High-tech companies are incorporating IoT technology into their product strategies due to the scale of opportunity the IoT provides. In fact, high-tech hardware and software drive the Internet of Things. Companies are planning to spend $ 121.3 million on average on the Internet of Things in 2018.
As far as spending on the IoT is concerned, high tech ranks fifth among the 13 industries surveyed. In 2015, the average spend on IoT is around $96.9 million, which is 0.4% of the overall revenue generated.
IoT is being used by 46% of high tech companies to monitor their customers and products. Moreover, the largest chunk of the IoT budget (approximately 33%) has been allocated for monitoring products. As far as the budget on monitoring customers is concerned, it will climb from 26% in 2015 to 29% in 2020.
About 50% of respondents use IoT for supply chain monitoring. This will consume 24% of their IoT budgets in 2015.
The major focus of the high tech sector is its products. Therefore, the top two business process improvements reaped by high tech organizations with the use of IoT technology are updating products through software and giving R&D departments huge insights on new products in testing.
Improving the ability to gather and analyze data is the top factor that helps decide the success of IoT in the high tech sector. Having skilled and efficient analysts who can decipher huge IoT data and encouraging employees to think differently about customers, products, and processes will also determine the success of IoT.