Unlock, understand and unleash the value.
Taking use of new connectivity technologies and digitization in what is mainly described as Internet of Things or IoT, is all about instrumenting the physical world, getting new insights and using that insight to produce new value.
Producing value from IoT requires understanding of three basic domains, getting hold of the data, enriching the data and using it to deliver value for someone of something. It sounds easier than it is and each area requires a very different set of skills.
Even though the term "data is the new oil", has reduced value these days, with the oil prices at their lowest, it is still a valid metaphor.
If not for the raw material characteristics itself, then for the oil industry value chain terminology which can be described simplified in 3 phases:
- Upstream
- In the oil business this is where the raw material is uncovered and brought to the surface.
- / In the connected industry this is where the data from sensors, machines and things are produced.
- Midstream
- In the oil business, midstream represents the refineries where the raw oil is processed into higher value products such as gasoline.
- / In the connected industry, this is where data meets analytics, others sources of information and the special knowhow of companies to produce high value insights and services.
- Downstream
- In the oil business, downstream is where the products are delivered to customers, at gas stations, via fuel trucks, as semiproducts in new value chains.
- / In the connected industry, downstream is where insights has been transformed into valuable services delivered to customers , as input back to devices or used internally for innovation or efficiency gains.
Now, it will probably not solve all your challenges of adapting your organization to a digital and connected world, but it will help you start framing the discussions in a new valuable way, enabling fruitful crossfunctional perspectives.
Go to next: The 3 value categories of Iot and the Connected Industry
@goingfluid
Building Sportify, IIPLeM & 2nd Brain | Blurring the line between Food & Medicine via GFCFSF Innovations | Scientist cum Bootstrapped Entrepreneur | Autism Focus - Leaky Gut Care | Ex-Novozymes | Ex-Britannia | Ex-Heinz
8 年Necessity will always be mother of all innovation
crenger.com owner
8 年Rasmus, very interesting metaphorical comparison. Nevertheless, I prefer holistic approach. Instead of directed chain, it represents data (data flow) as bidirectional graph.