IFS, global enterprise applications company, has released a primary research study on how the internet of things (IoT) affects readiness for digital transformation in industrial companies. According to survey of 200 IoT decision makers at industrial companies in North America, only 16% of respondents consume IoT data in enterprise resource planning (ERP) software. That means 84% of industrial companies face a disconnect between data from connected devices and strategic decision-making and operations, limiting the digital transformation potential of IoT.
The study posed questions about companies’ degree of IoT sophistication. The study also explores how well their enterprise resource planning (ERP), enterprise asset management (EAM) or field service management (FSM) software prepares them for digital transformation and to consume IoT data within enterprise software.
Respondents were divided into groups including IoT Leaders and IoT Laggards, depending on how well their enterprise software prepared them to consume IoT data—as well as Digital Transformation Leaders and Digital Transformation Laggards depending on how well their enterprise software prepared them for digital transformation.
The two Leaders groups overlapped, with 88% of Digital Transformation Leaders also qualifying as IoT Leaders, suggesting IoT is a technology that underpins the loose concept of digital transformation, IFS reports. Leaders are almost three times as likely to use IoT data for corporate business intelligence or to monitor performance against service level agreements. Digital Transformation Leaders were more likely than Digital Transformation Laggards to be able to access IoT data in applications used beyond the plant floor. They were more than four times as lilkely to have access to IoT data in enterprise asset management software, twice as likely than Digital Transformation Laggards to be able to access IoT data in high-value asset performance management software, and almost twice as likely to be able to be able to use IoT data in ERP.
The data suggests a real need for more IoT-enabled enterprise applications designed to put data from networks of connected devices into the context of the business.
“These study data shows this technology is required to connect IoT with strategic data from around their organization,” says Steve Andrew, IFS vice president of marketing for North America. “This in turn lets businesses use IoT not just for cost avoidance strategies like condition-based maintenance, but to add new or enhanced product or service lines, increase enterprise agility and realize the growth and revenue benefits of digital transformation.”
“Study data suggest that the most common use case for IoT in these industrial settings is condition-based maintenance. The benefits go beyond operational improvements and maintenance cost avoidance,” adds Ralph Rio, vice president of enterprise software at ARC Advisory Group.
For more info, visit IFS.
Sources: Press materials received from the company.