IoT Projects: Clients Focus on Incremental Change, Not Radical Transformation

BOSTON, LONDON and PARIS, July 5, 2018 /PRNewswire/ --

Most large organizations implementing IoT projects are looking to change their operations and offerings incrementally, not radically transform their business model 

NelsonHall has launched a new study entitled IoT Services: Continued Focus on Use Cases, which provides a reality check on the adoption of IoT by focusing on IoT project implementations.

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Most large organizations are focusing on incremental changes, and aim to:

• Improve operations, e.g. across sectors, around smart buildings, or in functions such as manufacturing and the supply chain, to improve efficiencies
• Enhance existing offerings, e.g. to guarantee equipment availability to clients or create aftermarket services.

The most popular use cases are found in B2B and include connected vehicle, digital manufacturing/Industry 4.0, and the supply chain. In parallel, most organizations that targeted B2B are now shifting to B2BC use cases.

NelsonHall found very little evidence of large organizations aiming to reinvent their business model drastically, confirming that creating a new business model to disrupt an organization is not easily achieved by large enterprises. And currently, organizations are focusing on making their IoT use case implementation a success, with IT considerations being less important.

Another key finding in the study is around IoT platforms/applications. A third of consulting and IT service vendors have created their own IoT platforms, mostly based on reusing code and on open source software components. Vendors initiated these developments four to five years ago, when the range of IoT COTS in the market was not as comprehensive as it is now.

However, in the next five years, IT service vendors will have to transition their IoT proprietary platforms business to a different model, where their products will complement those of IoT platform COTS. This transition will be necessary, as technology vendors with high product development capability (and internal funding) will develop more comprehensive IoT platforms.

Also, IT service vendors will need to define use cases based on IoT platforms more clearly, offer a product experience to their clients, and define where they will provide a blueprint and accelerator experience.

Along with this change, NelsonHall is expecting that most proprietary IoT applications developed by consulting and IT service vendors will move their use case development strategy from a mix of project-led and product-led to more project-led (i.e. developing use features and functionality based on client project needs rather than upfront development). This change will occur largely because IoT use case requirements are still moving and very client-specific, with only major technology vendors affording the R&D expense.

Based on interviews with executives responsible for IoT operations in the U.S., U.K., India, and Continental Europe, IoT Services: Continued Focus on Use Cases identifies the existing service offerings of major consulting and IT service vendors globally. This report will help IoT professionals within corporations who need to understand what is available in the market, and how they should source their IoT projects. IoT Services: Continued Focus on Use Cases is part of NelsonHall's IT Services program. For further information on the report and the program, contact NelsonHall's Dominique Raviart.

About NelsonHall 

NelsonHall is the leading global analyst firm dedicated to helping organizations understand the 'art of the possible' in next-generation IT and business services. With analysts in the U.S., U.K., and Europe, NelsonHall provides buy-side organizations with detailed, critical information on markets and vendors (including NEAT assessments) that helps them make fast and highly informed sourcing decisions. For service providers, NelsonHall provides deep knowledge of market dynamics and user requirements to help them hone their go-to-market strategies.

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