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Making IoT Work For Your Organization: Lessons Learned in Digital Transformation

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ABSTRACT: As the Internet of Things moves from early hype to production deployments, organizations that have historically made physical things now face significant challenges. Not only do they need to connect their products to the Internet, but also support them. Because of this, I’ve seen many IoT innovation efforts take longer than expected or flounder without clear direction. Companies learn – sometimes the hard way – that it’s one thing to talk idyllically about turning a product-centered business into a service-centered utopia, but quite another to actually make it a reality. This talk will focus on the five symptoms of IoT programs that are destined for trouble and will also provide solutions for getting back on track.

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Making IoT Work For Your Organization: Lessons Learned in Digital Transformation

  1. 1. Making IoT Work for Your Organization Lessons Learned in Digital Transformation
  2. 2. The world is turning digital
  3. 3. Analysts are predicting big things • 30 billion IoT devices in service by 2020 - IDC, 2015 • 50 percent of new business products and services with IoT elements by 2020 - Gartner, 2016 • $11 trillion of economic impact via IoT technologies by 2025 - McKinsey, 2015
  4. 4. So how are organizations responding?
  5. 5. Anticipated impact on the rise 2015 23% 2016 18% 2017 17% Low or no impact * Source: Smart Industry 2017 State of Initiative Report 2015 32% 2016 22% 2017 14% Neutral impact 2015 45% 2016 59% 2017 69% High or critical impact
  6. 6. Digital strategies are maturing ‘15 45% ‘16 28% ‘17 19% ’15 30% ‘16 32% ‘17 33% ‘15 13% ‘16 20% ‘17 21% ‘15 12% ‘16 19% ‘17 27% No strategy Informal strategy 1-2 year horizon 3+ year horizon None or informal strategy Formal strategy with timeline 76% (2015) 61% (2016) 52% (2017) 24% (2015) 39% (2016) 48% (2017) * Source: Smart Industry 2017 State of Initiative Report
  7. 7. 1. Lack of executive sponsorship 2. Organizational misalignment 3. Low cross-departmental collaboration 4. Culture that is slow to adopt change 5. Inconsistent market feedback * Source: Benson, Mark D. “Five Avoidable Complications Of Corporate IoT Innovation Programs.” Forbes (December 2016). But people still present the biggest challenges
  8. 8. Result: programs are stalling 75% of IoT projects are stalling or failing *Source: The Journey to IoT Value, Challenges, Breakthroughs, and Best Practices, Cisco, May 2017 REASONS WHY IoT PROJECTS STALL 1. Lack of collaboration between IT and BUs (54%) 2. Lack of a tech-focused culture (49%) 3. Lack of IoT expertise (48%) 60% of those projects stall in the Proof of Concept stage( )
  9. 9. Change is hard for organizations... because change is hard for people
  10. 10. Conscious Competence Learning Model UNCONSCIOUS INCOMPETENCE UNCONSCIOUS COMPETENCE CONSCIOUS INCOMPETENCE CONSCIOUS COMPETENCE Generally unaware and blissfully naive Mastery as second nature Acknowledgement of competency deficit Success via concerted effort
  11. 11. The Trickiest Parts Are The Transitions UNCONSCIOUS INCOMPETENCE UNCONSCIOUS COMPETENCE CONSCIOUS INCOMPETENCE CONSCIOUS COMPETENCE Generally unaware and blissfully naive Mastery as second nature Acknowledgement of competency deficit Success via concerted effort
  12. 12. Each of these companies has a multi-dimensional IoT leader that champions personal and organizational change from the outside in
  13. 13. IoT programs are similar to assembling a complex puzzle REQUIRES PEOPLE HAS LOTS OF DISCONNECTED PIECES DOESN’T INCLUDE DIRECTIONS
  14. 14. When solving a puzzle, there are two primary strategies INSIDE OUT OUTSIDE IN
  15. 15. IoT initiatives fail because they typically invite misalignment from the start
  16. 16. Any organization that designs a system will produce a design whose structure is a copy of the organization’s communication structure. Melvin Conway
  17. 17. IoT architectures mimic the organizations that produce them HIERARCHICAL MILITARISTIC SELF-ORGANIZED CULT-FOLLOWING LOPSIDED Legal Engineering TERRITORIAL *Adapted from Manu Cornet
  18. 18. Successful organizations view IoT as a strategic decision
  19. 19. A cohesive digital strategy ensures everyone is working toward the same outcome
  20. 20. Inverted Conway Maneuver Any organization that establishes a clear, compelling, and actionable vision will produce a set of software architectures that will be highly aligned with that vision. Mark Benson
  21. 21. Five best practices for how organizations can build a sustainable IoT competency
  22. 22. 1. Baseline current IoT competence 2. Establish a clear, compelling, and actionable IoT strategy 3. Focus on early wins targeted at reducing risk 4. Embrace the standardization and reuse of IoT elements 5. Close the knowledge gap by innovating from the outside in Best practices for building an organizational IoT competency * Source: Benson, Mark D. “Building An Organizational IoT Competency: What You Need To Know.” Forbes (April 2017).
  23. 23. The way organizations respond to the IoT trend will define their success over the coming decade
  24. 24. Thank You. Mark Benson https://twitter.com/markbenson https://www.linkedin.com/in/markbenson http://exosite.com http://markbenson.io https://twitter.com/exosite https://www.linkedin.com/company/exosite

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