The global stage of the IoT adoption by organizations – at a glance
Forbes published recently an article about the global digital landscape, focusing on organizations adopting technologies such as IoT (Internet of Things), or the blockchain (the ledger technology that supports cryptocurrency).
Although there is no doubt that the business world is moving in this direction (a fact illustrated by the best software tools being already designed to support such functionalities), the adoption speed is a completely different matter. We tried to provide you with a short overview of the current situation in the following paragraphs.
The IoT evolution over the next decade – estimate figures
Designed to have a number of 25 billion terminal points connected to the global network by 2021, the IoT evolves as determined by both end-users and by organizations.
IDC comes up with another set of figures, estimating that in 2025 IoT will generate a total of 180 trillion gigabytes of new data coming from about 80 billion connected devices. The amount of data coming from this source, analyzed and used to change business processes will amount to the quantity of all global data generated in the year 2020.
What is the current status of the IoT adoption by end users and organizations?
In what end-users are concerned, more and more people buy smart gadgets at the moment. The household appliance manufacturers will continue to integrate intelligent features and connectivity functions into their products. Enhancing device accessibility reduces the barriers to adoption in the consumer sector. The smart device market was estimated at about $ 18.82 billion last year, and is expected to reach $ 49.12 billion by 2024.
At the organizational level, the adoption of IoT was not as fast as supporters of this technology would have hoped for. According to the results coming from auditing 26 IoT providers, the ISG technology research firm found that the rate of adoption of the IoT in organizations is behind the development rate in the field.
Trivialized as involving the installation of smart light bulbs, thermostats and coffee machines in the office, the adoption of IoT by organizations actually includes a sum of processes, among which we find the manufacturing, supply chain management, and analytics processes. There are also applications dedicated to specific industries, such as the medical or logistics sectors. What is lacking here is by no means the deployment area. On the contrary, Gartner estimates that 3 out of 4 IoT projects in 2018 will run twice as long as originally planned, because organizations are really trying to understand this technology.
The Blockchain technology seems to have adoption similarities with IoT, both of which are currently failing to reach the needed critical mass in what their adoption by the organizations is concerned.
SAP -one step forward in providing the companies with the capabilities they need
In the above context, the specialists wonder what the opportunities for the IoT and blockchain technologies are, to find the necessary synergy. How can the organizations get the right motivation to adopt these technologies at a better rate?
As a fintech expert from Forbes mentions, the reticence related to the security vulnerabilities of IoT-connected systems can be reduced by the use of a smart combination of both blockchain and IoT. We can thus say that redefining the modularity of the existing technologies so that it can best serve the interests of the organizations could be one of the right answers.
On this line (blockchain integration), SAP partnered with Intel to develop specific solutions for businesses. The SAP HANA Blockchain Adapter integrates, according to the software giant, with the recently launched Cloud Platform Blockchain platform, allowing SAP customers to “consume and build on blockchain data in SAP HANA using a SQL interface and standard SQL commands — both on-premise or in the cloud”.
Another SAP feature is its Blockchain-as-a-Service (BaaS) system on the SAP Cloud Platform Blockchain platform. This allows customers to integrate enterprise data with blockchain, by using a pay-as-you-go model.
The example is relevant. SAP continues to implement its strategy of providing its customers with compact, ready-to-use solutions. The tech giant also constantly improves these solutions, as well as expands them, by adding innovative elements, as soon as they are validated. SAP continues to develop its software suite in order for its customers to meet current and future challenges present on the market.
Upgrade or adopt the SAP software solution best suited for your organization – in addition to its current value it will serve as a reliable basis for adopting the next-gen technologies in the next decade!
Contact us to find out more. We are your SAP partner of choice.