Why some IIoT initiatives don’t deliver expected business value
IoT and “digital transformation” efforts often fail. But is is not from lack of trying. In fact, companies that are working toward Digital Transformation are doing so with a zeal and eye towards performance results that haven’t been seen in the industry for decades. So why, despite all the efforts, technology initiatives intended to support operational objectives still fail to deliver the anticipated business value? LNS Research identified the most common causes of unsuccessful IIoT initiatives, and how to overcome them:
Implementation projects taking too long
IIoT projects differ from traditional IT projects in a certain way: They are more complex, have longer-term horizons and even require connection of new business areas than usual. Moreover, resistance to change and outdated existing organisational processes can be a major hurdles in getting a projects started let alone completed. It is important that all relevant stakeholder have buy-in before a project begins and that you identify and define the successes that IoT solutions can bring and its further potential. Implementation requires careful planning to ensure timely and successful adoption.
Software selection process resulting in split or no decision
An IoT platform is the heart of your entire IoT solution. Therefore choosing the software is one of the most essential decisions to be made through the project. A cross-functional team from information technology (IT) and operations technology (OT), IT security, production, logistics and finance may add to decision making time being extended beyond anticipation or, even worse, can lead to no consensus being reached at all. The stakes are high, particularly for companies that depend on IoT technology for growth, funding, and legitimacy. The best defense against failure is a thorough review of what IoT has done for your industry already, and selecting the verticals and functionality where it can make the most difference.
For hard-pressed C-suite executives it can be difficult to imagine the future possibilities created by IoT as only 32% of business leaders were taking any steps toward IoT connectivity. If your executive team requires convincing before investing in IoT, you could teach them about IoT and demonstrate how it’s transforming the industries. You could also highlight potential consequences of missing out and more importantly, build a solid IoT proposal.
Low levels of user adoption
User adoption doesn’t really depend on the IoT platform. It depends on end users. If the perceptions of usefulness for your IIoT solution and ease of use don’t match the reality, your initiative fails. To improve technology adoption and usage, you first need to understand the way the technology is going to be used.
Attempting to build a solution before first designing a scalable, stable, and harmonised architecture.
LNS survey data shows, digital transformation efforts failure most often results from attempting to build a solution before first designing a scalable, stable, and harmonized architecture. Because digitalisation is most commonly a strategic endeavor that crosses typical organisation and technology silos, success takes a team and a leader who may not wear an IT hat but can bring together multiple viewpoints and experiences to form a coherent strategy. Digitalisation is also almost always approached from a sense of already being behind. Companies sense that disruption is just around the corner, and action must be taken today, or risk being at a competitive disadvantage tomorrow. For both reasons, almost every industrial company today is struggling to build an Operational Architecture that spans silos and receives consensus prior to making granular technology decisions.
£100k’s spent with little or no return
A research carried out by Cisco, found that only 15% of companies that adopted IoT felt that they were getting value out of their project. That means 85% of companies don’t get any value out of their IoT projects at all. The price of hardware, access to the data and software licensing can quickly add up and if the project is not bringing anticipated results someones head is on the line. Choosing the right IoT solution provider can often make or break your IIoT project. The right partner can guide you through the process and ultimately save you a lot of money and stress.If your company requires some help navigating the IoT supplier market, then why not consider a meeting InVMA and joining us for an Innovation Sprint where we’ll explore how the new world of connectivity could work for you and your organisation.
Planning for a successful IoT project
IoT projects can be daunting prospects. The IoT is by nature complex and dynamic. Once your organisation has committed to developing an IoT strategy, it has to accept the reality of a vastly increased number of devices on its network, ever-changing user bases and ever-moving endpoints, and, crucially, a much, much larger volume of data to process than ever before.
Unfortunately, in many cases, the problems start long before the project has got off the ground. IoT strategies are complex to implement, and a high proportion of them fail before completion. This is costly, can impact on operational efficiency and drag down morale. How, then, can you plan for a successful IoT project? Rea the Insight Guide to find out 7 key areas to consider when pnallning an IoT project:
- Ensuring accountability
- Evaluating vendors
- Understanding failure
- Network capability
- Handling data
- Looking to the future