Enterprise expects “aggressive, short-term expectations” for pay back on Internet of Things deployments, with over 50 percent of businesses expecting Return on Investment (RoI) in less than one year.
Findings form Current Analysis also reported security concerns as the leading challenge for enterprises in getting IoT projects implemented, yet many organisations steam ahead with project planning before implementing security mechanisms.
Citing security and value justification as the biggest obstacles to IoT project deployment by enterprises, proving the value of IoT projects to key stakeholders remains an ongoing roadblock for businesses, alongside privacy concerns.
“The speed with which many organisations require IoT implementations to at least pay for themselves is eye-popping, but also a clear sign that IoT in the enterprise is well beyond hype and into the realm of the actual,” Current Analysis senior vice president, Jerry Caron, said.
“Businesses have no patience for projects that don’t pull their weight, and clearly many believe that they are not just take a speculative gamble with their IoT plans.”
But are expectations unrealistic?
For Caron, IoT project costs and RoI justification may trail security as an obstacle to deployment, but for enterprises who opted against moving forward with IoT projects, “costs” were the number one reason, followed closely by lack of compelling use cases and security concerns.
“Where justifying a project will depend on RoI timescale goals, it’s telling that more than 50 percent of enterprises hope for a payoff in under a year,” he explained.
“For many projects, this may well be overly optimistic or otherwise unrealistic.”
Encouragingly however, nearly 70 percent of enterprises who had already implemented an IoT solution indicate that the project had already met their RoI expectations, regardless of the initial goals.