New Delhi: By 2019, 86% of organizations in Asia-Pacific (APAC) will have adopted the Internet of Things (IoT) technology, according to The Internet of Things: Today and Tomorrow, a report by Aruba, a Hewlett Packard Enterprise company.

The research also found that although 97% of the 1,150 respondents from Asia-Pacific have an understanding of IoT, many are still unclear of the exact definition of IoT, and what value it brings to their organizations.

The study also finds that while IoT adoption is on the rise among the enterprise, industrial, healthcare, retail and municipality sectors globally, security concerns are also increasing. Many of the IoT devices in use today are inadequately secured, leaving organizations vulnerable to attacks.

In fact, 84% of organizations have already experienced an IoT-related security breach.

Aruba’s research reveals varying levels of IoT maturity across different industry sectors.

Enterprises create a smart workplace for productivity and efficiency:

Over seven in 10 (72%) enterprises have introduced IoT devices into the workplace. Indoor location-based services ranks as the second most promising use case to improve employee productivity, after remote monitoring. Twenty per cent report remote operation of building lighting and temperature as a key use case, but that number more than doubles to 53% when asked about future IoT implementations. 78% of enterprises say the introduction of IoT in the workplace has improved the effectiveness of their IT team, and 75% find it has increased profitability.

•The industrial sector increases business efficiency and visibility through IoT-enabled monitoring and maintenance:

More than six in 10 (62%) respondents in the industrial sector have already implemented IoT. Using IoT to monitor and maintain essential industrial functions was identified as the most impactful use case in the sector. Today, the use of IP-based surveillance cameras for physical security within industrial organizations is still in its infancy, with only 6% having implemented it. However, when asked about future implementations, surveillance jumped five-fold to 32%. Across the sector, 83% report increased business efficiency and another 80% have found improved visibility across the organization.

•Healthcare introduces IoT to improve patient monitoring, reduce cost, and foster innovation:

60% of healthcare organisations globally have introduced IoT devices into their facilities. Across the sector, 42% of executives rank monitoring and maintenance as the number one use of IoT—higher than all other sectors. This underscores the importance of IoT-enabled patient monitoring in the modern healthcare industry. Eight in 10 (80%) report an increase in innovation and another 73% report cost savings.

Retailers engage with customers and boost sales using indoor location technology:

Only about 49% of retailers are using IoT technology, but 81% of these report improved customer experiences. An improved customer experience is likely to have a significant impact on customer loyalty and ultimately, revenue. In-store location services delivering personalized offers and product information to shoppers was touted as the number one implementation for IoT, alongside monitoring and maintenance. Four in 10 retailers ranked surveillance in their top three key use cases.

Governments lag in IoT adoption, struggle with legacy technology but still reduce costs:

The slowest sector to adopt IoT, only 42% of government departments have deployed IoT devices and sensors. A third (35%) of IT decision makers claim their executives have little to no understanding of IoT, double the global average, suggesting that lack of education is the biggest barrier to mass adoption in this sector. While nearly half (49%) of government IT departments are struggling with legacy technology, seven in ten IoT adopters in the public sector report cost savings and improved organisational visibility as the major benefits.

•The security challenge

The study also uncovers a number of obstacles that IT leaders feel are preventing IoT from delivering greater business impact. Organizations in APAC region cited the cost of implementation (53%), cost of maintenance (52%), and difficulty integrating with legacy technologies (47%) as key issues, a sentiment echoed across the world.

Most notably, security flaws were found across many IoT deployments. The study found that 88% of organizations in Asia Pacific have experienced at least one IoT-related security breach, the highest in the world.

The most common breaches were a result of malware (49%), spyware (38%) and human error (38%). Moreover, while nearly all (98%) of organizations that have adopted IoT claim to be able to analyze data, the same majority admitted to challenges in creating value from this data.

More than a third (35%) of organizations in Asia-Pacific are not extracting or analyzing data within corporate networks, missing on insights that could improve business decisions.