The New Innovation Process of a Firm Undergoing Digital Transformation in Industries
EUs have to face problems in dealing with complexity of the innovation process of integrating IT and OT and the constraints of the physical world in which they operate . Software in the IT world can be created and tested quickly , at low cost , but integrating IT and OT takes more time to test . EUs are likely to have organizational structures emphasizing hierarchy . The structure aims at perfect quality . They tend to be slow innovators , and slow to experiment with prototypes of imperfect quality . They may produce a wrong offering due to the lack of feedback of customers on prototypes of intended solutions because they prefer to show an offering when the design is perfectly created and tested .
If the EU ’ s innovation process could be clearly defined and understood correctly , SPs would avoid possible mistakes in interacting with customers ( a . k . a . EUs ). An SP interact with an EU over SP ’ s innovation process of understanding customer needs / problems and creating and deploying a solution . The EU interacts with an SP over the EU ’ s innovation process of identifying problems of a process ( e . g . manufacturing process ) and searching for external or in-house solution and implementing the solution .
An SP in the IT domain can make mistakes on testing in interacting with the EU . For example , after an initial test of a solution offered to an EU , the SP may expect further opportunities to test the solution in the EU facility while the EUs in asset industries may be disappointed from the initial test , expecting a perfect quality product from the beginning .
In asset-intensive industries , the perfect quality of a product at an initial stage test is regarded as much more important than in IT industries where most of SPs belong to . Because of the different expectation on testing , collaboration between SP and EU could be easily disrupted . By understanding the EU ’ s process , an SP can come up with a new approach in interacting with the customer . Also , the EU needs to change its process , not allowing frequent tests , because the EU would not reap benefits from “ more frequent than before ” tests in interacting with the SPs .
This paper defines a new approach of innovation of firms undergoing DX in industries , as “ BizOps for DX in industries .” “ BizOps for DX in industries ” ( henceforth “ BDXI ”) can be defined as a new approach of innovation of firms undergoing DX in industries , integrating not only business , development and operation but also IT and OT , for fast and customer centric innovation through application of best innovation approaches / practices including design thinking , lean startup , agile methods and BizDevOps .
BDXI can be applied for product innovation , business model innovation , process innovation . The “ Industries ” in “ BizOps for DX in industries ” are asset-intensive industries : smart city , manufacturing , agriculture , retail and logistics , transportation , health care and energy industries . So , we can say that BDXI process is a new innovation process , adopting a new approach to innovation , of firms undergoing DX in industries .
Target audiences are those working for organizations that apply or support the BDXI process : IT departments working together with the manufacturing smart factory project team ,
4 November 2021