Almost half of retail organisations say they will deploy the Internet of Things (IoT) in the next two years, says a new Australian study.

Released by Microsoft and Telsyte, the report highlights the significant cost, revenue and productivity benefits for adopting companies, but also reveals a high level of business indifference to the technology.

The report shows that two thirds of organisations that have deployed and measured IoT solutions have achieved 28 per cent cost reductions in their day to day operations.

Lee Hickin, Internet of Things group lead, Microsoft Australia, said there are clear signs that organisations are beginning to realise the power of the Internet of Things.

“The research tells us that two thirds of IT and business leaders have seen at least a five fold increase in connected devices in their organisation over the past five years with that trajectory set to continue into the near future.

“The challenge for Australian businesses will be to integrate those devices in a meaningful way and harness the power of the generated data,” Hickin said.

Despite the returns, the report reveals there is a long way to go before the competitive advantage of IoT is fully harnessed by Australian businesses with just 26 per cent of the more than 300 Australian organisations surveyed indicating they have deployed IoT solutions, and nearly half (48 per cent) having no immediate plans to deploy.

The study also found that:
– 38 per cent of retail organisations state that excessive product maintenance is the major operational challenge facing their organisation, and that inefficient service delivery is one of the biggest operational challenges they face

– 54 per cent say updated IT would be the most beneficial factor in improving their processes

– 40 per cent say IoT will improve business decision making

– 36 per cent say cost is highest factor stopping them implementing IoT.