Is Your IoT Innovation Failing The Value Creation Test?
A fundamental value creation challenge is finding innovation that changes the basis of competition and creates structural advantages that, in turn, creates sustained enterprise value. Even the most creative business ideas can fail this value creation test when the innovation discussion centers solely on creating value through operational process, products, services or market innovation.
A study by the IBM CEO Report explored how firms distribute their innovation efforts. While most businesses applied some effort into innovating across the board, business model innovation received the least attention.
However, Companies focused on business model innovation delivered 5% higher five year compound annual growth rates. While businesses focused on product/service/market innovation saw only slight growth. Those primarily applying process innovation were actually worse off.
Technology is changing the basis of competitive advantage. Whereas it may have taken 18 months for a competitor to copy a new product or service in the past, the time is down to 6 months or less in many sectors.
Formulating value creating Internet of Things-based business strategies, leading the activation of new product/service solution roadmaps, designing new customer experiences and business models, and championing digital business transformation inside companies and within customer organizations will be a primary strategic and tactical challenge for most companies going forward.
A thoughtfully planned and well executed Internet of Things customer experience-driven business model innovation changes the basis of competition and creates sustainable structural advantages that can take even the best "fast follower" several years to emulate.
Accredent specializes in the Business of The Internet of Things(tm). Formed in 2009 out a four year strategy, M&A, and business development engagement with companies that pioneered many of today's Internet-of-Things connected technologies, business cases and use cases. Contact Us
Accredent has been successful partnering with business leaders of corporations, operations and product teams, and emerging ventures to develop and transform their businesseses, accelerate revenue, growth and enterprise value through the Internet of Things. accredent.com