Internet Of Things Is Not About Chasing The Cool Factor
by Pushp Kumar Dutt on January 2, 2019
In 2018, many organizations started with their Internet of things (IoT) journey with high hopes, only to end up and felt down with disappointing results.
It was recently estimated by Gartner -- the world's leading research and advisory company -- that 80 percent of IoT implementation through 2018 are likely to squander transformational opportunities. A recent survey by Cisco revealed that as much as one-third of all completed Internet of things projects were not considered a success.
Interestingly, organizations that were hugely successful were the ones that actually changed their traditional business approaches in one or more of the undermentioned ways:
Developed Partner Ecosystems
There is no denying the fact that the very essence of the Internet of Things is interconnectivity. This is more than mere connections between machines and devices -- it is about the connections about partners, customers, and suppliers.
It is worthwhile to note here that the Internet of Things today is driving a paradigm shift in business structures across the world, from a one-company-does-it-all model to a smarter let us work together approach. In other words, it means that organizations must be open to moving ahead of the obsolete and redundant models of proprietary systems and rigid processes & functionalities.
They must also move toward innovative and futuristic models that embrace flexible, open, and customizable structures in which partners within the framework of a network help each other in solving business problems together. The truth is -- this collaborative approach is no more an option. It is simply due to the fact that no organization that deploys its own line of products and services can ever capture the true and complete value of the Internet of Things by itself. Moreover, the speed and accuracy required to complement the IoT value in today's tech-savvy will be missing if it decides to go all alone.
Updated Talent Management Strategies
It could not be put any better. The Internet of Things continuously requires new technical skills, which range from system architecture to data science. Similarly, there is a continuous requirement for technological expertise and people possessing those skills for collaborating across groups outside and inside of the four walls of the enterprise.
There are a lot of strategies that can be brought into force, according to the specific environment and requirements of an organization. The first step is all about training employees in critical skills associated with the Internet of Things and not just processes and technologies, but collaboration too. Secondly, a culture promoting innovation must be nourished and maintained across all functions, grades, and regions.
Business owners, managers, and decision makers have to empower, incentivize, and encourage employees to think and act beyond the "usual" to have a feel of being independent entrepreneurs at a startup.
Emphasized on the business challenge, not technology
There is no denying the fact the Internet of Things is an extremely cool technology. No doubts about it but chasing the cool factor may result in compromised returns on investment. Let us understand this with the help of an example. A U.S. city decided to proceed with the installation of a state-of-the-art infiltration and inflow system in the manholes -- it appeared cool. But the city failed to identify and derive the promised benefits. Wondering why? This new system was not aligned with the existing processes above the ground. Street sweepers continued to perform their routine operations like always and the inflow holes were clogged with dirt and leaves. Not so cool, right?
Now let us take the example of the iconic Harley-Davidson motorcycle company. The core market of this American company was aging and global competition was on an all-time high. It had to respond quickly, smartly, and thoughtfully while making its operations efficient at the same time.
So, it decided to assemble people from both operations and Information technology and a unified team was created. Multiple systems were integrated to perform in synchronization and data islands were created along with a fully-functional IoT-enabled plant.
This allowed Harley-Davidson to dramatically reduce a fixed production schedule of 21 days for new orders to just six hours. From 21 hours to 6 hours, you read that absolutely right! It also allowed the motorcycle company to improve production efficiencies, minimize operating costs by $200 million and cut down on downtime. In short, Harley-Davidson was able to respond far more efficiently and quickly to customer desires.
Ultimately, the Internet of Things holds great promise and potential for digital transformation. It has the unique ability to supercharge businesses of all verticals across different industries to better serve stakeholders and customers.
Find out how NetObjex can guide you with the Internet of Things in your business’s digital transformation journey. Call us at 1 (855)-928-2283 now.
By Pushp Kumar Dutt on January 2, 2019