability. Additionally, nine in ten (90%) of those currently using or planning to use IoT face
challenges when deciding on the right IoT platform. While most organizations are adopting IoT, many of these early
adopters are not taking the right path to overcome the challenges that they face.

But, all is not yet lost. A proven end-to-end IoT service provider can aid this transition. Most organizations are already
seeing that this is the way forward, with almost three quarters (73%) planning to outsource at least some end-to-end IoT
implementation to a service provider. Furthermore, nearly all (98%) of those who are using IoT or planning to, see IoT
service providers playing a major role in their organization’s IoT journey and forming a valuable partnership. Working
alongside a market leading service provider will prove critical to success.

Organizations need to act now. Over eight in ten (82%) agree that organizations using IoT will have a stronger position in
the marketplace. Those who are held back risk losing their customer base, financial gains and may find their unique selling
points disappear. If an organization does not evolve and adapt, then simply, their competitors will.

Research Scope

HCL commissioned independent

technology market research
specialist Vanson Bourne to
undertake the research. A total of 263 26 GEOGRAPHIES
50
senior IT and business decision 4
makers were interviewed in US
September and October 2016 UK
globally within the following sectors:
52 Germany
• Manufacturing and production
Nordics
• Healthcare 131
Others
• IT, technology and telecommunications

• Financial services

• Business and professional services Interviews were primarily conducted ensure that only suitable candidates
• Retail, distribution and transport online in the US, the UK, Germany and were given the opportunity to
the Nordics using a rigorous participate.
• Other sectors multi-level screening process to

ATTRIBUTES FOR SUCCESSFUL IMPLEMENTATION
IoT is a technology trend that is
rightly gaining in profile and
credibility. Are you one of the early
adopters of IoT? If not, you could be
left behind.
Those using IoT tend to be at the
beginning of their journey and find
themselves in the ‘define’ and ‘build’
stages. Elements that are considered
for an ideal IoT platform, include
security (95%), end-to-end support
Security 95%
Data analytics 89%
End-to-end
89%
support
User interface 87%
Scalability 86%
Agility 86%
Interoperability 83%
Figure 1: Respondents who think that
the attributes listed above are very or
extremely important in contributing
to an ideal IoT platform. Asked of all
263 respondents
Investment in and the adoption of IoT
are almost inevitable, for good
reason. Of respondents whose
organizations are using or planning to
use IoT, more than six in ten cite
improving business process
efficiency (65%), better customer
satisfaction (65%) and cost saving
(62%) as primary drivers for
adoption. organizations need to build
an IoT platform on existing
technologies and capabilities, which
is bespoke and meets their individual
requirements. Otherwise, they will
not be successful.
Utilising IoT fully will drive additional
benefits for organizations. The most
likely expected benefits include
increased organizational efficiency
(66%) and improved use of data in
order to drive insights (53%).
3
(89%), scalability (86%) and
interoperability (83%). Almost half
(47%) have no formal IoT programme 3%
in place yet, when asked of
13% 23%
respondents whose organizations are
using IoT. Of the same respondent
group, almost half (46%) state that
they are currently defining or
evaluating their IoT platform.
organizations need a programme in
place, so that they can achieve the 60%
full range of opportunities that they,
and their customers, can experience
through IoT.
We currently have internal teams
Of respondents whose organizations that will handle the
implementation end-to-end
are planning to implement IoT, 73%
say that they plan to outsource at
We plan to use a mix of in-house
least some of their implementation. internal teams and outsourcing
Ongoing support from a reliable to a service provider to handle
end-to-end provider in order to the implementation end-to-end
establish and maintain an IoT
platform is key for maximizing, We plan to outsource to a
according to early adopters. service provider to handle the
implementation end-to-end
In addition, 89% say that their
investment in IoT will increase in I do not know
three years’ time. IoT has a plethora
of benefits on offer and has longevity Figure 2: “How does your organiza-
tion plan to implement IoT?”. Asked
– this is clear from the substantial of those 150 respondents whose
investment being allocated. organization is planning to
implement IoT
Despite high adoption rates, there is
still some confusion over IoT. 54%
organizations may need help in 100% of respondents
understanding how the benefits of
expect to see benefits if
IoT and end-to-end implementation
are linked. their organization were able
to increase their use of IoT
ROSE SCHOOLER
Vice President (Intel Corporation)
We see internet of things as a huge opportunity
to save resources, save money and save lives. For
example, technologies such as collaborative cancer
cloud provides excellent insights into data that allows
you to create personalised care and put medicine at
work for individuals, ultimately saving lives.
 4

Increased organizational efficiency 66%

Improved use of data to drive insights 53%

Use of value added services 47%

Moving ahead of our competitors 47%

Ability to adopt new business models 45%

Opportunities to move up and down the value chain 41%

Better communication between business departments 39%

Expanded product portfolios 38%

We would not see any benefits 0%

We would not be able to increase our use of IoT 0%

0 10 20 30 40 50 60 70

Figure 3: “What benefits would you expect your organization to see if it were able to increase its utilisation of IoT?”.Asked of all
263 respondents

IoT dictates market strength

Ultimately, using IoT is going to
elevate the reputation and/or
product offering of organizations.
The vast majority (82%) agree that
organizations using IoT are in a
stronger position in the marketplace.
While, half (50%) think that their
organization is in line with or ahead of
the curve on IoT. This also means that
half are behind the curve. If these
organizations do not act now, they
could see their competitors reducing
costs, increasing efficiencies and
gaining market share. Which half is
your organization in? Should you be
concerned? Of respondents whose
organizations are currently using IoT
or who plan to in the future, 98%
state that IoT service providers can
play a role in their journey. Value is
most likely to be seen in IoT device
security (51%) and defining IoT
solutions that can be used (49%),
while 22% say the same for the use of
a scalable IoT infrastructure.

Ensure IoT devices are secure 51%

Help defined what IoT solution could be used 49%
Provide on-going support 49%
Maintenane of IoT Devices 48%
Transform current assets into IoT enabled assets 41%
Help to analyse data quicker 40%
Help to create a bespoke solution 34%
Continuing to offer innovation Iot solution 32%
Help to mine data 30%
Use of scalable IoT infrastructure 22%
A third party could not play a role 1%
Don’t know 1%

0 10 20 30 40 50 60
Figure 4: ““What role could an IoT service provider play in your organization’s IoT journey?”. Asked of respondents whose
organization is currently using IoT, or who plan to use IoT (251 respondents)

CHRISTIAN PLANTE
VP – Engineering (Hortau)

We have leveraged IoT to help farmers make informed decisions that will save them water,
allow them to better use their resources, do less fertilization and better anticipate to produce
more vegetables and fruits with fewer resources and in the end, make everything more
environment friendly.
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DON’T BE LEFT BEHIND…
• Around four in ten (38%)
report that their organiza-
tion has already implement-
ed IoT, while almost six in
ten (57%) plan to in the
future
• 89% say that investment in
IoT will increase in three
years’ time
• 50% think that their organi-
zation is already behind the
curve on IoT
HUGE BENEFITS FOR IoT USERS
• 100% of respondents expect to
see benefits if their organization
were able to increase their use of
IoT
• Expected benefits include
increased organizational efficien-
cy (66%), improved use of data to
drive insights (53%) and moving
ahead of competitors (47%)
• More than four in five (82%) agree
that organizations using IoT are
likely to be in a stronger position
in the marketplace as a result
IoT SERVICE PROVIDERS ARE
VITAL TO SUCCESS
• Nearly all (98%) believe that an
IoT service provider can play a
role in their journey
• Service providers are most likely
to be needed for ensuring that IoT
devices are secure (51%), helping
to define the IoT solutions that can
be used (49%) and providing
on-going support (41%)

IoT CHALLENGES AHEAD

1. Turning data to insights

Organizations are struggling to utilize
the large quantities of data that they
are now collecting. For example, 91%
are seeing challenges in turning data
into insights.
Obstacles include not using the right
platform (46%) and platforms not
being scalable (31%). Consequently,
many organizations are collecting
‘dark data’, where answers are left
untapped, which means that
organizations are missing out on
highly valuable insights.
On average, it currently takes
organizations nine days to
convert data into useful insight,
which is more than four times
On average, only 48% of
longer than they would like (two
days is their average ideal time). data collected by
respondents’ organizations
Additionally, data being collected
is analysed
from IoTized devices can be difficult
to analyse. But, the good news: IoT
has the power to unlock data analysis
through increased speed and more
intelligent devices and platforms.
100% of respondents would expect to better able to analyse data through
see benefits if their organization was the use of IoT.

Using the right platform 46%

Data being stored in various siloes 41%

A lack of expertise in how to do so 38%

Data not being easily accessible 33%

Platforms not being scalable 31%

A lack of reliability with our platform 31%

Not having a strategy in place 25%

There are no challenges 8%

Don’t know 1%

0 10 20 30 40 50 60

Figure 5: “What challenges does your organization see when turning data into insight?”. Asked of all respondents (263
respondents)
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6%
7% Less than 10%
27%
Between 10-25%

Between 25-50%
28%
Between 50-75%

33% Between 75-100%

Figure 6: “Approximately, what percentage of the data that your organisation collects from IoT is analysed?”. Asked of the 101
respondents whose organisation is currently using IoT.

This include increasing organization- making faster decisions based on With the right expertise and support,
al efficiency (60%), understanding customers’ needs (50%) and the many organizations will be able to
customers’ needs quickly (54%) chance to be more innovative (44%). add value through data analysis.
moving ahead of competitors (50%), Having the right platform is pivotal.

DOUGLAS JENKINS
Vice President – Product Development (Xerox Corporation)

The Internet of Things is already transforming the office printer and multi-function market.
For example, in our Managed Print Services business it has enabled us to be much more efficient
and offer our customers new services and solutions such as automated consumables
replenishment and remote diagnostics. Work for individuals, ultimately saving lives.

2. Security and scalability – the platform is key

Similarly to organizations’ experience To overcome these challenges, the

with analytics, a vast majority (93%)
state that there are challenges
relating to security concerns. The
most likely IoT security challenge is
the large number of devices (46%)
which points towards the challenges
that being scalable brings. This needs
to be tackled in order for
organizations to move through the
‘define’ and ‘build’ stages as quickly
as possible, so that they can join the
early adopters and experience the
benefits of IoT in the ‘run’ stage.
use of a secure and scalable IoT
platform is fundamental. However, of
respondents whose organizations are
currently using or planning to use IoT 43% agree that their
(i.e. early adopters), 90% report that organization is failing to
they face challenges in deciding on
the right
utilise IoT fully and that
their customers are the
IoT platform. This includes difficulty ones who suffer
with integration (47%), showing that
interoperability is an important factor
for organinzations when choosing the
right IoT platform.
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Fears over IoT security 38%

Budget constraints 36%
It increases costs 27%
Unclear business benefits 24%
No clear internal ownership 24%
A lack of knowledge internally regarding how to best implement IoT 21%
Not being able to make existing devices/ assets IoT enabled 20%
Lack of bespoke solutions 19%
Lack of a capable provider to work with 16%
Not being able to effectively analyse data collected through IoT 15%
It is not part of our organization’s strategy 14%
There is nothing holding us back 14%
Don’t know 0%

0 10 20 30 40 50

Figure 8: “What is currently holding your organization back from utilising IoT more?”. Asked of all respondents (263 respondents)

BARRIERS DO EXIST…
• 90% admit that they face challenges in deciding on the right IoT platform
• 86% admit that something is holding their organization back from utilising IoT more

SECURITY IS A MUST
• 93% state that there are challenges relating to their organization’s security concerns
• But, IoT service providers can play a role in ensuring that IoT devices are secure (51%)

DATA IS BEING LEFT UNTAPPED

• 91% of those surveyed see challenges in turning data into insight
• Reasons for this include using the right platform (46%) and a lack of expertise (38%)

DO NOT LET YOUR CUSTOMERS SUFFER

• 43% agree that their organization is failing to utilise IoT fully and that their customers are the ones
who suffer

DATA ANALYSIS TAKES TOO LONG TO BE USEFUL

• On average, it takes organizations nine days to convert data into useful insight
• Two days is the ideal time it would take

IoT IS THE ANSWER

• 100% of respondents would expect to see benefits if their organization was better able to analyse data
through the use of IoT
• Expectations include increasing organizational efficiency (60%), moving ahead of competitors (50%)
and faster decision making based on customers’ needs (50%)
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CONCLUSION
Customers want more. Customers expect more. Markets are becoming more competitive. organizations need to stay as far
ahead as possible. The use of technology can be the key differentiator between similar organizations by enabling
efficiencies, analysis and cost reductions. In turn, this can help retain customers and attract new customers, while
increasing market share.

In particular, the utilisation of IoT can enable digital transformation and result in huge gains. This can be through business
efficiency, new products or increasing financial opportunities. These benefits should be enough to drive investment now.

With 38% who have already adopted IoT, is it too late for the remainder to do so? No. But, now is the time to invest. Many
organizations are early adopters, but find themselves in the ‘define’ and ‘build’ stages of adoption. They need to find the
right way to propel themselves into the ‘run’ stage, in order to achieve the full range of benefits that can be seen. IoT is not
going away and the sooner organizations can move forward with their adoption the better. They need to see this
opportunity and take it. If they do not, then their competitors will.

IoT can help organizations transform. This is often a long end-to-end journey, so having the right expertise is key, whether
in-house or external. With so many variables in IoT platforms, technologies and stages of adoption, any trusted provider
that organizations are working with in partnership can be a crucial differentiator. So, can organizations afford to ignore this
opportunity? Can you?

ABOUT IoT WoRKSTM BY HCL

IoT WoRKSTM, the internet of things
business unit of HCL Technologies,
enables organizations to leverage
best–in–class IoT solutions for
maximizing returns from their asset
investments and create entirely new
services that deliver measurable
business outcomes. IoT WoRKSTM,
offers end–to–end IoT services for HfS and Zinnov - IoT WoRKSTM
organizations across the three phases continues to strengthen its leadership
– Define, Build & Run, to help design position in fast growing global IoT
enterprise IoT programs, develop and services market. For more
implement IoT systems for realizing information, please visit
business value. Recognized as a www.hcltech.com/iot
market leader in IoT by four leading
analyst firms - IDC, Everest Group,

ABOUT HCL
HCL Technologies is a leading global offering an integrated portfolio of Manufacturing, Telecommunications,
IT services company working with services including BEYONDigitalTM, Media, Publishing Entertainment,
clients to impact and redefine the IoT WoRKSTM, Engineering and R&D Retail CPG, Life Sciences Healthcare,
core of their businesses. Since its Services and Next–Generation ITO Oil Gas, Energy Utilities, Travel,
emergence on the global landscape that focuses on integrated Transportation Logistics and
after its IPO in 1999 and listing in infrastructure services, applications Government. With 109,795
2000, HCL Technologies, along with services and business services. HCL professionals from diverse
its subsidiaries, today operates out of leverages DRYiCETM, its third nationalities, HCL Technologies
32 countries and has consolidated generation autonomics and focuses on creating real value for
revenues of US$ 6.6 billion, for 12 orchestration platform, global customers by taking 'Relationships
Months ended 30 September, 2016. network of integrated innovation Beyond the Contract'. For more
For the 21st Century Enterprise, HCL labs, and global delivery capabilities information, please visit
focuses on business model to provide holistic multi–service www.hcltech.com
transformation, underlined by delivery in key industry verticals
innovation and value creation, including Financial Services,

ABOUT VANSON BOURNE

Vanson Bourne is an independent analysis, is founded upon rigorous functions, in all business sectors and
specialist in market research for the research principles and our ability to all major markets.
technology sector. Our reputation for seek the opinions of senior decision For more information, visit
robust and credible research-based makers across technical and business www.vansonbourne.com

For any more information visit us at www.hcltech.com/iot

write to us at iotworks@hcl.com