Tag: IoT

Everest Group Launches Dedicated, Digital Services Research Agenda in Response to Growing Enterprise Needs in IoT, AI, Design and Digital Innovation | Press Release

Enterprises, service providers see themselves as digital innovators, but most have only scratched the surface; Everest Group’s Digital Services research practice to identify, inform digital disruptors

Many of the world’s leading enterprises and service providers see themselves as digital innovators whose applications of digital concepts and technologies are cutting edge, when, in fact, these organizations have merely scratched the surface of digital’s disruptive potential, according to Everest Group, a consulting and research firm focused on digital services, strategic IT, business services and sourcing.

To guide organizations in the transformative adoption of the digital ecosystem, Everest Group today announced the formation of a dedicated team and a comprehensive research agenda devoted entirely to digital services. The new Digital Services research practice will address growing enterprise needs for data-based insights into Internet of Things (IoT), artificial intelligence (AI), digital design and innovation, and successful business strategies based on digital concepts.

“Since Everest Group began covering digital services in 2013, the rate of enterprise adoption of digital technology has multiplied,” said Yugal Joshi, practice director at Everest Group. “However, the digital journey is about more than the technologies alone; it is also about the people, processes, design, and innovation philosophy of an organization.

“Unfortunately, many enterprises are pointing to their piecemeal application of digital technology—using a mobile app to engage with employees, for example—and equating that with digital leadership when, in fact, digital leadership is less about these application instances and more about leveraging the interplay of digital concepts and technologies to fundamentally change the structure of their business and even the industry,” continued Joshi. “Our goal is to elucidate this distinction and provide the fact-based analyses and insights that guide enterprises and service providers to move beyond ‘look at our cool technology’ to ‘look at our cool use cases.’”

Everest Group has planned a robust 2017 research agenda focused on digital services, including deep-dives into topics such as IoT, digital marketing, mobility, next-generation and conversational analytics, platforms and disruptive start-ups. Also, Everest Group’s Digital Innovation Index and PEAK Matrix™ assessments will provide insights into the comparative market position of enterprises and service providers in terms of digital innovation.

Furthermore, through fact-based research that imparts reality, the new Digital Services research practice will explore how enterprises and service providers are tapping the interplay of technologies to drive innovation and disrupt their industries.

“Our dedicated Digital Services research program will better serve clients not only by examining a broader scope of digital services but also by zooming in on how these are being used to support business objectives,” said Gunjan Gupta, practice director at Everest Group. “Take, for example, the application of artificial intelligence. Our research will be instrumental in more clearly defining hazy terminology, such as what it truly means to have an AI solution. It will also separate the wheat from the chaff—revealing what works and what doesn’t. And, most importantly, our analysis of market leadership in digital services will clearly distinguish between organizations using AI to simply crunch data versus those using AI to truly support a business objective or drive Transformation with a capital T.”

***Click here for more information about Everest Group’s Digital Services research practice.***

Internet of Things Services Market Will Double by 2020 | Press Release

Accenture, Atos, HCL Technologies and IBM are named Leaders in Everest Group inaugural PEAK Matrix™ list of top Internet of Things service providers

Given the huge potential of the Internet of Things (IoT)—most of which is yet to be realized—enterprises are making significant investments in partnership with key service providers to explore new growth areas. As a result, Everest Group expects that the IoT services market will more than double in the next three years, reaching US$18 billion by 2020.

Enterprises are exploring ways that IoT can be used to achieve higher efficiency, enable data-driven decision-making and develop new revenue opportunities through customer-centric products and services.

**Read more about how enterprises are “Seizing the IoT Opportunity”**

With enterprises and service providers considering IoT as their next big opportunity, Everest Group has identified intriguing trends that are emerging from the current adoption pattern:

  • Eighty-seven percent of enterprises are optimistic about the returns on their investments in IoT.
  • The percentage of IoT projects moving from pilot to production has jumped four-fold from 2014 to 2016.
  • All industries are gearing up for IoT adoption, with manufacturing leading the way with 36 percent of IoT adoption across all industries.
  • Developing a strong partner ecosystem is extremely complex and requires disruptive vision.

“Enterprises are increasingly adopting IoT to improve operational efficiency and create disruptive business models,” said Chirajeet Sengupta, vice president at Everest Group. “A number of players across the IoT stack are making huge investments to grab a larger share of the pie, but most fall short on expectations of a transformation partner. Service providers can use this opportunity to draw on their engineering and services expertise and embrace new engagement models to help enterprises with long-term innovation.”

The current use cases of IoT are dominated by the need of enterprises to drive operational efficiency. However, we do expect enterprises to leverage IoT to fundamentally transform their business going forward. In fact, Everest Group has identified four distinct classifications of enterprises based upon the business objectives they hope to accomplish through their IoT initiatives:

  1. Engagers: Engagers represent 17 percent of IoT adopters; these enterprises drive IoT adoption largely for customer engagement and creation of experiences.
  2. Optimizers: Optimizers (63 percent) adopt IoT mainly to solve operational issues and improve internal efficiencies.
  3. Integrators: For Integrators (14 percent), the objective of IoT adoption is growth for the entire enterprise ecosystem.
  4. Innovators: IoT adoption by Innovators (6 percent) results in transformative disruption and “unthinkable” business models.

“Enterprises should adopt IoT across all categories, which will lead to new revenue streams and adoption of new business models,” added Sengupta.

Announcing the IoT Services Market Leaders

In its inaugural Internet of Things PEAK Matrix assessment, Everest Group explores the vision, services suite, scale of operations and domain investments of 16 IoT service providers. Everest Group has identified the following Leaders, Major Contenders and Aspirants:

  • Leaders: Accenture, Atos, HCL Technologies and IBM
  • Major Contenders: Cognizant, EPAM, HPE, L&T Infotech, NTT DATA, TCS, Tech Mahindra and Wipro.
  • Aspirants: CGI, Infosys, Luxoft and Prodapt

***Download Complimentary 4-page PEAK Matrix™ Preview Here***

Trends in the IoT services market as well as detailed insights into each of the 16 providers listed above are provided in the 92-page report, “Internet of Things Services — PEAK Matrix™ Assessment and Market Trends — IoT: Bigger Than the Hype.”  A preview report is available for complimentary download here.

*** Download Publication-Quality Graphics ***

High-resolution graphics illustrating key takeaways from this report can be included in news coverage, with attribution to Everest Group. Graphics include:

  • Internet of Things Adoption is Led by “Optimizers”
  • The Internet of Things Technology and Services Provider Ecosystem
  • Internet of Things Adoption Trends
  • Internet of Things and the Transformation Agenda
  • Internet of Things Adoption: A Definitional Framework

About the PEAK Matrix™

The Everest Group PEAK Matrix is a proprietary framework for assessing the relative market success and overall capability of service providers based on Performance, Experiences, Ability and Knowledge. Each service provider is comparatively assessed on two dimensions: market success and delivery capabilities. The resulting matrix categorizes service providers as Leaders, Major Contenders, and Aspirants. Companies that demonstrate strong upward movement in successive reports are recognized as Star Performers. Everest Group recently announced a recalibrated methodology, in which innovation, intellectual property and technology take center stage.

Seize the IoT Opportunity | Sherpas in Blue Shirts

A leading car manufacturer dispensed a spare part even before the customer knew it was needed. A doctor knew precisely when a patient took a vital medication. A metro city police department accelerated crime response time. A retailer designed its offerings based on dynamic in-store customer behavior.

Three in every four enterprises have a similar type of story to share about connecting to the “things” of interest and digital enablement of businesses. Recognized as the next big opportunity, the Internet of Things (IoT) is being embraced by enterprises to generate greater value and achieve their business objectives. Indeed, more than 50 percent have already piloted IoT, and the majority are highly optimistic about its returns.

Despite the high level of optimism, there exist numerous unanswered questions and concerns about IoT. Is it being used to the full potential, or are we just scratching the surface so far? Where is industry adoption headed? What risks should an enterprise take? What should an organization do to extract the most out of this investment?

Everest Group’s recently published PEAK Matrix™ report on IoT Services reveals intriguing industry trends, enterprise adoption patterns, probable future developments, and services expectations based on extensive discussions on all things IoT with 30+ enterprises.

IoT is no longer a buzz term
Currently, organizations are leveraging IoT to achieve agility, flexibility, customer centricity, and cost reduction. We identified four types of IoT adopters, based on the adopting organization’s desired outcomes: Optimizers, Engagers, Integrators, and Innovators. Most enterprises are categorized as Optimizers. That is, they focus on solving their operational issues and on infusing efficiency with IoT. Integrators and Innovators – which collectively equal less than 20 percent of IoT adopters – focus on enterprise growth or invest to seize larger benefits from the opportunity.

IOT Adoption Trends

From an industry perspective, the leading beneficiary of IoT to date has been manufacturing, primarily focused on bringing efficiency to the shop floor. Customer-centric industries such as telecoms and retail are investing to improve ecosystem efficiencies and enhance end-user engagement. Other industries such as agriculture, BFS, and mining are expected to make considerable investments in IoT in the near future.

Substantial hurdles stall rapid adoption
Hype aside, the majority of the enterprises are taking cautious steps and embracing IoT in small, incremental stages only. A multitude of challenges such as data security and privacy, storage and rapid analysis of large volumes of data, and availability of a high-speed network at all locations are impeding large scale investments in IoT. Another major hindrance is change management that necessitates significant investment in talent, infrastructure, and processes.

Enterprises need to collaborate with a variety of partners from the vast IoT ecosystem to design, implement, and manage an IoT system. The service provider landscape itself is segregated at this stage, and players across the value chain are trying to capture a larger share of the pie by expanding their partner ecosystem and their internal delivery capabilities.

But you can’t afford to miss the bus!
Despite the challenges, IoT remains among the top three investment priorities for a majority of organizations. To be front runners in the race, they must strategize their IoT adoption in a phased process for enterprise-wide benefit. And they need a transformational vision, investments in innovation and R&D, and a good partner ecosystem to maximize ROI.

The action is equally intense in the service provider camp. While some have up to 20 partners to complete their portfolio, others have acquired up to as many. Players with expertise in operational technology, engineering capabilities, and industry partnerships are best positioned to define success in the IoT services market. We anticipate large-scale convergence and new partnerships to cater to the services demand, which is expected to double by 2020.

Interested in learning more about IoT? Our PEAK Matrix™ report on IoT Services provides deep insights on IoT market trends, expected service market size, implications for enterprise and the service providers, and a detailed evaluation of 16 major IoT services providers.

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