Strong Business Gains to Push Asia Pacific IoT
Adoption to 86% by 2019
Adoption to 86% by 2019
International study reveals IoT adopters in
Asia Pacific are seeing strong gains in business efficiency and innovation, yet
security remains a key concern
Asia Pacific are seeing strong gains in business efficiency and innovation, yet
security remains a key concern
Singapore – March 7th 2017 – Aruba, a Hewlett Packard Enterprise
company reveals that by 2019, 86% of organizations in Asia Pacific will have
some form of IoT in place, according to ‘The Internet of Things:
Today and Tomorrow’. While organizations adopt IoT to leverage the
business benefits of enhanced efficiency and innovation across the enterprise,
industrial, healthcare, retail and municipality sectors globally, Aruba’s study
warns that connecting thousands of things to existing business networks will
open up new security challenges, which has resulted in security breaches for a
large majority of organizations in the region.
company reveals that by 2019, 86% of organizations in Asia Pacific will have
some form of IoT in place, according to ‘The Internet of Things:
Today and Tomorrow’. While organizations adopt IoT to leverage the
business benefits of enhanced efficiency and innovation across the enterprise,
industrial, healthcare, retail and municipality sectors globally, Aruba’s study
warns that connecting thousands of things to existing business networks will
open up new security challenges, which has resulted in security breaches for a
large majority of organizations in the region.
The research also found that although 97% of
the 1,150 respondents from Asia Pacific (Australia, China, India, Japan,
Singapore, and South Korea) have an understanding of IoT, many are still
unclear of the exact definition of IoT and what value it brings to their
organizations. In his new eBook, ‘Making Sense of IoT’,
commissioned by Aruba, technology visionary Kevin Ashton—who coined the term
‘Internet of Things’—presents the following definition:
the 1,150 respondents from Asia Pacific (Australia, China, India, Japan,
Singapore, and South Korea) have an understanding of IoT, many are still
unclear of the exact definition of IoT and what value it brings to their
organizations. In his new eBook, ‘Making Sense of IoT’,
commissioned by Aruba, technology visionary Kevin Ashton—who coined the term
‘Internet of Things’—presents the following definition:
“The ‘Internet of Things’ means sensors
connected to the Internet and behaving in an Internet-like way by making open,
ad hoc connections, sharing data freely and allowing unexpected applications,
so computers can understand the world around them and become humanity’s nervous
system.”
connected to the Internet and behaving in an Internet-like way by making open,
ad hoc connections, sharing data freely and allowing unexpected applications,
so computers can understand the world around them and become humanity’s nervous
system.”
The Expectations Dividend
When examining the business benefits of IoT,
Ashton discovered that actual gains from IoT exceeded initial expectations on
all fronts. In Asia Pacific, this ‘expectations dividend’ is most evident in
two key performance areas: profitability and business efficiency.
Ashton discovered that actual gains from IoT exceeded initial expectations on
all fronts. In Asia Pacific, this ‘expectations dividend’ is most evident in
two key performance areas: profitability and business efficiency.
For instance, 35% of business leaders cited
significant profit increases after deploying IoT, a 20% increase from those who
projected a large profit gain from their IoT investment (15%). Similarly, while
39% of executives expected their IoT strategies to yield huge business
efficiency improvements, actual results show that more than half of those who
implemented IoT (51%) has experienced great business efficiency gains.
significant profit increases after deploying IoT, a 20% increase from those who
projected a large profit gain from their IoT investment (15%). Similarly, while
39% of executives expected their IoT strategies to yield huge business
efficiency improvements, actual results show that more than half of those who
implemented IoT (51%) has experienced great business efficiency gains.
Chris Kozup, Vice President of Marketing at
Aruba, comments: “With the business benefits of IoT surpassing
expectations, it’s no surprise that the business world will move towards mass
adoption by 2019. But with many executives unsure of how to apply IoT to their
business, those who succeed in implementing IoT are well positioned to gain a
competitive advantage.”
Aruba, comments: “With the business benefits of IoT surpassing
expectations, it’s no surprise that the business world will move towards mass
adoption by 2019. But with many executives unsure of how to apply IoT to their
business, those who succeed in implementing IoT are well positioned to gain a
competitive advantage.”
How Global Organizations are Using IoT
Aruba’s
research reveals varying levels of IoT maturity across different industry
sectors. The following five vertical industries are leaders in their adoption
of IoT and have realized tangible business benefits from a focused, use case
approach to adoption.
research reveals varying levels of IoT maturity across different industry
sectors. The following five vertical industries are leaders in their adoption
of IoT and have realized tangible business benefits from a focused, use case
approach to adoption.
Enterprises create a smart workplace for productivity and
efficiency:
efficiency:
- Over seven in ten (72%) enterprises have
introduced IoT devices into the workplace. Indoor location-based services ranks
as the second most promising use case to improve employee productivity, after
remote monitoring. Twenty percent report remote operation of building lighting
and temperature as a key use case, but that number more than doubles to 53%
when asked about future IoT implementations. - Looking at the tangible results being realized
today, 78% say the introduction of IoT in the workplace has improved the
effectiveness of their IT team, and 75% find it has increased profitability.
The industrial sector increases business efficiency and
visibility through IoT-enabled monitoring and maintenance:
visibility through IoT-enabled monitoring and maintenance:
- More than six in ten (62%) respondents in the
industrial sector have already implemented IoT. Using IoT to monitor and
maintain essential industrial functions was identified as the most impactful
use case in the sector. Today, the use of IP-based surveillance cameras for
physical security within industrial organizations is still in its infancy, with
only 6% having implemented it. However, when asked about future
implementations, surveillance jumped five-fold to 32%. - Across the sector, 83% report increased
business efficiency and another 80% have found improved visibility across the
organization.
Healthcare introduces IoT to improve patient monitoring, reduce
cost, and foster innovation:
cost, and foster innovation:
- Coming in as the third most advanced in its
implementation of IoT, 60% of healthcare organisations globally have introduced
IoT devices into their facilities. - Across the sector, 42% of executives rank
monitoring and maintenance as the number one use of IoT—higher than all other
sectors. This underscores the importance of IoT-enabled patient monitoring in
the modern healthcare industry - Eight in ten report an increase in innovation
and another 73% report cost savings.
Retailers engage with customers and boost sales using indoor
location technology:
location technology:
- Just 49% of retailers are using IoT
technology, but 81% of these report improved customer experiences. An improved
customer experience is likely to have a significant impact on customer loyalty
and ultimately, revenue. - In-store location services delivering
personalized offers and product information to shoppers was touted as the
number one implementation for IoT, alongside monitoring and maintenance. Four
in ten retailers ranked surveillance in their top three key use cases.
Governments lag in IoT adoption, struggle with legacy technology
but still reduce costs:
but still reduce costs:
- The slowest sector to adopt IoT, only 42% of
municipalities have deployed IoT devices and sensors. A third (35%) of IT
decision makers claim their executives have little to no understanding of IoT,
double the global average, suggesting that lack of education is the biggest
barrier to mass adoption in this sector.
- While nearly half (49%) of government IT
departments are struggling with legacy technology, seven in ten IoT adopters in
the public sector report cost savings and improved organisational visibility as
the major benefits.
The Data Context and Security Challenge
Alongside these positive returns, the study
also uncovers a number of obstacles that IT leaders feel are preventing IoT
from delivering greater business impact. Organizations in this region cited the
cost of implementation (53%), cost of maintenance (52%), and difficulty
integrating with legacy technologies (47%) as key issues, a sentiment echoed
across the world.
also uncovers a number of obstacles that IT leaders feel are preventing IoT
from delivering greater business impact. Organizations in this region cited the
cost of implementation (53%), cost of maintenance (52%), and difficulty
integrating with legacy technologies (47%) as key issues, a sentiment echoed
across the world.
Most notably, security flaws were found across
many IoT deployments. The study found that 88% of organizations in Asia Pacific
have experienced at least one IoT-related security breach, the highest in the
world. More than half of respondents declared that external attacks are a key
barrier to embracing and adopting an IoT strategy. This confirms that a
holistic IoT security strategy, built on a strong network access control and
policy management, will not only protect enterprises but also simplify the
security approach for IT.
many IoT deployments. The study found that 88% of organizations in Asia Pacific
have experienced at least one IoT-related security breach, the highest in the
world. More than half of respondents declared that external attacks are a key
barrier to embracing and adopting an IoT strategy. This confirms that a
holistic IoT security strategy, built on a strong network access control and
policy management, will not only protect enterprises but also simplify the
security approach for IT.
Ashton describes IoT as the ability to capture
and effectively use data, but this appears to be another clear challenge for
Asia Pacific’s organizations. While nearly all (98%) of organizations that have
adopted IoT claim to be able to analyze data, the same majority admitted to
challenges in creating value from this data. More than a third (35%) of
organizations in Asia Pacific are not extracting or analyzing data within
corporate networks, missing on insights that could improve business decisions.
and effectively use data, but this appears to be another clear challenge for
Asia Pacific’s organizations. While nearly all (98%) of organizations that have
adopted IoT claim to be able to analyze data, the same majority admitted to
challenges in creating value from this data. More than a third (35%) of
organizations in Asia Pacific are not extracting or analyzing data within
corporate networks, missing on insights that could improve business decisions.
Kozup
comments, “While IoT grows in deployment, scale and complexity, proper
security methodologies to protect the network and devices, and more
importantly, the data and insights they extract, must also keep pace. If
businesses do not take immediate steps to gain visibility and profile the IoT
activities within their offices, they run the risk of exposure to potentially
malicious activities. Aruba is enabling customers to rapidly assess IoT
deployments within their facilities and determine any potential threats that
may be present.”
comments, “While IoT grows in deployment, scale and complexity, proper
security methodologies to protect the network and devices, and more
importantly, the data and insights they extract, must also keep pace. If
businesses do not take immediate steps to gain visibility and profile the IoT
activities within their offices, they run the risk of exposure to potentially
malicious activities. Aruba is enabling customers to rapidly assess IoT
deployments within their facilities and determine any potential threats that
may be present.”
Ashton concludes: “Since its inception in 1999, the
Internet of Things has been ridiculed, criticized, and misunderstood. And yet
here we are, less than two decades later, in a world where tens of thousands of
organizations are saving and making hundreds of millions of dollars from the
Internet of Things, using cars that drive themselves, subway stations that
sense passengers, algorithms that diagnose deadly diseases using phones, and
many other once apparently-impossible technologies. The future promises far
more amazing things. The most important decision you can make now is how to be
a part of it.”
Internet of Things has been ridiculed, criticized, and misunderstood. And yet
here we are, less than two decades later, in a world where tens of thousands of
organizations are saving and making hundreds of millions of dollars from the
Internet of Things, using cars that drive themselves, subway stations that
sense passengers, algorithms that diagnose deadly diseases using phones, and
many other once apparently-impossible technologies. The future promises far
more amazing things. The most important decision you can make now is how to be
a part of it.”
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