Bain & Co’s tech practice is announcing a new study on the Internet of Things, according to a recently released .pdf of the report on the results. The findings reportedly stem from a survey of more than 500 American and European executives across multiple industries on their investment, optimism and integration priorities of IoT between now and 2020.
The company said its study reveals that U.S. executives are significantly lagging behind European executives with their IoT ambitions. Therefore, Bail’s analysts said they believe Europe’s investment will translate to an impressive competitive advantage across multiple industries, including auto, healthcare, transportation, and financial services as IoT becomes more popular.
Key findings from Bain & Co’s survey on IoT adoption:
• Only 8 percent of U.S. executives said they are already implementing IoT and analytics case applications, compared with 18 percent of European executives
• Fully one-quarter of the Europeans plan to implement IoT solutions in multiple cases and integrate them with their IT systems by 2020, compared with 16 percent of U.S. executives
• 39 percent of IoT customers in Europe rated security concerns as a major obstacle to IoT adoption, compared with 27 percent of U.S. customers
• Automotive executives in Europe are allocating 24 percent of IT budgets to IoT, compared with only 19 percent of IT budgets within the U.S. automotive industry. In retail, industrial and buildings, the percentages are also higher in Europe
The results reportedly suggested to the authors that, after successful initial trials, European players need to double down and scale rapidly. This means different things for users and sellers of IoT solutions.
Users of IoT. Just as the rise of digital provided opportunities for fast movers in nearly every industry to gain competitive advantage, so, too, should executives now be looking to the Internet of Things to make evolutionary and revolutionary leaps ahead of their peers.
Such users, the authors advised, should screen business operations for opportunities to deploy IoT solutions that enhance the customer experience, remove costs, and develop new products and services. Firms that take a wait-and-see approach risk being disrupted by attackers that base their businesses on new models.
“For users and providers alike, the time is at hand to mobilize and identify opportunities where IoT solutions can add value and shape strategic direction,” the report concludes. “Our research suggests that in some areas, Europeans already hold a competitive advantage. The actions and investments over the next few years will determine whether European firms can defend and extend that lead, or whether they risk losing hard-won gains.”