More...More...More...More...More...More...Business Strategy

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.