Business Strategy and Innovation Framework
The recommended approach is first to include IIoT as an item on executive-level agendas. The move to adopt IIoT technologies is a CxO-driven initiative, not merely another IT or product development project. It will significantly transform the nature of the business— either by improving operational processes by means of new insights, by enabling new business models based on real-time data, or by delivering new customer experiences and engagement models through connected devices and services.
The first questions to answer are,‘ How compelling to our business is the IIoT hype? Is this really the single most important disruptive force set to change our business in the coming years? Or is it just one of several change areas, or something that’ s not relevant to our business at all?’
In a large, highly diversified organization, the answer to these questions may differ from one business segment to the next. What’ s more, it may not relate explicitly to the IIoT. For an automotive OEM, the question might instead be,‘ How important will the connected vehicle be to me, and when will it impact my business?’ An industrial equipment company looking to design new products with integrated services might ask,‘ What is the strategic importance of connected devices in the context of our overall servitization strategy?’ Some CEOs might prefer to hire a management consultancy firm to answer these questions, while others will decide this together with their inner management circle based on internal business knowledge and experience.
Many large organizations will already have corporate strategy and portfolio management processes in place, alongside different types of CoEs and shared IT platforms. It is important to stress the articulation for questions outlined above, and the answers to these questions. This will form a solid basis from which the management team can derive a vision, goals, and guiding principles for its IIoT activities.
4.2 SYSTEMATIC MANAGEMENT OF INDUSTRIAL IOT PORTFOLIO
A particularly beneficial course of action involves implementing frameworks and processes for tracking IIoT projects from conception through to live operations, including validation of results, to ascertain whether individual IIoT projects have achieved what they set out to achieve.
This kind of tracking should ideally include portfolio management and progress tracking, and budget tracking and overall roadmap. We discuss these two elements in turn.
4.2.1 PORTFOLIO MANAGEMENT AND PROGRESS TRACKING
Accurate IIoT project portfolio tracking is needed to support sales and marketing activities, and for overall business management. It is also an important input for corporate budget planning and iterative refinements of corporate strategy.
As project portfolios and timelines are subject to updates and refinement as organizations discover barriers or restrictions to deployment, it is essential that this type of information make its way to some kind of corporate overview dashboard.
The best way to achieve oversight capability is by establishing a traditional‘ program office,’ supported by both technical experts( embedded in the wider business) and dedicated business analysts. One of its tasks is to ensure that IIoT initiatives are refined and rescheduled when
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