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The Organizational Psychology of the Internet of Things: How to Use Technology to Drive Behavioral Change

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ABSTRACT: Smart connected products will redefine entire markets and the very nature of competition over the coming decade. Organizations attempting to build smart connected products across divisions, product portfolios, and markets are being faced with a stark reality: creating IoT projects are hard and building a long-term organizational competency around doing IoT projects with excellence is even harder. Based on real-world experience, this presentation covers five key behaviors that successful organizations exhibit along their digital transformation journey as they employ IoT technology solutions to drive behavioral change.

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The Organizational Psychology of the Internet of Things: How to Use Technology to Drive Behavioral Change

  1. 1. The Organizational Psychology of the Internet of Things How to Use Technology to Drive Behavioral Change
  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 * Benson, Mark D. “Five Avoidable Complications Of Corporate IoT Innovation Programs.” Forbes (December 2016). But people still present the biggest challenges
  8. 8. Getting an IoT product market ready is tough. Organizational change and alignment is tougher.
  9. 9. IoT projects are similar to assembling a complex puzzle REQUIRES PEOPLE HAS LOTS OF DISCONNECTED PIECES DOESN’T INCLUDE DIRECTIONS
  10. 10. When solving a puzzle, there are two primary strategies INSIDE OUT OUTSIDE IN
  11. 11. IoT initiatives fail because they typically invite misalignment from the start.
  12. 12. Any organization that designs a system will produce a design whose structure is a copy of the organization’s communication structure. Melvin Conway
  13. 13. Systems mimic the organizations that produce them HIERARCHICAL MILITARISTIC SELF-ORGANIZED CULT-FOLLOWING LOPSIDED Legal Engineering TERRITORIAL *Adapted from Manu Cornet
  14. 14. User Experience, Sales, and Marketing Information Technology Systems Engineering Embedded Engineering Service and Support Your Web-based Administration Your MobileApp Your Corporate Data Archive Your Gateway Solution Your Connected Sensors Your Connected Product Your Monitoring Service DEVICE COMMUNICATION USERINTERFACE Your Application Servers Your Data Mining &AnalysisEfforts INFRASTRUCTURE MANAGEMENT + Your Security Identification Process Your Device Provisioning Process Your Device Management & Support Tools INFRASTRUCTURE + Your BLE Connectivity Your Cellular Uplink 72 $ $ $ $ $ $ $ $ Rigid organizational structures… produce IoT systems… that are fragmented, brittle, and susceptible to failure
  15. 15. Successful organizations view IoT as a strategic decision
  16. 16. Resulting in a cohesive digital strategy that ensures everyone is working toward the same outcome.
  17. 17. Inverted Conway Maneuver Design a system that models the way in which your future organization should communicate and behave Mark Benson
  18. 18. “All things are difficult before they are easy.” - Thomas Fuller, 17th century English historian and churchman
  19. 19. 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
  20. 20. 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
  21. 21. These companies all innovate from the outside in
  22. 22. Five best practices for how organizations can build a sustainable IoT competency
  23. 23. 1. Have a baseline current IoT competence in the areas of digital innovation, technology maturity, business model clarity and market readiness. Best Practices for Building an Organizational IoT Competency * Benson, Mark D. “Building An Organizational IoT Competency: What You Need To Know.” Forbes (April 2017).
  24. 24. 2. Develop and communicate a clear, compelling, actionable IoT strategy across the organization that includes executive support, funding from the top and a mandate for cross-departmental collaboration. Best Practices for Building an Organizational IoT Competency * Benson, Mark D. “Building An Organizational IoT Competency: What You Need To Know.” Forbes (April 2017).
  25. 25. 3. Start small with early wins targeted at reducing business risk while addressing pressing questions early. Best Practices for Building an Organizational IoT Competency * Benson, Mark D. “Building An Organizational IoT Competency: What You Need To Know.” Forbes (April 2017).
  26. 26. 4. Look for opportunities to standardize and reuse common components across divisions and projects. Best Practices for Building an Organizational IoT Competency * Benson, Mark D. “Building An Organizational IoT Competency: What You Need To Know.” Forbes (April 2017).
  27. 27. 5. Close the knowledge gap by building the organization from the outside in. Start with external help and, simultaneously, develop and grow internal core IoT competencies over time. Best Practices for Building an Organizational IoT Competency * Benson, Mark D. “Building An Organizational IoT Competency: What You Need To Know.” Forbes (April 2017).
  28. 28. The way organizations respond to the IoT trend will define their success for the coming decade
  29. 29. 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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