Services for Organizations

Using our research, best practices and expertise, we help you understand how to optimize your business processes using applications, information and technology. We provide advisory, education, and assessment services to rapidly identify and prioritize areas for improvement and perform vendor selection

Consulting & Strategy Sessions

Ventana On Demand

    Services for Investment Firms

    We provide guidance using our market research and expertise to significantly improve your marketing, sales and product efforts. We offer a portfolio of advisory, research, thought leadership and digital education services to help optimize market strategy, planning and execution.

    Consulting & Strategy Sessions

    Ventana On Demand

      Services for Technology Vendors

      We provide guidance using our market research and expertise to significantly improve your marketing, sales and product efforts. We offer a portfolio of advisory, research, thought leadership and digital education services to help optimize market strategy, planning and execution.

      Analyst Relations

      Demand Generation

      Product Marketing

      Market Coverage

      Request a Briefing



        David Menninger's Analyst Perspectives

        << Back to Blog Index

        IoT Challenges Organization and Technological Readiness

        The Internet of Things (IoT) is a technology that extends digital connectivity to devices and sensors in homes, businesses, vehicles and potentially almost anywhere. This advance enables virtually any device to transmit its data, to which analytics can then be applied to facilitate monitoring and a range of operational functions. IoT can deliver value in several ways. It can provide organizations with more complete data about their operations, which helps them improve efficiencies and so reduce costs. It also can deliver a competitive advantage by enabling them to reduce the elapsed time between an event occurring and operational responses, actions taken or decisions made in response to it.

        IoT utilizes what Ventana Research calls operational intelligence, a discipline that has evolved from the capture and analysis of data from VR_IoT-OI_BenchmarkLogo-Small-1.pnginstrumentation and machine-to-machine interactions of many types. We define operational intelligence as a set of event-centered information and analysis processes operating across an organization that deliver information to enable effective actions and optimal decisions.

        The evolution of operational intelligence and its manifestation in IoT is encouraging companies to revisit their priorities and spending for information and other digital technologies. Ventana Research undertook benchmark research on The Internet of Things to determine the attitudes, requirements and future plans of organizations that use IoT and operational intelligence systems and to identify their best practices. We set out to examine both the commonalities and the qualities specific to major industry sectors and across sizes of organizations. We considered how organizations manage IoT, issues they encounter in the process and how their use of it and related technology is evolving.

        While the Internet of Things may still be a novelty to many consumers, organizations participating in our research are well aware of its applications and implications. Four out of five (81%) said IoT is important to their future operations. Majorities said the use of IoT is very important to speed the flow of information and improve the responsiveness of individuals within business processes (61%) and to speed the flow of information to customers or consumers (58%).

        vr_IoT_and_OI_16_business_use_of_IoT.pngThe most common uses of IoT are associated with customers (as in sensors on products, by 43%), employees (in wearable technology, 35%) and sensors on devices in the supply chain (31%). At this point, however, more organizations are able to capture IT events (such as a network or system security breach, 59%) than business events (such as a customer contact, 45%). As organizations find more business uses, IoT and operational intelligence will become even more mainstream, and the research indicates that this will occur. Within two years, 95 percent of organizations said they expect to be capturing IT events and 92 percent to be capturing business events.

        The research also finds that the intentions of organizations to embrace IoT and use operational intelligence often outpace their current capabilities. For example, many can capture data but face challenges in using it. More than two-thirds (68%) said they are satisfied or somewhat satisfied with their organization’s ability to capture and correlate data from events. After that, managing and using it become more complicated. Nearly one-third (31% each) reported difficulties with inadequate data or in managing external data. About half (48%) said they spend the most time reviewing event data for quality and consistency issues, which suggests a lack of standardization across the data sources that are collected.

        Furthermore, most organizations are not ready to derive maximum value from IoT. The processes most commonly implemented, each by approximately half of organizations, are performing root-cause analysis, defining measurements and metrics, and monitoring and correlating activities or events. While these processes are necessary, they are only the first step in improving performance. Fewer have advanced to the point of automating processes, which will be necessary to make full use of the coming deluge of IoT data. For example, only about two in five use data from events to trigger automated processes such as predictive maintenance (38%) or automatic assignment of thresholds for alerts (39%).

        This research overall finds strong momentum behind the emergence of the Internet of Things, but it also is clear that many organizations have not caught up to the trend. IoT is here, and its impact on business will only increase; almost all companies can benefit from paying attention to it. We encourage you to use this research to help educate and guide your organization through its IoT journey.


        Regards,

        David Menninger
        SVP & Research Director

        Follow Me on Twitter @dmenningerVR and Connect with me on LinkedIn.

        Authors:

        David Menninger
        Executive Director, Technology Research

        David Menninger leads the overall expertise direction in digital technology including data and analytics technologies at Ventana Research. He covers topics including; analytics and data; AI and machine learning; blockchain; cloud computing; collaborative and conversational computing; extended reality; internet of things; mobile computing; and robotic automation.

        JOIN OUR COMMUNITY

        Analyst Perspective Policy

        • Ventana Research’s Analyst Perspectives are fact-based analysis and guidance on business, industry and technology vendor trends. Each Analyst Perspective presents the view of the analyst who is an established subject matter expert on new developments, business and technology trends, findings from our research, or best practice insights.

          Each is prepared and reviewed in accordance with Ventana Research’s strict standards for accuracy and objectivity and reviewed to ensure it delivers reliable and actionable insights. It is reviewed and edited by research management and is approved by the Chief Research Officer; no individual or organization outside of Ventana Research reviews any Analyst Perspective before it is published. If you have any issue with an Analyst Perspective, please email them to ChiefResearchOfficer@ventanaresearch.com

        View Policy

        Our Analysts

        Subscribe to Email Updates

        Posts by Month

        Posts by Topic

        see all


        Analyst Perspectives Archive

        See All