https://www.digitalplaybook.org/index.php?title=Business_Strategy&feed=atom&action=historyBusiness Strategy - Revision history2024-03-29T05:21:35ZRevision history for this page on the wikiMediaWiki 1.39.0https://www.digitalplaybook.org/index.php?title=Business_Strategy&diff=7186&oldid=prevPankhuri: Editorial Changes2022-07-05T20:59:16Z<p>Editorial Changes</p>
<table style="background-color: #fff; color: #202122;" data-mw="interface">
<col class="diff-marker" />
<col class="diff-content" />
<col class="diff-marker" />
<col class="diff-content" />
<tr class="diff-title" lang="en">
<td colspan="2" style="background-color: #fff; color: #202122; text-align: center;">← Older revision</td>
<td colspan="2" style="background-color: #fff; color: #202122; text-align: center;">Revision as of 21:59, 5 July 2022</td>
</tr><tr><td colspan="2" class="diff-lineno" id="mw-diff-left-l22">Line 22:</td>
<td colspan="2" class="diff-lineno">Line 22:</td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>Dirk: ''Okay. So, how do you manage the required innovation at this level?''</div></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>Dirk: ''Okay. So, how do you manage the required innovation at this level?''</div></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br/></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br/></td></tr>
<tr><td class="diff-marker" data-marker="−"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>Laurenz: ''You need to sync your transformation activity on three levels, or three ‘plays’ as we have shown in the <del style="font-weight: bold; text-decoration: none;">AIoT </del>playbook. I believe you always need to start from a business strategy play, rather than from a technical perspective. So put the business perspective first: what are the priorities for my AIoT transformation? Do I focus on smart products or on automating asset operations? Which critical business capabilities will benefit most from AIoT-based decision-making, etc.? Second, you need to look at the execution play. What are the new roles, tools, responsibilities I need to put in place, such as a data governance organisation? How are ‘classical’ corporate functions -- such as sales, operations, legal, and so on -- affected and what is their contribution? How do business models, revenue structures and so on change? </div></td><td class="diff-marker" data-marker="+"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>Laurenz: ''You need to sync your transformation activity on three levels, or three ‘plays’ as we have shown in the <ins style="font-weight: bold; text-decoration: none;">Digital </ins>playbook. I believe you always need to start from a business strategy play, rather than from a technical perspective. So put the business perspective first: what are the priorities for my AIoT transformation? Do I focus on smart products or on automating asset operations? Which critical business capabilities will benefit most from AIoT-based decision-making, etc.? Second, you need to look at the execution play. What are the new roles, tools, responsibilities I need to put in place, such as a data governance organisation? How are ‘classical’ corporate functions -- such as sales, operations, legal, and so on -- affected and what is their contribution? How do business models, revenue structures and so on change? </div></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>The third AIoT transformation play is the technology execution level. It is here that you need to think through architectural questions, make or buy decisions, define the right development approach such as for example the agile V-model.''</div></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>The third AIoT transformation play is the technology execution level. It is here that you need to think through architectural questions, make or buy decisions, define the right development approach such as for example the agile V-model.''</div></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div> </div></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div> </div></td></tr>
<tr><td colspan="2" class="diff-lineno" id="mw-diff-left-l33">Line 33:</td>
<td colspan="2" class="diff-lineno">Line 33:</td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>Laurenz: ''We tend to recommend following a top-down and bottom-up approach. For top-down, you need to enable top management to understand and define the possibilities and the overall objectives that the organization has to pursue, and this takes a lot of education and evangelization at the top level. There's a lot of stuff where executives do not know what they don't know yet.''</div></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>Laurenz: ''We tend to recommend following a top-down and bottom-up approach. For top-down, you need to enable top management to understand and define the possibilities and the overall objectives that the organization has to pursue, and this takes a lot of education and evangelization at the top level. There's a lot of stuff where executives do not know what they don't know yet.''</div></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br/></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br/></td></tr>
<tr><td class="diff-marker" data-marker="−"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>Dirk: ''Good thing we are writing <del style="font-weight: bold; text-decoration: none;">an AIoT </del>playbook...''</div></td><td class="diff-marker" data-marker="+"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>Dirk: ''Good thing we are writing <ins style="font-weight: bold; text-decoration: none;">a Digital </ins>playbook...''</div></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br/></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br/></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>Laurenz: ''Exactly. At the same time, you need to define real world showcases and real world use cases; this is the bottom up approach. So you need to find a team -- a team of convicts, a team of evangelists -- in your organization that are willing to work a little bit, bend the rules and work across functions to make something happen. This can be pure showcase in the beginning, but later on, we recommend truly defining the real business critical use cases to make things happen. This is typically the easiest way you can make an organization follow along and pursue the AIoT transformation.''</div></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>Laurenz: ''Exactly. At the same time, you need to define real world showcases and real world use cases; this is the bottom up approach. So you need to find a team -- a team of convicts, a team of evangelists -- in your organization that are willing to work a little bit, bend the rules and work across functions to make something happen. This can be pure showcase in the beginning, but later on, we recommend truly defining the real business critical use cases to make things happen. This is typically the easiest way you can make an organization follow along and pursue the AIoT transformation.''</div></td></tr>
</table>Pankhurihttps://www.digitalplaybook.org/index.php?title=Business_Strategy&diff=7097&oldid=prevPankhuri: Editorial changes as per digital playbook document.2022-06-24T00:30:39Z<p>Editorial changes as per digital playbook document.</p>
<table style="background-color: #fff; color: #202122;" data-mw="interface">
<col class="diff-marker" />
<col class="diff-content" />
<col class="diff-marker" />
<col class="diff-content" />
<tr class="diff-title" lang="en">
<td colspan="2" style="background-color: #fff; color: #202122; text-align: center;">← Older revision</td>
<td colspan="2" style="background-color: #fff; color: #202122; text-align: center;">Revision as of 01:30, 24 June 2022</td>
</tr><tr><td colspan="2" class="diff-lineno" id="mw-diff-left-l37">Line 37:</td>
<td colspan="2" class="diff-lineno">Line 37:</td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>Laurenz: ''Exactly. At the same time, you need to define real world showcases and real world use cases; this is the bottom up approach. So you need to find a team -- a team of convicts, a team of evangelists -- in your organization that are willing to work a little bit, bend the rules and work across functions to make something happen. This can be pure showcase in the beginning, but later on, we recommend truly defining the real business critical use cases to make things happen. This is typically the easiest way you can make an organization follow along and pursue the AIoT transformation.''</div></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>Laurenz: ''Exactly. At the same time, you need to define real world showcases and real world use cases; this is the bottom up approach. So you need to find a team -- a team of convicts, a team of evangelists -- in your organization that are willing to work a little bit, bend the rules and work across functions to make something happen. This can be pure showcase in the beginning, but later on, we recommend truly defining the real business critical use cases to make things happen. This is typically the easiest way you can make an organization follow along and pursue the AIoT transformation.''</div></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br/></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br/></td></tr>
<tr><td class="diff-marker" data-marker="−"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>Dirk : ''Last question, do you see different strategies? Depending on whether you're looking at this from the OEM or product perspective versus the operator perspective?'' </div></td><td class="diff-marker" data-marker="+"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>Dirk: ''Last question, do you see different strategies? Depending on whether you're looking at this from the OEM or product perspective versus the operator perspective?'' </div></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br/></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br/></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>Laurenz: ''These are definitely different perspectives. What are the challenges of this transformation for a classical OEM? For example, for a maker of power tools, forklifts, or even a maker of cars? Although I do not say the ultimate goal for every one of those organizations is an Equipment as a Service model, the big challenge is still: how do my revenue streams change over time? When I'm used to selling a thousand heavy machinery pieces per year and I know that maybe in ten years I will be selling tens of thousands of microservice digits a week, how do I adapt to this new business model? So this is a typical question for a digital OEM. For a digital equipment operator (let us say a railway operator) clearly the questions are much more: how does this affect my cost base? How will I deliver a certain service or manage my assets in the future? How can I build in things such as connectivity costs and data center costs in the future? How do I arrange for those changes in my own cost base? So very different approaches are needed.''</div></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>Laurenz: ''These are definitely different perspectives. What are the challenges of this transformation for a classical OEM? For example, for a maker of power tools, forklifts, or even a maker of cars? Although I do not say the ultimate goal for every one of those organizations is an Equipment as a Service model, the big challenge is still: how do my revenue streams change over time? When I'm used to selling a thousand heavy machinery pieces per year and I know that maybe in ten years I will be selling tens of thousands of microservice digits a week, how do I adapt to this new business model? So this is a typical question for a digital OEM. For a digital equipment operator (let us say a railway operator) clearly the questions are much more: how does this affect my cost base? How will I deliver a certain service or manage my assets in the future? How can I build in things such as connectivity costs and data center costs in the future? How do I arrange for those changes in my own cost base? So very different approaches are needed.''</div></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br/></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br/></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>Dirk: ''Thank you.''</div></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>Dirk: ''Thank you.''</div></td></tr>
</table>Pankhurihttps://www.digitalplaybook.org/index.php?title=Business_Strategy&diff=7096&oldid=prevPankhuri: Editorial changes as per digital playbook document.2022-06-24T00:29:25Z<p>Editorial changes as per digital playbook document.</p>
<table style="background-color: #fff; color: #202122;" data-mw="interface">
<col class="diff-marker" />
<col class="diff-content" />
<col class="diff-marker" />
<col class="diff-content" />
<tr class="diff-title" lang="en">
<td colspan="2" style="background-color: #fff; color: #202122; text-align: center;">← Older revision</td>
<td colspan="2" style="background-color: #fff; color: #202122; text-align: center;">Revision as of 01:29, 24 June 2022</td>
</tr><tr><td colspan="2" class="diff-lineno" id="mw-diff-left-l35">Line 35:</td>
<td colspan="2" class="diff-lineno">Line 35:</td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>Dirk: ''Good thing we are writing an AIoT playbook...''</div></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>Dirk: ''Good thing we are writing an AIoT playbook...''</div></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br/></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br/></td></tr>
<tr><td class="diff-marker" data-marker="−"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>Laurenz : ''Exactly. At the same time, you need to define real world showcases and real world use cases; this is the bottom up approach. So you need to find a team -- a team of convicts, a team of evangelists -- in your organization that are willing to work a little bit, bend the rules and work across functions to make something happen. This can be pure showcase in the beginning, but later on, we recommend truly defining the real business critical use cases to make things happen. This is typically the easiest way you can make an organization follow along and pursue the AIoT transformation.''</div></td><td class="diff-marker" data-marker="+"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>Laurenz: ''Exactly. At the same time, you need to define real world showcases and real world use cases; this is the bottom up approach. So you need to find a team -- a team of convicts, a team of evangelists -- in your organization that are willing to work a little bit, bend the rules and work across functions to make something happen. This can be pure showcase in the beginning, but later on, we recommend truly defining the real business critical use cases to make things happen. This is typically the easiest way you can make an organization follow along and pursue the AIoT transformation.''</div></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br/></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br/></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>Dirk : ''Last question, do you see different strategies? Depending on whether you're looking at this from the OEM or product perspective versus the operator perspective?'' </div></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>Dirk : ''Last question, do you see different strategies? Depending on whether you're looking at this from the OEM or product perspective versus the operator perspective?'' </div></td></tr>
</table>Pankhurihttps://www.digitalplaybook.org/index.php?title=Business_Strategy&diff=7095&oldid=prevPankhuri: Editorial changes as per digital playbook document.2022-06-24T00:28:22Z<p>Editorial changes as per digital playbook document.</p>
<table style="background-color: #fff; color: #202122;" data-mw="interface">
<col class="diff-marker" />
<col class="diff-content" />
<col class="diff-marker" />
<col class="diff-content" />
<tr class="diff-title" lang="en">
<td colspan="2" style="background-color: #fff; color: #202122; text-align: center;">← Older revision</td>
<td colspan="2" style="background-color: #fff; color: #202122; text-align: center;">Revision as of 01:28, 24 June 2022</td>
</tr><tr><td colspan="2" class="diff-lineno" id="mw-diff-left-l14">Line 14:</td>
<td colspan="2" class="diff-lineno">Line 14:</td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>__TOC__</div></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>__TOC__</div></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br/></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br/></td></tr>
<tr><td class="diff-marker" data-marker="−"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>Every business strategy must answer the question of how a company should compete in the business areas it has selected, e.g., by applying a cost strategy, a differentiated product or service strategy, or a niche strategy. In the context of AIoT, the business area usually involves physical assets, products, equipment, or appliances. This means that the role of the company will typically be either that of an OEM or an equipment operator, or a combination of the two ('hybrid'). AIoT as a new paradigm will enable both types of companies to create new, digital-enhanced products, solutions, or services. The OEM will become a ''Digital OEM''<del style="font-weight: bold; text-decoration: none;">, </del>the equipment operator will become a ''Digital Equipment Operator''. For Digital OEMs, the AIoT-enabled digital transformation is often about fundamental changes to the business model. Digital Equipment Operators usually focus more on the digitalization of the operations model. For both, key questions include how to manage innovation and how to define a suitable target organization. Finally, platform-based business strategies have proven to be extremely powerful. Platforms can utilize AIoT to connect to physical products and assets in the field and create a value-added offering. The following expert opinion will shed more light on the AIoT strategy perspective.</div></td><td class="diff-marker" data-marker="+"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>Every business strategy must answer the question of how a company should compete in the business areas it has selected, e.g., by applying a cost strategy, a differentiated product or service strategy, or a niche strategy. In the context of AIoT, the business area usually involves physical assets, products, equipment, or appliances. This means that the role of the company will typically be either that of an OEM or an equipment operator, or a combination of the two ('hybrid'). AIoT as a new paradigm will enable both types of companies to create new, digital-enhanced products, solutions, or services. The OEM will become a ''Digital OEM''<ins style="font-weight: bold; text-decoration: none;">; </ins>the equipment operator will become a ''Digital Equipment Operator''. For Digital OEMs, the AIoT-enabled digital transformation is often about fundamental changes to the business model. Digital Equipment Operators usually focus more on the digitalization of the operations model. For both, key questions include how to manage innovation and how to define a suitable target organization. Finally, platform-based business strategies have proven to be extremely powerful. Platforms can utilize AIoT to connect to physical products and assets in the field and create a value-added offering. The following expert opinion will shed more light on the AIoT strategy perspective.</div></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br/></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br/></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>Dirk: ''Laurenz Kirchner from mm1 consulting. Thanks for joining us. My first question, what is strategy and AIoT to you from the products and services perspective. Do we actually need a business strategy or a dedicated digital strategy?''</div></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>Dirk: ''Laurenz Kirchner from mm1 consulting. Thanks for joining us. My first question, what is strategy and AIoT to you from the products and services perspective. Do we actually need a business strategy or a dedicated digital strategy?''</div></td></tr>
</table>Pankhurihttps://www.digitalplaybook.org/index.php?title=Business_Strategy&diff=6264&oldid=prevSpringer at 04:05, 16 November 20212021-11-16T04:05:13Z<p></p>
<table style="background-color: #fff; color: #202122;" data-mw="interface">
<col class="diff-marker" />
<col class="diff-content" />
<col class="diff-marker" />
<col class="diff-content" />
<tr class="diff-title" lang="en">
<td colspan="2" style="background-color: #fff; color: #202122; text-align: center;">← Older revision</td>
<td colspan="2" style="background-color: #fff; color: #202122; text-align: center;">Revision as of 05:05, 16 November 2021</td>
</tr><tr><td colspan="2" class="diff-lineno" id="mw-diff-left-l14">Line 14:</td>
<td colspan="2" class="diff-lineno">Line 14:</td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>__TOC__</div></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>__TOC__</div></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br/></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br/></td></tr>
<tr><td class="diff-marker" data-marker="−"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>Every business strategy must answer the question of how a company should compete in the business areas it has selected, e.g., by applying a cost strategy, a differentiated product or service strategy, or a niche strategy. In the context of AIoT, the business area usually involves physical assets, products, equipment, or appliances. This means that the role of the company will typically be either that of an OEM or an equipment operator, or a combination of the two ('hybrid'). AIoT as a new paradigm will enable both types of companies to create new, digital-enhanced products, solutions, or services. The OEM will become a ''Digital OEM'', the equipment operator will become a ''Digital Equipment Operator''. For Digital OEMs, the AIoT-enabled digital transformation is often about fundamental changes to the business model. <del style="font-weight: bold; text-decoration: none;">For </del>Digital Equipment Operators<del style="font-weight: bold; text-decoration: none;">, it is </del>usually more <del style="font-weight: bold; text-decoration: none;">about </del>the digitalization of the operations model. For both, key questions include how to manage innovation and how to define a suitable target organization. Finally, platform-based business strategies have proven to be extremely powerful. Platforms can utilize AIoT to connect to physical products and assets in the field and create a value-added offering. The following expert opinion will shed <del style="font-weight: bold; text-decoration: none;">some </del>more light on the AIoT strategy perspective.</div></td><td class="diff-marker" data-marker="+"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>Every business strategy must answer the question of how a company should compete in the business areas it has selected, e.g., by applying a cost strategy, a differentiated product or service strategy, or a niche strategy. In the context of AIoT, the business area usually involves physical assets, products, equipment, or appliances. This means that the role of the company will typically be either that of an OEM or an equipment operator, or a combination of the two ('hybrid'). AIoT as a new paradigm will enable both types of companies to create new, digital-enhanced products, solutions, or services. The OEM will become a ''Digital OEM'', the equipment operator will become a ''Digital Equipment Operator''. For Digital OEMs, the AIoT-enabled digital transformation is often about fundamental changes to the business model. Digital Equipment Operators usually <ins style="font-weight: bold; text-decoration: none;">focus </ins>more <ins style="font-weight: bold; text-decoration: none;">on </ins>the digitalization of the operations model. For both, key questions include how to manage innovation and how to define a suitable target organization. Finally, platform-based business strategies have proven to be extremely powerful. Platforms can utilize AIoT to connect to physical products and assets in the field and create a value-added offering. The following expert opinion will shed more light on the AIoT strategy perspective.</div></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br/></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br/></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>Dirk: ''Laurenz Kirchner from mm1 consulting. Thanks for joining us. My first question, what is strategy and AIoT to you from the products and services perspective. Do we actually need a business strategy or a dedicated digital strategy?''</div></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>Dirk: ''Laurenz Kirchner from mm1 consulting. Thanks for joining us. My first question, what is strategy and AIoT to you from the products and services perspective. Do we actually need a business strategy or a dedicated digital strategy?''</div></td></tr>
<tr><td colspan="2" class="diff-lineno" id="mw-diff-left-l35">Line 35:</td>
<td colspan="2" class="diff-lineno">Line 35:</td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>Dirk: ''Good thing we are writing an AIoT playbook...''</div></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>Dirk: ''Good thing we are writing an AIoT playbook...''</div></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br/></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br/></td></tr>
<tr><td class="diff-marker" data-marker="−"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>Laurenz : ''Exactly. At the same time, you need to define real world showcases and real world use cases; this is the bottom up approach. So you need to find a team -- a team of convicts, a team of evangelists -- in your organization that are willing to work a little bit, bend the rules and work across functions to make something happen. This can be pure showcase in the beginning, but <del style="font-weight: bold; text-decoration: none;">then </del>later on we recommend truly defining the real business critical use cases to make things happen. This is typically the easiest way you can make an organization follow along and pursue the AIoT transformation.''</div></td><td class="diff-marker" data-marker="+"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>Laurenz : ''Exactly. At the same time, you need to define real world showcases and real world use cases; this is the bottom up approach. So you need to find a team -- a team of convicts, a team of evangelists -- in your organization that are willing to work a little bit, bend the rules and work across functions to make something happen. This can be pure showcase in the beginning, but later on<ins style="font-weight: bold; text-decoration: none;">, </ins>we recommend truly defining the real business critical use cases to make things happen. This is typically the easiest way you can make an organization follow along and pursue the AIoT transformation.''</div></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br/></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br/></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>Dirk : ''Last question, do you see different strategies? Depending on whether you're looking at this from the OEM or product perspective versus the operator perspective?'' </div></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>Dirk : ''Last question, do you see different strategies? Depending on whether you're looking at this from the OEM or product perspective versus the operator perspective?'' </div></td></tr>
</table>Springerhttps://www.digitalplaybook.org/index.php?title=Business_Strategy&diff=5489&oldid=prevSpringer at 21:43, 18 September 20212021-09-18T21:43:30Z<p></p>
<table style="background-color: #fff; color: #202122;" data-mw="interface">
<col class="diff-marker" />
<col class="diff-content" />
<col class="diff-marker" />
<col class="diff-content" />
<tr class="diff-title" lang="en">
<td colspan="2" style="background-color: #fff; color: #202122; text-align: center;">← Older revision</td>
<td colspan="2" style="background-color: #fff; color: #202122; text-align: center;">Revision as of 22:43, 18 September 2021</td>
</tr><tr><td colspan="2" class="diff-lineno" id="mw-diff-left-l39">Line 39:</td>
<td colspan="2" class="diff-lineno">Line 39:</td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>Dirk : ''Last question, do you see different strategies? Depending on whether you're looking at this from the OEM or product perspective versus the operator perspective?'' </div></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>Dirk : ''Last question, do you see different strategies? Depending on whether you're looking at this from the OEM or product perspective versus the operator perspective?'' </div></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br/></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br/></td></tr>
<tr><td class="diff-marker" data-marker="−"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>Laurenz: ''These are definitely different perspectives. What are the challenges of this transformation for a classical OEM? For example, for a maker of power tools, forklifts, or even a maker of cars? Although I do not say the ultimate goal for every one of those organizations is an Equipment as a Service model, the big challenge is still: how do my revenue streams change over time? When I'm used to selling a thousand heavy machinery pieces per year and I know that maybe in ten years<del style="font-weight: bold; text-decoration: none;">, </del>I<del style="font-weight: bold; text-decoration: none;">'m </del>selling<del style="font-weight: bold; text-decoration: none;">, </del>tens of thousands of microservice digits a week, how do I adapt to this new business model? So this is a typical question for a digital OEM. For a digital equipment operator (let us say a railway operator) clearly the <del style="font-weight: bold; text-decoration: none;">question is </del>much more: how does this affect my cost base? How will I deliver a certain service or manage my assets in the future? How can I build in things such as connectivity costs and data center costs in the future? How do I arrange for those changes in my own cost base? So very different approaches are needed.''</div></td><td class="diff-marker" data-marker="+"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>Laurenz: ''These are definitely different perspectives. What are the challenges of this transformation for a classical OEM? For example, for a maker of power tools, forklifts, or even a maker of cars? Although I do not say the ultimate goal for every one of those organizations is an Equipment as a Service model, the big challenge is still: how do my revenue streams change over time? When I'm used to selling a thousand heavy machinery pieces per year and I know that maybe in ten years I <ins style="font-weight: bold; text-decoration: none;">will be </ins>selling tens of thousands of microservice digits a week, how do I adapt to this new business model? So this is a typical question for a digital OEM. For a digital equipment operator (let us say a railway operator) clearly the <ins style="font-weight: bold; text-decoration: none;">questions are </ins>much more: how does this affect my cost base? How will I deliver a certain service or manage my assets in the future? How can I build in things such as connectivity costs and data center costs in the future? How do I arrange for those changes in my own cost base? So very different approaches are needed.''</div></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br/></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br/></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>Dirk: ''Thank you.''</div></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>Dirk: ''Thank you.''</div></td></tr>
</table>Springerhttps://www.digitalplaybook.org/index.php?title=Business_Strategy&diff=5488&oldid=prevSpringer at 21:39, 18 September 20212021-09-18T21:39:50Z<p></p>
<table style="background-color: #fff; color: #202122;" data-mw="interface">
<col class="diff-marker" />
<col class="diff-content" />
<col class="diff-marker" />
<col class="diff-content" />
<tr class="diff-title" lang="en">
<td colspan="2" style="background-color: #fff; color: #202122; text-align: center;">← Older revision</td>
<td colspan="2" style="background-color: #fff; color: #202122; text-align: center;">Revision as of 22:39, 18 September 2021</td>
</tr><tr><td colspan="2" class="diff-lineno" id="mw-diff-left-l14">Line 14:</td>
<td colspan="2" class="diff-lineno">Line 14:</td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>__TOC__</div></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>__TOC__</div></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br/></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br/></td></tr>
<tr><td class="diff-marker" data-marker="−"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>Every <del style="font-weight: bold; text-decoration: none;">Business Strategy </del>must answer the question of how a company should compete in the business areas it has selected<del style="font-weight: bold; text-decoration: none;">; </del>e.g. by applying a cost strategy, a differentiated product or service strategy, or a niche strategy. In the context of AIoT, the business area usually involves physical assets, products, equipment, or appliances. This means that the role of the company will typically be either that of an OEM or an equipment operator, or a combination of the two ('hybrid'). AIoT as a new paradigm will enable both types of companies to create new, digital-enhanced products, solutions, or services. The OEM will become a ''Digital OEM'', the equipment operator will become a ''Digital Equipment Operator''. For <del style="font-weight: bold; text-decoration: none;">the </del>Digital <del style="font-weight: bold; text-decoration: none;">OEM</del>, the AIoT-enabled digital transformation is often about fundamental changes to the business model. For <del style="font-weight: bold; text-decoration: none;">the </del>Digital Equipment <del style="font-weight: bold; text-decoration: none;">Operator</del>, it is usually more about the digitalization of the operations model. For both, key questions include how to manage innovation<del style="font-weight: bold; text-decoration: none;">, </del>and how to define a suitable target organization. Finally, platform-based business strategies have proven to be extremely powerful. Platforms can utilize AIoT to connect to physical products and assets in the field and create a value-added offering. The following expert opinion will shed some more light on the AIoT strategy perspective.</div></td><td class="diff-marker" data-marker="+"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>Every <ins style="font-weight: bold; text-decoration: none;">business strategy </ins>must answer the question of how a company should compete in the business areas it has selected<ins style="font-weight: bold; text-decoration: none;">, </ins>e.g.<ins style="font-weight: bold; text-decoration: none;">, </ins>by applying a cost strategy, a differentiated product or service strategy, or a niche strategy. In the context of AIoT, the business area usually involves physical assets, products, equipment, or appliances. This means that the role of the company will typically be either that of an OEM or an equipment operator, or a combination of the two ('hybrid'). AIoT as a new paradigm will enable both types of companies to create new, digital-enhanced products, solutions, or services. The OEM will become a ''Digital OEM'', the equipment operator will become a ''Digital Equipment Operator''. For Digital <ins style="font-weight: bold; text-decoration: none;">OEMs</ins>, the AIoT-enabled digital transformation is often about fundamental changes to the business model. For Digital Equipment <ins style="font-weight: bold; text-decoration: none;">Operators</ins>, it is usually more about the digitalization of the operations model. For both, key questions include how to manage innovation and how to define a suitable target organization. Finally, platform-based business strategies have proven to be extremely powerful. Platforms can utilize AIoT to connect to physical products and assets in the field and create a value-added offering. The following expert opinion will shed some more light on the AIoT strategy perspective.</div></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br/></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br/></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>Dirk: ''Laurenz Kirchner from mm1 consulting. Thanks for joining us. My first question, what is strategy and AIoT to you from the products and services perspective. Do we actually need a business strategy or a dedicated digital strategy?''</div></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>Dirk: ''Laurenz Kirchner from mm1 consulting. Thanks for joining us. My first question, what is strategy and AIoT to you from the products and services perspective. Do we actually need a business strategy or a dedicated digital strategy?''</div></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br/></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br/></td></tr>
<tr><td class="diff-marker" data-marker="−"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>Laurenz: ''I think both! Or let<del style="font-weight: bold; text-decoration: none;">'s </del>say: In this decade - in the 2020s – business strategy cannot exist separated from a digital strategy. When we talk specifically about an AIoT strategy, I believe it is absolutely necessary for any company that either manufactures stuff or operates <del style="font-weight: bold; text-decoration: none;">a lot of </del>assets. These companies will only survive if they transform into organisations that are able to manage connectivity, data and digital services across the stack.''</div></td><td class="diff-marker" data-marker="+"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>Laurenz: ''I think both! Or let <ins style="font-weight: bold; text-decoration: none;">us </ins>say: In this decade <ins style="font-weight: bold; text-decoration: none;">-</ins>- in the 2020s – business strategy cannot exist separated from a digital strategy. When we talk specifically about an AIoT strategy, I believe it is absolutely necessary for any company that either manufactures stuff or operates <ins style="font-weight: bold; text-decoration: none;">many </ins>assets. These companies will only survive if they transform into organisations that are able to manage connectivity, data and digital services across the stack.''</div></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br/></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br/></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>Dirk: ''Okay. So, how do you manage the required innovation at this level?''</div></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>Dirk: ''Okay. So, how do you manage the required innovation at this level?''</div></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br/></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br/></td></tr>
<tr><td class="diff-marker" data-marker="−"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>Laurenz: ''You need to sync your transformation activity on three levels, or three ‘plays’ as we have shown in the AIoT playbook. I believe<del style="font-weight: bold; text-decoration: none;">, </del>you need to <del style="font-weight: bold; text-decoration: none;">always </del>start from a business strategy play, rather than from a technical perspective. So put the business perspective first: <del style="font-weight: bold; text-decoration: none;">What </del>are priorities for my AIoT transformation? Do I focus on smart products or on automating asset operations? Which business <del style="font-weight: bold; text-decoration: none;">critical </del>capabilities will benefit most from AIoT based decision making etc.? Second, you need to look at the execution play. What are the new roles, tools, responsibilities I need to put in place, such as a data governance organisation? How are ‘classical’ corporate functions <del style="font-weight: bold; text-decoration: none;"> </del>- such as sales, operations, legal and so on <del style="font-weight: bold; text-decoration: none;"> </del>- affected and what is their contribution? How do business models, revenue structures and so on change? </div></td><td class="diff-marker" data-marker="+"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>Laurenz: ''You need to sync your transformation activity on three levels, or three ‘plays’ as we have shown in the AIoT playbook. I believe you <ins style="font-weight: bold; text-decoration: none;">always </ins>need to start from a business strategy play, rather than from a technical perspective. So put the business perspective first: <ins style="font-weight: bold; text-decoration: none;">what </ins>are <ins style="font-weight: bold; text-decoration: none;">the </ins>priorities for my AIoT transformation? Do I focus on smart products or on automating asset operations? Which <ins style="font-weight: bold; text-decoration: none;">critical </ins>business capabilities will benefit most from AIoT<ins style="font-weight: bold; text-decoration: none;">-</ins>based decision<ins style="font-weight: bold; text-decoration: none;">-</ins>making<ins style="font-weight: bold; text-decoration: none;">, </ins>etc.? Second, you need to look at the execution play. What are the new roles, tools, responsibilities I need to put in place, such as a data governance organisation? How are ‘classical’ corporate functions <ins style="font-weight: bold; text-decoration: none;">-</ins>- such as sales, operations, legal<ins style="font-weight: bold; text-decoration: none;">, </ins>and so on <ins style="font-weight: bold; text-decoration: none;">-</ins>- affected and what is their contribution? How do business models, revenue structures and so on change? </div></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>The third AIoT transformation play is the technology execution level. It is here that you need to think through architectural questions, make or buy decisions, define the right development approach such as for example the agile V-model.''</div></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>The third AIoT transformation play is the technology execution level. It is here that you need to think through architectural questions, make or buy decisions, define the right development approach such as for example the agile V-model.''</div></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div> </div></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div> </div></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>Dirk: ''So, is this more about mastering technology and innovation potentials from technology? or is this more about business model innovation?''</div></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>Dirk: ''So, is this more about mastering technology and innovation potentials from technology? or is this more about business model innovation?''</div></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br/></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br/></td></tr>
<tr><td class="diff-marker" data-marker="−"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>Laurenz: ''Definitely both! Or rather: The business innovation side interacting with the technology side in a dialectic way. Think ‘yin and yang’! A typical situation that we see in client organisations is a lot of push on the technology execution from IT, and this push doesn't really get anchored into the business perspective. Think of a typical use case <del style="font-weight: bold; text-decoration: none;">like </del>metering: <del style="font-weight: bold; text-decoration: none;">Clearly </del>you have to find the right wireless connectivity technology to connect a power meter in the basement of a concrete building. But you also have to think through what is <del style="font-weight: bold; text-decoration: none;">really </del>the digital service I want to offer? What is the offering structure? For which part of my service delivery do I actually get revenue? <del style="font-weight: bold; text-decoration: none;">so those </del>things <del style="font-weight: bold; text-decoration: none;">have to </del>have to work together and you cannot do the one without the other.''</div></td><td class="diff-marker" data-marker="+"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>Laurenz: ''Definitely both! Or rather: The business innovation side interacting with the technology side in a dialectic way. Think ‘yin and yang’! A typical situation that we see in client organisations is a lot of push on the technology execution from IT, and this push doesn't really get anchored into the business perspective. Think of a typical use case <ins style="font-weight: bold; text-decoration: none;">such as </ins>metering: <ins style="font-weight: bold; text-decoration: none;">clearly </ins>you have to find the right wireless connectivity technology to connect a power meter in the basement of a concrete building. But you also have to think through what is the digital service I want to offer? What is the offering structure? For which part of my service delivery do I actually get revenue? <ins style="font-weight: bold; text-decoration: none;">So these </ins>things have to work together and you cannot do the one without the other.''</div></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br/></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br/></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>Dirk: ''So what about the organizational side? How do I get my organization to support this? What's the target organization? How do I get there?''</div></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>Dirk: ''So what about the organizational side? How do I get my organization to support this? What's the target organization? How do I get there?''</div></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br/></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br/></td></tr>
<tr><td class="diff-marker" data-marker="−"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>Laurenz: ''<del style="font-weight: bold; text-decoration: none;">What we </del>tend to recommend <del style="font-weight: bold; text-decoration: none;">and is to follow </del>a top-down and bottom-up approach. <del style="font-weight: bold; text-decoration: none;">Top </del>down, you need to enable top management to understand and define the possibilities and the overall objectives that the organization has to pursue and this takes a lot of education and evangelization <del style="font-weight: bold; text-decoration: none;">on </del>the top level. There's a lot of stuff where executives <del style="font-weight: bold; text-decoration: none;">don't </del>know what they don't know yet.''</div></td><td class="diff-marker" data-marker="+"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>Laurenz: ''<ins style="font-weight: bold; text-decoration: none;">We </ins>tend to recommend <ins style="font-weight: bold; text-decoration: none;">following </ins>a top-down and bottom-up approach. <ins style="font-weight: bold; text-decoration: none;">For top-</ins>down, you need to enable top management to understand and define the possibilities and the overall objectives that the organization has to pursue<ins style="font-weight: bold; text-decoration: none;">, </ins>and this takes a lot of education and evangelization <ins style="font-weight: bold; text-decoration: none;">at </ins>the top level. There's a lot of stuff where executives <ins style="font-weight: bold; text-decoration: none;">do not </ins>know what they don't know yet.''</div></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br/></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br/></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>Dirk: ''Good thing we are writing an AIoT playbook...''</div></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>Dirk: ''Good thing we are writing an AIoT playbook...''</div></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br/></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br/></td></tr>
<tr><td class="diff-marker" data-marker="−"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>Laurenz : ''Exactly. At the same time you need to define real world showcases and real world use cases <del style="font-weight: bold; text-decoration: none;">and </del>this is the bottom up approach. So you need to find a team<del style="font-weight: bold; text-decoration: none;">, </del>a team of convicts, a team of evangelists in your organization that are willing to work a little bit, bend the rules and work across functions to make something happen. <del style="font-weight: bold; text-decoration: none;"> </del>This can be <del style="font-weight: bold; text-decoration: none;">a </del>pure showcase in the beginning, <del style="font-weight: bold; text-decoration: none;">and </del>then later on<del style="font-weight: bold; text-decoration: none;">, </del>we recommend <del style="font-weight: bold; text-decoration: none;">to really define </del>the real business critical use cases to make things happen. This is typically the easiest way you can make an organization <del style="font-weight: bold; text-decoration: none;"> </del>follow along and pursue the AIoT transformation.''</div></td><td class="diff-marker" data-marker="+"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>Laurenz : ''Exactly. At the same time<ins style="font-weight: bold; text-decoration: none;">, </ins>you need to define real world showcases and real world use cases<ins style="font-weight: bold; text-decoration: none;">; </ins>this is the bottom up approach. So you need to find a team <ins style="font-weight: bold; text-decoration: none;">-- </ins>a team of convicts, a team of evangelists <ins style="font-weight: bold; text-decoration: none;">-- </ins>in your organization that are willing to work a little bit, bend the rules and work across functions to make something happen. This can be pure showcase in the beginning, <ins style="font-weight: bold; text-decoration: none;">but </ins>then later on we recommend <ins style="font-weight: bold; text-decoration: none;">truly defining </ins>the real business critical use cases to make things happen. This is typically the easiest way you can make an organization follow along and pursue the AIoT transformation.''</div></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br/></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br/></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>Dirk : ''Last question, do you see different strategies? Depending on whether you're looking at this from the OEM or product perspective versus the operator perspective?'' </div></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>Dirk : ''Last question, do you see different strategies? Depending on whether you're looking at this from the OEM or product perspective versus the operator perspective?'' </div></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br/></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br/></td></tr>
<tr><td class="diff-marker" data-marker="−"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>Laurenz: ''These are definitely different perspectives. <del style="font-weight: bold; text-decoration: none;"> </del>What are the challenges of this transformation for a classical OEM? For example a maker of power tools, forklifts, maker of cars <del style="font-weight: bold; text-decoration: none;">even</del>? Although I <del style="font-weight: bold; text-decoration: none;">don't </del>say the ultimate goal for every one of those organizations is <del style="font-weight: bold; text-decoration: none;">a </del>Equipment as a Service model, <del style="font-weight: bold; text-decoration: none;">but still </del>the big challenge is how do my revenue streams change over time? When I'm used to selling a thousand heavy machinery pieces per year and I know that maybe in <del style="font-weight: bold; text-decoration: none;">10 </del>years, <del style="font-weight: bold; text-decoration: none;"> </del>I'm selling, tens of thousands of microservice digits a week <del style="font-weight: bold; text-decoration: none;">- </del>how do I adapt to this new business model? So this is a typical question for a digital OEM. For a digital equipment operator<del style="font-weight: bold; text-decoration: none;">, like </del>let<del style="font-weight: bold; text-decoration: none;">'s </del>say a railway operator<del style="font-weight: bold; text-decoration: none;">, </del>clearly the question is much more: how does this affect my cost base? How will I deliver a certain service or manage my assets in the future? How can I build in things <del style="font-weight: bold; text-decoration: none;">like </del>connectivity costs<del style="font-weight: bold; text-decoration: none;">, </del>data center costs<del style="font-weight: bold; text-decoration: none;">, for example, </del>in the future? How do I arrange for those changes in my own cost base<del style="font-weight: bold; text-decoration: none;">. </del>So very different approaches needed.''</div></td><td class="diff-marker" data-marker="+"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>Laurenz: ''These are definitely different perspectives. What are the challenges of this transformation for a classical OEM? For example<ins style="font-weight: bold; text-decoration: none;">, for </ins>a maker of power tools, forklifts, <ins style="font-weight: bold; text-decoration: none;">or even a </ins>maker of cars? Although I <ins style="font-weight: bold; text-decoration: none;">do not </ins>say the ultimate goal for every one of those organizations is <ins style="font-weight: bold; text-decoration: none;">an </ins>Equipment as a Service model, the big challenge is <ins style="font-weight: bold; text-decoration: none;">still: </ins>how do my revenue streams change over time? When I'm used to selling a thousand heavy machinery pieces per year and I know that maybe in <ins style="font-weight: bold; text-decoration: none;">ten </ins>years, I'm selling, tens of thousands of microservice digits a week<ins style="font-weight: bold; text-decoration: none;">, </ins>how do I adapt to this new business model? So this is a typical question for a digital OEM. For a digital equipment operator <ins style="font-weight: bold; text-decoration: none;">(</ins>let <ins style="font-weight: bold; text-decoration: none;">us </ins>say a railway operator<ins style="font-weight: bold; text-decoration: none;">) </ins>clearly the question is much more: how does this affect my cost base? How will I deliver a certain service or manage my assets in the future? How can I build in things <ins style="font-weight: bold; text-decoration: none;">such as </ins>connectivity costs <ins style="font-weight: bold; text-decoration: none;">and </ins>data center costs in the future? How do I arrange for those changes in my own cost base<ins style="font-weight: bold; text-decoration: none;">? </ins>So very different approaches <ins style="font-weight: bold; text-decoration: none;">are </ins>needed.''</div></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br/></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br/></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>Dirk: ''Thank you.''</div></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>Dirk: ''Thank you.''</div></td></tr>
</table>Springerhttps://www.digitalplaybook.org/index.php?title=Business_Strategy&diff=5245&oldid=prevDSL at 18:28, 12 September 20212021-09-12T18:28:45Z<p></p>
<table style="background-color: #fff; color: #202122;" data-mw="interface">
<col class="diff-marker" />
<col class="diff-content" />
<col class="diff-marker" />
<col class="diff-content" />
<tr class="diff-title" lang="en">
<td colspan="2" style="background-color: #fff; color: #202122; text-align: center;">← Older revision</td>
<td colspan="2" style="background-color: #fff; color: #202122; text-align: center;">Revision as of 19:28, 12 September 2021</td>
</tr><tr><td colspan="2" class="diff-lineno" id="mw-diff-left-l14">Line 14:</td>
<td colspan="2" class="diff-lineno">Line 14:</td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>__TOC__</div></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>__TOC__</div></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br/></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br/></td></tr>
<tr><td class="diff-marker" data-marker="−"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>Every Business Strategy must answer the question of how a company should compete in the business areas it has selected; e.g. by applying a cost strategy, a differentiated product or service strategy, or a niche strategy. In the context of AIoT, the business area usually involves physical assets, products, equipment, or appliances. This means that the role of the company will typically be either that of an OEM or an equipment operator, or a combination of the two ('hybrid'). AIoT as a new paradigm will enable both types of companies to create new, digital-enhanced products, solutions, or services. The OEM will become a ''Digital OEM'', the equipment operator will become a ''Digital Equipment Operator''. For the Digital OEM, the AIoT-enabled digital transformation is often about fundamental changes to the business model. For the Digital Equipment Operator, it is usually more about the digitalization of the operations model. For both, key questions include how to manage innovation, and how to define a suitable target organization. Finally, platform-based business strategies have proven to be extremely powerful. Platforms can utilize AIoT to connect to physical products and assets in the field and create a value-added offering. The following will look at <del style="font-weight: bold; text-decoration: none;">Digital </del>OEM, <del style="font-weight: bold; text-decoration: none;">Digital </del>Equipment <del style="font-weight: bold; text-decoration: none;">Operator</del>, <del style="font-weight: bold; text-decoration: none;">platforms </del>and <del style="font-weight: bold; text-decoration: none;">hybrid models </del>in <del style="font-weight: bold; text-decoration: none;">detail</del>.</div></td><td class="diff-marker" data-marker="+"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>Every Business Strategy must answer the question of how a company should compete in the business areas it has selected; e.g. by applying a cost strategy, a differentiated product or service strategy, or a niche strategy. In the context of AIoT, the business area usually involves physical assets, products, equipment, or appliances. This means that the role of the company will typically be either that of an OEM or an equipment operator, or a combination of the two ('hybrid'). AIoT as a new paradigm will enable both types of companies to create new, digital-enhanced products, solutions, or services. The OEM will become a ''Digital OEM'', the equipment operator will become a ''Digital Equipment Operator''. For the Digital OEM, the AIoT-enabled digital transformation is often about fundamental changes to the business model. For the Digital Equipment Operator, it is usually more about the digitalization of the operations model. For both, key questions include how to manage innovation, and how to define a suitable target organization. Finally, platform-based business strategies have proven to be extremely powerful. Platforms can utilize AIoT to connect to physical products and assets in the field and create a value-added offering. The following <ins style="font-weight: bold; text-decoration: none;">expert opinion </ins>will <ins style="font-weight: bold; text-decoration: none;">shed some more light on the AIoT strategy perspective.</ins></div></td></tr>
<tr><td colspan="2" class="diff-side-deleted"></td><td class="diff-marker" data-marker="+"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div> </div></td></tr>
<tr><td colspan="2" class="diff-side-deleted"></td><td class="diff-marker" data-marker="+"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><ins style="font-weight: bold; text-decoration: none;">Dirk: ''Laurenz Kirchner from mm1 consulting. Thanks for joining us. My first question, what is strategy and AIoT to you from the products and services perspective. Do we actually need a business strategy or a dedicated digital strategy?''</ins></div></td></tr>
<tr><td colspan="2" class="diff-side-deleted"></td><td class="diff-marker" data-marker="+"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div> </div></td></tr>
<tr><td colspan="2" class="diff-side-deleted"></td><td class="diff-marker" data-marker="+"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><ins style="font-weight: bold; text-decoration: none;">Laurenz: ''I think both! Or let's say: In this decade - in the 2020s – business strategy cannot exist separated from a digital strategy. When we talk specifically about an AIoT strategy, I believe it is absolutely necessary for any company that either manufactures stuff or operates a lot of assets. These companies will only survive if they transform into organisations that are able to manage connectivity, data and digital services across the stack.''</ins></div></td></tr>
<tr><td colspan="2" class="diff-side-deleted"></td><td class="diff-marker" data-marker="+"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div> </div></td></tr>
<tr><td colspan="2" class="diff-side-deleted"></td><td class="diff-marker" data-marker="+"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><ins style="font-weight: bold; text-decoration: none;">Dirk: ''Okay. So, how do you manage the required innovation at this level?''</ins></div></td></tr>
<tr><td colspan="2" class="diff-side-deleted"></td><td class="diff-marker" data-marker="+"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div> </div></td></tr>
<tr><td colspan="2" class="diff-side-deleted"></td><td class="diff-marker" data-marker="+"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><ins style="font-weight: bold; text-decoration: none;">Laurenz: ''You need to sync your transformation activity on three levels, or three ‘plays’ as we have shown in the AIoT playbook. I believe, you need to always start from a business strategy play, rather than from a technical perspective. So put the business perspective first: What are priorities for my AIoT transformation? Do I focus on smart products or on automating asset operations? Which business critical capabilities will benefit most from AIoT based decision making etc.? Second, you need to </ins>look at <ins style="font-weight: bold; text-decoration: none;">the execution play. What are the new roles, tools, responsibilities I need to put in place, such as a data governance organisation? How are ‘classical’ corporate functions - such as sales, operations, legal and so on - affected and what is their contribution? How do business models, revenue structures and so on change? </ins></div></td></tr>
<tr><td colspan="2" class="diff-side-deleted"></td><td class="diff-marker" data-marker="+"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><ins style="font-weight: bold; text-decoration: none;">The third AIoT transformation play is the technology execution level. It is here that you need to think through architectural questions, make or buy decisions, define the right development approach such as for example the agile V-model.''</ins></div></td></tr>
<tr><td colspan="2" class="diff-side-deleted"></td><td class="diff-marker" data-marker="+"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><ins style="font-weight: bold; text-decoration: none;"> </ins></div></td></tr>
<tr><td colspan="2" class="diff-side-deleted"></td><td class="diff-marker" data-marker="+"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><ins style="font-weight: bold; text-decoration: none;">Dirk: ''So, is this more about mastering technology and innovation potentials from technology? or is this more about business model innovation?''</ins></div></td></tr>
<tr><td colspan="2" class="diff-side-deleted"></td><td class="diff-marker" data-marker="+"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div> </div></td></tr>
<tr><td colspan="2" class="diff-side-deleted"></td><td class="diff-marker" data-marker="+"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><ins style="font-weight: bold; text-decoration: none;">Laurenz: ''Definitely both! Or rather: The business innovation side interacting with the technology side in a dialectic way. Think ‘yin and yang’! A typical situation that we see in client organisations is a lot of push on the technology execution from IT, and this push doesn't really get anchored into the business perspective. Think of a typical use case like metering: Clearly you have to find the right wireless connectivity technology to connect a power meter in the basement of a concrete building. But you also have to think through what is really the digital service I want to offer? What is the offering structure? For which part of my service delivery do I actually get revenue? so those things have to have to work together and you cannot do the one without the other.''</ins></div></td></tr>
<tr><td colspan="2" class="diff-side-deleted"></td><td class="diff-marker" data-marker="+"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div> </div></td></tr>
<tr><td colspan="2" class="diff-side-deleted"></td><td class="diff-marker" data-marker="+"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><ins style="font-weight: bold; text-decoration: none;">Dirk: ''So what about the organizational side? How do I get my organization to support this? What's the target organization? How do I get there?''</ins></div></td></tr>
<tr><td colspan="2" class="diff-side-deleted"></td><td class="diff-marker" data-marker="+"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div> </div></td></tr>
<tr><td colspan="2" class="diff-side-deleted"></td><td class="diff-marker" data-marker="+"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><ins style="font-weight: bold; text-decoration: none;">Laurenz: ''What we tend to recommend and is to follow a top-down and bottom-up approach. Top down, you need to enable top management to understand and define the possibilities and the overall objectives that the organization has to pursue and this takes a lot of education and evangelization on the top level. There's a lot of stuff where executives don't know what they don't know yet.''</ins></div></td></tr>
<tr><td colspan="2" class="diff-side-deleted"></td><td class="diff-marker" data-marker="+"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div> </div></td></tr>
<tr><td colspan="2" class="diff-side-deleted"></td><td class="diff-marker" data-marker="+"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><ins style="font-weight: bold; text-decoration: none;">Dirk: ''Good thing we are writing an AIoT playbook...''</ins></div></td></tr>
<tr><td colspan="2" class="diff-side-deleted"></td><td class="diff-marker" data-marker="+"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div> </div></td></tr>
<tr><td colspan="2" class="diff-side-deleted"></td><td class="diff-marker" data-marker="+"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><ins style="font-weight: bold; text-decoration: none;">Laurenz : ''Exactly. At the same time you need to define real world showcases and real world use cases and this is the bottom up approach. So you need to find a team, a team of convicts, a team of evangelists in your organization that are willing to work a little bit, bend the rules and work across functions to make something happen. This can be a pure showcase in the beginning, and then later on, we recommend to really define the real business critical use cases to make things happen. This is typically the easiest way you can make an organization follow along and pursue the AIoT transformation.''</ins></div></td></tr>
<tr><td colspan="2" class="diff-side-deleted"></td><td class="diff-marker" data-marker="+"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div> </div></td></tr>
<tr><td colspan="2" class="diff-side-deleted"></td><td class="diff-marker" data-marker="+"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><ins style="font-weight: bold; text-decoration: none;">Dirk : ''Last question, do you see different strategies? Depending on whether you're looking at this from the OEM or product perspective versus the operator perspective?'' </ins></div></td></tr>
<tr><td colspan="2" class="diff-side-deleted"></td><td class="diff-marker" data-marker="+"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div> </div></td></tr>
<tr><td colspan="2" class="diff-side-deleted"></td><td class="diff-marker" data-marker="+"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><ins style="font-weight: bold; text-decoration: none;">Laurenz: ''These are definitely different perspectives. What are the challenges of this transformation for a classical </ins>OEM<ins style="font-weight: bold; text-decoration: none;">? For example a maker of power tools, forklifts</ins>, <ins style="font-weight: bold; text-decoration: none;">maker of cars even? Although I don't say the ultimate goal for every one of those organizations is a </ins>Equipment <ins style="font-weight: bold; text-decoration: none;">as a Service model</ins>, <ins style="font-weight: bold; text-decoration: none;">but still the big challenge is how do my revenue streams change over time? When I'm used to selling a thousand heavy machinery pieces per year </ins>and <ins style="font-weight: bold; text-decoration: none;">I know that maybe in 10 years, I'm selling, tens of thousands of microservice digits a week - how do I adapt to this new business model? So this is a typical question for a digital OEM. For a digital equipment operator, like let's say a railway operator, clearly the question is much more: how does this affect my cost base? How will I deliver a certain service or manage my assets in the future? How can I build in things like connectivity costs, data center costs, for example, in the future? How do I arrange for those changes </ins>in <ins style="font-weight: bold; text-decoration: none;">my own cost base. So very different approaches needed.''</ins></div></td></tr>
<tr><td colspan="2" class="diff-side-deleted"></td><td class="diff-marker" data-marker="+"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div> </div></td></tr>
<tr><td colspan="2" class="diff-side-deleted"></td><td class="diff-marker" data-marker="+"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div><ins style="font-weight: bold; text-decoration: none;">Dirk: ''Thank you</ins>.<ins style="font-weight: bold; text-decoration: none;">''</ins></div></td></tr>
</table>DSLhttps://www.digitalplaybook.org/index.php?title=Business_Strategy&diff=4523&oldid=prevDSL at 14:54, 25 August 20212021-08-25T14:54:02Z<p></p>
<table style="background-color: #fff; color: #202122;" data-mw="interface">
<col class="diff-marker" />
<col class="diff-content" />
<col class="diff-marker" />
<col class="diff-content" />
<tr class="diff-title" lang="en">
<td colspan="2" style="background-color: #fff; color: #202122; text-align: center;">← Older revision</td>
<td colspan="2" style="background-color: #fff; color: #202122; text-align: center;">Revision as of 15:54, 25 August 2021</td>
</tr><tr><td colspan="2" class="diff-lineno" id="mw-diff-left-l14">Line 14:</td>
<td colspan="2" class="diff-lineno">Line 14:</td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>__TOC__</div></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>__TOC__</div></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br/></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br/></td></tr>
<tr><td class="diff-marker" data-marker="−"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>Every Business Strategy must answer the question of how a company should compete in the business areas it has selected; e.g. by applying a cost strategy, a differentiated product or service strategy, or a niche strategy. In the context of AIoT, the business area usually involves physical assets, products, equipment, or appliances. This means that the role of the company will typically be either that of an OEM or an equipment operator, or a combination of the two ('hybrid'). AIoT as a new paradigm will enable both types of companies to create new, digital-enhanced products, solutions, or services. The OEM will become a ''Digital OEM'', the equipment operator will become a ''Digital Equipment Operator''. For the Digital OEM, the AIoT-enabled digital transformation is often about fundamental changes to the business model. For the Digital Equipment Operator, it is usually more about the digitalization of the operations model. For both, key questions include how to manage innovation, and how to define a suitable target organization. The following will look at Digital OEM, Digital Equipment Operator and hybrid models in detail.</div></td><td class="diff-marker" data-marker="+"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>Every Business Strategy must answer the question of how a company should compete in the business areas it has selected; e.g. by applying a cost strategy, a differentiated product or service strategy, or a niche strategy. In the context of AIoT, the business area usually involves physical assets, products, equipment, or appliances. This means that the role of the company will typically be either that of an OEM or an equipment operator, or a combination of the two ('hybrid'). AIoT as a new paradigm will enable both types of companies to create new, digital-enhanced products, solutions, or services. The OEM will become a ''Digital OEM'', the equipment operator will become a ''Digital Equipment Operator''. For the Digital OEM, the AIoT-enabled digital transformation is often about fundamental changes to the business model. For the Digital Equipment Operator, it is usually more about the digitalization of the operations model. For both, key questions include how to manage innovation, and how to define a suitable target organization<ins style="font-weight: bold; text-decoration: none;">. Finally, platform-based business strategies have proven to be extremely powerful. Platforms can utilize AIoT to connect to physical products and assets in the field and create a value-added offering</ins>. The following will look at Digital OEM, Digital Equipment Operator<ins style="font-weight: bold; text-decoration: none;">, platforms </ins>and hybrid models in detail.</div></td></tr>
</table>DSLhttps://www.digitalplaybook.org/index.php?title=Business_Strategy&diff=4514&oldid=prevDSL at 14:15, 25 August 20212021-08-25T14:15:46Z<p></p>
<table style="background-color: #fff; color: #202122;" data-mw="interface">
<col class="diff-marker" />
<col class="diff-content" />
<col class="diff-marker" />
<col class="diff-content" />
<tr class="diff-title" lang="en">
<td colspan="2" style="background-color: #fff; color: #202122; text-align: center;">← Older revision</td>
<td colspan="2" style="background-color: #fff; color: #202122; text-align: center;">Revision as of 15:15, 25 August 2021</td>
</tr><tr><td colspan="2" class="diff-lineno" id="mw-diff-left-l5">Line 5:</td>
<td colspan="2" class="diff-lineno">Line 5:</td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>rect 2737 128 3539 257 [[Digital_OEM|More...]]</div></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>rect 2737 128 3539 257 [[Digital_OEM|More...]]</div></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>rect 2737 257 3539 390 [[Digital_Equipment_Operator|More...]]</div></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>rect 2737 257 3539 390 [[Digital_Equipment_Operator|More...]]</div></td></tr>
<tr><td class="diff-marker" data-marker="−"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>rect 2737 385 3539 518 [[<del style="font-weight: bold; text-decoration: none;">Hybrid_Models</del>|More...]]</div></td><td class="diff-marker" data-marker="+"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>rect 2737 385 3539 518 [[<ins style="font-weight: bold; text-decoration: none;">Platforms</ins>|More...]]</div></td></tr>
<tr><td class="diff-marker" data-marker="−"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #ffe49c; vertical-align: top; white-space: pre-wrap;"><div>rect 2737 523 3539 655 [[<del style="font-weight: bold; text-decoration: none;">Platforms</del>|More...]]</div></td><td class="diff-marker" data-marker="+"></td><td style="color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #a3d3ff; vertical-align: top; white-space: pre-wrap;"><div>rect 2737 523 3539 655 [[<ins style="font-weight: bold; text-decoration: none;">Hybrid_Models</ins>|More...]]</div></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>rect 2737 651 3539 784 [[Scalability|More...]]</div></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><div>rect 2737 651 3539 784 [[Scalability|More...]]</div></td></tr>
<tr><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br/></td><td class="diff-marker"></td><td style="background-color: #f8f9fa; color: #202122; font-size: 88%; border-style: solid; border-width: 1px 1px 1px 4px; border-radius: 0.33em; border-color: #eaecf0; vertical-align: top; white-space: pre-wrap;"><br/></td></tr>
</table>DSL