Category

Internet of Things (IoT)

Metamorphosis of Narcissus (Salvador Dali, 1937)

Digital Transformation and the Internet of Things

By Internet of Things (IoT), IT Strategy, PLM No Comments

The Internet of Things Enables Digital Transformation

I recently returned from a trip to Munich, Germany where I spoke at the Product Innovation Congress. In additional to the usual product innovation, PDM and PLM topics, this year’s Congress highlighted technologies, business strategies and use cases that use the Internet of Things (IoT) as a means to create a digital thread of product information to support product creation and service strategies.

As you might expect, a discussion on IoT and, in fact, any technology to drive enterprise digital transformation can generate a frustratingly wide range of definitions and, consequently, vague characterization of its benefits and economic justification.

During a panel discussion, I suggested that digital transformation isn’t simply a matter of establishing a new IoT-centric enterprise architecture. Rather, I maintain that we should look at the impact of the information and the digital thread enabled by the IoT in the context of organizational operations and decision making processes. Here is the approach I propose. You can use this to identify opportunities and assess potential value in a way akin to a maturity model. Read More

Connected Cars – Mid-Year Reality Check

By Automotive, Internet of Things (IoT) No Comments

In the beginning of this year I wrote an article in which I offered a brief assessment of connected and autonomous car technology, and the industry readiness to deploy them commercially. In the article, I suggested that although experimental self-driving cars are already cruising along California’s highways, it’s highly unlikely that self-driving cars will be roaming our streets for at least another 5 years. I expect that by 2020 we will see low speed self-driving cars or people-moving pods in limited-use applications such as company campuses, airport transfer services and retirement communities. Establishing dedicated paths and highway lanes for autonomous vehicles, as proposed, for example, in Germany, will accelerate the adoption and utilization of driverless cars.

Despite overly hyped headlines about artificial intelligence and machine learning software to navigate and control accident free vehicles, and, at the same time, actual impressive accomplishments of self-driving cars from Delphi, Waymo (Google) and others, the issue isn’t entirely a matter of algorithmic wizardry and technology maturity.

As we are getting ready to hand over some driving responsibility to our cars and learn to rely on advanced driver assistance systems (ADAS) technologies, new questions and concerns arise about the ability of automakers to equip vehicle control systems with the ability to make ethical decisions, and the willingness of society to accept the outcomes of such decisions.

The TU-Automotive Detroit 2016 event in June will be a great mid-year opportunity to assess the state of connected car technologies (and consumers’ appetite to adopt them).  Expect to hear a mix of breathless statements about robotic cars, realistic assessments of technology and regulatory work in the works, and new mobility and transportation business models threatening to disrupt a century old status quo. And all of these will be shadowed by growing concerns about communication security and data privacy, and equally hyped car hacking stories.

See you in Detroit in June!

ROI: Show Me The Money

Show Me The Money!

By Business Strategy, Internet of Things (IoT) One Comment

The famous “Show me the money” catchphrase from the movie Jerry McGuire today is more than a clever quip. Thanks to regulations and increasingly vigilant executive management and boards of directors, corporate management is no longer satisfied with vague promises. It wants to see the actual economic return on their investment.

A client recently said to me: ”if the ROI of a new IT project is longer than 13 months it’s most likely going to be rejected.” It’s unclear where the 13-month figure came from, but the a detailed—and frequently unrealistic—return on investment (ROI) model is a prerequisite for almost any significant investment in IT project.

Generating an accurate and, at the same time, credible, ROI analysis is often difficult. If the ROI period is too conservative, management will not consider not attractive enough. If it is viewed as too rosy, it will not be believable and you will be sent back to the drawing board, or, if approved, you are running the risk of not meeting your plan.

The ROI Dilemma

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India

The Internet of Things: A Lifeline for Indian IT Services Companies?

By Internet of Things (IoT) 4 Comments

Life hasn’t been easy lately for Indian IT services companies. At least for some.

To begin with, the long reigning hegemony of India’s three largest software firms: Tata Consultancy Services (TCS), Infosys and Wipro is being challenged. As reported by the International Business Times Cognizant Technology Solutions did more business in calendar year 2015 than all three put together.

If you read carefully the financial reports of Indian IT services and business process outsourcing (BPO) companies, you notice that while the general revenue trend is still pointing upwards, the growth pace has been gradually slowing down for a number of years. And while some sectors, most notably financial services, are still strong, the growth in other IT and BPO segments is showing signs they may no longer be the cash cows of yesteryears.

Over the last couple of years, I’ve been voicing my concern to some of my Indian friends that the immensely successful business model of the past may not last forever.

In a way, it is the companies own doing. Read More

Crystal Ball Predictions

Three Industrial Internet of Things Questions

By Internet of Things (IoT), Manufacturing 3 Comments

Three Industrial Internet of Things Questions for 2016

Q: The Industrial IoT. Are we finally past the hype?

Not even close. Still too much talk about billions of connected devices, although it’s not always clear what they are connected to and for what purpose. Certainly interesting IIoT implementation stories will continue to make headlines, but when scrutinized closely, most will be one-off M2M implementations: single-purpose applications that take effort to build and are difficult to scale and reuse.

Q: What’s needed to improve the maturity of the Industrial IoT space?

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