U.S. Firms Push for Scalable IoT Projects With Rapid ROI

Rhea-AI Summary

U.S. enterprises are shifting from discrete IoT projects to broader initiatives that tackle sustainability and enable digital transformation, according to a report by ISG Provider Lens™. The report highlights the use of IoT data and analytics for improving customer engagement, creating new revenue sources, and enhancing supply chain visibility. Leading providers are positioning IoT services as part of larger digital transformation capabilities.

Positive

• U.S. enterprises are shifting from discrete IoT projects to broader initiatives for sustainability and digital transformation
• IoT data and analytics are being used to improve customer engagement and create new revenue sources
• IoT systems are enhancing supply chain visibility and predictive models for preventing bottlenecks
• IoT is enabling broader and deeper solutions for sustainability across the supply chain

Negative

• None.

Companies, providers move from single-purpose proofs of concept to using IoT data, analytics for digital transformation, ISG Provider Lens™ report says

STAMFORD, Conn.--(BUSINESS WIRE)-- U.S. enterprises are beginning a shift from discrete IoT projects to broader initiatives that tackle major objectives such as sustainability, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

The 2023 ISG Provider Lens™ Internet of Things — Services and Solutions report for the U.S. finds that enterprises and service providers have realized the granular data collected by IoT can create unexpected capabilities and help to enable digital transformation. While chip shortages impeded IoT implementation in 2022, the U.S. continues to see healthy demand for IoT services and solutions.

“Solving one problem isn’t enough. Rapid scalability is essential,” said Matteo Gallina, digital engineering solutions lead, Americas, at ISG. “Companies investing in IoT expect fast ROI, speed to market and accelerated benefits.”

In addition to deploying IoT for purposes such as predictive maintenance, proactive interventions and more efficient operations, enterprises are using IoT-generated data and analytics power to improve customer engagement and create new revenue sources, ISG says.

Supply chains have become a major focus of IoT efforts since the disruptions caused by the COVID-19 pandemic and its aftermath, the report says. IoT systems can track and trace shipments, giving companies more visibility into the process, and inform predictive models for anticipating and preventing bottlenecks.

As U.S. companies place ever-greater priority on sustainability, IoT is beginning to enable broader and deeper solutions to the problem, ISG says. So far, most enterprises have focused on reducing internal carbon emissions for immediate cost benefits. In the longer term, they will need to ensure sustainability across the whole supply chain, including suppliers and customers at every point, to comply with looming regulations and maintain a good reputation. IoT can help organizations pull together and analyze the huge amounts of data required to carry this out.

Leading providers that recognize these emerging possibilities are positioning IoT services and solutions as part of larger digital transformation capabilities rather as standalone offerings, the report says.

“Increasingly, IoT will be the digital thread that makes connected global enterprises possible,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research.

The report also explores other enterprise IoT trends in the U.S., including the increasing use of zero-trust frameworks for IoT security and the continued growth of edge computing, in which the U.S. is the leading market.

For more insights into the IoT challenges enterprises face and advice for addressing them, including how best to balance human skills and AI, see the ISG Provider Lens™ Focal Points briefing here.

The 2023 ISG Provider Lens™ Internet of Things — Services and Solutions report for the U.S. evaluates the capabilities of 36 providers across four quadrants: Strategy Consulting, Implementation and Integration, Managed Services and Data Management and AI on the Edge.

The report names Accenture, Capgemini, Cognizant, Eviden (Atos), HARMAN DTS and HCLTech as Leaders in all four quadrants. It names Infosys and Wipro as Leaders in three quadrants each and Hitachi Vantara and TCS as Leaders in two quadrants each. Cyient, HPE, Kyndryl, Siemens and Verizon are named as Leaders in one quadrant each.

In addition, Tech Mahindra is named as a Rising Star — a company with a “promising portfolio” and “high future potential” by ISG’s definition — in two quadrants. Lumen and Wipro are named as Rising Stars in one quadrant each.

A customized version of the report is available from Cyient.

The 2023 ISG Provider Lens™ Internet of Things — Services and Solutions report for the U.S. is available to subscribers or for one-time purchase on this webpage.

About ISG Provider Lens™ Research

The ISG Provider Lens™ Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.

A companion research series, the ISG Provider Lens Archetype reports, offer a first-of-its-kind evaluation of providers from the perspective of specific buyer types.

About ISG

ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 900 clients, including more than 75 of the world’s top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,600 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For more information, visit www.isg-one.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230720653322/en/

Press Contacts:

Will Thoretz, ISG

+1 203 517 3119

will.thoretz@isg-one.com

Julianna Sheridan, Matter Communications for ISG

+1 978-518-4520

isg@matternow.com

Source: Information Services Group, Inc.

FAQ

What are U.S. enterprises shifting towards in terms of IoT projects?

U.S. enterprises are shifting from discrete IoT projects to broader initiatives for sustainability and digital transformation.

How are enterprises using IoT data and analytics?

Enterprises are using IoT data and analytics to improve customer engagement, create new revenue sources, and enhance supply chain visibility.

What are the benefits of using IoT systems in the supply chain?

IoT systems enhance supply chain visibility and inform predictive models for preventing bottlenecks.

What role does IoT play in sustainability?

IoT enables broader and deeper solutions for sustainability across the supply chain.

What are leading providers doing with IoT services?

Leading providers are positioning IoT services as part of larger digital transformation capabilities.