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14 IoT Adoption Challenges That Enterprises Need To Overcome by@steve94

14 IoT Adoption Challenges That Enterprises Need To Overcome

Siva Prasadh HackerNoon profile picture

Siva Prasadh


Tech-enabled industries are never short of buzzwords and the latest to join the bandwagon is the Internet of Things. Though this Industry 4.0 solution is available for long, the need for adding smart technology has increased presently among industry leaders. 

IoT implementations across companies of different verticals are exploding like anything. While many companies have realized the importance of adding IoT to their business strategy, some hold back fearing the challenges on the road to its adoption. 

Here in this post, I will share 14 top challenges enterprises weigh on before settling out for IoT implementations. 

Dealing with overwhelming data and privacy concerns

The Internet of things is all collecting a vast amount of data from customers and what if they aren’t safe. Device malfunctions, data and identity theft and data falsifications are always on the cards and customers mayn’t even know how their data is collected and used. Today’s customers focus more on privacy and this makes data privacy a critical challenge for consumer-facing enterprises. 

Security concerns over IoT implementation

Only 2 out of 10 consider the security issues associated with data access & management as well as with that of the IoT devices themselves. This could be a nightmare if enterprises don’t focus on the security concerns before investing in IoT devices. 

  • Insufficient testing and updating
  • Brute-forcing and the issue of default passwords
  • IoT malware and ransomware
  • IoT botnets aiming at cryptocurrency
  • Data security and privacy concerns (mobile, web, cloud)
  • Small IoT attacks that evade detection
  • Remote vehicle access
  • Untrustworthy communication

High cost of implementation of IoT in an enterprise

Yes, no denying the fact IoT implementations can burn a hole in your pocket. Nevertheless, you can still negotiate it. To bring down the growing costs, set up a defined plan, start small with pilot tests and rolling out in phases will control cost and ensure improvement. Documenting the procedure will help a lot when rolling out completely. 

While shying away from cost seems ideal, keeping a tab on the competitors matter too. If you are waiting for too long, the competition may beat you black and blue. 

Lack of knowledge about available IoT solutions

Well, finding the right IoT solution for your enterprise matters and investing in a solution that doesn’t add any value would not only hurt your pocket but  also will impact your branding among customers. First of all, understanding the different kinds of IoT solutions available is critical and from there selecting the best and efficient one makes sense. 

Keeping up-to-date with multiple IoT solutions for enterprises or interacting with leading IoT app development companies would help. 

Inadequate infrastructure for IoT implementation

Most companies’ infrastructures not supporting the spectrum of applications and devices cause an IT headache. So how will companies adapt to IoT? The problem is handling the legacy as well as advanced IoT devices like Edge devices. According to experts, having both the legacy IoT devices and advanced ones matter. Having a healthy discussion with a leading IoT app developer will help you overcome the infrastructure challenge. 

Lack of standards for IoT deployment in an enterprise

Lack of common standards or protocols is hurting the IoT deployment across enterprises and this is seen as a significant challenge. The multitude of languages, protocols and standards makes IoT deployments more complex and this is the reason why many researchers are calling for a common and universal IoT standardization for deployments. 

Failing to consider interoperability/legacy system challenges during IoT implementation

Interoperability is communication between two or more devices. Sharing data with the legacy systems using IoT may be a challenge. While siloed data often leads to slower decision making, interoperability between the devices is recommended. Creating a cross-domain enabled IoT hardware and software will help in creating a complex IoT ecosystem and this mitigates the interoperability concern. 

  • Some interesting recommendations would be
  • Open and industry standards for IoT solutions
  • Software-driven technologies
  • Open interfaces

Leveraging a standardized, software-driven communication platform powered with built-in open interfaces in legacy environments eases deployment and ensures long-term interoperability with cross-vertical hardware and systems.

Uncertainty over IoT benefits

This is a prominent challenge for most enterprise heads. Many leaders always doubt what will be the RoI for the IoT deployment and what benefits it will deliver. This uncertainty often leads to refraining from IoT solutions. However, still many companies believe that IoT is delivering to its potential when implemented correctly, according to reports. Talking to an IoT app development expert will help mitigate this challenge. 

Failing to define and realize the current workflows during IoT deployment

Automated workflows are for a long time and adding an IoT device to the process creates a major challenge. Specially, integrating the existing workflow with advanced technology enabled devices like IoT poses a huge challenge to enterprise heads. Discussing with best IoT app developers in your locality will help you understand and devise a defined workflow that eases the integration problem and improves performance. 

Misconception on technology is not mature

While IoT has been around for more than a decade, its importance is only felt now by enterprises. Still many leaders presume the technology is not mature. However, unlikely, the technology is mature and this is the reason why most companies have already started to implement IoT solutions and are enjoying numerous benefits. It is a fact there is a room for security improvement, yet the technology has really matured than it was a decade back. 

Missing out leveraging intelligent analytics 

A prime reason why IoT devices are being widely consumed is for their ability to capture data. What if your business has tons of data which can’t be converted to meaningful insights? The situation arises when you’ve legacy systems or don’t have a defined data model. Leveraging IoT is considered to be a best choice when it comes to making use of analytics to decide faster. Legacy systems won’t help as they can’t provide the necessary insights required in real-time. 

Lack of consumer awareness

According to reports, many enterprises fear investing in IoT devices because of the lack of knowledge of IoT their customers possess. Only way the problem can be solved is by creating awareness about IoT technology and its benefits. To achieve that, enterprises should possess a great deal of knowledge about IoT and take the benefits, advantages of IoT to the customers. 

Lack of IoT implementation skills

Another potential barrier that stops enterprises from IoT adoption is lack of skill sets within the organization. IoT is a new technology and it requires good understanding and hands-on expertise to implement it in an enterprise arena. This is the reason why experts always suggest IoT development companies to take care of the implementation process as it reduces the pressure on their team. 

Lack of in-house resources

Shortage of resources is another setback that prevents enterprises from investing in IoT technology. Partnering with a reliable IoT app development company will free up the in-house team and help them focus on the critical tasks fostering growth of the enterprise. 


Even though it is hard to negate all the challenges, dealing with maximum is possible by partnering with an expert IoT app development company. An experienced IoT partner will help you with a defined IoT strategy and implementation best practices. This helps in saving cost and time.