How can you ensure that your next Internet of Things project does not go down the drain?
Almost 75% of all IoT projects fail. Most of them (96%) don’t even result in new business models, and 60% have scalability problems. Why?
The problems start when business aims haven’t been planned out accurately. Then the whole thing falls apart if your management doesn’t “get” why you need to do it.
Our report, Why IoT projects fail and how to beat the odds, based on findings from a study by Beecham Research, outlines the reasons so many don’t succeed:
#1: Your business aims are not thought through
IoT can be overwhelming; new business models tend to come along with growing pains and organizational obstacles. This seems to be the case even in companies that truly have some idea of how to proceed. Yet many do not fully flesh out the journey. The problem isn't with IoT in itself, it is that you don't know enough about how and why IoT can help solve your business problems – and create new opportunities.
#2: You’re facing company organizational issues
Does your company face challenges with cross-collaboration, conflicting goals, data silos and overlapping processes between divisions? Beecham said that a lack of cohesion between divisions is a failure factor for more than 90% of the companies surveyed.
One of the main strengths of IoT is how it can create company-wide efficiencies in a variety of different ways. In short, IoT isn't just for the IT guys; it's for everyone.
#3: You’re not catching technological problems
You can see why businesses out there are struggling with IoT when a staggering 87% of respondents said they didn’t have the right expertise to select and procure the right connectivity. All respondents said that connectivity was particularly challenging for them.
#4: Issues with customers and vendors are plentiful
Real progress comes with a company’s internal resources partnering with an experienced solution provider in every possible way - on equal terms. This is especially the case given that 57% of those respondents which were almost fully relying on in-house resources saw projects fail.
Simply handing over the project also won't help; a company needs to be integrally involved in the complexities of an IoT project from start to finish.
IoT is not the problem
It is the solution – and many companies are delivering astounding results with their IoT projects. This would suggest that the high rate of failure of those falling short is simply a reflection of this: IoT isn’t straightforward – it requires consistency and collaboration.
To overcome the challenges and to help you realize the incredible potential of IoT, we have developed a 10-step plan for success. You’ll find more in-depth insight into the reasons for failure - and tips for success - in the Why IoT projects fail and how to beat the odds whitepaper below.