More than 80 percent of companies increased revenue by investing in Internet of Things (IoT), according to a newly released study by TCS. Companies investing in IoT experience significant revenue increases due to IoT initiatives with an average increase of 15.6 percent in 2014.
About one in ten (9 percent) saw a rise of at least 30 percent in revenue as per the study that is based on a survey of 795 executives from large multi-nationals.
IoT is seen as a growing area for businesses by company executives with 12 percent identifying a planned spend of US $100 million in 2015 and 3 percent looking to invest a minimum of US$1 billion.
"The age of IoT is well underway. The question is, whether businesses are ready to realise the full potential of this technology," said Natarajan Chandrasekaran, CEO and MD of TCS. "Our latest global trend study found that leaders in using IoT technologies are using it to completely re-imagine their businesses by changing every aspect of them from business models and products to business processes and workplaces."
Increase in budgets
Companies predict their IoT budgets to continue increasing year-on-year, with spending expected to grow by 20 percent by 2018 to US$103 million.
The Healthcare sector is said to have the greatest potential to benefit from the IoT.
Executives in the Industrial Manufacturing sector reported the largest increase in revenue from IoT, with an average 28.5 percent, followed by Financial Services (17.7 percent) and Media & Entertainment (17.4 percent).
The Automotive industry experienced the lowest revenue gain with just a 9.9 percent increase.
The report found that the three biggest factors holding companies back to adopt IoT were corporate culture, leadership and technology.
"Now is the time for every leader in every industry to reimagine the possibilities for their businesses in a world of smart, connected 'things'," added Chandrasekaran.
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