How are Latin American firms investing in IoT?
Latin American Investments -- Update 2019
Latin American enterprises are investing an average $54.7 million on IoT initiatives. Almost half of companies in Latin America track customers through their mobile devices and are using IoT in their production or distribution operations.
Latin American enterprises are investing an average $54.7 million on IoT initiatives
Almost half (45%) of companies in Latin America track customers through their mobile devices and are using IoT in their production or distribution operations
Companies in Latin American regions are less likely to place sensors in products
A quarter (24%) of Latin American companies are changing their business models to increase leasing of products, i.e. a higher percentage of companies than the other three regions
The IoT projects at Latin American firms, on average, increased revenues by 18.3%
Looking at 2020
Executives predict that the biggest impact of the IoT will be greater insights for salespeople on key aspects of products (for example, product features) that customers use the most
Latin American executives emphasize cultural issues as key success factors for IoT initiatives. Getting managers and staff to change their thinking – how the Internet of Things affects the way they look at customers, products and customer-service processes – is the top factor
Source : Pedro Ozores- https://sites.tcs.com/internet-of-things/regions/latin-america/
Latin America is where companies are investing least in Internet-of-Things (IoT) initiatives, according to a recent study from Indian IT outsourcing giant Tata Consulting Services (TCS).
Latin American companies, mainly Brazilian and Mexican firms, will spend 0.23% of their total IT budgets on IoT initiatives in 2015, or a mean US$54.7mn, compared to 0.45% in North America, 0.40% in Europe and 0.34% in Asia-Pacific, according to the TCS Global Trend Study 2015.
Global average per-company IoT spend will reach US$86mn this year. Industry manufacturers are expected to invest the most, at US$121.8mn on average.
TCS surveyed 795 large companies, with average revenue of US$22bn, from 13 industry segments and four regions worldwide, including Brazil and Mexico.
IoT investments will reach mean levels of approximately US$79.9mn in Brazil and US$1.8mn in Mexico this year.
A new report by Juniper Research released this Tuesday predicts that the world will reach 38.5bn conected devices by 2020, three times more than the current 13.4bn, driven by industrial applications and the public.
An IDC study from August 2014 said retail companies were leading IoT investment in LatAm. According to the analyst, LatAm retailers will spend more than US$466mn on IoT technologies in 2017,
Another study released this Tuesday, from Gartner, showed how IoT was creating new software vendors, as hardware manufacturers would have to dive into the software world to differentiate product and solution offerings.
"Like vendors in the traditional software industry, device manufacturers need to protect and monetize the intellectual property (IP) contained in applications. They can do this by adopting licensing and entitlement management (LEM) systems that control access to the internet-connected device, its functions and its features. LEM also enables flexible pricing and packaging, allowing manufacturers to bundle product features, capabilities and capacities, ensure payment, provide verified upgrade paths and create new revenue streams," the Gartner report read
Gartner expects that by 2020, the lack of a LEM system will lead to a 20% drop in potential revenue generated from software for device manufacturers connecting to IoT.