Business Strategy and Innovation Framework | Page 5

1 Overview .......................................................................................................................... 7

1.1

Introduction ........................................................................................................................ 7

1.2

Purpose ............................................................................................................................... 7

1.3

Scope .................................................................................................................................. 7

1.4

Structure ............................................................................................................................. 7

1.5

Audience ............................................................................................................................. 8

1.6

Use ..................................................................................................................................... 8

1.7

Terms & Definitions ............................................................................................................. 8

1.8

Symbols .............................................................................................................................. 8

1.9

Conventions ........................................................................................................................ 8

1.9.1

Typographical and Linguistic Conventions and Style .......................................................... 8

1.10 Relationship with Other IIC Documents ................................................................................ 9

3 Market Context ............................................................................................................... 13

3.1

The Opportunity for the Industrial IoT ................................................................................ 13

3.1.1

Business and Market Drivers ............................................................................................ 13

3.1.2

Societal Drivers ................................................................................................................. 14

3.2

The Transformation of Business Models with the Industrial IoT .......................................... 15

3.2.1

General Business Model and Market Transformation ...................................................... 15

3.2.2

Unification of Disparate Business Elements ..................................................................... 15

3.2.3

Enhanced Development and Production .......................................................................... 16

3.2.4

Increasing Customer Value ............................................................................................... 16

3.3

Opportunity at the IT / OT Intersection ................................................................................ 17

3.3.1

The New Intersection and Opportunity Point .................................................................. 17

3.3.2

Harnessing Opportunities at the IT / OT Boundary ............................................................ 19

4 Industrial IoT Strategy ..................................................................................................... 20

4.1

Initiating the Industrial IoT Journey .................................................................................... 20

4.2

Systematic Management of Industrial IoT Portfolio ............................................................ 21

4.2.1

Portfolio Management and Progress Tracking ................................................................. 21

4.2.2

Budget Tracking and Overall Roadmap ............................................................................ 23

5 Industrial IoT Business Model Innovation ........................................................................ 25

5.1

Ideation ............................................................................................................................ 26

5.1.1

Production Optimization ................................................................................................... 27

5.1.2

New IIoT Business Model Ideation Tools .......................................................................... 27

5.2

Preparation ....................................................................................................................... 28

5.3

Evaluation ......................................................................................................................... 30

5.3.1

Business Case Calculation ................................................................................................. 30

5.3.2

Business Case Challenges .................................................................................................. 31

5.3.3

Impact & Risk Assessment ................................................................................................ 31

5.4

Initiation ........................................................................................................................... 33

5.4.1

Internal Organizational Setup ........................................................................................... 33

5.4.2

Inorganic Techniques ........................................................................................................ 33