investments in IoT
Investments in IoT
By 2023, One-Third of Companies That Have Implemented IoT Will Also Have Implemented AI in Conjunction With at Least One IoT Project, Gartner found.
Despite the disruptive impacts of COVID-19, 47% of organizations plan to increase their investments in the Internet of Things (IoT), according to a recent survey* from Gartner, Inc.
Figure 1. Impact of COVID-19 on Plans to Implement IoT to Reduce Costs
Source: Gartner (October 2020)
One reason behind the increase is that while companies have a limited history with IoT, IoT implementers produce a predictable ROI within a specified timeframe. “They use key performance indicators (KPIs) to track their business outcomes and for most of them they also specify a time frame for financial payback of their IoT investments, which is on the average three years,” said Benoit Lheureux, research vice president at Gartner.In addition, as IoT investments are relatively new, most companies have plenty of “low hanging fruit” cost-saving opportunities to pursue, such as predictive-maintenance on commercial and industrial assets like elevators or turbines, and optimization of processes such as increasing manufacturing yield.
Digital Twins and AI Drive IoT Adoption
As a result of COVID-19, 31% of survey respondents said that they use digital twins to improve their employee or customer safety, such as the use of remote asset monitoring to reduce the frequency of in-person monitoring, like hospital patients and mining operations.
The survey showed that 27% of companies plan to use digital twins as autonomous equipment, robots or vehicles. “Digital twins can help companies recognize equipment failures before they stall production, allowing repairs to be made early or at less cost,” said Mr. Lheureux. “Or a company can use digital twins to automatically schedule the repair of multiple pieces of equipment in a manner that minimizes impact to operations.”
Gartner expects that by 2023, one-third of mid-to-large-size companies that implemented IoT will have implemented at least one digital twin associated with a COVID-19-motivated use case.
The enforcement of safety measures has also fueled the adoption of artificial intelligence (AI) in the enterprise. Surveyed organizations said they have applied AI techniques in a pragmatic manner. Twenty-five percent of organizations are favoring automation (through remote access and zero-touch management), while 23% are choosing procedure compliance (safe automation measures) in order to reduce COVID-19 safety concerns. For example, organizations can monitor work areas using AI-enabled analysis of live video feeds to help enforce safe social distancing compliance in high-traffic areas such as restaurants and manufacturing lines.
Gartner expects that by 2023, one-third of companies that have implemented IoT will also have implemented AI in conjunction with at least one IoT project.
Founder Dinis Guarda
IntelligentHQ Your New Business Network.
IntelligentHQ is a Business network and an expert source for finance, capital markets and intelligence for thousands of global business professionals, startups, and companies.
We exist at the point of intersection between technology, social media, finance and innovation.
IntelligentHQ leverages innovation and scale of social digital technology, analytics, news and distribution to create an unparalleled, full digital medium and social business network spectrum.
IntelligentHQ is working hard, to become a trusted, and indispensable source of business news and analytics, within financial services and its associated supply chains and ecosystems.