In order to provide guidance on optimal strategies, we looked deeply at two groups of research participants: those getting the most benefits to date from the IoT and those getting the fewest benefits.
We selected as ‘best practice’ companies those that reported the highest revenue increases in 2014 from their IoT initiatives. Each company reported a revenue gain of more than 30%. We call this group the ‘IoT Leaders.’ In all, they represented 8% of the total base of completed surveys, or 65 out of 795 surveys. They had an average 64% gain in revenue last year in the area of their business that was touched by their IoT initiative. That doesn’t necessarily mean in total company revenue; we believe that in most cases it doesn’t. (The IoT initiative could be one division, one product line, one region of the world, etc.)
We then compared the Leaders’ survey answers to those of the firms with the lowest revenue gain last year from IoT initiatives. We refer to this group as the ‘IoT Followers.’ They numbered 180 in total, or about the bottom quartile (23%) of the survey population on the revenue impact question. Their revenue gains were between 0% and 5%, with an average increase of 2.5%. That means Leaders’ revenue increase from IoT was more than 25 times that of Followers’.