Enterprises will spend $7 trillion on digital transformation by 2021

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Global enterprises will spend more than $ 7 trillion dollars in the next four years as they struggle to modernize, build a global technology foundation for growth, and support simple, secure, and reliable access to data and services, says the IDC.

The big drivers?

The usual suspects like cloud initiatives, big data analytics, and mobility. But, IoT is becoming a major investment focus, and so are automation or AI initiatives. Connectivity is always a part of the conversation here, as well as IT services and enterprise applications.


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In 2019 alone, global enterprises will spend $ 1.7 trillion on digital transformation. That’s up almost 50% from the $ 1.2 trillion they spent this year, according to IDC. Top industries include the manufacturing and transportation sectors, but professional services and healthcare firms are also driving increased investment. By 2021, investment will reach a staggering $ 2.1 trillion.

One thing is clear: A wide range of industries is investing in digital transformation.

Those top industries represent just slightly more than half of all the trillions of dollars of spending. The rest, about 46%, is spread among multiple other categories.

While it’s true that companies are investing in cloud and communications technologies to grow competitiveness in an era when every company is becoming a technology company, the sleeper investment might be what all this technology does to company culture.

Digital transformation, after all, improves speed to market, competitiveness, innovation capacity, and other critical areas of an enterprise. All of those depend on culture, and culture depends on people.

That’s the piece that’s often overlooked when transformation efforts yield mixed results.

Without the right people, and without the right culture, all the technology in the world won’t save a company. Collaboration tools enable cooperation and communication, but they don’t mandate it.

All of which means that enterprise transformation includes technology, but needs to consider culture.

We’re looking to bring together key executives for a collaborative round table on digital transformation over dinner in Silicon Valley. Comment here to join me on the evening of February 13th!

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Public LPWA Connections to Grow at a 206 Percent CAGR to 2021

Public LPWA Connections to Grow at a 206 Percent CAGR to 2021

Public LPWA Connections to Grow at a 206 Percent CAGR to 2021

Low power wide area networks to play a key role in connecting the devices that form the Internet of Things, IHS Markit says.

Globally, public low power wide area (LPWA) connections are anticipated to reach over 1 billion by 2021, according to a new report by business information provider IHS Markit.

This represents a 206 percent compound annual growth rate (CAGR) from 2014 to 2021, spurred by the need for low-power wireless network technology in Internet of Things (IoT) devices.

The IHS Markit Low Power Wide Area Interim Market Update Report – 2017 tracks key developments in the LPWA market over the past year, including the growth prospects for narrowband IoT (NB-IoT), long range wide area network (LoRaWAN), Long Term Evolution Cat-M1 (LTE-M) and Sigfox.

According to the report, the NB-IoT market received a tremendous boost in June 2017 when the Chinese Ministry of Industry and Information Technology (MIIT) issued an NB-IoT policy framework. Key provisions of the framework include:

  • Setting targets for the deployment of NB-IoT–ready base stations: 400,000 sites in 2017 and 1.5 million sites by 2020;
  • Establishing goals for NB-IoT end-device adoption: 20 million connections by year-end 2017 and 600 million connections by year-end 2020;
  • Creating a cellular IoT forum to encourage ecosystem development, and permitting the use of global system for mobile communications (GSM) and frequency-division duplex (FDD) spectrum for NB-IoT services.

“The cellular IoT market was already booming in China, with the three main Chinese operators growing cellular IoT connections from 53.5 million in 2014 to 160.2 million in 2016,” said Sam Lucero, senior principal analyst for IoT at IHS Markit.
“With the demonstrated desire by the central government for rapid NB-IoT deployment in the country, along with the key benefits NB-IoT offers for many IoT use cases, it now seems likely that worldwide NB-IoT connections could reach nearly 450 million by 2021, even when conservatively assuming that the Chinese operators do not achieve the aggressive government target for 2020.”

In the market for LPWA in unlicensed spectrum, LoRaWAN achieved higher-than-expected growth during 2017. IHS Markit projects that LoRaWAN “public” connections — those offered as a service by LoRaWAN network operators — will rise to nearly 300 million by 2021.

Conversely, the outlook for Sigfox has darkened over the course of 2017.
“As a venture-funded startup, Sigfox has always represented an element of risk for partners and customers seeking to deploy IoT applications,” said Lee Ratliff, senior principal analyst for IoT connectivity at IHS Markit.
“Underscoring that risk are the company’s unclear funding situation and attrition among top executives, which hint at turmoil within the otherwise opaque private company.”

Ratliff said:

“The events of 2017 have widened LoRa’s lead over Sigfox at a time when seizing market share is critical to ensuring survival as NB-IoT begins to be deployed at scale. While LoRa and Sigfox are technically similar, the business models are clearly differentiated and lower risk has become a key advantage in LoRa’s favor.”

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The installed base of fleet management systems in Russia/CIS and Eastern Europe will reach 9.1 million by 2021

The installed base of fleet management systems in Russia/CIS and Eastern Europe will reach 9.1 million by 2021

The installed base of fleet management systems in Russia/CIS and Eastern Europe will reach 9.1 million by 2021

According to a new research report from the M2M/IoT analyst firm Berg Insight, the number of active fleet management systems deployed in commercial vehicle fleets in Russia/CIS and Eastern Europe was 4.8 million in Q4-2016.

Growing at a compound annual growth rate (CAGR) of 13.5 percent, this number is expected to reach 9.1 million by 2021.

The Russian market alone accounts for a significant share of the region’s total installed base and is forecasted to grow from 2.1 million active units at the end of 2016 to 3.5 million units by 2021. The top-15 providers of fleet management solutions for commercial vehicles across Russia, the rest of the CIS and Eastern Europe together have a combined installed base of over 2.6 million active units in the region and around half of the market is even represented by the top-10 players.

The leading fleet management solution providers in terms of installed base in the CIS and Eastern Europe include diverse players from a number of countries.
Rickard Andersson, Senior Analyst, Berg Insight, says:

“Belarus-based Gurtam is the leading fleet management software provider, having surpassed the milestone of 500,000 vehicles under management in the region.”

He adds that Gurtam is focused on software, providing a hardware-agnostic tracking platform offering compatibility with over 1,300 different device models from hundreds of third-party hardware manufacturers.

“Arvento Mobile Systems from Turkey and TechnoKom based in Russia are the first and second runners-up, followed by Turkish Mobiliz and the Russian players NIS, SCOUT and Navigator Group”, continues Mr. Andersson.

chart: installed base of fleet management units Russia-CIS Eastern EU 2016-2021Additional top-15 players include Russia-based Omnicomm which has around 100,000 active fleet management units, as well as Infotech in Turkey, Fort Telecom and SpaceTeam in Russia, the European market leader TomTom Telematics, Princip in the Czech Republic, the major truck OEM Scania and Secret Control which is based in Hungary.

“With the exception of TomTom Telematics and Scania, the major international solution providers based in Western Europe, North America or South Africa are yet to reach the top-15 list for this region”, concluded Mr. Andersson.

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The installed base of construction equipment OEM telematics systems will reach 4.6 million units worldwide by 2021

The installed base of construction equipment OEM telematics systems will reach 4.6 million units worldwide by 2021

The installed base of construction equipment OEM telematics systems will reach 4.6 million units worldwide by 2021

Berg Insight estimates that the global installed base of active construction equipment (CE) OEM telematics systems reached almost 1.8 million units in 2016.

Growing at a compound annual growth rate (CAGR) of 21.3 percent, the active installed base is estimated to reach 4.6 million units worldwide in 2021.

This includes all CE telematics systems marketed by construction equipment OEMs, either developed in-house or provided by the CE manufacturers in partnership with third-party telematics players.

Berg Insight estimates that the European market accounted for almost 0.4 million active construction equipment OEM telematics systems at the end of 2016. The North American market is estimated to be slightly larger than the European. The Rest of World represents more than half of the global installed base of CE telematics systems provided by construction equipment OEMs.

Most major construction equipment OEMs have introduced telematics offerings for its customers either independently or in collaboration with telematics partners. OEM telematics systems are today commonly factory-installed as standard at least for heavier machines.

Berg Insight ranks Caterpillar and Komatsu as the leading construction equipment OEMs in terms of the number of CE telematics systems deployed worldwide. “The leading construction equipment manufacturers by market share are unsurprisingly also by far the top players when it comes to the number of OEM telematics subscribers”, said Rickard Andersson, Senior Analyst, Berg Insight.
He adds that this is a natural development in an industry where telematics has increasingly been included as standard with the machine purchase for quite some time, gradually covering more models and equipment categories.

Mr. Andersson continued:

“Caterpillar and Komatsu together account for more than one million telematics units today.”

Berg Insight chart: installed base of active construction equipment OEM telematics units 2016-2021Other key players include Japan-based Hitachi Construction Machinery and South Korea-based Hyundai Construction Equipment as well as JCB, Volvo CE and Deere & Company which are based in the UK, Sweden and the US respectively. South Korea-based Doosan Infracore, Liebherr based in Switzerland and CNH Industrial which is headquartered in the UK all have global installed bases of construction equipment telematics units in the low tens of thousands. “Notably, half of the top-10 OEMs have surpassed the milestone of 100,000 telematics units globally”, concluded Mr. Andersson.

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Europe and North America will reach 65.2 million active insurance telematics policies in 2021

Europe and North America will reach 65.2 million active insurance telematics policies in 2021

Europe and North America will reach 65.2 million active insurance telematics policies in 2021

According to a new research report from the IoT analyst firm Berg Insight, the number of insurance telematics policies in force on the European market reached 6.8 million in Q4-2016.

Growing at a compound annual growth rate (CAGR) of 34.8 percent, this number is expected to reach 30.0 million by 2021.

In North America, the number of insurance telematics policies in force is expected to grow at a CAGR of 38.2 percent from 6.9 million in Q4-2016 to reach 35.2 million in 2021. The European insurance telematics market is largely dominated by hardwired aftermarket black boxes while self-install OBD devices represent the vast majority of the active policies in North America. Several major US insurers have however recently shifted to solutions based on smartphones. Berg Insight expects a rapid increase in the uptake of smartphone-based solutions in all markets in the upcoming years.

Martin Svegander M2M/IoT analyst at Berg Insight, said:

“The US, Italy, the UK and Canada are still the largest markets in terms of insurance telematics policies.”

In North America, the market is dominated by US-based Progressive, Allstate, Liberty Mutual and State Farm as well as Intact Financial Corporation and Desjardins in Canada. The Italian insurers UnipolSai and Generali together accounted for around 50 percent of the telematics-enabled policies in Europe. Insurers with a strong adoption of telematics-enabled policies in the UK moreover include Admiral Group, Insure The Box and Direct Line. Several insurers in the rest of Europe have also shown a substantial uptake of telematics in 2016–2017.

“Insurers are increasingly expected to embrace every aspect of telematics to reduce the cost of claims, improve the underwriting process and add services to increase the customer value through differentiated telematics offerings”, continued Mr. Svegander.

He added that several attempts to reduce distracted driving and increase consumer engagement using smartphone-based insurance telematics have been seen in both Europe and North America. “Consumer engagement is now the focus for most insurance telematics programmes and will continue to be an important topic in the near term”, concluded Mr. Svegander.

Berg Insight chart: insurance telematics policies in force Europe and North America 2016-2021The insurance telematics value chain spans multiple industries including a large ecosystem of companies extending far beyond the insurance industry players. Automotive OEMs are showing an increasing interest in insurance telematics. Examples include General Motors, Ford, BMW, Daimler, PSA Group and Fiat. The vehicle manufacturers are expected to drive the long-term development of insurance telematics by offering the possibility to utilise connected car OEM data in pay-how-you-drive offers.

Notable aftermarket telematics service providers with a focus on insurance telematics include Octo Telematics with over 5.3 million active devices in Q4-2017 and other end-to-end solution providers such as Vodafone Automotive and Viasat Group. LexisNexis Risk Solutions, Intelligent Mechatronic Systems, Cambridge Mobile Telematics, Modus, The Floow, Scope Technologies and TrueMotion are also important players on the insurance telematics market.

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