Top Five IoT Challenges for Manufacturers

Written By: Christa Prokos
  • 12/30/2014


While some organizations have started to create tremendous value from the Internet of Things, data shows that a majority of organizations are still struggling to get started.

IDC Manufacturing Insights research found that of the sixty-six percent of discrete manufacturers actively pursuing IoT, nearly two-thirds have not even begun a pilot. The numbers are similar with process manufacturers, with sixty-seven percent actively pursuing IoT initiatives, but a majority of those still in the research and evaluation phases. Why the delay?

“When we speak with manufacturers about IoT, the conversation often leads toward some acknowledgement that the company understands how important IoT could be to their organization, but it is struggling with how to achieve lift-off with an IoT initiative,” says IDC Manufacturing Insights Research Manager, Heather Ashton, in a recent video.

According to Ashton, five common challenges for manufacturers in adopting IoT are:

  • Security
  • Funding the initial investment
  • Determining the highest priority use cases
  • Developing the business model
  • Proving ROI

“Apart from security, which is a significant concern for many companies starting down the IoT path, the remaining challenges all share a common theme – they involve outlining the business case,” says Ashton. “Companies clearly need to prioritize a use case and define the business case for connected products or connected operations before they can move forward in an IoT project.”

For more insights from Heather Ashton, watch the full video series by IDC: Reshaping the Manufacturing and Operations Landscape.

  • CAD
  • Industrial Internet of Things
  • Industrial Equipment
  • Digital Transformation

About the Author

Christa Prokos

Christa Prokos is a marketing manager at PTC. She researches and writes about the latest business trends and technologies impacting manufacturers, including the Internet of Things and Product Lifecycle Management. Christa has worked as a high tech marketing and communications professional since 2000. You can follow her on Twitter: @ChristaProkos.