Executives lack confidence when it comes to Industry 4.0, says Deloitte

Executives lack confidence when it comes to Industry 4.0, says Deloitte

Recruitment and training at every level in the corporate hierarchy may need a rethink, if companies are to reap the full benefits of industrial IoT, says a new report from Deloitte. 

Senior business executives are optimistic about the potential offered by Industry 4.0, but lack confidence when it comes to investing in the industrial IoT. 

That’s according to a new report from Deloitte, The Fourth Industrial Revolution is Here – Are You Ready? Released to coincide with the World Economic Forum this week in Davos, Switzerland, this explores the business world’s readiness to  harness the opportunities offered by the Industry 4.0 trend that sees machines increasingly become connected and able to report on their status and performance, as well as the environment around them.

Sometimes referred to as ‘the fourth industrial revolution’, it is set to define the business world over the next few years, as technologies such as sensors, analytics, AI, cognitive computing are increasingly applied to industrial processes. 

Deloitte Global, part of the management consultancy firm, surveyed 1,600 C-level executives from 19 countries for its report, quizzing them on their ability to leverage these technologies. 

Read more: Survey shows IIoT has “crossed the chasm”, claims Zebra

Lack of confidence

Almost nine out of ten respondents (87 percent) said that they expect Industry 4.0 to create social and economic equality and stability for their companies. But regardless of this, many firms feel that they’re not ready to harness these changes. Only one in three said they’re highly confident about stewarding their organisations in the connected world and just 14 percent said they were ready to implement Industry 4.0 technologies. Because of these attitudes, says Deloitte, businesses and executives risk falling behind.

At the same time, executives don’t feel that their organizations have the right talent to succeed in the fourth industrial revolution, either – but they’re trying their best to build more suitable teams. Again, more than four out five respondents (86 percent) said they’re working to hire people with the right skillsets for technologies such as artificial intelligence (AI) and IoT. 

And companies that are already focused on Industry 4.0 are exploring roles that allow staff to leverage “greater innovation, alternative work environments and new approaches to learning and development”.

Overall, key decision-makers are aware that they must invest in technology to succeed in an increasingly connected world. But many of them are struggling to make a business case due to a lack of comprehensive strategies.

Read more: IIoT adoption increases, but projects still early-stage, says Bsquare

A unique opportunity

Punit Renjen, CEO of Deloitte Global, has claimed that the fourth industrial revolution will have huge impact on the world as a whole, and not just the workplace. “The rapidly advancing technologies driving Industry 4.0 are bringing about social and economic change rapidly in an environment of unparalleled global connectivity and demographic change,” he said. 

“It’s a time of great opportunity, but also risk. We developed this research to better understand how executives are navigating the pervasive shift and to uncover areas where they can more effectively influence how the Fourth Industrial Revolution impacts their organisations and society.”

Our Internet of Manufacturing event is coming to Munich on 6-8 February 2018. Attendees will get the chance to learn more about how connected technologies open up new paths to increased productivity and profitability for industrial companies. 

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US consumers concerned about lack of standardisation in driverless car legislation

Driverless cars are on their way, whatever speed they arrive, but according to a new study many US citizens are still concerned about various aspects of their safety.

The study from Advocates for Highway and Auto Safety, which polled 1,005 adults living in the US, found more than three quarters opposed disconnection of vehicle controls such as steering wheels and brake pedals, while the vast majority saw concern with more general cybersecurity and safety legislation.

73% of those polled said they support the development of safety standards for new features related to the operation of driverless cars, while 81% said they supported cybersecurity rules to protect driverless cars from being hacked.

This is put alongside the Senate AV Start Act and the House Self Drive Act, two pieces of impending legislation which the report asserts do not do enough in these areas. Regarding safety standards, the report says, only ‘voluntary guidelines’ are issued for now, while both Acts have a demand that a ‘plan’ exists for cybersecurity, but no minimum requirements. “These poll numbers should be a bright, flashing hazard light to members of congress considering legislation that will set policy on driverless cars for years to come,” the press materials roared.

Other measures were given fierce approval from consumers. 84% said they supported uniform rules from the US Department of Transportation to ensure human drivers are alert in case they need to take control of the driverless car.

Yet this measure is a particularly interesting one given recent advancements from automotive vendors. Last week General Motors said it had submitted a petition to the US Department of Transportation to commence operating fully autonomous cars in a new service scheduled for 2019. In other words, the new vehicles, named Cruise AV, will have no steering wheels or pedals.

You can read the full report here (pdf).

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Zebra: European firms lack solid plans to achieve IoT goals

Zebra: Many European firms lack solid plan to achieve IoT goals

Spending on IoT set to rise in Europe, but do companies have the right strategies in place to achieve their goals? 

Research published this week has found that more than half (53 percent) of companies based in Western Europe lack a solid strategy to turn their IoT goals into reality, according to Zebra Technologies’ Intelligent Enterprise Index, which surveyed over 900 IT decision makers worldwide about IoT vision, investment and strategies.

According to Zebra, this suggests that Europe is lagging behind the rest of the world, where it found that only 39 percent said they lack a solid IoT strategy. 

The good news from the study, however, is that IoT is evolving quickly in Europe, with 25 percent of companies planning to invest $ 5m (£3.4m) or more in connected technologies.

On top of this, 66 percent of respondents said they have plans to increase that investment within two years and 83 percent believe that their deployments are more than half complete.

Three quarters (74 percent) of respondents expect that their IoT deployments will be completed by the summer of 2019.

Read more: Business leaders find IoT economics “increasingly compelling”, says Verizon

Struggles ahead

There seems to be a big issue, however, around planning. Instead, businesses seem to be focusing more on the opportunities and benefits that IoT presents, and less drawing up  rock-solid implementation plans to help them achieve their goals.

For example, around a third of European firms said they have no plans to address the cultural changes posed by IoT. Six out of ten, meanwhile, don’t have plans to address internal resistance to adopting IoT solutions, which could potentially throw a further spanner into the works.

Although 65 percent of European firms are actively educating their staff about IoT technologies, only 18 per cent are offering them incentives in a bid to encourage their use.

European firms lack proactive security methods, too, with almost every respondent (98 percent) saying they regularly monitor IoT security, but almost half admitting they rely on limited, reactive measures.

Read more: IoT projects driving IT budget decisions, 451 Research finds

Real-time intelligence boom

That said, real-time analytics is creating new opportunities and a sense of hope for firms in Europe. Over three-quarters (79 percent) of respondents said this technology is extremely important, and 59 percent aim to use IoT data to increase revenues.

“The ability to sense, analyze and act in real-time on insights generated by IoT technology is one the of the most significant advantages businesses can claim in an increasingly competitive, global market,” said Richard Hudson, vice president and general manager for EMEA at Zebra.

“Our research shows how enthusiastic European businesses are to gather actionable insights and become what we call ‘Intelligent Enterprises’.”

Enthusiasm is great, of course – but many business leaders could find that their goals out of reach without a clear strategy for achieving them.

Read more: Six out of ten IoT projects fail at trial stage, says survey

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Gemalto survey confirms that Consumers lack confidence in IoT device security

Gemalto survey confirms that Consumers lack confidence in IoT device security

Gemalto survey confirms that Consumers lack confidence in IoT device security

Businesses and consumers support government-mandated IoT security regulations.

  • Most organizations (96%) and consumers (90%) believe there is a need for IoT security regulations – and want government involvement
  • A hacker controlling IoT devices is the most common concern for consumers (65%), while six in ten (60%) worry about their data being stolen
  • More than two-thirds (67%) of businesses encrypt all data captured or stored via IoT devices
  • Gemalto, today reveal that 90% of consumers lack confidence in the security of Internet of Things (IoT) devices.

    This comes as more than two-thirds of consumers and almost 80% of organizations support governments getting involved in setting IoT security.

    “It’s clear that both consumers and businesses have serious concerns around IoT security and little confidence that IoT service providers and device manufacturers will be able to protect IoT devices and more importantly the integrity of the data created, stored and transmitted by these devices,” said Jason Hart, CTO, Data Protection at Gemalto.

    “With legislation like GDPR showing that governments are beginning to recognize the threats and long-lasting damage cyber-attacks can have on everyday lives, they now need to step up when it comes to IoT security. Until there is confidence in IoT amongst businesses and consumers, it won’t see mainstream adoption.”

    The current state of play in IoT security

    Consumers’ main fear (cited by two thirds of respondents) is hackers taking control of their device. In fact, this was more of a concern than their data being leaked (60%) and hackers accessing their personal information (54%). Despite more than half (54%) of consumers owning an IoT device (on average two), just 14% believe that they are extremely knowledgeable when it comes to the security of these devices, showing education is needed among both consumers and businesses.

    In terms of the level of investment in security, the survey found that IoT device manufacturers and service providers spend just 11% of their total IoT budget on securing their IoT devices. The study found that these companies do recognize the importance of protecting devices and the data they generate or transfer with 50% of companies adopting a security by design approach. Two-thirds (67%) of organizations report encryption as their main method of securing IoT assets with 62% encrypting the data as soon as it reaches their IoT device, while 59% as it leaves the device. Ninety two percent of companies also see an increase in sales or product usage after implementing IoT security measures.

    Support for IoT security regulations gains traction

    According to the survey, businesses are in favor of regulations to make it clear who is responsible for securing IoT devices and data at each stage of its journey (61%) and the implications of non- compliance (55%). In fact, almost every organization (96%) and consumer (90%) is looking for government-enforced IoT security regulation.

    Lack of end-to-end capabilities leading to partnerships

    Encouragingly, businesses are realizing that they need support in understanding IoT technology and are turning to partners to help, with cloud service providers (52%) and IoT service providers (50%) the favored options. When asked why, the top reason was a lack of expertise and skills (47%), followed by help in facilitating and speeding up their IoT deployment (46%).

    While these partnerships may be benefiting businesses in adopting IoT, organizations admitted they don’t have complete control over the data that IoT products or services collect as it moves from partner to partner, potentially leaving it unprotected.

    “The lack of knowledge among both the business and consumer worlds is quite worrying and it’s leading to gaps in the IoT ecosystem that hackers will exploit,” Hart continues.

    “Within this ecosystem, there are four groups involved – consumers, manufacturers, cloud service providers and third parties – all of which have a responsibility to protect the data. ‘Security by design’ is the most effective approach to mitigate against a breach. Furthermore, IoT devices are a portal to the wider network and failing to protect them is like leaving your door wide open for hackers to walk in. Until both sides increase their knowledge of how to protect themselves and adopt industry standard approaches, IoT will continue to be a treasure trove of opportunity for hackers.”

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    A lack of awareness of IoT is holding back its adoption more than technology issues

    Tom Rebbeck, Analysis Mason

    Tom Rebbeck, Research Director at Analysys Mason, comments the results of the Enterprise survey conducted by AM in February 20171.

    Despite all the attention that IoT has received across multiple industry verticals, a significant percentage of enterprises have either not heard of IoT (29% of SMEs, 18% of large enterprises) or have no interest in adopting it (23% of all enterprises).1

    More work is required by solutions providers to explain to enterprises what IoT is and why it should be implemented. This is especially important for smaller enterprises. This article discusses some of our enterprise survey results in more detail to highlight the significance of the market opportunity for IoT solutions providers.

    The number of SMEs that are unaware of IoT – or have no interest in it – is four times greater than those with operational solutions

    It may be incorrect to assume that the take-up of IoT is being held back by competing technology standards, an uncertain business case or security concerns: enterprises would need to have explored IoT to understand any of these issues. Indeed, IoT may be restrained by a more basic problem of awareness. There is a positive message to take from this: there is still a massive, untapped market for IoT solutions providers that get their product and messaging right.

    In our survey of 1600 IT and telecoms decision makers in enterprises worldwide, we asked whether they had heard of IoT and, if so, whether they had any plans to deploy IoT solutions. The results revealed that a small percentage of firms already had an operational solution: 12% of SMEs and 18% of large enterprises (see Figure 1). More striking, though, is the share of enterprises that was unaware of IoT or not interested in it: combined, this group of respondents was made up 52% of SMEs and over 40% of large enterprises.

    One of the assumptions behind the large forecast numbers for IoT, including Analysys Mason’s own forecasts, is that most companies or sectors will have some use for IoT solutions. However, while this may prove to be accurate in the long term, this perception is not shared by most enterprise firms today.

    Figure 1: Percentage of enterprises at each stage of IoT development, 20172

    Analysys Mason chart: percentage of enterprises at each stage of IoT development

    Also notable from these results is the stark difference between large and small enterprises, both in terms of the share of firms with operational solutions, as well as those that are interested in IoT (27% of large enterprises and just 15% of SMEs).

    Much of this can be explained simply by size – large enterprises have more projects (of all types) than SMEs and will therefore be more likely to have an IoT project. Large enterprises may also have more resources to explore new areas and ideas such as IoT. Conversely, SMEs may not be willing or able to commit resources to IoT projects, especially if they are experimental and come with uncertain returns.

    For organisations that are hoping to sell IoT solutions, these results suggest that there is an untapped opportunity to provide IoT solutions to the lower end of the market (assuming that IoT is equally applicable to small, as well as large, organisations). However, few companies have the necessary skills to sell, deploy and support IoT solutions for the majority of SMEs and there is a lack of ‘off-the-shelf’ solutions that address the needs of these organisations.

    China is behind in adoption today, but may catch up quickly

    Our survey has revealed significant regional variation in the levels of interest in, and adoption of, IoT solutions.

    The USA has the highest levels of adoption of IoT solutions. It is likely to maintain this position as a large share of enterprises that have not yet deployed solutions are interested in doing so (20% of SMEs and 30% of large enterprises).

    Western European enterprises are more likely than Chinese firms to have an operational IoT solution in place, but Chinese companies are expressing a strong interest in IoT and may well close this regional gap. In Western Europe, the difference between the results for SMEs and large enterprises is also greater than elsewhere, possibly because IoT providers are focusing most of their attention on large enterprises.

    The interest in IoT suggests that Chinese providers, including mobile operators, are doing a better job of raising awareness of IoT than those in Europe.

    Figure 2: Percentage of enterprises with operational IoT solutions, by country/region, 2017

    Analysys Mason chart: percentage of enterprises with operational IoT solutions

    Overcoming a lack of awareness in IoT is more important than technology issues

    For telecoms operators, or any other provider trying to sell IoT solutions, these figures should act as another reminder that IoT is still in its very early phases. Any IoT plan will need to have long time horizons. It is also a reminder that the technical issues facing IoT – in terms of standards and security – are secondary to the more-basic issue of helping enterprises to understand the potential benefits of IoT.

    The results also mean that, for a provider that gets its product and marketing right, there is a significant market that remains largely unaddressed.

    1 In February 2017, Analysys Mason interviewed 1600 enterprises across eight countries (Australia, China, France, Germany, Malaysia, UAE, UK and the USA) about their usage, providers and satisfactions levels of various telecoms and ICT products. For more information, see Analysys Mason’s Enterprise survey 2017: enterprise interest in, and adoption of, IoT.
    2 Question: “Which of the following applies to your business when it comes to the Internet of Things?”; n = 1091 SMEs less than 250 employees), 509 large enterprises (greater than 249 employees), (1600 enterprises in total).

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