Business Strategy and Innovation Framework
Another approach that has come to characterize the IIoT space is ‘ partnership .’ It is generally recognized that the opportunities associated with IIoT are so vast and diverse that few enterprises today have the breadth and depth of expertise required to exploit the opportunities available fully . Realizing the IIoT opportunity depends on effective use of internal assets , and integration with external assets controlled by third parties . The partnership approach allows enterprises to share capabilities in a relatively flexible way , yet with a level of commitment that falls short of full acquisition .
Third-party companies may enter into partnering arrangements for a variety of reasons :
� enterprises that are already working in close cooperation may perceive they have no choice other than to become IIoT partners , as there is too much to lose in not doing so . � enterprises may align with each other on the strategic basis of a shared vision , � enterprises may engage in partnerships simply to capitalize on a standalone opportunity that neither can readily execute without the other , � partnering arrangements may de-risk a deployment , leading to better alignment of risks and rewards , � capability shortfalls ; these are particularly common as hardware companies increasingly seek to develop software , and vice-versa , � a partnership arrangement may be necessary to compensate for a resource shortfall in capability or volume � the improved information flows inherent in a partnership arrangement may afford opportunities for increased efficiency , flexibility and responsiveness and
� improved information flows between partners lead to increased transparency between enterprises , potentially allowing for the development of better products and services in the medium term .
As is evident from the list above , ‘ IIoT partnering ’ where companies execute and go to market together is significantly different from the more traditional vendor-supplier partnership model .
Notwithstanding these motivations , partnership arrangements can also be more effectively realized in the form of mergers or acquisitions , albeit at significantly higher levels of risk ( for one of the partners , at least ).
IIC : PUB : B01 : V1.0 : PB : 20161115 - 34 -