By 2020, it is expected that 30 billion devices will be connected via the IoT, and many experts agree that there is a lot of growth toward implementing new technology innovations. Regardless, many organizations are still hesitant about implementing IoT technologies due to challenges around handling data, cost, lack of skills and knowledge, security issues. If your organization is concerned about these challenges, I’m sure you are still asking, “Why should my organization implement IoT technology?” You are still waiting for that one convincing argument or that one case study that will prove the value of IoT for your organization.
But here’s the truth: Digital business is not the future, it’s reality and it’s now.
Digital Business is Now
For instance, remember Friday nights when you would walk the aisles of your local Blockbuster to find a movie to watch over the weekend? You used your membership card to rent your movie, and you would be given a receipt that told you when to return the movie so you wouldn’t incur late fees. Nowadays, you can browse movies without leaving your couch using your TVs or media-streaming players (i.e., Apple TV, Roku, Chromecast, etc.) to stream, rent, or buy movies via Netflix, Hulu, iTunes, Amazon, and etc.
This is just one example of how technology has changed normal, everyday experiences. With the power of IoT, even more everyday processes and experiences will continue to evolve on the basis that IoT is simply practical. More so, the supply chain is moving toward a place that is more and more foundationally-dependent on technology in order to thrive. This means that organizations are looking for fast-paced, streamlined, and real-time solutions to optimize supply chain performance and minimize supply chain risk to better meet customer’s needs.
Yet modern supply chains are complex, and optimizing their performance is made all the more challenging by the fact that they are tasked with satisfying an increasingly large and diverse array of demands. Per a study by PwC and JDA Software titled, “CEO Viewpoint: The Strategic Role of Supply Chain in an All-Channel World,” 50% of CEOs agreed that supply chain can be a strategic differentiator. Despite this, 83% of global CEOs feel their supply chain is “not optimal” to meet demands, which exposes a huge opportunity to leverage technology in your organizations. The study also revealed that CEOs who focused on supply chain optimization had 15% lower costs, less than half the inventory levels, and more than three times cash-to-cash cycles.
With this, the question is no longer “Why implement IoT?” The question is “Why not implement IoT?” But if you still need more convincing, we will be launching our five-part blog series, “Why Not IoT?” over the next five weeks. The series will detail specific supply chain challenges and discuss proven results from organizations that have used IoT technologies to address these challenges and improve the overall health and performance of their organizations.
Stay tuned for next week’s post detailing staggering statistics about the challenges affecting the consumer packaged goods sector!
 (2014, June 16). Retrieved from JDA: http://www.jda.com/view/press-release/global-retail-ceo-survey-reveals-83-percent-of-ceos-believe-supply-chains-are-not-optimal-to-meet-todays-omni-channel-shopping-demands/