Despite the forward momentum, a new study conducted by Cisco shows that 60 percent of IoT initiatives stall at the Proof of Concept (PoC) stage and only 26 percent of companies have had an IoT initiative that they considered a complete success. Even worse: a third of all completed projects were not considered a success.
While 26% may, at first, seem bad, if you baseline it against the Standish Chaos reports, it looks pretty normal for an IT project:
In 2015, Standish’s study said about 29% of projects were considered a success. There’s a 2016 report out too, but it’s hard to find anything more than an outline of it. I’ve never figured out how legit the CHAOS report is, but it seems a-OK.
Point being: innovating in software, let alone the business around that software, is all about failure. ~25% success rate is pretty good.
Predicting data storage requirements of 200PB by 2021 – growing from today’s 13PB – Ford chief exec Mark Fields said in a canned statement that the new bit barn “will increase the ability of Ford’s global data insights and analytics team to transform the customer experience, enable new mobility products and services, and help Ford operate more efficiently.”
There’s a pretty good, brief overview of what all this digital, IoT, etc. stuff could mean for the auto industry by Victor Kingery (of GE) over on DZone.
He outlines are three areas:
Connected cars – gathering all the info onboard and using it for, at least, preventive maintenance and some auto insurance tweaking.
Self-driving cars – “More than likely, semi-autonomous vehicles will allow for the mundane tasks of driving to be done by the vehicle’s computers, such as monotonous highway driving, but allow the driver to take over the vehicle when compelled to do so due to unforeseen circumstances.”
Electric vehicles – “It will take more than automakers improving battery technology. It will take governments and private business working together to create the infrastructure to enable wide scale battery recharging possible.”
Microsoft helping out ABB with some cloud ‘n’ IoT fun:
The most significant of these is a new alliance with Microsoft, whose Azure public cloud has been chosen to underpin ABB’s cloud, IoT and digital services across the ABB group. The companies will also work together on projects and services, although the extent of this will emerge over time. ABB also announced an internal reorganization and the appointment of a chief digital officer. All of these moves are part of ABB’s Next Level strategy, now in its third iteration, which sets out targets and priorities aimed at maintaining or increasing growth, profitability and value.
The agreement with Microsoft will help ABB offer cloud-based digital services across all its divisions. Functions such as monitoring, analytics, control, billing, forecasting, machine learning and many others will be delivered via applications and services hosted in Azure by Microsoft.
It has annual revenue of $35.4bn (2015) from operations in 100 countries, supplying switchgear, breakers, substations, generators, uninterruptible power supplies and power electronics, as well as management software.
I worked with a retail food chain that presented a challenge in improving the communication and collaborative capabilities of its teams in food risk management. Prior to IT modernization, in-store staff manually monitored freezer temperatures every four hours — a complex and time-consuming task that was highly prone to human error. If an incident arose, the escalation process couldn’t identify the correct team member to address the temperature issues, so a mass email would be blasted out. There was no way of knowing if the correct team member has been made aware of the issue and had addressed it.
The company tackled this challenge by creating a more robust process for incident management involving SMS messages to identified staff, emails and phone calls to management, and automated announcements over the in-store system. In addition, they implemented an Internet of Things (IoT) program to completely automate and monitor refrigerator and frozen food temperature management. The result has been significantly increased efficiency, transparency, and accountability — not to mention a safer experience for their customers.
“As for the Pivotal partnership, Ford will use Pivotal’s Cloud Foundry and big data suit e to build its connected vehicle program. So far, Ford said it has sped up software development times from months to weeks using agile techniques.”
“According to a new IDC Spending Guide, worldwide spending on the Internet of Things (IoT) will grow at a 17.0% compound annual growth rate (CAGR) from $698.6 billion in 2015 to nearly $1.3 trillion in 2019.”