Do you have a formal IoT Strategy ?

Chances are- you may not have one

IoT technology has the potential to disrupt the current business ecosystem significantly and can provide a substantial edge to early adopters. However, you need a definite understanding of how this technology can be leveraged optimally in your organization, cut through the hype and develop a roadmap. A critical first step in that direction is to develop an IoT strategy.

Why an IoT Strategy ?

In this wave of IoT hype, concerned individuals in organizations have many questions on their radar like:

  • How seriously do we need to take this IoT hype?
  • How will this technology impact our Industry and company?
  • What is the strategic importance of connected services in the context of our overall strategy?

What is critical is to articulately document answers to questions like above, in the form of an official document, which will form a solid basis from which the management team can derive a vision, goals and guiding principles.

Structure of an IoT vision document

There are currently no standardized guidelines around IoT strategy documentation since it is still an emerging technology but in my perspective, the following should be included in an IoT strategy document:

  • Vision
  • Goals
  • Guidelines
  • Senior leadership role

Now we will use examples to walk through these to understand what each of these incorporate.

IoT Strategy Vision

Example:

Rocket manufacturing will transform itself from a product manufacturing company into a market leading provider of connected industrial services.

IoT Strategy Goals

Examples:

  • In the product area of High Rise elevators, we will generate at least 20% of revenue from connected services in next 3 years.
  • In the product area of High Rise elevators, we will reduce service and maintenance costs by 40% leveraging IoT connectivity and connected services.

IoT Strategy Guidelines

Examples:

  • Rocket will establish an internal team that will specialize¬† in identifying IoT adoption opportunities across the value chain.
  • Rocket manufacturing will budget $ 10 M in funding for top 10 IoT opportunities.
  • In the area of Industrial escalators, we should build an open partner ecosystem while in the area of High rise elevators, we should aim to control the platform and only allow for selected partners.

Role of Senior Leadership

Examples:

  • CEO will modify the budget to incorporate IoT priorities.
  • CEO and CMO will connect with partners to initiate partnership discussions.
  • CEO will work with the M&A team to allocate 10% of the M&A budget to the new IoT strategy.

 

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