In times of crisis: Higher spending on the Internet of Things

In times of the Corona pandemic, companies from the DACH region are investing more in the Internet of Things (IoT). A study conducted by IDG Research Services on behalf of Computerwoche magazine revealed that 51% of companies have now implemented IoT projects. This is 2% more than in the previous year. Large companies with more than 1,000 employees are placing above-average emphasis on the Internet of Things. According to their own data, 18% of them have already implemented a very large number of IoT projects.

Diverse use of the Internet of Things

The purposes for which the Internet of Things is used range from product improvements based on IoT data, networking of products and devices, and improved maintenance in the sense of predictive maintenance, to the creation of new business models and the establishment of an ecosystem with other companies to jointly offer IoT services. In terms of numbers, the most common use of the Internet of Things is for quality control (50%) A third of companies are trying to optimize logistics with the help of the IoT. Networked production (26%), smart connected products (25%) and predictive maintenance (20%) follow next.

More and faster success with IoT projects

At the same time, the success rate is increasing: only 4% now say they have not noticed any added value (previous year: 8%). The most common benefits derived from IoT projects are increased productivity (49%), cost reductions (48%) and increased revenue (40%). In addition, companies also benefit from reduced downtime or higher utilization, faster return on investment (ROI), improved image, and higher levels of innovation. Given the successes, satisfaction with IoT projects is also on the rise: 92% of companies are “very satisfied”, “satisfied” or “somewhat satisfied” with the results. The proportion of “rather not satisfied” or “not satisfied” companies is 8%.

It is also worth noting that success is occurring in an increasingly short time. 12% of companies report immediate success (previous year: 9%), while in 24% of cases (19%) success was achieved after four to eight weeks. The proportion of companies where a positive result can only be determined after three months and one year has decreased and now stands at 33% (35%) and 21% (26%) respectively.

Internet of Things to improve resilience

Companies’ willingness to invest in the Internet of Things in the coming years is increasing. 57% of study participants expect to make additional investments to a “very strong” or “strong” degree. This is an increase of 11% compared to the previous year. While 34% plan to increase their IoT budget slightly, investments remain the same for 8% of companies.

Apparently, the Internet of Things is seen as an important element to better position oneself for times of crisis. At least, 42% say they have increased their IoT investments during the Corona pandemic. Spending is primarily focused on cloud services (45%), artificial intelligence (37%) and analytics/Big Data (35%). However, connectivity and network technologies also play an important role here.