Business Strategy and Innovation Framework
5.4 INITIATION
5.4.1 INTERNAL ORGANIZATIONAL SETUP
IIoT opportunity initiation involves restructuring the enterprise’ s internal execution capabilities in a way that enables deployment of IIoT hardware and software specialists as effectively as possible.
The cultural challenges associated with multidisciplinary project teams are an important facet of this process, as discussed below.
The ideal organizational setup and execution strategy for any given IIoT project( or wider IIoT strategy) must be considered in parallel with development of the business plan.
While time-to-market factors are important here, it is also necessary to look critically at internal execution capabilities. Given the trend of software companies migrating into hardware, and hardware companies migrating into software, most organizations are unlikely to already have sufficient hardware and software specialists available in house to provide adequate support for their IIoT project portfolio. In addition, there may be a negotiated cultural shift, whereby software companies implementing IIoT projects are faced with longer project implementation times than normally experienced. The reverse also applies to hardware companies. Furthermore, constraints specific to standard hardware and software projects still apply.
Typical deployment options include setting up an internal project, acquiring an external company, or establishing a spin-off company. It is also common to see a mixture of these models, whereby the enterprise sets up an entity comprising people with roots in the wider organization( ideally from both IT and OT) and those that have come in through acquisitions. Recently, the term‘ acqui-hiring’ has become popular to describe a strategy of acquiring companies for their team and talent, rather than their products and customer base.
Organizational setup is an area that requires careful attention, especially for IIoT opportunities that developed from existing internal organizational capabilities. In particular, it is essential to maintain the interfaces and relationships between the solution team and members of the existing asset organization, which may be a potential source of friction.
A number of enterprises in similar situations are experimenting with‘ podular’ organizational structures that allow for ongoing engagement in a project concept as it progresses from‘ idea’ to commercial reality and gains traction across the organization.
5.4.2
INORGANIC TECHNIQUES
Where there is a need to compensate for shortfalls in organizational capability, enterprises can take tactical approaches such as‘ acqui-hiring’ or the more‘ standard’ acquisition process. 1
1
We do not discuss acquisition approaches further here, since these have been comprehensively documented elsewhere in a wide range of business texts.
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