The IoT market is rapidly growing and expected to reach US$1.29 trillion by 2020. Although CP companies are anxious to adopt the IoT, they need to identify how they will derive value from this technology. This study of CP industry executives yielded three significant findings:
Less than half of CP organizations know how to build a business case for the IoT
The real business value of adopting IoT technology in CP will be in process efficiencies
Companies leading in IoT adoption are prioritizing processes and skills, while laggards are still researching their options
'CP organizations are addressing the rapidly changing business conditions by adopting innovative solutions,' said E. J. Kenney, senior vice president, Consumer Products Industry Business Unit at SAP. 'To effectively utilize the IoT, aligning business objectives throughout the supply chain has to be a top priority. A digital core and real-time platforms are key to digital transformation.'
IoT adoption leaders prioritize processes and skills, while laggards are still laying the groundwork by conducting research or consulting third-party experts.
Additionally, findings of the global study indicate that strategic adoption of the IoT in the CP industry requires alignment in three areas: understanding the IoT, knowing where the IoT is most applicable to the business, and having the ability to build a tangible business case. For example, only 41 percent of CP organizations recognize clear applicability of the IoT to their business. Only 39 percent of organizations have a clear understanding of what the IoT is, and fewer still - 36 percent - can build a business case for adoption.
These results also show stark differences between CP organizations that are considered leaders and those considered laggards regarding IoT adoption. For example, while 46 percent of leaders said allocating more budget to IoT strategy was a key step to unlocking potential business value, only 14 percent of laggards prioritized budget.
For more information, visit the SAP News Center. Follow SAP on Twitter at @sapnews.
Media Contact: Stacy Ries, +1 (484) 619-0411, firstname.lastname@example.org, ET
Any statements contained in this document that are not historical facts are forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Words such as 'anticipate,' 'believe,' 'estimate,' 'expect,' 'forecast,' 'intend,' 'may,' 'plan,' 'project,' 'predict,' 'should' and 'will' and similar expressions as they relate to SAP are intended to identify such forward-looking statements. SAP undertakes no obligation to publicly update or revise any forward-looking statements. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. The factors that could affect SAP's future financial results are discussed more fully in SAP's filings with the U.S. Securities and Exchange Commission ('SEC'), including SAP's most recent Annual Report on Form 20-F filed with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates.
© 2017 SAP SE. All rights reserved.
SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE in Germany and other countries. Please see http://www.sap.com/corporate-en/legal/copyright/index.epx#trademark for additional trademark information and notices.