In our previous blog, we established that organizations are tired of hearing what the Internet of Things is; instead they want to know how to do it.
My colleague, Wolfgang Beeck, pointed out that the technology is not the place to start.
As mentioned, there are two steps to be completed before you even think about the technology: 1) gaining a clear understanding of what business goal you want to achieve and 2) making sure everyone – from IT to business - is 100% behind the project and has clearly defined ownership.
Then, and only then, can you begin to get to grips with the necessary technology, working with an experienced provider and not choosing an out-of-the-box solution.
Here are the secrets to planning and executing winning IoT initiatives:
1. First, you will need to determine how you can improve your underlying business processes based on IoT. How does it support operational excellence? It’s all a question of planning and setting up an IoT strategy.
2. Best-of-breed IoT projects are not necessarily the ones with the best technical infrastructure, rather they are the ones that are the best planned and continuously controlled.
- Set clear goals, define related initiatives, assess involved processes, departments and stakeholders, and set KPIs.
- For this use strategic planning methods such as Balanced Scorecard or Business Model Canvas® to define your strategic roadmap and sets the goals of your IoT strategy implementation, for example, to increase efficiency by 15% or improve quality to reduce the number of errors.
3. Determine the IoT processes supporting the project; meaning a combination of your business processes with the technical IoT design.
- In Software AG’s ARIS, process experts can take a closer look at the relevant as-is business process to determine where IoT can have the greatest positive impact. By using ARIS, they can conduct detailed process analysis to search and identify optimization potential.
- ARIS offers a methodology for designing and managing IoT objects in dedicated model types. In addition, IoT objects can be imported directly from Cumulocity, Software AG’s cloud-based IoT device integration platform. That speeds up the project.
- Based on this information, the as-is process can be enhanced with the IoT objects to define the envisioned to-be process, or so-called IoT-process. It includes business process improvement opportunities based on IoT capabilities.
4. Monitor and measure the progress and success of your IoT project. Sounds obvious? In many IoT projects, critical success factors and KPIs are NOT defined or solely from a technical perspective. Process times and efficiencies need to be monitored, as well as the evolution and adoption of the IoT processes.
- The IoT loop is only closed by monitoring and analyzing all relevant KPIs. ARIS Aware provides KPIs in the context of the originally designed process. It helps to create an IoT dashboard that includes KPIs to measure the progress of the IoT implementation, as well as for example related cost reductions or efficiency improvements.
- Real IoT performance can also be visualized based on the availability of the IoT objects as well as underlying alerts and warnings throughout the IoT-enabled business process execution.
This is, in short, the “how” to IoT. Tell us what you want YOUR IoT future to look like and we can help achieve your goals.