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Top 10 Principles of IoT Strategy

Nov 29, 2017 8:24:00 AM

by Josh Boxer

Imagine having the technology to put sensors into your manufactured item such as a vacuum, TV, Stereo or lawnmower and be able to tell when there is a problem with a component.  The company is alerted and is proactive in calling the customer with either a new part or a solution to fix it right there on the spot.

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The increasing complexity of new technologies has led to a need for rapid transformation among modern enterprises. As the need to do more with less continues to become more prominent, today’s CIOs have been challenged with better aligning IT with business strategy, realizing greater levels of organizational and operational efficiency, adopting and integrating the latest in digital technologies, and achieving all of this while simultaneously reducing costs and becoming more productive than ever before. For many, this has meant leaving traditional business models behind to embrace a more integrated approach to IT delivery.

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Today’s IT leaders can no longer afford to be stagnant or complacent; they must constantly seek out new ways to drive innovation, improve digital capabilities, and do so while becoming more efficient and productive than ever before. The traditional mindset of ‘command and control’ has given way to an era that encourages cross-functional collaboration and the adoption of integrated IT solutions. Outsourcing, due to its ability to facilitate greater levels of organizational and operational agility, specialized resources, and reduced operating costs, has become increasingly popular among today’s CIOs.

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Up until recently, price was considered to be a key differentiator used to separate one enterprise from another. However, now that the primary focus for most organizations is geared towards becoming more agile, efficient, and cost-effective, it’s becoming increasingly difficult to compete on price while sustaining profitable margins. In fact, according to Gartner’s Customer Experience Report, by 2017 89% of companies expect the customer experience to be their primary form of competitive differentiation.

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According to recent industry reports, the annual contract value (ACV) for outsourcing engagements within the utility industry jumped 24 percent since 2014, outpacing the next closest industry by more than double. While outsourcing offers a number of strategic and operational benefits to enterprises of all sizes and industries, the increasing need for utility companies to find the proper balance of operation, cost, and resource allocation has caused many organizations to turn to IT outsourcing as the solution.

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It’s been said that big data analytics is just a fad and, like most other IT trends that have come and gone, will soon depart the revolving door that is IT innovation. Although an easy assumption to make based on decades of short-lived notions, big data is breaking the mold. According to the Forbes article, “Big Data: 20 Mind-Boggling Facts Everyone Must Read”, more data has been created in the past two years than in the entire previous history of the human race and has showed no signs of slowing down. In fact, it has been projected that by 2020 about 1.7 megabytes of new information will be created every second—for every single human being on the planet. Meaning, our current accumulation of roughly 4.4 zettabytes of data will reach a staggering 44 trillion gigabytes in a mere 4 years.

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