Just 36 per cent of consumer products (CP) organisations have the knowledge required to build an Internet of Things (IoT) business case, according to the landmark findings of SAP’s global study on IoT adoption trends in the CP industry.
This is just one of the startling findings revealed by the study, which surveyed CP executives keen to adopt IoT technology but needing a fuller understanding of how they will derive value from this fast-growing market, expected to reach US$1.29 trillion by 2020.
The study revealed that only 41 per cent of CP organisations surveyed recognise clear applicability of the IoT to their business and that just 39 per cent even have a solid understanding of what the IoT is. The study indicates that these are foundational elements to strategic adoption of the IoT in the CP industry.
“To effectively utilise the IoT, aligning business objectives throughout the supply chain has to be a top priority,” said E. J. Kenney, senior vice president, Consumer Products Industry Business Unit, SAP. “A digital core and real-time platforms are key to digital transformation,” he added.
The survey also revealed that the true business value of adopting IoT technology in the CP industry will be found in process efficiencies, and accordingly, that the organisations leading in IoT adoption are prioritising processes and skills, while those lagging behind are still mired in conducting research or consulting third-party experts.
Other gaps emerged in the priorities of leaders and laggards in the industry. For example, 46 per cent of leaders reported that a key step to unlocking potential business value is the allocation of more budget to their IoT strategy; however, just 14 per cent of laggards prioritised increasing their budget allocation.