From using sensor data to spot maintenance issues and boost efficiency to improving output forecasting, IoT technologies can help eliminate uncertainties – even in the face of changing weather.
In 2015, companies in the energy sector will be spending on an average $74.9 million. By 2018, they are expected to invest $67.2 million. A large amount of the IoT budget is spent on product monitoring (30%). This is followed by supply chain (28%), customer (22%) and premises (20%) monitoring work.
A crucial concern for energy companies is supply chain monitoring. 45.2% of energy companies use IoT technologies to monitor production and distribution and track product flow. 40% of the companies analyze customer data via mobile apps and 29% have sensors in products.
Energy companies have identified service improvements and cost reduction as their main areas of business process improvement. The number one improvement recognized is better service via informed reps followed by the ability to provide proactive service and uncover problems before the customer finds them.
Among the key success factors for IoT projects, what data to capture, winning executive support for IoT investment, dealing with huge amounts of IoT data and accelerating business decision making tied for first place. This is a clear mix of strategic, cultural and technological factors.