“Without digital transformation, enterprises will fail, and without IoT, digitization never happens!”

Internet of Things (IoT) is critical for successful enterprise digital transformation, though many organizations do not specifically mention the term IoT.

However, IoT is not just about devices

IoT ushers in a new Digital Age with optimized manufacturing production and supply chain networks, and interconnectivity of disparate systems through sensors. IoT and cloud-based GPS solutions improve the visibility of goods in transit by tracking their exact location, temperature, humidity etc. Though the devices generate valuable data, IoT is not limited to devices. IoT in digital transformation encompasses the intelligence that is infused in the assets to consume and analyze the data to develop actionable insights.

Digital Transformation and IoT- the Inseparables

Internet of Things (IoT) brings the paradigm of connectivity into business and furthers digital transformation by uniting people, processes, and devices under one umbrella. This integration empowers industries by helping them gather valuable business insights. IoT, regardless of any industry, refers to connecting physical devices to a common network so that they can collect and exchange data easily.

Many industries, especially manufacturing companies, are traditionally known for investing more in operational technology (OT) and less in information technology (IT). This is probably due to the asset-intensive nature of those companies. As new digital technologies evolve, many of these industries are hamstrung by decades-old legacy systems and processes. Digital transformation demands the integration of OT and IT that will help enterprises unlock opportunities and make their products and services more valuable and efficient.

When IoT meets Digital Transformation

IoT merges both digital and physical worlds. The massive amount of data collected by the connected devices can help in formulating new business models and fundamentally change enterprise operations. So what happens when IoT and digital transformation converge?

Explosion of data– By 2020, there will be 50 billion connected devices These devices- smart appliances, meters, connected machineries, automobiles, and more- produce massive amount of data.
Cloud will drive business– Cloud offers the agility and flexibility with which businesses are able to respond to the changing market needs. Cloud platforms are cost-effective, fast, and connect to people and devices across the globe.
Boosts business and customer engagement– The invasion of mobile and social media networks gives decision-making power to people as they are equipped with real-time information. This integration brings up novel ways to engage businesses and its customers.

When the devices are allowed to communicate, it brings multiple benefits to enterprises including improved decision making, dynamic response to product/ service demands, increased productivity, and real-time availability of actionable insights. IoT is not just limited to these organizational advantages, it can contribute to asset management through predictive maintenance and statistical evaluation that help increase reliability.

Next steps to IoT success?

Most of the established companies have digital assets, but they don’t know how to truly monetize those assets in the emerging digital world. IoT projects should create scalable software distribution systems, third-party ecosystems, and billing solutions to create new revenue streams that are flexible and ever-expanding.

To taste success in the digital sphere, IoT projects must undergo these six steps:

How to design and deploy the devices?
Connecting the device to a cloud platform (this will improve connectivity)
Secure software distribution (with minimal user intervention)
Create a vibrant third-party ecosystem to stay relevant in the market
Find the right marketplace to promote and sell solutions
Securely bill the apps globally and manage revenue flows (monetization)

The digital transformation journey is complex and application of IoT will bring brand new use cases in the coming years. The bottom line of IoT in enterprise digital transformation is best summarized in the words of Juha Pankakoski, EVP of Konecranes, who says, “The industrial Internet brings machinery alive”. Break-up the words of Juha, and you get the essence of what he means:

IoT provides real-time insight into any device so that the data collected by the asset is available for processing. This enormously influences decision making in enterprises.
Embedding IoT into product establishes a real-time connection with customer. This opens up new horizons to build customer relationship and experience by fostering personalization.

Delight your customer with IoT driven Digital Transformation

In earlier days, the only connection between brand and consumer was the often discarded warranty cards. Today, as soon as the user turns on an IoT device, the manufacturer is immediately connected to the user. When it comes to customer experience, IoT is also a “data capturing tool” that empowers companies with information on their customers and followers. The IoT-powered data can be leveraged to personalize online content, transform online marketing and run analytics. The connection of physical and digital world established by IoT increases the opportunity to co-create with customers. IoT makes enterprises understand the significance of the digital customer interface and improves the scope for personalization.

For the enterprises, it would mean reduction in operational cost, smarter decision making, enhanced customer service and improved customer engagement. Supporting IoT initiatives might require a hefty investment initially, but IoT is perceived as the key to unlocking the doors of digital transformation. And, that’s what big brands like Philips, Mercedes, Walmart and others are doing.

To paraphrase William Gibson, “The future is here. It’s just not widely distributed yet.”

Innovation is imperative for businesses and IoT will open the gates for innovation in the coming years.

What are the key skillsets needed in today’s knowledge economy?

“Self-education is, I firmly believe, the only kind of education there is.” -Isaac Asimov

When I speak at mentoring sessions to students and startups, one constant question I am asked is the skillset needed to succeed in today’s technology dominated world. This seemingly straightforward question does not have a straightforward answer. We are knee-deep in a knowledge economy, and this is forcing us to revisit our core beliefs about the skillsets we need to hire/acquire.

The Industrial economy’s mantra was efficiency and quality. A knowledge based digital economy means that these are no longer critical skillsets. Building new skillsets is indeed a humongous challenge for business owners, executives, HR directors, professionals and universities alike.

So what skillsets does the knowledge economy demand?

The world in the knowledge economy will be dominated by numerous digital technologies like Artificial Intelligence (AI), Robotics, Automation, etc. To be effective in this world, core skills in the field of mathematics, language, information communication technologies, etc. will no longer be enough. These skills must be augmented with the foundational skills like problem solving, critical thinking, curiosity, and persistence, etc. World Economic Forum classifies the skillsets relevant for the knowledge economy as:

Image courtesy: World Economic Forum

Skillset Versus Mindset in the knowledge economy

If you look at the image above, those skillsets that come under foundational literacies and competencies can be generally acquired via education, training and on-the-job projects. But the skillsets under the third column – character qualities – is the new landscape in which businesses and professionals need to excel in. I would like to call these character qualities under a different name – MINDSET. And mindsets are definitely harder to train for, or acquire. It is precisely why these skills are a precious resource, and the reason why today’s professional has to really work hard to master them.

Let us take an example to understand why traits like curiosity, critical thinking, persistence, and collaboration are highly relevant in the knowledge economy. Any digital application you access these days like Maps, Facial Recognition, Voice Assistance, etc. is not a standalone atomic solution. These applications are an intelligent combination of diverse solutions. A recent Harvard Business Review article defined the design of voice assistance like Siri, Google Now or Alexa as following:

“AI program divides the audio into chunks, sends them into the cloud, analyzes them to determine their probable meaning and translates the result into a set of search queries. Then millions of possible answers to those queries are sorted and ranked. Thanks to the scalability of the cloud, this takes just a few dozen milliseconds.”

To envision, design, architect, and implement a solution where multiple technologies from diverse fields come together to create value, hard skills like mathematical ability, statistical knowledge and other subject matter expertise must be augmented with the foundational skills like problem solving, curiosity, communication, collaboration, persistence, and creativity.

The challenge that faces business owners today

Training our employees for these mindsets is not an HR role. Nor is it the responsibility of colleges, universities or governments. It is also not a typical learn-once and forget-it approach. These mindsets require the right environment, supported by management policies, willing professionals who are ready to dedicate time and effort, and a feedback mechanism that provides positive incentives repeatedly for the right actions.

Moreover, each company focuses on different mindsets that help them succeed. It is impossible to have a general list of mindsets for every company. It is easier to recruit, hire and train your employees for mindsets based on your corporate vision and culture. For instance, at Suyati, we focus on fostering three mindsets that we believe is critical for our success: Continuous Innovation, Ownership, and Customer Delight.

The following statement by Doug McMillon, the CEO of Walmart Doug McMillon in a recent shareholder meeting succinctly describes how we all should prepare for this shift to the knowledge economy:

“No doubt our work will be different in the future —robots, drones and algorithms will do some work that we used to have to do. Some people are afraid of what these changes will bring. I don’t think we should be. Instead, I think we should recognize that we’ll be able to learn, grow and change together.”

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employees hr IT It innivation IT skillsets knowledge economy skillsets