5 Steps to define your Industrial Internet of Things (IIoT) Strategy
Anyone in manufacturing following the industry 4.0 movement knows two things. First, digital transformation has had a tremendous impact on the industry and will continue to shape its future. The second is that reports of a fourth industrial revolution have been (so far) greatly exaggerated. IIOT projects keep failing at a higher than expected rate for one reason or another.
A quick Google search will return thousands of articles about why these projects fail. These articles often focus on the symptoms rather than the root cause: the lack of a clear IIOT strategy in most organizations. Instead of building an intentional IIoT strategy that will support business growth, organizations implement haphazard tactics without much planning.
If this sounds familiar, then this article is for you. Here are five steps to help you define your IIoT strategy.
1) Start at the end
Start with a vision. Where do you want to go, and why? Don't be afraid to be aspirational here. Dedicate a few hours each week to think big and find the purpose of your digital transformation journey, and don't let anything interrupt you this time. Don't worry about what is and isn't possible. At this point, be blissfully unaware of the opportunities and constraints of your transformation. You should be in a wishful, big-thinking state of mind.
Make sure to involve your colleagues in these sessions, too. Getting cross-functional input from others will give you greater insight into your organization's needs. This will result in a well-defined business case, and a much clearer vision of what success looks like.
2) Reality check
Once you've defined your vision, it's time to come back to reality and go to work. Look at your organization and determine how it can deliver on your vision. You'll need to build a business case to show the effort will be worth it. Qualify your ideas by showing your plans' impact on the organization and the effort required to implement them. To do this effectively, you'll need to perform a thorough analysis that encompasses business, technology, and people. Here are a few suggestions to help you get started.
On the business, side determine which improvements will give you the best return on investment (ROI): is it performance, availability, or quality? For technology, start by reviewing the systems you currently use (such as MES, SCADA, ERP) and consider if and how to integrate them into a full-stack IIoT solution. From an organizational standpoint, evaluate how these initiatives will impact each department and include them in these conversations. Involving departments in the process will go a long way in getting their buy-in on any potential changes.
Hosting ideation workshops can help bring your vision to reality. Invite all relevant stakeholders to these workshops. Consider hiring an external facilitator to walk everyone through the sessions.
3) Have a plan…
Organizations seem to have two main approaches to IIoT. The first is the "spray and pray" way. This consists of running a gazillion initiatives at the same time. These initiatives don't relate to each other and don't quite align with the company's strategy. The second is the eternal search for the "silver bullet": the one initiative or application that will solve all the problems.
The best approach to IIoT is somewhere in the middle. Running multiple initiatives can work as long as they support your plan and you don't do everything simultaneously. Searching for a killer "silver bullet" application is also worthwhile, provided your search doesn't become an all-consuming obsession. Always balance the promises of the solution with what your organization can realistically deliver.
Don't ever underestimate the power of a deadline. A deadline is essential to keeping the organization focused on its digital transformation strategy. Putting a timeline on a dream transforms it into a goal. Deadlines also create momentum by defining milestones and motivating stakeholders.
4) … that works!
While every organization is different, three essential ingredients will turn your plans into reality:
• Clear governance: Use a RACI (Responsible, Accountable, Consulted, and Informed) matrix clearly defining who shall do what on each one of the activities of your project.
• Senior leadership sponsorship: Create a Digital Transformation Steering Committee with board administration sponsorship and representation.
• Choosing the right technology partner(s): Use experienced partners to provide turnkey projects. Remember, the entire technology stack is extensive. You always run the risk of having scope gaps in your project, and those risks will only multiply if you use several vendors.
5) Review, Improve, Repeat
Your project’s not over yet. It’s never over! Each milestone you complete on your journey should give you lessons learned and best practices. Please don’t ignore them. Study and learn from them. Each milestone is gold and your best ally to make the most of your digital transformation.
