The biggest hurdles for achieving the full potential of the new technology will be organizational
by Sampsa Tiainen at 3:49 PM 04/04/2016
Below mentioned is an excerpt from the study "Finnish machinery industry and the industrial internet of things - the revolution will be digitized" produced by Prosia Executive Search, 2016, author Ph.D. Teea Mäkelä.
Despite the great promise and new opportunities of the Industrial Internet, many factors could hinder future growth, and the right leadership and talent are key to realizing the potential of the Industrial Internet of Things.
Companies building strategies around the Industrial Internet will need to develop new organizational capabilities and, in many cases, adopt different behaviors. For companies to make the most of Industrial Internet technology, their organizations must embrace data-driven decision making and capabilities – because whatever the technology, the value of the Industrial Internet depends on effective use.
Organizations will need to become adept at data-driven decision-making, which requires analytical rigor. Companies must simultaneously build up their data analytics capabilities (both technologies and talent) to handle the flood of Industrial Internet data, the analytics experts must be connected with decision-makers as well as frontline managers, and both decision-makers and managers need to learn how to apply insights from large, real-time data streams in a timely manner. And when real-time action needs to be taken on a large scale, organizations will have to develop processes that enable algorithms to make decisions automatically.
Companies will need many more employees specialized in areas of data science and engineering, while the organizations will need to invest in capabilities, culture, and processes to make sure the insights generated by these experts are implemented and acted upon throughout the organization. The Industrial Internet challenges conventional notions of organizational responsibilities – traditionally, the IT organization was separate and distinct from the operating organization that is charged with managing the physical environment. In an Industrial Internet world, IT is embedded in physical assets and inventory, so these functions will have to be much more closely aligned.
In short, for companies to be successful in the revolutionary Industrial Internet of Things world, they will need data science capabilities and talent combined with a data-driven culture, management mindset, vision and leaadership to adapt the organization to new processes and business models.
References:  World Economic Forum in collaboration with Accenture (2015) "Industrial Internet of Things: Unleashing the Potential of Connected Products and Services";  Internet Society (2015) "The Internet of Things: An Overview. Understanding the Issues and Challenges of a More Connected World";  The McKinsey Global Institute (2015) "The Internet of Things: Mapping the Value Beyond the Hype";  Baily, M. & Manyika, J. (2015) "Reassessing the Internet of Things," Brookings.
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