Business Strategy and Innovation Framework
reside( at machine level, at the edge, or in IT), the security of systems, resources, and data, and likely changes to business organization models or operational processes.
These elements will evolve over time, which means that enterprises implementing IIoT methodologies must put governance structures in place that factor in the IIoT impact across the entire business. This system of governance must focus on determining the value of IIoT within the enterprise at strategic and operational levels, and ensure a consistent implementation approach in affected areas. See section 6.1.6 for additional discussion of this topic.
3.2.3 ENHANCED DEVELOPMENT AND PRODUCTION
To ensure the continued evolution of its product and service offerings, and strengthen its competitive position, an enterprise must gain an understanding of customer needs, market needs and usage behavior. Today, in all market segments, this cycle has accelerated. Enterprises must transform their business models to reflect the way in which IIoT will enhance product development and production processes.
Within service industries, a combination of connected devices, data collection from numerous sources, and analytics will provide business insight into areas not previously considered. In the railroad industry, for example, the monitoring of railroad track and train conditions, signals, customer travel patterns and fuel consumption can produce insights that enable new or improved service offerings, enhanced safety and more efficient operations. Incorporating this potential into the business model help enterprises develop new services.
In manufacturing environments, the collection and analysis of data from connected internal devices and internal systems, and the integration of these sources, can provide similar insight to increase production efficiency and operational effectiveness. This is especially true in combining manufacturing data from connected devices with business data( from sales, services, or supply chain contexts, for example) to provide real-time and historical insight. Factoring this back into operations, whether historical, real-time or predictive, helps optimize production.
3.2.4 INCREASING CUSTOMER VALUE
While many advantages of IIoT solutions relate to enhancing operational efficiency and enabling new product development, a significant transformational value of IIoT lies in gaining insight that will improve overall consumer value in terms of service and product usage and overall customer experience. Those companies looking to implement IIoT projects should consider both the operational benefits and strategic value such projects bring to their business. This requires thinking outside the operational context into a view of the business and its exposure to the customer.
As an example, consider an application on a tractor. Operationally, sensors could provide information to optimize operations. Coupling in data from external sources( such as weather, sensor data from fields, predictive yield calculations, infestation, pricing, data from local farmers) can each add value. The combination could enhance the farmer’ s business and operations giving a more complete and even predictive picture of how, when, what the farmer does for planting, harvesting, impacting the environment and other farm activities.
IIC: PUB: B01: V1.0: PB: 20161115- 16-