Identifying the Opportunities in Enterprise IoT
Successful Enterprise IoT implementations are not just the result of technology innovation, but rather the intelligently coordinated innovation of products, services, and business models. Identifying the opportunities in Enterprise IoT starts with a strategic decision-making approach initiated at the executive management level of any enterprise. It begins with one central theme: the opportunity to add value to the products of the enterprise through integrated services. Identifying these new services will involve three basic steps: opportunity identification, opportunity prioritisation and opportunity planning.
Identifying Opportunities in Enterprise IoT
There may be multiple starting points in identifying the long list of new service opportunities in Enterprise IoT. These may include starting with design enhancements to existing products or implementing best practice models. It may also include responding to requests from customers. The identification process could also begin with a blank canvas, and invite ideas through more classic idea generating processes such as brainstorming, workshops, interviews, and/or analysing the range of information provided by industry analysts, market research and other innovation trends.
Whatever the approach, the same objective of producing a long list of ideas which enhance the experience of and value of the products (and services) to the customer is crucial. Ultimately, these new services look to transform the business models of many enterprises from being highly product focused to opening new opportunities to engage with customers through longer lasting service models.
Prioritizing the Long List of Ideas
Executives will be well versed in assessing the technical and commercial feasibilities of new products and services. These approaches to prioritising and narrowing the long list of ideas may include assessments of market conditions, financial evaluations, technical feasibility assessments and channel to market considerations. What may also be included in the factors prioritising the new service innovations in Enterprise IoT may be some of the following constraints:
- Readiness of the organisation to adopt the new business models, particularly longer lasting service driven engagements with customers
- Availability of skills and capabilities to design, deliver and manage the new services
- Ability to manage financial impacts on the enterprise when transforming business models
- Impact new services may have on existing partner relations, e.g. disintermediation
- Actual time to market, and alignments with changes within the business
These are few of the constraints that enterprises should also assess when prioritising the long list of ideas for Enterprise IoT, and an overarching factor in the decision-making process will also include an assessment of the ‘build or buy’ options for technical aspects of delivering Enterprise IoT.
Planning for New Service Opportunities in Enterprise IoT
One of the important features of Enterprise IoT architectures is that in comparison to previous IT and machine-to-machine (M2M) architectures, enterprise executives should look to enabling these new services through technologies which are highly scalable, agile and flexible. The process of identifying new services integrated with (single or individual) products will be a continuous one, adapting and designing new services as new applications become available and new ways of utilising the generated data is identified. Planning the design, development and implementation of Enterprise IoT will require additional dimensions to traditional product and service designs, and enabling technologies such as IoT Application platforms will form an important part in these plans.
A New Agenda Item for Executives: Enterprise IoT
Enterprise IoT is a new agenda item for executives across most industries. It drives executives to explore new business models including changes from CAPEX to OPEX models, launch new and recurring service revenue streams, and build longer lasting relationships with customers well beyond the brand name. Enterprise IoT will require executives to think even more strategically about product and service development, and avoid short term disruptions and panic actions. It will evolve supplier relationship models with additional strategic and commercial partnerships. In short, Enterprise IoT has started to change the rules of business.
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