Four out of five companies have already increased revenues by investing in the Internet of Things (IoT), according to a study by Tata Consultancy Services (TCS).
The report, which surveyed 795 executives from large multi-nationals, found that businesses that have invested in the Internet of Things (IoT) have seen an average revenue increase of 15.6 per cent.
Perhaps encouraged by the Government’s £40m investment in IoT, and Cisco's recent $150 million investment, British firms predict the biggest increases when it comes to IoT spend, with respondents reporting they plan to increase IoT spending by 38 per cent over the next three years – compared to 20 per cent globally.
Seven per cent of companies are planning to spend $500m and above in 2015 alone.
12 per cent plan to spend $100 million in 2015 and three per cent are looking to invest a minimum of $1 billion among the 795 companies surveyed. The report also shows that companies predict their IoT budgets to continue increasing year-on-year, with spending expected to grow by 20 per cent by 2018 to $103m.
UK companies also reported that IoT initiatives led to a 13.9 per cent revenue increase in 2014 over 2013 as a result of IoT investment – leading businesses in this space reported revenue increases of up to 64 per cent.
To date, the top impact of IoT initiatives within retail has been helping manage supply chain – with 56 per cent of respondents using them for this purpose. However, three of the top five success factors in IoT cited by retailers boil down to culture change.
Those culture changes include getting managers and workers to tweak thinking based on IoT data, speeding up decision making, and getting support and investment from top management.
Natarajan Chandrasekaran, CEO and MD of TCS, said: “The age of IoT is well underway. The question is, whether businesses are ready to realize the full potential of this technology.
"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.”
Image source: Shutterstock