"Internet of Things" Presents Enormous Untapped Potential for Canadian
IDC survey commissioned by TELUS finds current adoption by Canadian
businesses is low, but predicts IoT spending will rapidly grow to $21
billion annually by 2018
TORONTO, ONTARIO -- (Marketwired) -- 07/15/14 -- The "Internet of
Things" (IoT) presents a massive opportunity that Canadian businesses
have yet to capitalize upon, according to a TELUS-commissioned IDC
survey released today. The survey, which examined the current state
of IoT deployments in Canada, found that only 6 per cent of Canadian
businesses have implemented an IoT solution, and that another 7 per
cent are preparing to deploy in 2014. The technology is on the cusp
of rapid growth however, with an additional 30 per cent of businesses
intending to deploy in the next 24 months and annual IoT spending in
Canada predicted to grow from $5.6 billion in 2013 to $21 billion in
2018 - a 375 per cent increase.
IoT - the evolution of machine-to-machine (M2M) technology - is a
network of uniquely identifiable end points (or things) that
communicate without human interaction, most commonly over a wireless
network. The systems collect, analyze and act on information in real
time and are being deployed to create "smart" connected businesses,
homes, cars and cities.
"The Internet of Things can fundamentally alter the way Canadian
companies do business and we expect a sharp spike in growth as
business leaders embrace the technology," said Jim Senko, senior
vice-president of Small Business and Emerging Markets. "We're
currently working with companies of all sizes to help them understand
the potential of IoT and developing solutions that transform how they
operate; making them more productive and profitable."
First-generation IoT technology is more common in the utilities and
transportation sectors, where companies have operated basic
applications like remote monitoring and fleet tracking for more than
a decade. However, recent advancements in the reach and speed of
wireless networks and technologies like cloud computing are fueling
the growth of IoT and opening up its potential in other industries
like manufacturing, oil and gas, healthcare, retail, financial
services and insurance.
"We have customers across a wide range of industries using IoT. We
are implementing applications in the financial services industry with
wireless connectivity for ATMs, in the oil and gas industry with
lone-worker safety solutions and remote monitoring of field
equipment, and in retail with wireless point-of-sale devices and
smart interactive digital displays," added Senko. "There's tremendous
innovation in this area and I believe that the opportunities that IoT
technology can offer businesses is limited only by the imagination."
IoT offers many benefits, but Canadian businesses have yet to tap
into its full potential
An IoT solution can help a business quickly achieve greater
productivity, reliability and quality of service, while reducing
costs. The data collected can help automate processes and enable
improved decision making; leading to outcomes like higher quality
manufacturing, faster delivery times, reduced waste, shorter wait
times and better patient care.
In the transportation industry for example, IoT technology can enable
real-time monitoring of vehicle speed, idling time, routes and driver
behaviour to optimize fuel usage, improve scheduling and ensure
safety - with potential savings of thousands of dollars a year per
Arrow Transportation Systems, a Vancouver-based trucking and
distribution company, implemented an IoT solution that connected
every truck to the TELUS wireless network and allows Arrow to monitor
location, mechanical and driver safety data.
"Transportation is a business with high variable costs; when TELUS
connected our fleet with an IoT solution, we immediately realized a
savings of 8 per cent on fuel costs alone," said Mitchell Zulinick,
COO, Arrow Transportation. "By collecting and acting on data in
real-time, we're able to provide better service to our customers and
realize enough direct savings for the solution to completely pay for
Despite its massive potential, only 13 per cent of current IoT
projects are considered to be "transformational" - meaning they
fundamentally change business processes or become a launch pad for
new businesses. IDC predicts that the number of transformational
projects will rise over time as business leaders recognize the
possibilities of IoT and learn from pilot projects.
"IoT can not only increase productivity, it can enable entirely new
business models. However, despite its transformative nature, only one
out of every eight IoT projects taps into the technology's full
potential," said Tony Olvet, Group Vice President, Research at IDC
Canada. "CXOs looking to gain a competitive advantage need to examine
how IoT can reshape what is possible in their business. The
alternative is to fall behind global innovators that are already
utilizing new applications to creatively reinvent their industries."
Guidance for businesses considering an IoT solution
IoT solutions are built with three key components: hardware, software
and connectivity. As 75 per cent of current IoT deployments require
some degree of customization, companies are best to work with
external providers that have a network of partners and experience
deploying tailored IoT solutions.
Businesses should consider four key enabling technologies - wireless
connectivity, cloud computing, Big Data analysis and IT security -
when evaluating an IoT solution.
"We are still very much in the early stages of IoT maturity in Canada
and organizations without internal experience should learn from early
adopters and work with external providers that understand the
challenges of deploying IoT solutions," said Olvet. "Businesses
should select partners that can show leadership around IoT both in
terms of innovation as well as practical guidance in key areas like
wireless networks and IT security."
Additional research findings
-- Wireless network technologies are currently used in 82 per cent of IoT
deployments; this figure is expected grow going forward due to the
pervasiveness of wireless connectivity.
-- While 74 per cent of businesses are storing data generated from IoT
internally, IDC expects the amount of "Big Data" generated by millions
of connected devices to become a constraint that will require hosted or
-- Where external providers are employed to manage the IoT platform or
application, cloud solutions are used in 61 per cent of the time. Due to
the inherent flexibility and scalability offered by cloud, IDC predicts
this number will grow.
-- Ensuring the security of IoT solutions was considered a major challenge
by 31 per cent of respondents; IDC recommends that organizations be
proactive about security and select the right partner to fortify
networks, devices, applications, data and other physical assets.
The TELUS/IDC Internet of Things Study 2014: The Connected Canadian
Business surveyed 209 medium and large (i.e., with more than 100
employees) Canadian organizations by phone and web between March and
April 2014. This included 122 IT decision-makers as well as 87
business leaders across a variety of departments. To read the study
in its entirety, please visit telus.com/IoT.
TELUS (TSX: T)(NYSE: TU) is Canada's fastest-growing national
telecommunications company, with $11.5 billion of annual revenue and
13.3 million customer connections, including 7.8 million wireless
subscribers, 3.2 million wireline network access lines, 1.4 million
Internet subscribers and 842,000 TELUS TV customers. TELUS provides a
wide range of communications products and services, including
wireless, data, Internet protocol (IP), voice, television,
entertainment and video, and is Canada's largest healthcare IT
In support of our philosophy to give where we live, TELUS, our team
members and retirees have contributed more than $350 million to
charitable and not-for-profit organizations and volunteered 5.4
million hours of service to local communities since 2000. TELUS was
honoured to be named the most outstanding philanthropic corporation
globally for 2010 by the Association of Fundraising Professionals,
becoming the first Canadian company to receive this prestigious
For more information about TELUS, please visit www.telus.com.
International Data Corporation (IDC) is the premier global provider
of market intelligence, advisory services, and events for the
information technology, telecommunications and consumer technology
markets. IDC helps IT professionals, business executives and the
investment community to make fact-based decisions on technology
purchases and business strategy. More than 1,000 IDC analysts provide
global, regional and local expertise on technology and industry
opportunities and trends in over 110 countries. For more than 50
years, IDC has provided strategic insights to help our clients
achieve their key business objectives. IDC is a subsidiary of IDG,
the world's leading technology media, research and events company.
You can learn more about IDC by visiting www.idc.com.
TELUS Media Relations
Press spacebar to pause and continue. Press esc to stop.