Some companies are making large investments in IoT initiatives: General Electric, $1 billion over the last four years, and The Walt Disney Co., reportedly more than $1 billion on just one initiative (at its Orlando, Fla., theme park), to name just two examples.
These are not rare instances, our research shows. From our survey, 57 respondents (7% of the survey base) said their companies each will spend $500 million or more this year on IoT initiatives. Of those, 26 will invest at least $1 billion each. (See Exhibit IV-1.) Note that not one was an industrial manufacturer, the sector that ranks second in average spend per company.
Then again, spending aggressively on the IoT is not a strategy. With industrial manufacturers ahead of the pack in many aspects, it would be easy to assume that benefits from IoT depend largely on how much a company has to invest. Yet we discovered this wasn’t the case. After comparing best practice – and trailing – companies in our IoT study, we found other factors to be more important.