Zebra Study: Record Number of Enterprises Becoming “Intelligent” with Growing IoT Investments
October 15 2019 - 8:00AM
Business Wire
Security remains a top priority as more
enterprises start to scale IoT solutions company-wide
Zebra Technologies Corporation (NASDAQ: ZBRA), an innovator at
the edge of the enterprise with solutions and partners that enable
businesses to gain a performance edge, today announced the results
of its third annual “Intelligent Enterprise Index” which indicates
a record 61 percent of enterprises worldwide are on the path to
becoming “intelligent,” compared to only 49 percent in 2018.
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This global survey analyzes the extent to which companies
connect the physical and digital worlds to drive innovation through
real-time guidance, data-powered environments and collaborative
mobile workflows. Their “Intelligent Enterprise” Index scores are
calculated using 11 criteria that include Internet of Things (IoT)
vision, adoption, data management, intelligent analysis and
more.
Based on these criteria and driven by an overwhelming pressure
to improve the customer experience, retail organizations have
gained the most momentum in the last 12 months, graduating from the
bottom of the 2018 vertical Index rankings to nearly the top of the
2019 list, second only to Healthcare.
The number of companies defined as truly “intelligent
enterprises” by achieving a score of 75 points or greater on the
Index has also risen year over year. Seventeen (17) percent of
organizations with at least 250 employees crossed this threshold in
2019 versus only eleven percent in 2018. Interestingly, 37 percent
of surveyed small to medium-sized businesses (SMBs) with 50-249
employees scored 75 points or greater on the Index, indicating SMBs
with an IoT vision are in many cases more “intelligent” than large
enterprises.
“When we launched the Intelligent Enterprise Index three years
ago, many enterprises were trying to understand where and how IoT
solutions could be best applied within their unique business
environments,” said Drew Ehlers, Global Futurist, Zebra
Technologies. “We now see more urgency to improve operational
visibility and facilitate the delivery of actionable intelligence
all the way to the edge of the enterprise. I believe that is why
enterprises are now demonstrating a much greater commitment to
executing their IoT plans and why we’ll likely see a surge in
investments over the next few years.”
KEY INDEX FINDINGS
- The pace of IoT adoption is picking up, leading to
increasingly greater intelligence levels. The cumulative
Intelligent Enterprise Index score continues to grow as more
companies move from exploratory to deployment phases of their
journeys, with the 2019 score topping out at 61.5 points. This
represents a nearly 6-point increase from 2018, driven largely by
the increased “intelligence” gains of retail and transportation
& logistics (T&L) organizations. It is also a +9-point gain
from 2017, the first year the Index was conducted.
- Continued growth in IoT solutions and other data-driven
technology platform investments. In 2019, each respondent’s
average enterprise spend was $6.4 million, representing a 39
percent year-over-year increase. Eighty-six (86) percent of
enterprises expect this number to grow in the next 1-2 years, with
over half of respondents expecting to increase their investments by
21-50+ percent.
- Intelligence-driven solution deployments have broadened
quite significantly. Forty-six (46) percent of study
respondents are currently implementing their IoT solutions on a
company-wide level, an increase from 38 percent in 2018. Another 32
percent expect to soon move toward regional deployments.
- With security a top priority, enterprises are committing
more resources to continuous data system monitoring. Sixty-two
(62) percent of enterprises are now constantly monitoring their IoT
security to ensure system integrity and data privacy. That is a
4-percentage point gain year-over-year and a 13-percentage point
increase from 2017. At that time, only 49 percent had a constant
security monitoring protocol with 47 percent periodically
monitoring their systems.
- Enterprises are shifting to a single partner “intelligent”
solution ecosystem. Nearly half (49 percent) of study
respondents indicate they now rely on a single strategic partner to
manage their entire “intelligence” solution, including components
and services provided by third parties.
- Surveyed SMBs score higher on the Index than large companies
(64.5 points vs 61.5 points). This higher score is based on
findings such as SMB respondents indicating their enterprises are
more likely to have an IoT vision and are executing on the plan (69
percent vs 62 percent).
SURVEY BACKGROUND AND METHODOLOGY
- The online survey was fielded from Aug. 12 – Sept. 18, 2019
across the healthcare, manufacturing, retail and transportation and
logistics industries.
- In total, 950 IT decision makers from nine countries were
interviewed, including the U.S., U.K./Great Britain, France,
Germany, Mexico, Brazil, China, India, and Japan. Each of their
organizations had at least 250 employees and an annual revenue of
$5 million. The data captured from SMBs focused on companies with
between 50-249 employees.
- Eleven metrics were used to understand where companies are on
the path to becoming an Intelligent Enterprise, including: IoT
Vision, Business Engagement, Technology Solution Partner, Adoption
Plan, Change Management Plan, Point of use Application, Security
& Standards, Lifetime Plan, Architecture/Infrastructure, Data
Plan and Intelligent Analysis.
- The criteria were identified by executives, industry experts
and policymakers across different industries at the 2016 Strategic
Innovation Symposium: The Intelligent Enterprise, hosted by Zebra
in collaboration with the Technology and Entrepreneurship Center at
Harvard (TECH).
- The framework of an Intelligent Enterprise is based on
technology solutions that integrate cloud computing, mobility, and
the Internet of Things (IoT) to automatically “sense” information
from enterprise assets. Operational data from these assets,
including status, location, utilization, or preferences, is then
“analyzed” to provide actionable insights, which can then be
mobilized to the right person at the right time so they can be
“acted” upon to drive better, more timely decisions by users
anywhere, at any time.
ABOUT ZEBRA
Zebra (NASDAQ: ZBRA) empowers the front line of business in
retail/ecommerce, manufacturing, transportation and logistics,
healthcare and other industries to achieve a performance edge. With
more than 10,000 partners across 100 countries, we deliver
industry-tailored, end-to-end solutions that intelligently connect
people, assets and data to help our customers make
business-critical decisions. Our market-leading solutions elevate
the shopping experience, track and manage inventory as well as
improve supply chain efficiency and patient care. Ranked on Forbes’
list of America’s Best Employers for the last four years, Zebra
helps our customers capture their edge. For more information, visit
www.zebra.com or sign up for news alerts. Participate in our Your
Edge blog and follow us on LinkedIn, Twitter and Facebook.
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version on businesswire.com: https://www.businesswire.com/news/home/20191015005009/en/
Media Contact: Therese Van Ryne Zebra Technologies Phone:
+1-847-370-2317 therese.vanryne@zebra.com
Industry Analyst Contact: Kasia Fahmy Zebra Technologies
+1-224-306-8654 k.fahmy@zebra.com
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