Redefining the Connected Conversation

Redefining the Connected Conversation IoT Trends, Challenges, & Experiences Survey NEW YORK SAN ANTONIO

IoT Working Experience Tell us about your company s work on developing and/or deploying IoT solutions. 73% Of Respondents At Companies Currently Active In IoT Already Developed / Deployed IoT Solution(s) Working To Develop / Deploy First IoT Solution Planning To Develop / Deploy IoT Solution(s) Within 12 Months Planning To Develop / Deploy IoT Solution(s) In >12 Months No Plans To Develop / Deploy IoT Solution(s) 12% 12% 4% 10% 61% n=130 2

Why Are Companies Working on IoT? What is the purpose of your company s IoT projects? Improve A Business Process 24% 60% Reduce Costs 20% of Companies working on IoT to Grow Revenue & Profits Grow The Business 60% Keep Up With Competitors 11% Regulation & Compliance 12% 2 n=122 3

Business vs. Consumer IoT 2X B2B outpaces B2C & B2B2C What type of IoT Solution is your company working on? 68% 31% 34% 19% B2B B2C B2B2C Improve A Business Process n=119 3 4

What IoT Applications Are Being Developed & Deployed? What use case / industry does your company s IoT solution address? Industrial Monitoring Healthcare 45% 45% Home Security Wearables 27% 27% Nearly ½ working on Healthcare & Industrial Monitoring Applications Energy Management 39% Retail 24% Asset Tracking 38% Security / Defense 22% Building Automation 36% Digital Signage 21% Fleet Management 36% Natural Resource Monitoring 20% Connected Car 35% Vending 19% More than 1/3 working on Telematics Home Automation 34% Fitness / Wellness 17% Agriculture 29% Drones 15% Smart Meters 29% Usage Based Insurance 12% Business Security & Surveillance 28% Other 11% n=113 4 5

Companies Perceived As IoT Leaders Who do you believe are the companies leading the way in IoT? Cisco called the IoT leader by 38% of survey respondents IBM ranked as a top IoT company on nearly 1 in 3 surveys Intel, GE, Google, & AT&T rated a top IoT company by ~25% 15-20% rate Amazon, Qualcomm, Microsoft, & Verizon as leaders in IoT IoT firms SigFox & Jasper received 10 14% of votes as industry leaders A range of companies across the IoT ecosystem emerged with <10% of votes 10 n=108 6

Challenges to IoT Growth What are the barriers to growth of IoT? Security: Proliferation of connected devices creates new challenges for physical & cyber security Security Interoperability 51% 64% Interoperability & Hardware Integration: No truly intelligent systems if things can t communicate with each other. Need focus on Ease of Use Hardware Integration 27% Barriers address the need for industry standards Network Connectivity 22% Can t Prove The ROI: Need strong business case development to forecast incremental revenues & cost savings Cost Can t Prove the ROI Data Storage & Analysis 14% 31% 44% Cost: Up-front & recurring costs can scare off potential buyers Need to get past the hype and focus on how IoT benefits the bottom line Maintenance Other 16% 14% Network Connectivity, Maintenance, & Data Analysis rank lower on the list of barriers to growth but call contribute to the complexity that is IoT n=108 7

Connectivity for IoT What types of connectivity for your company's IoT Solutions? 74% 69% 70%+ Using Wi-Fi or Cellular for IoT 44% 41% ~40% 25% 19% 19% Using Bluetooth or Ethernet 11% Wi-Fi Cellular Bluetooth Ethernet Zigbee Satellite LPWA Other <25% Zigbee, Satellite, LPWA, Other n=108 8

Measuring IoT Success How does your company measure the success of IoT projects? Goal is to learn & improve IoT expertise 23% We do not measure success of IoT projects 10% Other 6% Quantifiable Metrics & KPIs 37% <40% of Companies have quantifiable metrics & KPIs to measure success Goals but no quantifiable metrics or KPIs 23% n=107 9

The Importance of Data How important is data collection, storage, and analysis to your IoT project? Critical 56% Important 34% 90% Say data is critical or important to their IoT projects Nice to Have Not 7% Important 4% n=107 10

IoT Data Challenges What are your challenges with IoT data? Contextualizing The Data Lacking Data Analysis Resources 29% 40% 40% struggle to put IoT data in the context of the business problem Data Analysis Not A Core Capability Business Doesn't Act On The Data Data Analysis Takes Too Long Data Is Messy & Unstructured Business Doesn't Believe The Data Access To Data Isn't Timely Data Isn't Reliable Data Isn't Useful 24% 23% 18% 17% 13% 12% 10% 8% 24 29% say they lack expertise in data analysis or lack the resources to analyze data properly 23% say their business partners don t act on the findings from IoT data analysis n=104 11

Maximizing The Value From Data What does your company do with data from IoT? Capture, analyze, store, & make informed & timely decisions on data Capture & store some data but don't do any analysis 22% 41% 22% Not Doing Any Data Analysis Analyze data in real-time to make decisions Don t capture or store any data 15% 23% Only 41% Making Informed & Timely Decisions on Data n=102 12

The Impact Of Data Analytics Would better analytics improve the ROI of your IOT project? on the ROI of IoT No Impact 13% 87% Nice to have but not critical 35% Significantly improve 52% Link Improved Data Analytics to Increased ROI n=102 13

Survey Respondent Profile How many employees are in the company you work for? <10 10-49 50-499 500-999 1K - 5K 5K+ 6% 9% 14% 18% 22% 31% What is your PRIMARY role in your company s IoT projects? Research 12% Product Management 10% Marketing 9% Sales / Business Development 18% Executive 21% Student 2% Other 8% Architect 8% System Integrator 4% Business Operations 3% Business Data Analyst Stakeholder 2% 2% Geographic Location North America EMEA AP Latin America 5% 17% 12% 65% What is your job function? Employee - Executive 39% Employee Manager 25% Employee - Individual Contributor 17% Consulta nt 13% Other 6% How long have you been working on IoT projects? 32% 34% Many Years Of IoT Experience 22% 1-2 Years Of IoT Experience <1 Year Of IoT Experience 8% Limited IoT Experience 4% No IoT Experience n=130 14

Summary Results 73% Of respondents at companies currently active in IoT 60% Of companies working on IoT to Grow Revenue & Profits 68% Of companies working on B2B IoT Solutions <40% of Companies have quantifiable metrics & KPIs to measure IoT success Top IoT Applications Industrial Monitoring 45% Healthcare 45% Energy Management 39% Asset Tracking 38% Building Automation 36% Fleet Management 36% Connected Car 35% Challenges to Growth in IoT Security 64% Interoperability 51% Can t Prove the ROI 44% Cost 31% Hardware Integration 27% Connectivity 22% 70%+ Using Wi-Fi or Cellular For Connectivity Companies Perceived As IoT Leaders 15