IIC Business Strategy and Solution Lifecycle
Figure 10: Validation & Improvements
2.1.2.3.1
Business Model Validation & Improvement
Since there is still little practical experience, IIoT solution business models will be evolving over
time. As such, it is critically important that after initial rollout the solutions are constantly
monitored and the as-is situation is compared to the initial plan. This should happen on these
levels:
Financial KPIs: Important Key Performance Indicators (KPIs) like revenue, operational
expenditure (OpEx) and profitability need to be closely monitored. Fortunately, the
connected world of the IIoT makes data readily available and KPIs can be computed in
real-time. This is especially important for “product as a service” business models as
introduced earlier on.
Strategic KPIs: In addition, strategic KPIs need to be monitored. For example, how
satisfied are the customers with the new support services using remote condition
monitoring?
Overall IIoT Maturity: On the portfolio level, metrics must be defined which help with
evaluating IIoT maturity goals and allow individual projects to compare themselves
against these goals.
Naturally, all these KPIs will have an impact on the future evolution of the IIoT business solution
and need to be carefully considered in requirements backlog prioritization.
2.1.2.3.2
Solution Validation & Improvement
Maintaining both functional and non-functional performances does not just depend on how
system functions and characteristics are implemented but also how they are measured and
evaluated once the solution is deployed. Metrics should be defined, and ideally based, on a set
of common norms and measures. Significant efforts are under way to standardize the modeling
IIC Journal of Innovation
- 55 -