Business Strategy and Innovation Framework
As the overall project progresses , those involved will gain a deeper understanding of the initial idea , which will necessarily undergo a process of refinement . The objective of this refinement phase may be to hit specific budget targets in light of clearer operational constraints , ensure compliance with statutory regulations or accommodate partners ’ technical limitations .
The key to impact analysis is to discern the degree of elasticity in a technical specification , and the extent of compromise needed to meet budgetary constraints , particularly in the face of change . For instance , it may transpire that data sovereignty regulations limit the scope of potential solutions in ways that were not envisaged when the initial business case was developed , or that certain planned Quality of Service ( QoS ) levels may not be achievable ( due to limited connectivity , for example ). It ’ s difficult to conceive of all the potential problems that can crop up and blow an IIoT project off its budgetary course — and that ’ s precisely the point : IIoT business cases need to be structured in a way that allows analyses of the best way to achieve compromise between technical constraints and available budgets . Business planners need sufficient detail within the overall context . This allows them to discuss descoping possibilities with downstream project managers .
A related issue is security : the level of security deployed as part of an IIoT solution should be subjected to a specific risk- and scenario-based analysis . The transformation of business systems that will take place under a new IIoT regime will bring new types of risk that have not been previously considered in the context of more traditional IT projects .
Lastly , there is significant potential for new or different business models to materialize once a foundational IIoT infrastructure has been put in place . For instance , a manufacturing company that has set up a fully connected , automated production line might consider a new business model that brings the customer into the production process as a decision-maker , with the ability to adjust their preferences at the time of production . These post-investment opportunities for business models should be analyzed using standard evaluation tools , for instance by extending net present value calculation to include real-option approaches . Scenario planning can elaborate on future possibilities and develop a business model roadmap .
Scenario planning can also serve as a helpful tool for reducing risk . Based on the assumptions underlying the business model ( such as the target group , timeframe ), determine various future scenarios and the most effective business model response . It is particularly important to explore those elements of the business model that have impact and value , both in the context of a specific scenario and the overall strategy . Engaging in this level of rigorous strategy planning and scenario analysis enables enterprises to develop a future-proof business model .
IIC : PUB : B01 : V1.0 : PB : 20161115 - 32 -