Business Strategy and Innovation Framework | Page 5

1 Overview.......................................................................................................................... 7

1.1

Introduction........................................................................................................................ 7

1.2

Purpose............................................................................................................................... 7

1.3

Scope.................................................................................................................................. 7

1.4

Structure............................................................................................................................. 7

1.5

Audience............................................................................................................................. 8

1.6

Use..................................................................................................................................... 8

1.7

Terms & Definitions............................................................................................................. 8

1.8

Symbols.............................................................................................................................. 8

1.9

Conventions........................................................................................................................ 8

1.9.1

Typographical and Linguistic Conventions and Style.......................................................... 8

1.10 Relationship with Other IIC Documents................................................................................ 9

3 Market Context............................................................................................................... 13

3.1

The Opportunity for the Industrial IoT................................................................................ 13

3.1.1

Business and Market Drivers............................................................................................ 13

3.1.2

Societal Drivers................................................................................................................. 14

3.2

The Transformation of Business Models with the Industrial IoT.......................................... 15

3.2.1

General Business Model and Market Transformation...................................................... 15

3.2.2

Unification of Disparate Business Elements..................................................................... 15

3.2.3

Enhanced Development and Production.......................................................................... 16

3.2.4

Increasing Customer Value............................................................................................... 16

3.3

Opportunity at the IT / OT Intersection................................................................................ 17

3.3.1

The New Intersection and Opportunity Point.................................................................. 17

3.3.2

Harnessing Opportunities at the IT / OT Boundary............................................................ 19

4 Industrial IoT Strategy..................................................................................................... 20

4.1

Initiating the Industrial IoT Journey.................................................................................... 20

4.2

Systematic Management of Industrial IoT Portfolio............................................................ 21

4.2.1

Portfolio Management and Progress Tracking................................................................. 21

4.2.2

Budget Tracking and Overall Roadmap............................................................................ 23

5 Industrial IoT Business Model Innovation........................................................................ 25

5.1

Ideation............................................................................................................................ 26

5.1.1

Production Optimization................................................................................................... 27

5.1.2

New IIoT Business Model Ideation Tools.......................................................................... 27

5.2

Preparation....................................................................................................................... 28

5.3

Evaluation......................................................................................................................... 30

5.3.1

Business Case Calculation................................................................................................. 30

5.3.2

Business Case Challenges.................................................................................................. 31

5.3.3

Impact & Risk Assessment................................................................................................ 31

5.4

Initiation........................................................................................................................... 33

5.4.1

Internal Organizational Setup........................................................................................... 33

5.4.2

Inorganic Techniques........................................................................................................ 33