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-