More than 80% of 795 companies surveyed by consulting firm Tata Consultancy Services (TCS) increased revenue by investing in the Internet of Things (IoT).

The average increase in revenue as a result of IoT initiatives is 16%, while market leaders in IoT have seen revenue increases of 64%, according to the report, the TCS Global Trend study on IoT.

“The age of IoT is well underway,” Natarajan Chandrasekaran, CEO of TCS, said in a statement. “The question is whether businesses are ready to realize the full potential of this technology.” The global study found that leaders in IoT are using the technologies to completely “reimagine” their businesses by changing every aspect of them from business models and products to processes and workplaces, Chandrasekaran said.

Company executives still see IoT as a growing area for businesses, with 12% identifying planned spending of $100 million in 2015. The report also shows that companies predict their IoT budgets will continue increasing year-on-year, with spending expected to grow by 20% by 2018 to $103 million.

Despite the encouraging data on IoT investment and its impact on revenue growth, the report also shows that major challenges remain in realizing the promise of IoT. The three biggest factors holding companies back are corporate culture; getting top executives to invest time and resources into IoT; and questions around technology, including how to handle big data.

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