More...More...More...More...More...More...More...More...More...More...More...More...More...AIoT Framework

AIoT combines two of the most important technology paradigms of this decade: Artificial Intelligence (AI) and Internet of Things (IoT). In order to best understand AIoT from all relevant perspectives, we will start by looking at the why, what, who and how perspectives, inspired by the work of Simon Sinek [1] as well as the St. Gallen IoT Lab [2]:

  • Why: Better understand and articulate the purpose and AIoT-enabled business outcomes
  • What: What can be achieved with AIoT in terms of smart, connected products and solutions
  • Who: Roles and responsibilities in the context of an AIoT initiative
  • How: Project blueprint for AIoT execution and delivery

While Simon Sinek suggests to Start with Why, we will first look at the what to provide some context, before then discussing why you should consider it.

What: Smart, connected products and solutions with AIoT

The smartness of an AIoT-enabled product or solution is usually either related to an individual physical product/asset ("product/asset intelligence"), or to a group/fleet of assets ("swarm intelligence"). Technically, asset intelligence is enabled via edge computing, while swarm intelligence is enabled via cloud computing. Asset intelligence is applying AI-algorithms to data which is locally captured and processes (via sensors), while swarm intelligence is applying AI-algorithms to data which is captured from multiple assets via IoT-technologies in the cloud. Optionally, Digital Twin concepts can be used in order to create a digital representation of the physical entities.

The AIoT Framework is focusing on products and solutions which utilize the combination of AI and IoT. However, since this usually represents a significant investment, one should carefully evaluate if both are actually needed.

AIoT Intro
AIoT Use Case Patterns

The "What" of an AIoT inititive can usually be described as a smart, connected product or solution. This is an important differentiation, which is discussed here.

What: Product vs. Solution

Smart, connected products are often very highly standardized, feature-rich and well rounded. Smart, connected solutions on the other hand are often more custom, ad-hoc solutions. They are often designed to solve a specific problems, e.g. for a particular production site, a particular energy grid, etc.

Obviously, this is not a black and white differentiation. There are also often cases which are a bit of both, product and solution. A good example is a standardized retrofit solution for elevator monitoring, which is offered as a product.

Why: Purpose and AIoT-enabled business outcomes

While AI and IoT are exciting technical enablers, anybody embarking on the AIoT journey should always start by looking at the "why": What is the purpose? And what are the expected business outcomes?

From a strategic (and emotional) point of view, the purpose of the AIoT initiative should be clearly articulated: What is the belief? The mission? Why is this really done?

For the business sponsors, the expected business outcomes must be clearly defined as well. As will be discussed in the "what" section, most AIoT initiatives are either focusing on products or solutions. Depending on the nature of your initiative, the KPIs will differ. For AIoT-enabled products, they tend to focus more on the customer acceptance and revenue side, while for AIoT-enabled solutions they tend to focus more on efficiency and optimization.

Why: Product vs Solution

More details on the "Why" of an AIoT initiative can be found here.

How: Getting things (and AI) done

The now widely accepted agile project methods in the IT world are heavily based on incremental value creation and continuous improvement. Business models are evaluated early using MVPs (Minimal Viable Products), and the fine-tuning of the business model is rapidly supported by agile sprints. This works well in IT, especially supported by cloud-based development. For AIoT, the constraints of the physical world have to be taken into consideration, including longer lead times and safety requirements. This can require longer-term planning and increased focus on verification and validation - especially for smart, connected products. For smart, connected solutions, this can look differently. From a "how" perspective, it is important to understand this differentiation and its implications.

How: Product vs. Solution

Furthermore, the "how" perspective needs to address how to best utilize AI and IoT together. And finally, how to execute and deliver the AIoT-enabled product or solution. Both aspects are addressed in the following.

The now widely accepted agile project methods in the IT world are heavily based on incremental value creation and continuous improvement. Business models are evaluated early using MVPs (Minimal Viable Products), and the fine-tuning of the business model is rapidly supported by agile sprints. This works well in IT, especially supported by cloud-based development. For AIoT, the constraints of the physical world have to be taken into consideration, including longer lead times and safety requirements. This can require longer-term planning and increased focus on verification and validation - especially for smart, connected products. For smart, connected solutions, this can look differently. From a "how" perspective, it is important to understand this differentiation and its implications.

Key Elements of AIoT

AIoT Overview

The Long Tail of AIoT

The Long Tail of AIoT

Who: AIoT roles and responsibilities

The "Who" perspective must address the roles and responsibilities required for successfully delivering your AIoT initiative. These will partially be different for product- vs. solution-centric initiatives, as we will discuss later.

AIoT - Who?

The AIoT Framework is primarily addressing product/solution managers, project/program managers, development/engineering managers, product/solution architects, security/safety managers, and procurement managers.

The "Who" perspective must address the roles and responsibilities required for successfully delivering your AIoT initiative. These will partially be different for product- vs. solution-centric initiatives, as we will discuss later.

As indicated by the diagram below, Ignite AIoT is primarily addressing product/solution managers, project/program managers, development/engineering managers, product/solution architects, security/safety managers, and procurement managers.

Who: Roles and Reponsibilities

References

  1. Start with why: how great leaders inspire everyone to take action, Simon Sinek, 2010
  2. The Business Model Navigator: 55 Models That Will Revolutionise Your Business, Oliver Gassmann, Karolin Frankenberger, Michaela Csik, 2014