Internet of Things: Decision-makers expect a huge impact on core business

Majority of companies already implementing IoT Projects / Investments being made in planning and developing IoT architecture in particular / Respect for internet giants and start-ups

Norderstedt, August 14, 2019 – IT decision-makers in German companies are predicting that the Internet of Things will have a huge impact on their core business. This is a conclusion from the current “IoT – Make or Buy” study carried out by Crisp Research in collaboration with Lufthansa Industry Solutions. More than two thirds of those surveyed expect that their core products and their portfolios will undergo fundamental changes as a result of IoT. Only 29 percent think that the technological transformation will not bring about any obvious changes.

The right strategy is crucial

The study from Crisp Research focuses in particular on the issue of the motivation for the efforts behind IoT within companies and the correct entry strategy. Optimizing workflows and processes as well as developing portfolios for new business and sales potentials are therefore the key drivers behind the implementation of IoT projects in German companies. The “Buy and Create IoT” process model is the preferred choice of future strategy according to more than 50 percent of decision-makers surveyed: Companies are relying on common standards and solutions, but are responsible for the differentiation between the platforms themselves.

Further results of the study, which 129 decision-makers from companies from all sectors across Germany participated in, are:

• IoT for everyone
  
  The Internet of Things is captivating the German corporate landscape. Almost half of companies surveyed are already at the stage of generating new digital sales with IoT-based solutions. A good 70 percent of companies surveyed are already implementing IoT projects nowadays. However, only 17 percent of all companies have more than 3 years’ experience.

• Comprehensive use of machine learning
  
  Even though IT experts in particular are pushing the technology, projects associated with machine learning are not only to be found in the IT department these days. While in the previous year almost half of all respondents rated the benefits of machine learning as having the highest relevance for the IT sector, this year the figure was only 36 percent. The reason: experts are now recognizing the potential of the technology in other fields, too.

• Innovation needs financing
  
  More than 60 percent of the budget for IoT projects does not come directly from IT, making IoT an interdisciplinary project in terms of money, too. All departments contribute a buy-in for the IoT marathon in order to be able to succeed in all areas.

• IoT architecture costs Money
  
  The planning and development of IoT architecture eats up a significant chunk of the overall budget (68 percent). As such, more is invested into its conception and the initial steps than into hardware and further development of business cases.

• Respect for internet giants and start-ups
  
  The high number of challenges and the lack of experience with the new IoT business models makes even leading corporations and “hidden champions” show respect for their new digital rivals. The companies surveyed view internet-based firms and start-ups in particular as their key rivals in the field of IoT.

The study of Crisp Research IoT - Make or Buy. How German companies implement and operate IoT platforms and projects is available for free download in PDF format (in German).

About Crisp Research
Crisp Research AG is an independent IT research and consulting company and belongs to the Cloudflight group of companies. With a team of experienced analysts, consultants and software architects, Crisp Research evaluates current and upcoming technology and market trends. Crisp Research advises and supports companies during the digital transformation of their IT and business processes. Crisp Research was founded in 2013 by Steve Janata and Dr. Carlo Velten. Its research and consulting services focus on “emerging technologies” such as Cloud, IoT or machine learning, and their strategic and operative implications for CIOs and business decision-makers in companies.