Gartner estimates that installed IoT endpoints for manufacturing and natural resources industries will grow to 1.9 billion units in 2028. Still, there is a lot of potential to grow its use over the next several years. Many companies have implemented the technology in some form, but they struggle to define the best opportunities for using its measurement and tracking capabilities. The internet of things (IoT) has slid to the very bottom of the Hype Cycle - into the Trough of Disillusionment. Over time, new solutions will emerge that provide capabilities not currently available and accelerate adoption. As the cost and performance of hardware improves, however, adoption will increase. While some industries - especially the medical and military sectors - already explore immersive experience capabilities, most businesses still consider the concept a novelty. It is a combination of conversational systems and augmented, virtual or mixed reality and is currently located right at the top of the Hype Cycle. The concept of immersive experience describes the blending of the digital and physical worlds to create an enhanced experience. It’s also important to think about any cultural changes that might come with further AI adoption and train users to incorporate AI into their decision-making processes. Supply chain leaders should start experimenting with the technology, but with a clear focus on the use cases that present the highest potential. Early adopters report promising benefits, yet are slow to embark on broader AI projects. In the last year, AI adoption has progressed significantly due to better awareness, an expanded vision of supply chain automation and the growing availability of supply-chain-specific AI solutions.
However, its impact will be transformational because it supports an organization’s vision for broader supply chain automation. Here are five capabilities from the Gartner Hype Cycle for Supply Chain Strategy, 2020 that supply chain leaders should have on their radar.Īrtificial intelligence (AI) still resides at the beginning of the Hype Cycle and it will be another decade until it reaches maturity. On the right are the capabilities that companies should be actively adopting at scale to optimize their performance. In the Gartner Hype Cycle for Supply Chain Strategy, 2020, there are a healthy number of capabilities to the left of the peak, which reflect the many emerging capabilities that supply chain organizations are exploring. Nevertheless, leaders must realize their potential for business transformation and start active exploration and experimentation.” “Some of the capabilities are very close to maturity, while others such as artificial intelligence (AI) are still evolving. “A Gartner Hype Cycle is an excellent way for supply chain leaders to figure out what actions to take next, where to invest now and what to keep on the radar,” says Noha Tohamy, Distinguished VP Analyst, Gartner. Organizations that set the base for their success now will be able to pivot out of the economic downturn much faster than their competitors.
In this year of uncertainty and disruption, supply chain leaders must strive to balance a focus on foundational capabilities with the pursuit of innovation. Supply chain leaders can evaluate the capabilities from this Hype Cycle to make strategic decisions on pilot projects and investments.
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