BSIF Frequently Asked Questions
Industrial Internet of Things (IIoT) is set to transform business models in all markets by connecting devices and data sources in new and innovative ways:
- enabling new business models and revenue streams,
- extending the overall business model and market approach with customers to incorporate new value-generating elements,
- providing a basis for unifying disparate internal organizational elements, processes and information,
- enhancing the development and production of goods and services and
- increasing the variety of avenues for enhancing customer value and experience.
The competitive landscape is changing in ways which have yet to become completely clear. Collaboration and mastery of new skills, such as those within IIoT, will be essential to business success. An organized, disciplined approach to moving forward with IIoT is essential to that success. The BSIF offers this approach with guidance and best practices derived from industry experts within the Industry IoT Consortium membership.
While similar to SI projects, IIoT projects differ mainly with the following characteristics:
- Market context, where IIoT projects can be far more transformative in nature.
- IIoT strategy, where the opportunities for IIoT solutions are almost limitless, and there are many uncertainties that must be managed.
- IIoT business model innovation, where the concept of 'value-networks' implies the engagement of multiple stakeholders.
- IIoT foundational capabilities, including the development of an IIoT Centre of Excellence to identify and apply best practices and also IIoT platform capabilities.
- Businesses need to define their IIoT strategy and goals. Doing so will determine how quickly they need to move and how they balance the risks associated with market leadership against the risks for followers and late adopters. That said, no single enterprise will possess the full range of skills required to address the challenges associated with IIoT. As a result, effective IIoT strategies will necessarily involve some degree of participation in alliances and business partnerships.
- Businesses need a structured framework to target and select the right IIoT opportunities and to manage their portfolio of IIoT opportunities on an ongoing basis.
- Businesses need to develop appropriate in-house supporting capabilities to support their adoption of IIoT concepts, technologies and solutions.
The IIoT enables enterprises to rethink their current business models, and optimize for customer needs. Many industries are moving toward IIoT adoption, and enterprises that keep pace with this trend will undoubtedly have a strong competitive advantage compared with slower moving competitors.
In operational terms, connection and integration of factory-floor elements yields production efficiencies. Timely, enhanced decision-making at all levels of production lays the foundation for improvements in the broader production process. In the longer term, IIoT opens the door to greater integration between organizational, system, process and data elements. This will have an impact across the entire enterprise, from the factory floor to the overall IT infrastructure and extending through to the customer experience. Business models must consider this end-to-end impact.
The BSIF is a collaboration of members of the Industry IoT Consortium. Contributors dedicated their valuable time and expertise in authoring, editing and other ways. In particular, the following Industry IoT Consortium members led the development, authoring and publishing of this document:
- Veronika Brandt - Bosch Software Innovations
- Ken Figueredo - InterDigital, Inc.
- Steve Haldeman - Hewlett Packard Enterprise
- Jim Morrish - Machina Research