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New Design to Disrupt report on New Digital Competition

Only few organizations wise up to new digital competitors, as they usually come from outside their own sector and are not taken seriously at first. Their allegedly inferior propositions confuse prominent players, who should in fact be the very first to be fully aware of potentially disruptive innovation.To swing into action rapidly, existing organizations would be well advised to properly analyze anything resembling digital competition. Evidently, there are clear patterns behind the startup success marking a new techno-economic reality. Ecosystems, APIs, and platforms characterize this New Normal where customers have more freedom of choice and better service at lower costs.These successful disruptors are called two-sided market players, also known as multi-sided platform players. Companies like Uber and Airbnb are getting all the media attention, however there are over 9000 players (and counting) active in almost every industry.The new VINT report explores the new digital competition and presents:

  • A analysis of the success factors of disruption
  • 10 design principles of the new digital competition like Unbundle your organization processes, APIs first. Access over ownership and Building trust with social systems
  • The need for every business to develop a API-strategy
  • An appeal to the CIO and the IT department to use a leading digital approach and map out an offensive technological route.

THE FOURTH INDUSTRIAL REVOLUTION – INTERNET OF THINGS TO TIGHTEN THE LINK BETWEEN IT AND OT

The fourth stage of the Industrial Revolution is upon us due to the far-reaching integration, accelerated by the Internet of Things, of Operational Technology (OT) and Information Technology (IT). This creates completely new opportunities as a result of new combinations of mental, physical and mechanical work by integrating the internet, sensors and embedded systems.The Internet of Things enabled IT/OT convergence leads to cost reduction as a consequence of predictive maintenance, speed and intelligence, thanks to Machine-to-Machine communication and improved forms of Human-Machine Interaction. M2M interaction between and within machines and systems is the cyber-physical heart of the Fourth Industrial Revolution.End-to-end ecosystems – from design and production to client interaction and advanced Maintenance, Repair & Overhaul (MRO) – should be focused on a future in which appliances, devices, things and machines for professionals and private people will communicate with central systems, with one another, and with users for the purpose of providing the best possible facilities to makers, service providers, legislators and customers.Organizations should put IT-OT integration on their digital transformation roadmap, focusing their attention and knowledge from various disciplines, ranging from connectivity, infrastructure, standardization, work processes and risk management to human resources and marketing.The new VINT report, written together with Sogeti High Tech, provides insights into the IT-OT fusion and presents three recommendations to speed up this integration.

THE INTERNET OF THINGS AND THE ‘PROGRAMABILITY’ OF THE PHYSICAL WORLD

The Internet of Things plays a crucial role in the ‘programability’ of the physical world. As a matchmaker between operational technology (OT) and information technology (IT), the IoT has capacities at its disposal that appeal to both partners. The operational machine world is becoming more human due to ‘things’. Moreover, sensors are more entrenched in that field. But, thanks to these ‘things’, the IT world is becoming more integrated in the domain of operations, and the opportunities to add value ‘where the action is’ are simply there for the taking: in everyday interaction with appliances and physical products.In the new report by VINT, our trendland examines the three main reasons to embark upon the Internet of Things adventure:1. the benefits of human-machine interaction (M2M) as the basis of speed and intelligence 2. the benefits of better maintenance: preferably Predictive Maintenance 3. the benefits of engagement or customer interaction: humans and machines in Smart Factories and beyond.Equipping everything on the factory floor and everything that leaves the factory with sensors and internet connections brings benefits to the user and, of course, to the underlying industry.A precondition of success in IT/OT is the ability to bring people together, both physically and mentally. This means that all barriers will have to be flattened.In the new report called The Fourth Industrial Revolution – Things to Tighten the Link between IT and OT , VINT provides three recommendations to speed up this integration.

THE FOURTH INDUSTRIAL REVOLUTION – INTERNET OF THINGS TO TIGHTEN THE LINK BETWEEN IT AND OT

The fourth stage of the Industrial Revolution is upon us due to the far-reaching integration, accelerated by the Internet of Things, of Operational Technology (OT) and Information Technology (IT). This creates completely new opportunities as a result of new combinations of mental, physical and mechanical work by integrating the internet, sensors and embedded systems.The Internet of Things enabled IT/OT convergence leads to cost reduction as a consequence of predictive maintenance, speed and intelligence, thanks to Machine-to-Machine communication and improved forms of Human-Machine Interaction. M2M interaction between and within machines and systems is the cyber-physical heart of the Fourth Industrial Revolution.End-to-end ecosystems – from design and production to client interaction and advanced Maintenance, Repair & Overhaul (MRO) – should be focused on a future in which appliances, devices, things and machines for professionals and private people will communicate with central systems, with one another, and with users for the purpose of providing the best possible facilities to makers, service providers, legislators and customers.Organizations should put IT-OT integration on their digital transformation roadmap, focusing their attention and knowledge from various disciplines, ranging from connectivity, infrastructure, standardization, work processes and risk management to human resources and marketing.The new VINT report provides insights into the IT-OT fusion and presents three recommendations to speed up this integration.

HET INTERNET OF THINGS EN DE VIERDE INDUSTRIËLE REVOLUTIE

De vierde industriële revolutie draait om compleet nieuwe combinaties van hoofd-, hand- en machinewerk door de samensmelting van internet, sensoren en embedded systems. De convergentie tussen Operationele Technologie (OT) en Informatie Technologie (IT) is hiervoor de basis. De totale omvang van deze automatiseringsmarkt bedraagt nu ruim 300 miljard dollar en loopt op tot 3.880 miljard dollar in 2022.This is the Dutch announcement of our third report on the Internet of Things titled The Fourth Industrial Revolution – Things to Tighten the Link between IT and OT. To download the English edition, click here.Het Internet of Things speelt een cruciale rol als matchmaker tussen de Informatie Technologie (IT) en de Operationele Technologie (OT). De operationele machinewereld wordt dankzij ‘things’ menselijker en bovendien zijn sensoren daar al meer ingeburgerd. De IT-wereld komt dankzij ‘things’ meer in de operatie te staan en de kansen om waarde toe te voegen ‘where the action is’ liggen voor het oprapen: namelijk in de dagelijkse omgang met apparaten en fysieke producten.In deze notitie kijken we naar de drie hoofdredenen om aan het IoT-avontuur te beginnen:1. de winst van machine-interactie (M2M) als basis van snelheid en intelligentie; 2. de winst van beter onderhoud: liefst Predictive Maintenance; 3. de winst van engagement ofwel klantinteractie: mens en machine in Smart Factories en daarbuiten. Tot slot geeft het rapport naast inzichten in de fusie tussen IT en OT ook concrete aanbevelingen dit onderdeel te maken van digitale transformatie roadmap. Download nu het nieuwe rapport van VINT: De Vierde Industriële Revolutie: Things slaan een brug tussen OT en IT.

DOWNLOAD THE NEW VINT IOT REPORT: SMACT AND THE CITY

When will the Internet change our cities like it changed our lives? In the final Things report SMACT and the City we now take the city as the center of Things.The convergence of bricks and clicks The report shows how the five basic SMACT technologies are moving the creation of 21st century urban environments into top gear. We provide a status update on Smart Cities today and how developments like Senseable Cities and Cities as a Platform provide both new dynamics and opportunities for blending the digital and the physical infrastructure of our world together. The report provides a analysis of how this is already becoming a reality for retailers and presents what companies and organisations of all trades could learn from the accelerating convergence of bricks and clicks. From the report:

  • The Internet of Things will change our cities.
  • The five basic technologies that form SMACT are moving urban development into top gear.
  • The digital architecture of the city is becoming a true development platform.
  • SMACT will transform the city into a platform to blend bricks and clicks seamlessly together.
  • The future of cities is about: platform solutions, pervasive applications, and sensible sensing technologies.
  • City as a Platform equals the infrastructural capacity plus the human dimension, the empowerment of behavior through data and applications.

REPORT 4: SMACT AND THE CITY: NEW TECHNOLOGIES IN URBAN ENVIRONMENTS

In our last report we took the city as the centre of things and asked ourselves: when will the Internet change our cities like it changed our lives? The report shows how the five basic SMACT technologies are moving the creation of 21st century urban environments into top gear. We provide a status update on Smart Cities today and how developments like Senseable Cities and Cities as a Platform provide both new dynamics and opportunities for blending the digital and the physical infrastructure of our world together. SMACT will transform the city into a platform to blend bricks and clicks seamlessly together. The report provides a analysis of how this is already becoming a reality for retailers and presents what companies and organizations of all trades could learn from the accelerating convergence of bricks and clicks.

REPORT 3: THE FOURTH INDUSTRIAL REVOLUTION: THINGS TO TIGHTEN THE LINK BETWEEN IT AND OT

This report was all about the fourth stage of the Industrial Revolution made possible by the far-reaching integration of Operational Technology (OT) and Information Technology (IT). The IT/OT convergence and the end-to-end ecosystems that are under development – from design and production to client interaction and advanced Maintenance, Repair & Overhaul (MRO) – enable a future in which appliances, devices, things and machines for professionals and private people will communicate with central systems, with one another, and with users for the purpose of providing the best possible facilities to makers, service providers, legislators and customers.

REPORT 2: EMPATHIC THINGS – INTIMATE TECHNOLOGY : FROM WEARABLES TO BIOHACKING

In the second report we focused on the personalized internet of things. We are witnessing a computer boom in terms of kinds, shapes and sizes – around, on or inside the body. Therefore we explored the coming transition toward a more empathic and contextual form of computerization. The emergence of wearable computing and other forms of empathic ‘things’ seems a logical further step: even more intimate, more human-oriented, and ubiquitous. We explored this development and present seven manifestations that can define the impact on business, such as the ‘quantified employee’ and the ‘body as the new password’.

REPORT 1: THINGS – INTERNET OF BUSINESS OPPORTUNITIES

In our first report Things: Internet of Business Opportunities we reported on a tipping point concerning a dazzling impact on the whole economy. Connected things offer new opportunities to combat waste in the broadest sense of the term. This waste occurs among all parties: clients, suppliers, governmental bodies, service providers and the manufacturing industry. Applying digital things, sensors, actuators, apps and SMACT demands a certain mindset as well as concrete actions to optimize process and event chains, and to translate surprising new opportunities into new products and services. Our report offers an overview of recent developments and tips to accelerate your Things approach.

VINT LAUNCHES DESIGN TO DISRUPT REPORT

The disruptive potential of new technologies is growing at a staggering speed and challengers in the market are more vigorous than ever. The combination of these new possibilities and the rise of new competitors are the main drivers that are accelerating innovation. This is the reason why leaders put technology on top of their list of factors that will determine their organization’s future.Many people have remarked that existing organizations cannot match today’s disruptive innovations and that they should leave this field to lean startups. But Design to Disrupt is an imperative: an appeal to every organization that refuses to passively accept becoming obliterated, but truly believes that pioneering innovations are indeed possible. The design of one’s own disruption is the focus of attention in this process. Looking at the toolset – from collaborative platforms, the industrial internet, advanced analytics, cloud to new mobilities – there is an abundance of opportunities for everyone to change the design of products, services, business models, and the organization itself.The new VINT report deals with everything that business leaders need to know about disruption and explores how to design to disrupt. Readers can expect the following insights:

  • An overview of all relevant disruption theory and insights accompanied with speaking examples of accelerated innovation
  • A set of design principles that is imperative to effectuate disruptive innovation
  • Considerations for business leaders to bring innovation to the centre of their organizations

DESIGN TO DISRUPT: ECOSYSTEMS DECLARE WAR

Involving everyone in a new service or product is a perfectly feasible venture nowadays. Simply because internet is invariably within arm’s reach and there is always some app available to make contact. More often than not this is the starting point for a new provision of services between producer, consumer and employee. Such digital competitors form the heart of what we call the platform economy. They derive their success from the network effect. We define platforms as:Building blocks serving as a foundation on which a variety of companies or business ecosystems can develop supplementary services, technologies and services.What it is like to be confronted with such a new digital competitor, was articulated expressively in a by now famous memo of 2011 by Stephen Elop, the then CEO of Nokia. The company had to deal with Apple and Google, which had never made a phone before and Elop experienced their success as fat in the fire of Nokia’s core activity. “Nokia, our platform is burning,” he wrote to his employees. Their actions were wrong and trends were missed. With hindsight things should have been done differently, for Nokia’s brilliant innovations were far too slow in making their way to the market.This can happen to any organization: you are doing a fantastic job within your own comfort zone but suddenly you come off second-best. A platform player enters the market and confronts your product – in the case of Nokia the traditional mobile phone – with a complete ecosystem of touch devices and mobile apps:“The battle of devices has now become a war of ecosystems.”Ecosystems are the reality everyone has to face sooner or later: taxis, music, software, meals, money. You name it, it can always be made into a platform.In our networked society, markets are meeting places that are unlocked digitally. APIs and direct contact between the actors in the network determine the success. This questions any organization that operates as an isolated bastion. Anyone will be faced with platformization. The new VINT report explores the new digital competition and presents:

  • A analysis of the success factors of disruption
  • 10 design principles of the new digital competition like Unbundle your organization processes, APIs first. Access over ownership and Building trust with social systems
  • The need for every business to develop a API-strategy
  • An appeal to the CIO and the IT department to use a leading digital approach and map out an offensive technological route.

*Opinions expressed on this blog reflect the writer’s views and not the position of the Sogeti Group