In my previous blog, I shared our overview of the journey to managed enterprise IoT, which we divide into three levels of maturity. Here I’ll explain the first level: Enabling the use case. For each company to transform data – the world’s most valuable resource – into business outcomes, they first need to work out how data and IoT will improve the business. This could be by enhancing customer experience and improving your internal organization. Once the strategy is picked, a use case can be developed and tested with speed and agility to measure the outcome and validate its value. This is ‘enabling the use case’.
By taking advantage of data, companies can deliver a multitude of benefits by delivering IoT projects. Examples include:
- Customer Experience: Using data to understand market demands, behavior and buying trends and develop new products and services your customer’s will love to use
- Business Reinvention: Market agility with new business models, products, services and revenue streams
- Operational excellence: Gain efficiency and agility with data-driven business processes
- Trust & Compliance: Unleash the power of analytics to protect your assets
To realize these benefits, 3 key activities need to be developed:
- Strategy & Ideation(S&I): Explore market changes, customer needs, business problems, opportunities and available data to select IoT use cases that enable data insights and sustainable business value. This includes identifying the business processes, any applicable standards and users.
- Proof of Value (PoV): Execute rapid prototyping to test and prove that the use case delivers value – the best approach is a limited scope and time frame. If it holds value, you should also develop a high level architecture for the future.
- Business Case (BC): Define the BC for the next steps – including investment costs and a genuine ROI – and business model that will be used while actively looking ‘beyond the use case’ – see next blog piece.
Across each of these topics, agility and an exploratory nature are critical. We expect the use case enablement to take anywhere between 2-4 months from the initial workshop, detailed study and developing PoV with BC – if it is then rolled out as a project this could take another 6-12 months. There should be a few deliverables (non-exhaustive list):
- Strategy & Ideation: Data strategy, process scoping, value assessment, connectivity definition, high level plan for PoV and BC, management presentation.
- Proof of Value: Requirements, built and tested PoV with results, use case feasibility report, project solution architecture, management presentation.
- Business Case: Strategy map, benefits profile (with KPIs), project costing, business case, investment performance analysis, project plan, management presentation.
The first step in getting more value from your business data is to brainstorm and assess the IoT opportunities that could enable real business benefits. In starting the journey you take one step closer to delivering internal and external changes within your organization based upon the data you already have. I recommend holding a discovery workshop to identify the benefits you will enable and your next steps. Sounds pretty simple and straightforward, doesn’t it?
My customers often find that some data is more valuable than others. Out of the hundreds or thousands of data points that could be gathered, only a small handful will give the highest likelihood of accurately determining a business outcome (following an 80/20 rule). Clustering, co-occurrence and classification analysis techniques can help you to determine which data points produce the greatest value and therefore what you should focus on.
Check out my next blog where I’ll address the 2nd maturity level: ‘Beyond the use case’.
I would like to add a special thanks to Philip Griffiths (@ThePGriffiths). Philip was until recently, the strategic partner manager for the IoT practice and took the initiative to write this blog-series that you are reading now.