There are many practical challenges to getting your Internet of Things strategy off the ground, so sometimes you need a role model to help you out.
And if you can’t find one, create one to achieve your company’s digital transformation goals.
In my previous post, I advised you not to start with the technology on an IoT project, rather to concentrate on your business needs first. Once you have thoroughly defined these it is time to move to the next step. However, this is not as easy as it sounds. Why?
Many traditional companies have a great deal of deep domain experience – they know their products and their markets extremely well. What they lack is the skill and the know-how to take this knowledge into the digital world. On the other hand, digital technology players have a wealth of technical knowledge of their respective platforms but very little of the customers’ domain knowledge.
In order to combine the two, and to become successful, it will require much more than a classical vendor-client relationship; you need true and honest exchange of experience and know-how, merging this together into a complete new set of services and products. The exchange of contracts and then hoping the next innovation project will succeed may not do the trick.
And still the learning curve is steep, investments high and market inception can take too much time. So it is necessary to add a third party (or more) to the mix. Share resources, experiences and know-how. By mixing up digital leaders and other market experts in your industry (where you do not compete) you can overcome any challenges and limit the efforts and risk of being a single company trying to transform into the digital world.
I will give you an example from industry; we have just accomplished this by establishing ADAMOS, a cooperative strategic alliance for machine and plant engineering, a joint venture by world market leaders DMG MORI, Dürr, ZEISS, ASM and Software AG.
By combining our knowledge and experience and defining a shared objective – digitalization for the Industrial IoT – we will get there faster, spending less money and resources and reducing the risk for the involved partners.
We put ADAMOS together in record time, with only 2.5 months from idea to inception – and probably 3.5 months altogether to production. We will share platforms and principles, using ADAMOS as a launching pad and getting there “together, faster.”
Here are the guiding principles of ADAMOS:
- Establish a true exchange of know-how amongst the partners
- Work toward a common timeline
- Make sharing of resources and know-how a guiding principle in a ring of trust of your partnership
- Do not allow cooperation to lead to future competition, define your markets and GTM objectives well before embarking on the partnership
- If possible find a digital partner of similar size, do not be over-dominated by a digital giant
The guiding principles of ADAMOS can definitely be used in other markets and industries or other countries. This is not unique to Germany, Industrial IoT or the machine builders market. The members should not be competitors, but compatriots – this is very important as they will be better able to learn from each other and adopt best practices if they are in a trusting environment.
ADAMOS acts as a role model for others who have ambitions to find allies to become partners in crime, share risk & learning and be faster and more efficient. With using three heads instead of two, you will have a much increased confidence to go into battle as a true digital player and survive in your industry with your products. This is something I’d like to call the ADAMOS principle.
Check it out and be inspired.