We at IndianWeb2 have kept our readers informed about how the progress trajectory of the Internet of Things (IoT) hasn’t been going as great as the tech experts had expected. And now, a recent report by US tech giant Cisco has further backed these claims.
According to a recent survey done by Cisco, even though while IoT keeps creating buzz all around the world with numerous projects being rolled out on a daily basis, but unfortunately almost 75 per cent of these projects end up failing, impacted by factors such as culture and leadership.
The report churned out by Cisco said that only 26 per cent of the companies it surveyed acknowledged that they have had an IoT project that they would consider a success. The report also highlighted the fact that 60 per cent of the IoT initiatives don’t even go beyond the Proof of Concept (PoC) stage.
For the study, Cisco surveyed 1,845 IT and business decision-makers engaged with IoT projects in the US, the UK, and India across industries like transportation, healthcare, manufacturing, local government, retail, and energy.
For the uninitiated, IoT is a term which is basically used to describe smart devices that are capable of sending data back wirelessly to a particular smartphone app or a computer server so as to provide a helping hand in making people take smarter decisions and keep a close eye on all the machines and monitoring sensors, even when they are placed in immensely remote locations or places with extremely harsh weather conditions.
Over the years, IoT has grown to become the backbone of numerous digitisation and smart city projects. According to statistics made available by International Data Corporation (IDC), the global installed base of IoT endpoints is expected to grow from 14.9 billion at the end of 2016 to more than a whopping 82 billion by the year 2025.
IoT is currently being used by organisations all around the globe to drive improved customer satisfaction (70 per cent), operational efficiencies (67 per cent) and enhance product/service quality (66 per cent).
According to Cisco Senior Vice President and General Manager (IoT and Applications) Rowan Trollope, the high failure rate that is being currently witnessed in IoT is not due to lack of trying. But, he did say that there are a plenty of things that can be done to make sure that we get more and more IoT projects out of the pilot stage and make them a complete success.
Even with a high 75 per cent failure rate, firms are still interested in investing their time and money in IoT projects. According to 64 per cent of the companies surveyed, the lessons that they have learned from their stalled or failed IoT initiatives has helped them in accelerating their organisation’s investment in IoT.
The study also found out that the human factor matters immensely in the success of IoT projects as three of the four top factors behind successful IoT projects had to do with people and relationships.
According to the report, people surveyed for the study cited that the relationship between IT and the business side, partnerships and having a technology-focused culture at the organisation were the main factors instrumental in the success of their IoT projects.
It seems, instead of just focussing on action and jumping from one IoT project to another, companies in the IoT field really need to look back and contemplate the mistakes they have been making and what they can do to better them.