Business Strategy and Innovation Framework
2 EXECUTIVE SUMMARY
The Industrial Internet of Things will create massive new opportunities across all lines of business , with the potential to generate trillions of dollars in economic value .
Much like the advent of the commercial internet , the IIoT is set to transform virtually every existing business model and vertical industry , creating new threats and opportunities for all players . Access to new data sources and analytics tools , all on a previously unimagined scale , will define the contours of the corporate IIoT roadmap .
Enterprises will need to broaden their overall market approach , adapting business and operational models through the integration of Information Technology ( IT ), Operational Technology ( OT ) and customer-outreach platforms . IIoT solutions will unify disparate organizational elements , processes and information sources , which will in turn enhance how goods and services are developed and delivered . In addition , IIoT solutions will increase the variety of business channels available to enterprises , creating more opportunity to add customer value and deliver wider societal benefits .
However , current expectations among businesses that stand to benefit from these opportunities are more guarded . Many leadership teams are unsure of what exactly IIoT means , how it differs from the competitive dynamics of the past and how to define new business strategies . They are beginning to recognize that the competitive landscape is changing in ways they do not fully understand , and that collaboration and mastery of new skills , such as those within IIoT , will be essential to business success . An organized , disciplined approach to moving forward with IIoT is essential to that success .
Firstly , businesses need to define their IIoT strategy and goals . Doing so will determine how quickly they need to move and how they balance the risks associated with market leadership against the risks for followers and late adopters .
No single enterprise will possess the full range of skills required to address the challenges associated with IIoT . As a result , effective IIoT strategies will necessarily involve some degree of participation in alliances and business partnerships . Many enterprises will participate in multiple IIoT applications , making it necessary to formalize IIoT portfolio management and place initiatives in the context of a corporate roadmap and budgeting process .
Secondly , businesses need a structured framework to target and select the right IIoT opportunities . A framework for determining beneficial opportunities comprises four stages :
Opportunity ideation identifies IIoT application opportunities through an iterative process , motivated by two drivers : using IIoT technologies to optimize current products , services and business operations , and ; launching solutions based on innovative business models . Success in IIoT requires addressing both elements .
Opportunity preparation details the ideas the business determines are worth pursuing . The aim is to analyze and document them in detail to sharpen focus , derive underlying assumptions and assign actions to various team members to validate these assumptions .
IIC : PUB : B01 : V1.0 : PB : 20161115 - 10 -