Enterprises need to undertake business transformation through the Internet of Things (IoT) in three stages of maturity to increase the value from their investments, according to a missive from HCL Technologies.
The IoT maturity framework, which can be found in MIT Sloan Management Review, has as its first level of maturity increased process efficiency using IoT-enabled data, building new revenue streams as stage two, and business transformation leveraging IoT data-led insights as stage three.
The framework comes off the back of a study released by HCL which found almost half of 250 survey respondents – who had been subjected to a ‘rigorous multi-level screening process’ to ensure they were serious about the IoT – feared an uncoordinated and siloed approach was keeping their organisation from progressing beyond a pilot stage.
As this reporter found out when speaking to Sukamal Banerjee, HCL’s CVP and head of IoT WoRKS – the company’s arm for emerging technologies – at Mobile World Congress, generating the ‘snowball effect’ of one process following another can only go so far. “At the process level, it is definitely the snowball effect, and yes it keeps accelerating,” he said.
“At the end of the day, we also have to understand [that] we’re not just trying to do the same things better. We’re also trying to question some of the things…if you think about how you can change business models, those kind of things I don’t think can be left to the snowball effect.”
“Realising value through the Internet of Things may begin with simple goals, but it can catapult a business towards new horizons,” said Stephanie Woerner, research scientist for MIT Sloan Center for Information Systems Research. “Full IoT maturity depends on cross-organisational commitment to identify new revenue sources, spurring innovation, investing in supporting technology and nurturing relevant skills.
“The level of commitment to completing the journey depends on organisations’ willingness to translate threats into opportunity by finding new sources of revenue in the face of changing industry trends, turning to innovation, investing in partnerships or acquisitions in case there is lack of capabilities in any specific area, and finally ensuring organisational readiness,” added Woerner.
Read more: HCL’s Sukamal Banerjee: On disrupting power centres and snowball effects in IoT
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