New survey finds that over 50% of companies will increase investments in the Internet of Things over the next two years. How is this transforming business models? This infographic recommends the three actions companies should take to prepare for a future with the IoT. Find out more here: http://bit.ly/1RgN17w

1. 50%
Future-proofing the IoT
How ready are businesses?
Companies and governmental
organisations around the world
say that their investments in the
IoT are expected to increase
slightly over the next two years.
This is more often true among large companies and
companies reporting that they perform well financially today.
Some industries will have to significantly transform their business models.
of respondents in a
global survey say their IoT
spending will increase
over the next two years.
Larger organisations will
increase investment into the
IoT in the next two years.
Companies that report better financial performance
than their peers also expect to spend more:
Increase significantly
Increase moderately
Stay about the same
Decrease moderately
Decrease significantly
Investments in the IoT will increase slightly globally,
but the amounts vary by financial performance.
100%
80%
60%
40%
20%
0%
Substantially
behind
peers
Somewhat
behind
peers
On par
with
peers
Somewhat
ahead of
peers
Substantially
ahead of
peers
65%
50%
of companies with
global revenues of
more than $500m
expect to increase
their spending
compared to
at organisations
of all sizes.
Investments
50%
Source
Sponsored by
The highest demand for IoT talent will
come from government and public sector.
38% of respondents there say they are planning
to rapidly hire new talent related to the IoT,
compared to 27% across sectors.
My organisation...
Employee training and HR strategies Talent acquisition and retention
Global survey by the Economist Intelligence Unit, "Evaluating IoT Enterprise Readiness", 2016.
© Economist Intelligence Unit 2016
However, companies are
confident that they manage
data-related risks well.
Slightly over half of all organisations
surveyed (54%) report that they
manage data security related risks
extremely well or very well.
High performers are even
more worried about
security concerns.
Data security is the
most often cited risk for
organisations across all sectors
(63% believe the risk will increase).
Banking, government and
public sector respondents
believe most strongly that the risk
will increase the significantly in the
next two years (70%).
29% believe
them to be
a hindrance.
75% of companies that report
substantially higher financial
performance than their peers
say that they are worried about
data-security risks, compared to
63% across the board.
21%
36%
29%
23%
27%
19%
8%
1 Prepare value chains
3 Train or grow their workforce
2
Sales &
marketing
37%
Service
33%
The IoT will disrupt
customer-facing
segments of industries,
ie, sales and marketing
and service.
22%
Distribution
19%
10%
R&D
23%
Supply
chain
Assembly or
manufacturing
So how can
organisations
future-proof
for the IoT?
1
Prepare
customer-facing
segments of their
value chains
2
Make data
security a
top priority
3
Train or grow
their workforce
Coming in at 37% and 33%
respectively, sales and marketing
and service are the two segments
of the value chain executives
around the world say are at the
highest risk of being disrupted by
competitors due to the IoT.
Customer-facing segments
of the value chain are seen
to be at the highest risk of
being disrupted by the IoT.
75%
63%
50%29% Organisations
are indecisive about
whether consumer
data protection and
privacy regulations
will hinder or support
the growth
of the IoT.
54%
has an
organisation-
wide HR strategy
related to IoT
takes a tactical,
department-
specific approach
to training
related to IoT
has optional
training modules
related to
the IoT
is rapidly
hiring new
talent related
to the IoT
is planning
to be rapidly
hiring new talent
related to
the IoT
already has
all the talent
we need
related to
the IoT
38%
27%
are doing
none of
these
Make data security a top priority
From a top-down strategy to tactical, department-specific
approaches, organisations have diverse strategies to preparing
their workface for developing and implementing an IoT strategy.
To learn more, visit samsungbusiness.economist.com
29%
Across industries, 29% responded
that they are “very prepared”.
Few organisations feel that they
are very prepared to manage
business model disruption.
The construction and
hospitality industries will
transform their business
models most
significantly in the next
two years due to the IoT.
Significant
or
moderate
change
Some
change
Minimal
or no
change
45%
42%
38%
37%
34%
33%
37%
34%
44%
42%
46%
47%
16%
20%
16%
17%
16%
12%
Construction
Hospitality
Healthcare
Government
Banking & Financial
Tech & Telecomms
Education
Retail
56%
52%
24%
42%
20%
4%
50% believe
them to be
a boost.
50%50%