IIC Journal of Innovation 8th Edition | Page 50

There Are New Markets for Industrial IoT Data probably not on an ad hoc basis. Any change in reporting functions (e.g. frequency, granularity etc.) might incur additional, change-of-scope costs from up-stream suppliers. #1 Develop IIoT Data Capabilities within the Organization The first step for each organization is to set up and maintain a catalog of IIoT data assets. To this, the organization needs to add three capabilities. One is a data science team that has the expertise to analyze and use the data to make business and operational decisions. This is a cross-organizational competence and one that fits with the IIoT Competence Center recommendation in the IIC’s Business Strategy & Innovation Framework 13 . There is a need to formalize such arrangements as an organization shifts to a model where it requires more frequent and on-demand data gathering. #3 Explore Down-stream Supply Chain Opportunities A second capability relates to the technologies needed to acquire, store and distribute IIoT data in a secure and reliable manner. An innovation capability is the third item. It encompasses a functions relating to business development, intellectual property 14 and regulatory alignment approaches to commercializing IIoT data sustainably. There is a similar need to explore and formalize down-stream supply chain opportunities as to how their products are used. Depending on their size, organizations may find that they have less leverage with down-stream business partners and greater pressure to conform to down-stream data management practices and encoding standards. #2 Formalize Up-stream Supply Chain Opportunities #4 Join Other IIoT Data Eco-system Some firms may find themselves operating in industries where there is value in joining an external, IIoT data eco-system. A good example of this is health applications, be they human or machine related. The value stems from aggregating particular classes of data to provide latitudinal population insights. Industrial firms that procure components from suppliers may have few, if any, rights to production and supply-chain data beyond their specification and quality-control metrics. In the case of industrial services, plant managers might outsource facilities management functions. They are likely to obtain periodic performance reports but 13 Industrial Internet Consortium: Business Strategy & Innovation Framework, https://www.iiconsortium.org/BSIF.htm 14 Data as IP and Data License Agreements, Practical Law Practice Note 4-532-4243, Fried Frank LLP (2017) IIC Journal of Innovation - 49 -