Report: Execs know the benefits of IoT, but are failing to implement the tech
- Connected supply chains are the wave of the future, but widespread adoption of Industrial Internet of Things (IIoT) technology must first take place to build visibility, according to a joint study by The CMO Council, BPI Network, Penton, Nerdery and The IoT Institute.
- Despite high expectations for the power of connectedness, however, executives lack leadership in implementing the technology. While 90% believe IIoT is an area of strategic focus, only 7% have a strategy planned and ready per the report.
- The problem: a shortage of talent, according to 61% of the 350 industry executives surveyed. Companies will have to invest in new skills, better data, and even a new business model if they want to take advantage of the economic promises of IIoT.
The business benefits of IIoT technology are clear, yet most businesses appear unable to act on their long-term goals.
The reasons cited for a lack of change, from a talent shortage to better data, are all structural in nature. The data collected suggests the industry may be stuck in a state of active inertia, defined by the Harvard Business Review as an inability to change path despite the volition to do so. When past actions have brought success, company leaders often find it nearly impossible to redirect strategy.
The challenge for these companies, then, is breaking out of this state of inertia to actively address these structural issues.
The first step is recognition these issues are hampering innovation, and aligning goals to help fix this. Top-down leadership on this issues are essential. In addition, each department can do more to individually meet goals, such as working on better professional development and recruiting processes to bring in more talent, to establishing clear problems to be solved by data, and tracking progress to specific goals.
Leaders must be willing to reconsider what works, and what is worth saving despite current conditions. Adjoining strong existing systems with new directions can be the meeting ground for recouping success, but it requires careful analysis and inter-departmental collaboration.
- Harvard Business Review Why Good Companies Go Bad
- BPI Network and CMO Council The Impact of Connectedness on Competitiveness
- Supply Chain Dive Supply chain visibility needs clear definitions, leadership to succeed
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