Business Strategy and Innovation Framework
roadblocks or other limiting events occur, and to support the ongoing optimization of the strategy. Consolidating these activities into a single office assists with the spread of knowledge and best practices within the enterprise.
Within large organizations, multiple IIoT business opportunities and ongoing projects may have to compete for resources such as developers and subject-matter experts. When implementing IIoT solutions, it is important to plan and track both the portfolio of opportunities and the underlying IoT services enabling them.
IT capabilities will also affect business model development. In enterprises whose strategy follows a resource-based view that leverages specific capabilities to develop new opportunities, the IT roadmap will affect the assessment and further evaluation of business models. Enterprises whose strategy follows a more market-based view will require development of new capabilities based on their targeted business models. In both cases, IT portfolio managers should be included in business model development to ensure alignment between the various IIoT solutions. This guarantees that all parties share a common understanding of the business value of each solution.
Techniques such as value-benefit analysis or the analytic hierarchy process can be applied in the business model evaluation phase. Both use weighted scores to evaluate how alternatives perform with regard to quantitative and qualitative goals. Evaluation criteria for IIoT applications include market potential, technological feasibility, and statutory regulations in different environments. For more detailed analysis of both value-benefit analysis and analytic hierarchy process, see Kim and Kim( 2016) [ SK1 ].
Portfolio management should span the entire lifecycle of IIoT solutions, with different management techniques required for each phase. While the techniques mentioned above are relevant for the business modeling phase, it is still important to track the performance of products and solutions once established. KPIs must be continuously tracked and adjustments made where necessary.
Figure 4-1 below summarizes the central process within enterprises of identifying, selecting, and prioritizing IIoT opportunities and developing a roadmap with an optimized portfolio. Reassessing existing opportunities and identifying new ones are important elements in the process of continuous innovation.
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