Business Strategy and Innovation Framework | Page 33

Business Strategy and Innovation Framework
5.4 INITIATION
5.4.1 INTERNAL ORGANIZATIONAL SETUP
IIoT opportunity initiation involves restructuring the enterprise ’ s internal execution capabilities in a way that enables deployment of IIoT hardware and software specialists as effectively as possible .
The cultural challenges associated with multidisciplinary project teams are an important facet of this process , as discussed below .
The ideal organizational setup and execution strategy for any given IIoT project ( or wider IIoT strategy ) must be considered in parallel with development of the business plan .
While time-to-market factors are important here , it is also necessary to look critically at internal execution capabilities . Given the trend of software companies migrating into hardware , and hardware companies migrating into software , most organizations are unlikely to already have sufficient hardware and software specialists available in house to provide adequate support for their IIoT project portfolio . In addition , there may be a negotiated cultural shift , whereby software companies implementing IIoT projects are faced with longer project implementation times than normally experienced . The reverse also applies to hardware companies . Furthermore , constraints specific to standard hardware and software projects still apply .
Typical deployment options include setting up an internal project , acquiring an external company , or establishing a spin-off company . It is also common to see a mixture of these models , whereby the enterprise sets up an entity comprising people with roots in the wider organization ( ideally from both IT and OT ) and those that have come in through acquisitions . Recently , the term ‘ acqui-hiring ’ has become popular to describe a strategy of acquiring companies for their team and talent , rather than their products and customer base .
Organizational setup is an area that requires careful attention , especially for IIoT opportunities that developed from existing internal organizational capabilities . In particular , it is essential to maintain the interfaces and relationships between the solution team and members of the existing asset organization , which may be a potential source of friction .
A number of enterprises in similar situations are experimenting with ‘ podular ’ organizational structures that allow for ongoing engagement in a project concept as it progresses from ‘ idea ’ to commercial reality and gains traction across the organization .
5.4.2
INORGANIC TECHNIQUES
Where there is a need to compensate for shortfalls in organizational capability , enterprises can take tactical approaches such as ‘ acqui-hiring ’ or the more ‘ standard ’ acquisition process . 1
1
We do not discuss acquisition approaches further here , since these have been comprehensively documented elsewhere in a wide range of business texts .
IIC : PUB : B01 : V1.0 : PB : 20161115 - 33 -