Business Strategy and Innovation Framework
2 EXECUTIVE SUMMARY
The Industrial Internet of Things will create massive new opportunities across all lines of business, with the potential to generate trillions of dollars in economic value.
Much like the advent of the commercial internet, the IIoT is set to transform virtually every existing business model and vertical industry, creating new threats and opportunities for all players. Access to new data sources and analytics tools, all on a previously unimagined scale, will define the contours of the corporate IIoT roadmap.
Enterprises will need to broaden their overall market approach, adapting business and operational models through the integration of Information Technology( IT), Operational Technology( OT) and customer-outreach platforms. IIoT solutions will unify disparate organizational elements, processes and information sources, which will in turn enhance how goods and services are developed and delivered. In addition, IIoT solutions will increase the variety of business channels available to enterprises, creating more opportunity to add customer value and deliver wider societal benefits.
However, current expectations among businesses that stand to benefit from these opportunities are more guarded. Many leadership teams are unsure of what exactly IIoT means, how it differs from the competitive dynamics of the past and how to define new business strategies. They are beginning to recognize that the competitive landscape is changing in ways they do not fully understand, and that collaboration and mastery of new skills, such as those within IIoT, will be essential to business success. An organized, disciplined approach to moving forward with IIoT is essential to that success.
Firstly, businesses need to define their IIoT strategy and goals. Doing so will determine how quickly they need to move and how they balance the risks associated with market leadership against the risks for followers and late adopters.
No single enterprise will possess the full range of skills required to address the challenges associated with IIoT. As a result, effective IIoT strategies will necessarily involve some degree of participation in alliances and business partnerships. Many enterprises will participate in multiple IIoT applications, making it necessary to formalize IIoT portfolio management and place initiatives in the context of a corporate roadmap and budgeting process.
Secondly, businesses need a structured framework to target and select the right IIoT opportunities. A framework for determining beneficial opportunities comprises four stages:
Opportunity ideation identifies IIoT application opportunities through an iterative process, motivated by two drivers: using IIoT technologies to optimize current products, services and business operations, and; launching solutions based on innovative business models. Success in IIoT requires addressing both elements.
Opportunity preparation details the ideas the business determines are worth pursuing. The aim is to analyze and document them in detail to sharpen focus, derive underlying assumptions and assign actions to various team members to validate these assumptions.
IIC: PUB: B01: V1.0: PB: 20161115- 10-