Business Strategy and Innovation Framework
Governance : The CoE should coordinate across projects and perform detailed governance tasks . In the connected IIoT world , there is always a high degree of cross-dependency between projects that should be managed carefully .
Clearly , establishing and maintaining a dedicated IIoT CoE will involve a significant investment , and several enterprises have reported mixed results from CoE initiatives . It is important to ensure that project teams view the CoE as a means of adding value , and not as a disturbance . There are usually two options for setting up an internal CoE : either appoint a team of dedicated CoE resources , or opt for a ‘ virtual ’ CoE with members embedded in operational teams , spending a certain percentage of their time supporting the CoE ’ s activities ( or some hybrid blend of these two approaches ). The advantage of the latter option is that the CoE members are experts from a hands-on project background with a great deal of relevant experience . A potential drawback is that these highly respected experts could treat project work as a priority , which may compromise their ability to meet their part-time CoE obligations .
6.1.2 ENABLING CHANGE MANAGEMENT
IIoT has the potential to bring transformational change to a significant portion of the business model , including decision-making , business processes , employee roles , staffing , operations , strategy , customer value , customer experience and even the overall enterprise architecture .
Many of these changes will be disruptive to traditional business execution , but all have the potential to exert a positive impact on the business . Understanding the changes , thinking about each one in both traditional and new ways , and finding ways to adapt and capitalize on them is essential to an enterprise ’ s ongoing business operations , competitiveness , and longevity .
6.1.3 RE-THINKING BUSINESS MODELS
IIoT requires enterprises to rethink their current business models . This is necessary regardless of whether they actually adopt IIoT solutions internally : industry is moving toward IIoT adoption , and enterprises that keep pace with this trend will undoubtedly have a strong competitive advantage .
In operational terms , connection and integration of factory-floor elements yields production efficiencies . Timely , enhanced decision-making at all levels of production lays the foundation for improvements in the broader production process . In the longer term , IIoT opens the door to greater integration between organizational , system , process and data elements . This will have an impact across the entire enterprise , from the factory floor to the overall IT infrastructure . Business models must consider this end-to-end impact .
Industries with a more service-based approach , such as healthcare , education and retail , will benefit from the integration of data from a wide range of devices , both internal and external . Enterprises will need to adjust their business models to expand their focus from operations to offering new services or improving current ones . While operational factors will continue to inform a significant part of the business model , it is beneficial to add a strategic ‘ what is possible ’ view .
IIC : PUB : B01 : V1.0 : PB : 20161115 - 36 -