What is IoT transformation? How do you make it work?  5 top tips to get it right first time.

March 1, 2020 By 0 Comments

What is IoT transformation and how do you make it work?  5 top tips to get it right first time.

Introduction

What is IoT transformation?  When the term ‘Internet of things’ was first coined in 1999, no-one could have known its true potential. IoT can and does fundamentally change how we do business.  In 20 years, the number of IoT devices has exploded. There are now an estimated 8.4 billion devices deployed. To put his in to context that is 1.3 devices per person on the planet. This is expected to increase to 20.4 billion or 2.9 devices per person on the planet next year!

IoT is now adopted in nearly 30% of companies, 70% of companies consider the adoption of IoT a strategic imperative. Technology changes every 3 months. The latest change will be the deployment of 5G across the country this year.

https://www.telegraph.co.uk/business/future-technologies/internet-of-things/

So, if you have not heard of IoT transformation read on to understand

What is IoT transformation and how do you make it work?  5 top tips to get it right first time.

  1. What is IoT transformation?  Proof of concept or Strategic Growth Initiative?

Most organisations start their IoT journey with an IoT proof of concept (PoC).  These PoC’s inevitably fail because:

  1. There is more than one vendor involved. Each one is battling other trying to impress instead of collaborating to help their client.
  2. Silo mentality exists within the organisation. This leads to single unit or site adoptions sub-optimising a compelling business case for widescale adoption.
  3. Not deploying “IoT holistically”. Deploying machine learning in one area and robotic process automation in another. Working in isolation and sub optimising the opportunity.

IoT can be truly transformational delivering significant and sustained bottom line growth.  Organisations that succeed with IoT transformation understand the transformational business case that underpins the work in detail. They understand how extreme collaboration. Where the sum of the parts is greater than whole. Companies who are prepared to invest heavily in their teams and technology will make it work.

Is this you? or are you still running proof of concepts?

  1. Why are you still trying to use lean six sigma?

In 2000 Lean Six Sigma was a highly expensive commodity.  Trumpeted by GE as the enabler that saw their share price rocket from $5 to $50 in 10 years.

Process improvement was the answer to all problems. 12 month statistical driven Lean Six Sigma projects were the norm. As time passed, the Six Sigma skill base became diluted as more people sought to earn their “black belt”.

Projects became smaller and less important. The pace of change became quicker and companies like Uber burst on to the scene.  Just as quickly as the share price grew, the GE share price collapsed back to its starting point. Strangely, the collapse of the share price did not mean a collapse in the belief in Lean Six Sigma.

We are in an age of IoT transformation. In a technology landscape where almost anything can be replaced with hardware or software. Where customer needs change daily and technology changes quicker. Why are these old and dated Lean Six Sigma skills still so sought after? Why are you still trying to use lean six sigma?

  1. You must be emotionally resilient

What on earth does that mean? IoT transformation demands extreme collaboration and the ability to cope with almost hourly changes.  Understanding emotional resilience helps you recognise how you create obstacles to change with your thoughts. Recognise how your thinking creates, and sometimes even perpetuates, challenges and difficulties that you experience.

In times of high stress where extreme collaboration is needed, people need to have courage, tenacity and perseverance.

Improving your emotional resilience will enhance your relationships and increase your ability to make decisions. Improving your emotional resilience will improve your relationships. When you are able to effectively manage the human emotions of change you can stop those emotions managing you. This can be an amazing benefit in your professional life. The benefits of emotional resilience can be applied to personal relationships outside of the work environment.

  1. Which part of the business are we working on?

Going back to our first 2 tips. Running IoT Proof of Concepts with Six Sigma black belts is comparable to launching a spacecraft with a trebuchet.

IoT transformation demands a transformative business case. You must think big or at least differently, preferably both!  Think about business model transformation. Consider the transformative change that keeps your competitors 5 steps behind you and incapable of catching up.

That is not to say you must drop an IoT nuclear bomb on the business.  You can of course deliver the change in parts. You must know that “The whole is greater than the sum of its parts.”  Once the entire business understands and can articulate the transformative effect of IoT transformation, then it is okay to ask, “which part of the business are we working on”?

  1. Which bit of IoT are we using?

Trying to deliver IoT transformation without all the complimentary technology is comparable to performing open heart surgery with just the surgeon.

The Operation is going to be agonising and frightening, you will be screaming all the way wondering why this is happening and at the end there is less than a 10% percent chance of success.

The whole team must be committed and focussed on the heart if the operation is to be succesful. Not one team member focussed on the spleen and another on the kidneys.

The right equipment must be available. You need the right experience in the room to support the surgeon. So never ask, which bit of IoT are we using?

Conclusion

In short, only undertake IoT transformation when you know there is a strategic imperative. Be clear on the financial justification for business wide adoption of the solution. Don’t sub optimise your change and don’t run proof of concepts. Show commitment to the transformative capabilities of IoT.

Ensure you have relevant skills to deliver the change, if not find the right partner to help you build the right skills. Commit to support the teams throughout the transformation.

Finally, instead of thinking of cost savings IoT can deliver for you try thinking about the new revenue streams that are within your reach and how you may retain the right teams to realise those new revenues.

If you would like to know more  contact us at info@globaliotsolutions.co.uk