Tech News

One-Third of IoT Projects Fail in Proof of Concept (POC): Microsoft Research

As per the Microsoft latest research findings, IoT adopters believe around one-third of their IoT projects fail in proof of concept (POC).This mostly occurs because implementation is expensive or the bottom-line benefits are unclear. However, IoT growth can be stunted by complexity and technical challenges, as well as lack of resources and inadequate knowledge. 30% of projects with inadequate resources fail, compared to 25% of those with sufficient support.

  • Among those who have had IoT projects stall in the trial stage, the top reason is the high cost of scaling which is 32% of businesses cited this as the main issue with getting their projects off the ground.
  • In other cases, it’s difficult to justify moving forward on a project when the business benefits are not well enough defined
  • 28% of organizations reported that their projects failed because their pilots demonstrated unclear business value or ROI(Return on Investment)
  • 26% of companies found it hard to justify a business case without short-term impact. Additionally, lack of resources, IoT experience, and leadership buy-in can contribute to lower IoT success for companies who fall short in these areas have higher rates of POC failure and fewer projects in use versus those that don’t.

Commercial IoT

Within organizations, different industries have unique use cases for commercial IoT. Commercial IoT is primarily used to optimize efficiency, operations, and safety, allowing companies to streamline many different processes.

Those in manufacturing are looking to IoT to assist with automation, quality control, production planning, supply chain logistics, and safety/security. 48% of manufacturers apply IoT to industrial automation, 45% to quality and compliance, and 43% to production planning and scheduling as well as supply chain and logistics.

For retail/wholesale companies, IoT is relevant for supply chain management, but use cases around inventory optimization and loss prevention also rise to the top. In transportation and the government, IoT can be most useful when applied to equipment management and safety/surveillance, while for healthcare, IoT helps companies track patients, staff, and inventory, as well as assists with remote device monitoring and service.


For an IoT strategy to be successful in implementation requires leaders to bridge organizational boundaries, communicate the strategic vision for IoT, and achieve broad alignment across all participating teams considering the complex nature of IoT.

Having a technology leader with end-to-end accountability can be critical to achieving success with IoT. While C-suite buy-in is essential to get projects off the ground (and they are often the champions of IoT projects), IT and operations leaders as well as developers are important to facilitating and executing IoT use. As a business decision maker mentioned, “IT plays a large role in generating business stories for IoT and developing it.”

(Image Courtesy:

Leave a Comment

Your email address will not be published.

You may also like