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New Study Predicts Smart Embrace of Operational Connectedness Will Drive Competitive Advantage and Category Disruption

(San Jose, Calif. - April 18, 2017)

Many companies are unprepared for the Industrial Internet of Things (IIoT), but most executives at those companies realize that the future of their business depends on it, according to a new study just released by the Business Performance Innovation (BPI) Network.

The study also suggests that large-scale integrators and other channel partners will be among the biggest IIoT beneficiaries over the next several years. They will likely play a significant role in planning and implementation at many companies due to major internal gaps in the technical skills and management know-how needed to deploy and integrate IoT into operations and new products.

The new report, “The Impact of Connectedness on Competitiveness,” was developed by the BPI Network in partnership with the CMO Council, Penton’s IoT Institute and The Nerdery, a leading digital strategy, software engineering and design firm. The study was based on a global survey of some 350 global executives and interviews with innovation leaders at large global enterprises, including companies such as Airbus, Balfour Beatty, Embraer, Philips Lighting, Whirlpool, LafargeHolcim, TVH, Hitachi and others.

“Executives are telling us that IIoT technologies are about to play a significant role in business and industrial performance, delivering significant improvements in operational efficiency and uptime, as well as growth from new business models, products, services and customer experiences,” said Dave Murray, Head of Thought Leadership for the BPI Network. “Nevertheless, less than 2 percent of large companies say they have a clear vision for how to move forward or have large-scale implementations underway. That dichotomy suggests we are experiencing the lull before the storm of IIoT transformation. This is an opportunity for real competitive differentiation and advancement.” 

Among key findings of the IIoT survey:

  • 52 percent of executives at large enterprises—and 41 percent of executives at all companies—expect IIoT to have a significant or major impact on their industry within three years.
  • Some 55 percent of all executives say IIoT is gaining adoption within their industries, including both pilots and larger-scale adoption.
  • However, just 1.5 percent of executives at large companies say they have a clear vision with implementation well underway, while another 57 percent are either beginning implementation, have pilots underway or are committed and in the planning stages.
  • New products and services lead as the area most companies say they will focus their IoT investments (35 percent), followed by customer touchpoints (29 percent), and manufacturing (23 percent).
  • More cost-efficient operations (47 percent), product and service differentiation (36 percent), and improved customer engagement and satisfaction (34 percent) are seen as the top benefits of IIoT.
  • Security and data privacy are seen as top concerns by executives, followed by the cost and complexity of IIoT adoption and the need for new management and workforce skills and training.

To download the full report, please visit

“For industrial companies, staying competitive requires embracing IIoT. There really is no plan B. Implementing IIoT, however, means not just navigating uncharted waters, but also keeping track of an array of technologies, workforce challenges, security concerns, and unprecedented business considerations,” says Brian Buntz, Editor of IoT Institute.

"The tidal wave that is connectedness and IIoT is building rapidly and it is unavoidable,” said Chris Locher, Vice President of Software Development at The Nerdery. "Companies see massive opportunities to increase efficiency, gather data in new ways and pivot into new business models. The challenge of the IIoT revolution is that it is accompanied by a great deal of white noise and confusion. How will companies capture those opportunities? How do companies avoid the risk of a failing at an IIoT initiative? How do you find employees with the skill to do it? The sheer scale and implications of IIoT can lead to information overload, create analysis paralysis, and confusion for business leaders. The key to moving confidently into this new space is starting with small, focused efforts or bringing experts to start to build the required skills, behaviors, and business models."

IIoT Readiness Lacking

Making the transformation to IIoT-enabled businesses will clearly require new skills and mindsets. Chief among those requirements, according to executives, are new technical skills (51 percent), better data integration and analytics capabilities (41 percent), and rethinking the business model (33 percent). Most executives, however, say their companies have significant gaps in these areas.

Some 31 percent of executives say their organizations face a “major skill gap” in their IIoT readiness, while another 31 percent say the talent gap is “large, but improving somewhat.” Twenty percent say their IoT skills are quickly improving, while another 7 percent believe they have most of the skills in place.

Similarly, just 12 percent give their company an “excellent” rating in their capacity to develop and deploy applications that utilize real-time insights and systems monitoring. Another 25 percent rate their capacity as good, while one-third say their corporation’s ability in this area is moderate and improving.

“Global businesses are clearly working to put the needed skills in place to address the opportunity of connected, intelligent products and machines, but those talents are in short supply," the BPI Network's Murray explained. "We can expect for the time being that system integrators, consulting and software engineering firms with the right skills in connectivity, sensor technology, data analytics and complex integration will benefit from the race to keep pace with IIoT enablement.”

Creating IIoT Value

Interviews with executives at large businesses that are deploying or planning for IIoT applications underscore the wide range of benefits and scenarios represented by these technologies.

Embraer, the world’s largest regional jet maker, for example, says new jets that integrate sensors to identify and predict maintenance needs now have a remarkable 99.5 percent dispatching rate, in which less than 0.5 percent of planned take-offs are affected by unexpected maintenance issues, according to Alexandre Baulé, Vice President of Information Systems at Embraer. Embraer and its partners are also working toward an IoT-enabled, customized experience for passengers, in which each person’s favorite movies, music and even temperature settings are available before they take their seats. 

Airbus, one of the world’s largest aircraft manufacturers, is also integrating sensor technology to improve the predictability and safety of its aircraft, but also envisions widespread use of IoT technology in its Factory of the Future platform—an approach that will include cyber-physical systems, 3D printed prototypes, open robot interfaces and advanced data analytics to increase the quality and productivity of its manufacturing processes. Factory workers use smart glasses and advanced image processing to track problems, tools and solutions in real time, while exoskeletons are developed to reduce risk and enhance human capabilities.

To learn more about the findings of the report and read about other companies who are advancing their IIoT capabilities, visit to access your copy.

About the BPI Network

The Business Performance Innovation (BPI) Network is a peer-driven thought leadership and professional networking organization reaching some 50,000 heads IT transformation, change management, business re-engineering, process improvement, and strategic planning. It is dedicated to advancing the emerging roles of the Chief Innovation Officer and Innovation Strategist within today’s enterprise. The BPI Network brings together global executives who are champions of change within their organizations through ongoing research, authoritative content and peer-to-peer conversations. These functional area heads (operations, IT, finance, procurement, sales, marketing, product development, etc.) and line-of-business leaders are advocates for innovation as a fundamental discipline and function within 21st Century organizations. They seek to demonstrate where and how new inventive solutions and approaches can advance business value, gratify customers, ensure sustainability and create competitive advantage for companies worldwide. For more information, visit

About the CMO Council

The Chief Marketing Officer (CMO) Council is dedicated to high-level knowledge exchange, thought leadership, and personal relationship building among senior corporate marketing leaders and brand decision-makers across a wide range of global industries. The CMO Council's 12,500-plus members control more than $500 billion in aggregated annual marketing expenditures and run complex, distributed marketing and sales operations worldwide. In total, the CMO Council and its strategic interest communities include more than 30,000 global executives in more than 110 countries covering multiple industries, segments and markets. Regional chapters and advisory boards are active in the Americas, Europe, Asia-Pacific, Middle East, India and Africa. The council's strategic interest groups include the Coalition to Leverage and Optimize Sales Effectiveness (CLOSE), Mobile Relationship Marketing (MRM) Strategies,,, Marketing Supply Chain Institute, Customer Experience Board, Digital Marketing Performance Institute, GeoBranding Center and the Forum to Advance the Mobile Experience (FAME). For more information, visit   

About the Penton IoT Institute

The IoT Institute connects professionals in the IoT ecosystem and inspires them by providing real-world, actionable information on the latest IoT trends, analysis, and use-case studies for smart cities, the Industrial IoT, smart buildings and energy, and the innovators creating the IoT infrastructure.

Through ongoing research with our strategic partners like BPI Network and the Industrial Internet Consortium, the IoT Institute provides thought leadership and unique insight into the state of IoT implementation and challenges and opportunities for key players. For more information, visit

About The Nerdery

The Nerdery builds more than software, crafting digital products, services and experiences that better people’s lives and in doing so, drive business forward. Headquartered in Minneapolis with offices in Chicago, Kansas City and Phoenix, The Nerdery’s core services are digital transformation consulting, mobile applications, web applications, websites and systems integration. Founded by three programming pioneers in 2003, The Nerdery has made Inc. Magazine’s list of fastest growing private companies for the past nine consecutive years. The Nerdery was built on the belief that passionate Nerds are the driving force behind business breakthroughs. For more information, visit

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