The event, held on April 16 and organized by the Osservatorio IoT of Politecnico di Milano, featured Stefano Butti, CEO of Servitly, in a double interview exploring the key trends driving IoT growth. Here is what emerged.

How would you describe the Internet of Things in 3 words?

Exciting, promising, and underused. IoT continues to generate a feeling of enthusiasm not only for its technological aspect, but also for its role as an enabler of data valorization. And precisely this aspect is linked to the second adjective: promising. The success of IoT technologies is closely tied to how the generated data will be used. Since projects that truly succeed in valorizing data are still few, this explains the last adjective: under-exploited.

In this context, how important is data management and valorization?

Today the problem is not collecting data: IoT technologies allow us to do this very well, for years. The point is: what do I do with the collected data? These do not have value in themselves. Showing them in a dashboard may help, but it is not enough. Processing data to extract useful information is the real challenge.

From 1 to 10: how much do Italian companies already valorize IoT data?

2, and not only for Italian companies. This is supported by the European Commission, within the market research that later led to the Data Act. The research shows that currently only 20% of generated data is used.

Let’s talk about the EU Data Act. What are the main implications for the IoT world?

I have been an enthusiast of the Data Act since before its entry into force, as it is a law that has precisely the objective of pursuing what all of us in the sector have been hoping for for years: developing an economy of data-based services, favoring their circulation and valorization. (download our guide to learn more)

But how do you obtain real value from data? What is the “formula” to follow?

At Servitly we have developed this framework: Data > Information > Action.

Data must first of all be transformed into information, capable of being easily understood by an operator (or an AI agent). From information, which is expressed through synthetic KPIs on the main aspects of connected products (e.g. productivity, health, performance, etc.), one can move to action, meaning precisely indicating to a subject (or again to an AI agent) what type of actions must be taken to achieve a given result.

Can you share a real IoT ROI example?

One of our customers generates €10M per year from performance-based maintenance contracts. At the same time, they avoid hundreds of unnecessary service visits by turning data into maintenance actions.

Can you provide a concrete example of ROI obtained from IoT projects you have developed?

One of our customers today generates 10M per year in revenue from annual maintenance contracts guaranteeing performance. At the same time it avoids hundreds of unnecessary visits, made possible precisely by the ability to transform data into maintenance actions.

From connected product to services: what do you think about servitization?

It is what I have fallen in love with professionally and what gave origin to Servitly, back in 2017, when I first heard about it at a seminar held by Tim Baines (link to LinkedIn) here in Italy.

After making products connected, digital servitization is the only possible strategic move not only to valorize the investment, but also to survive in long-term competition.

I also consider it the only sustainable macroeconomic transformation for the future of our small world.

How mature are IoT services in Italy from 0 to 10?

If by IoT services we mean the digital services that, in a servitization logic, manufacturers of connected products offer to their customers and that are enabled by the data generated by the products, unfortunately I would say 2. We have already addressed this before: data, even if collected, is poorly exploited. Even less to offer services to subjects outside the company perimeter, such as customers or service teams.

From services to innovative models: what are, in your opinion, the most promising business models?

In the medium/long term the most promising will be pay-per-outcome contracts, including product and services. At the moment however the market is not yet fully mature for these models. At the moment the best solution is mixed selling: product + outcome guarantee services.

Let’s talk about AI, how mature are AI solutions in IoT from 0 to 10?

4, because it is a continuous race: in just a few years we have moved from ML AI solutions and predictive maintenance to generative AI and agentic AI. Such fast new technologies always make solutions seem immature.

What is, in your opinion, the biggest opportunity AI can offer?

Making machines perform very complex activities, or impossible ones for a traditional approach, such as quickly extracting information, evaluating risks, predicting events, or carrying out repetitive but necessary activities in a very efficient way. In the context of Digital Servitization this means further reducing the gap between data and action.

And what is the biggest risk?

That we lose control, and that we no longer know why we are doing what we are doing. In addition, we risk losing the ability and autonomy to make decisions.

Let’s move to regulation, what is your opinion on the AI Act?

It is an excellent initiative, even if demanding. AI has enormous potential, potentially extremely useful, but also destructive and very harmful. The American Wild West, or Chinese state AI, are two extremes that personally scare me. The European culture based on fundamental rights is very welcome. This is non-negotiable if we want to remain “European”: it is a matter of identity.

Among the most relevant regulations there is also the Cyber Resilience Act; in this sense, what do you think is the most critical aspect to monitor in terms of cybersecurity for companies operating in the IoT world?

Security must be guaranteed by design, end-to-end, from the design of the connected product and the basic architecture, at the lowest levels. Fundamental in this context is the ability to update the solution.

Let’s address another topic: the integration between IT and OT systems. How important is it for industrial companies to be able to unite these two worlds?

Fundamental, because data must then feed cross processes. And in the perspective of those who produce connected products and machines this is an opportunity to seize. The solutions offered should also help the customer in integration and not be designed as “islands”. A frequent mistake is to think of offering an IoT solution as if it were the only one for the customer.