Time to Double Down on IoT to Combat the Global Economic Slowdown - Photo by MART PRODUCTION2022 has been a turbulent year with geopolitical, economic and societal issues impacting organisations worldwide. Two years ago, companies turned to technology to ride out the global pandemic. Now, once again, they are turning to technology for solutions to navigate the dangerous waters of the looming recession.

So, what activities should organisations engage in to ensure their business is resilient and future-proofed, whatever the economic climate? And what technologies are organisations adopting to achieve their goals?

Prepare to make business strategy adjustments

To answer the first question, organisations must engage executives in creating plans to turn risks into opportunities or mitigate them. They must be prepared to make business strategy adjustments to achieve this. They should consider rebalancing their financial portfolio, cutting unnecessary spending, and looking to invest where there is an opportunity to create a stronger competitive position. Above all, they need to maximise value by focusing on technology and products that will make a difference to their business in the short and long term.

To this point, companies are not pulling back on technology investments despite the economic outlook. The CNBC Technology Executive Council survey revealed that more than three-quarters of tech leaders expect their organisations to spend more on technology in 2022. Likewise, analyst firm Gartner has said, “Investing in the right digital initiatives at the right cost can blunt the negative effects of economic pressures in the short term and build long-term competitive advantage.”

Top technologies that pundits say companies should invest in include: IoT, AI, machine learning, cybersecurity, cloud, remote and hybrid work technologies, and robotics.

IoT estates set to surge from 2022 to 2024

Interestingly, this is what we observed in our second annual State of IoT Adoption Survey 2022, which, rather than demonstrating cutbacks, showed how IoT estates are set to surge from 2022 to 2024. Organisations are citing operational efficiencies and cost reduction as key benefits to mitigate the impact of the economic downturn alongside the spiralling energy and business costs.

This survey polled 500 UK and USA-based senior decision-makers and implementers of IoT strategy across five vertical markets. It aimed to assess the impact that external pressures have on investment, demand, and the overall success of IoT projects. We found that over three-quarters (78%) of survey respondents expect to increase the number of devices in their IoT estates in the next 18 months. Furthermore, larger IoT estates anticipate the strongest growth, with 95% expecting IoT estates of 100,000+ devices to expand further.

Additionally, 76% of survey respondents said they are prioritising IoT in their business in the next 18 months in an effort to reduce costs and increase operational efficiencies. However, the research revealed a profound change in the benefits derived from IoT in the last 12 months compared to a similar report that we did in 2021. This year, nearly 9 in 10 (86%) respondents focused more on operational efficiencies, reducing costs and increasing revenue and profit, turning to IoT for stability.

This is markedly different from the benefits in 2021, where respondents perceived IoT as delivering a competitive advantage. This is in response to the worsening economic and geopolitical environment, with organisations prioritising exploiting current assets to ensure the business is prepared for worsening economic conditions.

In line with this renewed focus, budgets had also increased, with 96% of respondents saying they planned to increase budgets in the next two years, compared to 89% in 2021.

IoT has experienced several false starts in the past decade, but our survey showed that IoT has finally come of age. In fact, nearly two-thirds of survey respondents (64%) stated that IoT is either mature or reaching maturity or that adoption is growing significantly with organisations looking at multiple projects.

The growth of IoT in healthcare and medical devices

One sector in particular where we see continued investment is in healthcare and medical devices. Today the healthcare industry faces significant challenges with long patient backlogs and a shortage of staff and resources. These challenges were exacerbated in recent years by the COVID-19 pandemic. As a result, there are literally millions of people in the queue awaiting treatment.

As healthcare providers desperately look for ways to release clinicians and professionals from the more routine or mundane tasks and free up their capacity to manage more challenging patients, this has led to more patient and healthcare services moving to remote patient monitoring (RPM).

Today, powered by IoT cellular connectivity, RPM is transforming the way that healthcare is delivered, resulting in easier access, reduced costs, and improved patient outcomes.

Our survey reinforced the benefits that IoT initiatives have delivered; cash-strapped healthcare organisations rated increasing profit (32%) and reducing costs (31%) higher than the other vertical sectors we surveyed. What was interesting is that the healthcare and medical devices sector is clearly seeing the value of IoT initiatives. Even though healthcare providers are under extreme pressure, with heavy patient backlogs and demand for services at an all-time high, 97% stated that they intend to increase budgets.

Likewise, 80% of healthcare respondents said that IoT was a priority in the next couple of years, which again was joint highest along with the EV charging and smart grid sector.

It is clear that respondents view IoT as a sound investment that should remain a priority even when finances are under pressure. The fact that businesses are forging ahead with projects, despite uncertain economic factors, is one of the strongest indicators that IoT is starting to realise its potential.

Eseye Nib logoEseye empowers businesses to embrace IoT without limits. We help them to visualise the impossible and bring those solutions to life through innovative IoT cellular connectivity solutions that enable our customers to drive up business value, deploy differentiated experiences and disrupt their markets.

Our pioneering IoT cellular connectivity solutions, versatile hardware, technical consultancy, and round-the-clock support allows businesses to overcome the complexity of IoT design, development, and deployment. We guide them every step of the way, so they can move forward with IoT projects without the fear of getting it wrong.

Supported by our unique AnyNet Secure® SIM technology, Connectivity Management Platform, and a powerful partner ecosystem, we help more than 2,000 customers to seamlessly connect millions of devices across 190 countries, agnostic to over 700 available global networks


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