The evolution of products into intelligent, connected devices is revolutionizing business. In a November 2014 article, How Smart, Connected Products Are Transforming Competition, Harvard Business School professor Michael Porter and PTC president and CEO James Heppelmann looked at how this shift is changing the structure of industries and forcing firms to rethink their strategies. In this companion article, the authors look at the effects inside firms, examining the impact that smart, connected products have on operations and organizational structure. The new capabilities and vast quantities of data that smart, connected products offer are redefining the activities of the core functions of companies—sometimes radically. As software and cloud-based operating systems become integral to products, new product-development principles emerge, manufacturing components and processes change, and IT security becomes the job of every function. Companies need different skills and expertise, which creates new imperatives for HR. In the marketing function, the ability to track a product's condition and use shifts the focus to maximizing the product’s value to the customer over time. Customer relationships become continuous and open-ended, service becomes more efficient and proactive, and new business models are enabled. The rich data on location and environment that products provide take logistics to a whole new level. Smart, connected products also alter interactions between functions, in ways that hold major implications for organizational structure. Intense, ongoing coordination becomes necessary across multiple functions, including design, operations, sales, service, and IT. Functional roles overlap and blur. Entirely new functions - unified data organizations, dev-ops, and customer success management- begin to emerge. What is under way is the most substantial change in the manufacturing firm since the Second Industrial Revolution, and the effects are spreading to other industries, like services, as well.
Information technology is revolutionizing products. Once composed solely of mechanical and electrical parts, products have become complex systems that combine hardware, sensors, data storage, microprocessors, software, and connectivity in myriad ways. These smart, connected products - made possible by vast improvements in processing power and device miniaturization and by the network benefits of ubiquitous wireless connectivity - have unleashed a new era of competition. Smart, connected products offer exponentially expanding opportunities for new functionality, far greater reliability, much higher product utilization, and capabilities that cut across and transcend traditional product boundaries. The changing nature of products is also disrupting value chains, forcing companies to rethink and retool nearly everything they do internally. Smart, connected products raise a broad set of new strategic choices for companies about how value is created and captured, how to work with traditional partners and what new partnerships will be required, and how to secure competitive advantage as the new capabilities reshape industry boundaries. For many firms, smart, connected products will force the fundamental question: What business am I in? This article provides a framework for developing strategy and achieving competitive advantage in a smart, connected world.
With new connectivity technologies unlocking opportunities along the IoT value chain, companies must create detailed plans to harness their potential.
Whether you call it the Digital Twin or hybrid twin, the concept of copying your physical assets in the digital world is sweeping the computer-aided engineering (CAE) and Internet of Things (IoT) industries. In a panel of experts at the Analysis, Simulation and Whether you call it the Digital Twin or hybrid twin, the concept of copying your physical assets in the digital world is sweeping the computer-aided engineering (CAE) and Internet of Things (IoT) industries. In a panel of experts at the Analysis, Simulation and Systems Engineering Software Summit (ASSESS) Congress, engineers debated the definition of the Digital Twin as well as the role simulation and IoT will play in its inevitable expansion.
The purpose of this article is an attempt to develop the concept of a business model dedicated to companies implementing technologies of the Industrial Internet of Things. The proposed concept has been developed to support traditional companies in the transition to the digital market. The study was based on the available literature on the impact the Industrial Internet of Things has on the economy and business models.
The concept of an open enterprise architecture that links plant floor operations with business operations across an entire corporate entity has been around for a while in many industrial sectors. But making this concept a reality remains challenging. This is particularly true for those companies that lack huge IT staffs or budgets. IIoT, with its compelling promise of accessing, aggregating, and analyzing data from previously stranded assets and systems to improve decision support and thus business performance, represents a further disruption.
The IoT is already boosting a significant amount of innovation across various industries by providing near real-time insight into rich and contextual environmental data across a wide range of complex scenarios, such as the industrial internet, smart homes and cities, energy management, agriculture, intelligent transport systems, connected health and smart retail. To identify the essential building blocks of IoT architecture, it’s helpful to review the IoT reference architectures that have been created by several bodies and industry consortia.
IIoT and Smart manufacturing – a twin-movement of digitalization: The Industrial Internet of Things (IIoT) and smart manufacturing are two parallel developments driven by the same core technology advances – the ubiquitous connectedness and widespread computation – that drive and are driven by the internet, and the seamless information sharing and optimal decision-making they enable.
The Internet of Things (IoT) requires strong executive sponsorship, but the will of the organization isn’t sufficient to make IoT a reality. Gartner analyst says.
The Internet of Things (IoT) has been a long time coming, but as with so many software and cloud-driven markets today, the curve from hand-waving to pervasive adoption is set to be remarkably steep. Network-driven markets increasingly tend to be pretty close to winner takes all (think Google in Search, Apple in phones, Facebook in social, Snapchat in dogear-driven Augmented Reality) which makes timing and effective, community-driven execution all the more important. Which brings us to IBM. Wait. What? IBM? OK bear with me here.
The technologies and principles of IoT will have a very broad impact on organizations, affecting business strategy, risk management and technical areas such as architecture and network design.
Kris Bledowski: ndustrie 4.0 and the Industrial Internet do not compete against one another—they are complementary. The two approaches occupy the same real estate of technology and they share some members. What unites them is the excitement about the future of the Internet of Things.
The Industrial Internet is important. New technologies and new business opportunities will disrupt industries on many levels. That much everybody seems to agree upon. Two organizations have dominated the headlines in this space: the Plattform Industrie 4.0, with its strong roots in the manufacturing industry, and the Industrial Internet Consortium (IIC), with its more cross-domain oriented approach.
Representatives of Plattform Industrie 4.0 and the Industrial Internet Consortium met in Zurich, Switzerland to explore the potential alignment of their two architecture efforts - respectively, the Reference Architecture Model for Industrie 4.0 (RAMI4.0) and the Industrial Internet Reference Architecture (IIRA). The meeting was a success, with a common recognition of the complementary nature of the two models, an initial draft mapping showing the direct relationships between elements of the models, and a clear roadmap to ensure future interoperability. Additional possible topics included collaboration in the areas of IIC Testbeds and I4.0 Test Facility Infrastructures, as well as standardization, architectures & business outcomes in the Industrial Internet.
As industry begins to better understand the Internet of Things, there remains some confusion about the role of industry organizations supporting the concept and how they relate to each other.
The Internet of Things (IoT) is predicted to become one of the most significant drivers of growth in various technology markets. Most current standardization activities are confined to very specific verticals and represent islands of disjointed and often redundant development. The architectural framework defined in this standard will promote cross-domain interaction, aid system interoperability and functional compatibility, and further fuel the growth of the IoT market. The adoption of a unified approach to the development of IoT systems will reduce industry fragmentation and create a critical mass of multi-stakeholder activities around the world.This standard defines an architectural framework for the Internet of Things (IoT), including descriptions of various IoT domains, definitions of IoT domain abstractions, and identification of commonalities between different IoT domains. The architectural framework for IoT provides a reference model that defines relationships among various IoT verticals (e.g., transportation, healthcare, etc.) and common architecture elements. It also provides a blueprint for data abstraction and the quality "quadruple" trust that includes protection, security, privacy, and safety." Furthermore, this standard provides a reference architecture that builds upon the reference model. The reference architecture covers the definition of basic architectural building blocks and their ability to be integrated into multi-tiered systems. The reference architecture also addresses how to document and, if strived for, mitigate architecture divergence. This standard leverages existing applicable standards and identifies planned or ongoing projects with a similar or overlapping scope.
Kobler, Yoo, Cassagnes, Framling, Kiritsis, Skilton: In traditional product companies, creating value meant identifying enduring customer needs and manufacturing well-engineered solutions. Two hundred and fifty years after the start of the Industrial Revolution, this pattern of activity plays out every day, especially in a connected world where products are no longer one-and-done. Making money is not anymore limited to physical product sales and other revenue streams become possible after the initial product sale, which are service-based information and knowledge in today's IoT (including subscriptions and apps, new analytics for cognitive capabilities...). While information and knowledge are the new oil of the IoT era, it nonetheless remains challenging to perceive and extract the real value of those assets, as information is not as tangible and concrete as physical assets. In this respect, this paper introduces the major laws of information and discusses how these laws can be leveraged to their full extend thanks to the IoT possibilities. Further, the paper discusses the key challenges that remain to be addressed in today's IoT to concretize such laws. Finally, a set of real-life business use cases identified by the Open Platform 3.0 Forum (Open Group) are presented from the information law perspectives.
McKinsey & Company: The rate of adoption is accelerating. Here are six things you need to know. As the Internet of Things (IoT) has gained popular attention in the five years since we first published on the topic, it has also beguiled executives. When physical assets equipped with sensors give an information system the ability to capture, communicate, and process data - and even, in a sense, to collaborate - they create game-changing opportunities: production efficiency, distribution, and innovation all stand to benefit immensely. While the consumer adoption of fitness bands and connected household appliances might generate more media buzz, the potential for business usage is much greater. Research from the McKinsey Global Institute suggests that the operational efficiencies and greater market reach IoT affords will create substantial value in many industries.
Ciso IoT website. The Internet of Things Is Here. The Internet of Things (IoT) is increasing the connectedness of people and things on a scale that once was unimaginable. Connected devices outnumber the world's population by 1.5 to 1.
Postscapes: Considering how much we use the Internet of Things term we thought it would be helpful to look at how it got started and who were some of the important people and projects that helped move it from its first glimpses into today's trending topic.
As much as 90 percent of all data generated by devices such as smartphones, tablets, connected vehicles and appliances is never analyzed or acted on. Learn how you can derive deep business insight from the Internet of Things (IoT)-- an integrated fabric of devices, data, connections, processes, and people - with IBM.
Collection of IoT examples, collected by Postscapes.
Postscapes lists IoT software.
O'Reilly Radar offers insight, analysis and research about emerging technologies, here the internet of things.
The IPSO Alliance is an open, informal and thought-leading association of like-minded organizations and individuals that promote the value of using the Internet Protocol for the networking of Smart Objects.