You didn’t sign up for this, but your company needs you—desperately.
As CIO, you figured you’d merely lead your IT department. You’d purchase equipment and create new systems. You’d implement policies and procedures around device usage. You’d protect your enterprise from dangerous cyber attacks.
But with new, groundbreaking technologies emerging every day—from the Internet of Things (IoT) to machine learning—your role within the organization has changed. In fact, it’s growing in importance. You’re expected to be more strategic. Your colleagues now view you as an influencer and change-maker. You’re looked upon to be a driving force at your enterprise—one who can successfully guide your company into the future.
The first step in making this transition from IT leader to company leader is to team up with others in the C-suite—specifically the COO—to drive digital transformation.
Increase CIO-COO collaboration and prepare your enterprise for the digital age
The precise roles and responsibilities of a COO are difficult to pin down. They often vary from company to company. But two things about the position are generally true:
- The COO is second in command to the chairman or CEO of an organization.
- The COO is tasked with ensuring a company’s operations are running at an optimal level.
In other words, the COO role is vitally important. And as technology continues to become more and more essential to a company’s short- and long-term success, it’s crucial for the COO to establish a close working relationship with the CIO. After all, the latest innovations—which today’s CIOs are responsible for adopting and managing—will unquestionably aid an organization’s operational improvements, no matter their industry.
Take manufacturing, for instance. The primary duty of a manufacturer’s COO is to create the perfect production process—one that minimizes cost and maximizes yield. To achieve this, the COO must ensure asset availability, balance efficiency with agility, and merge planning and scheduling with execution. This requires using a solution that provides real-time visibility. It involves harnessing the power of sensor data and connectivity. It encompasses capitalizing on analytics capabilities that enable businesses to be predictive rather than reactive.
And there’s one particular platform that makes all of this—and more—possible.
Experience the sheer power of IoT
In a recent white paper, Realizing IoT’s Value — Connecting Things to People and Processes, IDC referred to IoT as “a powerful disruptive platform that can enhance business processes, improve operational and overall business performance, and, more importantly, enable those innovative business models desperately needed to succeed in the digital economy.”
According to IDC research:
- 80% of manufacturers are familiar or very familiar with the concept of IoT.
- 70% view IoT as extremely or very important.
- 90% have plans to invest in IoT within the next 12 to 24 months.
- 30% already have one or more IoT initiatives in place.
So while most manufacturers appear to be on the same page about the importance and urgency of adopting IoT technology, there are stark differences in the kind of value they believe it can provide.
Nearly one-quarter (22%) of companies view IoT as tactical, meaning it can solve specific business challenges. Nearly 60%, however, see IoT as strategic. These organizations believe the technology can help them gain competitive advantages by enhancing the current products and services they provide, reducing costs, and improving productivity.
One thing all businesses can agree on is that IoT is essential to spurring enterprise-wide digital transformation—particularly as it pertains to reimagining business processes and products.
Innovate your organization’s business processes
Companies are constantly on the lookout for ways to run their operations smarter. In recent years, IoT has emerged as one of the most formidable methods for achieving this. It paves the way for increasing connectivity and business intelligence.
So what’s the endgame to all of this? Process automation.
While fully automated business processes remain a pipe dream for many companies, plenty of manufacturers are already making great strides in transforming their existing business processes with IoT.
Here are just a few ways IoT is enabling process improvements:
- Predictive maintenance: IoT offers manufacturers real-time visibility into the condition of an asset or piece of equipment through wired or wireless sensors. By taking a proactive rather than reactive approach to maintenance, businesses can reduce asset/equipment downtown, minimize repair costs, and increase employee productivity.
- Real-time scheduling: IoT technology empowers manufacturers to evaluate current demand and capacity availability in the moment. This allows businesses to continuously modify production schedules, resulting in higher throughput levels, lower unit costs, and greater customer satisfaction.
- Environmental resource management and planning: IoT-enabled sensors provide manufacturers with the ability to capture and analyze energy use. By applying cognitive technology across the enterprise, companies can take the proper steps to reduce energy consumption and promote more sustainable environmental practices.
Develop and deliver innovative products
Creating smarter business processes isn’t enough for companies today. They must aspire to develop more intelligent products, too. This capability can help modern-day enterprises provide greater value to consumers, increase revenue, and separate themselves from the competition.
IoT is tailor-made for helping businesses build innovative products. With greater connectivity between organizations and goods, manufacturers can go beyond merely producing products to producing products andselling as-a-service add-ons.
Here are few ways manufacturers are creating smarter products and experiencing greater business success with IoT:
- Remote management: IoT enables businesses to continuously monitor the health of their products. With remote management, organizations can identify problems, implement corrective actions, and increase customer satisfaction.
- Quality feedback loop: IoT-connected products keep design and service teams loaded with useful data. Based on the information they collect, manufacturers can continue to refine products and prevent potential product recalls.
- Product as a service: IoT technology presents organizations with myriad revenue-generating opportunities. Selling as-a-service add-ons with products allows manufacturers to take advantage of more continuous revenue streams throughout product life cycles.
Forget best practices—embrace next practices
When it comes to a company’s digital transformation, the buck stops with its CIO. After all, the CIO is responsible for adopting and managing the cutting-edge innovations that enable organizations to fuel business growth and stay competitive.
But to achieve this, CIOs need to forget about best practices and instead embrace next practices.
IDC describes next practices as “innovative processes that enable businesses to remain successful in the evolving industry landscape and at the same time prepares them for future challenges and disruptions as the scale of innovation speeds up.”
Today, there’s no better way for a company to stay innovative and competitive than by adopting game-changing IoT technology.
Want to learn more? Download the IDC white paper.
This story also appeared on The Digitalist.