A Practical Framework to Turn IoT Technology Into Operational Capability
geographical location. Analytics is described
in terms of maturity, sophistication
(predictive and cognitive analytics) and
application of business rules or physical
models. System complexity is based on
deployment infrastructure (edge, local and
cloud) and geographical constraints. Project
readiness is assessed based on availability of
subject matter experts and technical
resources.
weighted average values of each of the
measures are placed on the graph which is
divided into four quadrants. The size of the
bubble is determined by the value of the
economic impact. The four quadrants
represent the business readiness for each of
the scenarios. The “Do Now” quadrant
represents high business impact and a high
level of technical readiness. Opportunities
on the far right of the quadrant with the
Figure 4 - Bubble chart that visually ranks IoT Projects based on business impact and readiness
biggest bubble size often represent IoT
projects with the highest likelihood of
success for all stakeholders.
It is generally useful to define “order of
magnitude” financial measures to agree on
the high-level impact of each new state or
scenario. The objective is not to be accurate
in estimating the value of a business case,
but to get high-level agreement between the
different stakeholders on the potential
impact of each scenario. In this example a
scale of (1) greater than $100k, (2) greater
than $1m or (3) greater than $10m is used.
This approach provides a common
understanding of the expected business
outcomes and potential technical challenges
in achieving this goal. It provides the basis
for more detailed analysis of those projects
with a high likelihood of success. This
analysis aims to address the remaining two
questions in the I2OC framework: (1) what is
the business logic or algorithms for solving a
business problem and (2) what data sources
do I need for the logic or algorithms?
This can be visually represented in a bubble
chart with business impact and technical
readiness as the two major measures. The
- 40 -
March 2018