Leading the IoT Gartner

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Introduction, The Internet of Things IoT has rapidly become one of the The biggest barrier to the IoT is that most enterprises do not. most familiar and perhaps most hyped expressions know what to do with the technology And if they do have. across business and technology plans for the IoT there is concern over who will be leading. these initiatives This need is an opportunity for CIOs to fill. We expect to see 20 billion internet connected things by that IoT leadership void. 2020 These things are not general purpose devices such. as smartphones and PCs but dedicated function objects This book is intended to be a guide for CIOs and IT leaders. such as vending machines jet engines connected cars and who want to take a broader view of the IoT it provides them. a myriad of other examples with a foundation from which to start business conversations. develop their thinking and refine their approaches to. The IoT will have a great impact on the economy by accelerate time to value from IoT initiatives. transforming many enterprises into digital businesses and. facilitating new business models improving efficiency. and increasing employee and customer engagement Mark Hung. However the ways in which enterprises can actualize any. Gartner Research, benefits will be diverse and in some cases painful. Vice President,Leading the IoT 2,CHAPTER 1 CHAPTER 2 CHAPTER 3 CHAPTER 4. 04 12 16 23, Leverage the IoT Secure the IoT Staff the IoT Exploit the IoT. Leading the IoT 3,Leverage the IoT,Leading the IoT 4.
Leverage the IoT, Commuters and pleasure travelers depend on reliable train service to. get where they are going safely and with minimal delays Train service. The Internet of Things IoT is a network of dedicated. operators want to provide that reliable service while also optimizing. physical objects things that contain embedded, internal costs Trenitalia the main Italian service operator leveraged the. technology to communicate and sense or interact with. IoT in a three year implementation plan to deliver improved reliability. their internal states or the external environment The. and compelling cost savings With more than 1 500 train sets running. connecting of assets processes and personnel enables. more than 7 000 routes per day Trenitalia shifted from corrective. the capture of data and events from which a company. reactive activities and maintenance plans to a system that reflects the. can learn behavior and usage react with preventive. real conditions of each train s components,action or augment or transform business processes. Working together with its partner SAP Trenitalia built a robust set of IoT The IoT is a foundational capability for the creation of. use cases associated business benefits and financial models related to a digital business. optimizing train maintenance and the team obtained buy in from key. internal stakeholders These efforts resulted in a clearly defined three. year implementation blueprint for the Dynamic Maintenance Management. System DMMS which partners with Italian system integrator AlmavivA Brake pads for example had always been replaced according to. for IT implementation and SAP for the data platform and analytics standard maintenance plans based on distance kilometer intervals. By adding a life indicator that measures the energy dissipation. DMMS leverages onboard and ground based sensors and diagnostics capability of friction braking in real time Trenitalia now knows that. and sends that data to an on premises private cloud for analytics in route specific factors hills curves and local routes with many stops. near real time At the heart of DMMS is the transformation of maintenance along with kilometers have a direct bearing on brake pad life. from a mix of corrective reactive activities and maintenance plans based Combined with the addition of new health measures such as brake. on distance and time to a system based on life and health indicators pressure and temperature and whether the brake is on a locomotive. that reflect precisely the real physical conditions of each component or a coach Trenitalia has been able to optimize brake pad utilization. of the trains Life indicators typically measure the expected wear of and reduce maintenance activities without impacting safety or reliability. components by counting relevant parameters such as cycles time. distance and energy Health indicators measure the actual status of. component operation such as the closing time for a door or the. temperature of a cooling system,Leading the IoT 5,Leverage the IoT. Although Trenitalia is more than halfway through its three year As IoT projects become reality for some organizations CIOs can. implementation plan many other business and IT leaders are still leverage lessons from Trenitalia s journey aligning the IoT to desired. wondering if the IoT can ever overcome the hype and fulfill its business goals gaining internal support for use cases and driving IoT. promise in organizational and societal disruption initiatives with a roadmap and blueprint to create significant value. Initially leaders viewed the IoT as a silver bullet a technology that can. solve the myriad IT and business problems that their organizations faced Chart the path to IoT business value. Very quickly though they recognized that without the proper framing of. The generality of the term IoT and the wide variety of delivery forms and. the problems the IoT was essentially a solution looking for a problem. back end services can make it difficult to identify how to capture. says Mark Hung research vice president and lead analyst for IoT research. business value Your first step is to move the conversation from talking. Next leaders started to explore the applications and use cases for. about the IoT in general to talking about what it can do or be specific. which the IoT is best suited as their organizations embarked on their. to your organization The IoT can deliver business benefits ranging from. journeys toward digitalization Finally in 2017 we expect some of these. operational improvements such as predictive maintenance to digital. explorers to move to the reality phase when skunkworks projects. business transformation such as selling product usage as a service. and proofs of concept graduate to commercial or production deployment. Initially leaders viewed the IoT as a silver bullet a technology. that can solve the myriad IT and business problems that their. organizations faced Very quickly though they recognized. that without the proper framing of the problems the IoT was. essentially a solution looking for a problem,Mark Hung Gartner Research Vice President.
Leading the IoT 6,Leverage the IoT, Do not be shortsighted Start with a strategic perspective by aligning. use case identification with the strategic levers that drive success THE INTERNET OF THINGS. for your organization Be sure to balance pragmatism what is proven. to deliver now with vision how the IoT can enable transformational. business moments says Chet Geschickter research director Move. beyond viewing the IoT as a general technology wave by applying an EXTERNAL. industry lens to identify relevant use cases BENEFITS. Improve Generate,Well Being Revenue,Create a basic benefits framework. The benefits from the IoT can be internally focused such as improving. your employees safety in a hazardous production environment or. Enhance Improve Safety Increase, externally oriented such as improving patient outcomes in an acute Services Engagement. and Security, care setting Build a basic benefits framework and organize benefits at. a high level according to whether they are primarily internal or external. Optimize Reduce,Move beyond viewing the IoT Assets Expenses.
as a general technology wave,by applying an industry lens to Conserve. identify relevant use cases,Chet Geschickter Gartner Research Director. Leading the IoT 7,Leverage the IoT, Organizations should also look at the IoT in conjunction with other Be aware that certain use cases are more likely to create compelling. technologies says Geschickter What happens when the IoT is financial payback than others For example Gartner has observed that. combined with machine learning advanced analytics augmented IoT use cases focused on delivering cost savings from fuel energy. reality or all of the above Look at broader bundles of technologies and labor often have significant financial impact and shorter payback. and determine what can be done with those bundles Combinatorial time frames Also in this category are use cases within asset intensive. innovation is a term we use for this What creative solutions and businesses or heavy industries Here industrial mechanical devices. offerings can you build when you mix multiple transformational with high cost and complexity critical asset value and remote geographic. technologies together location realize IoT benefits such as remote asset monitoring and. predictive maintenance that maximize asset utilization and minimize. critical failure unplanned downtime,Ensure that every IoT project has clearly. identified business goals and objectives,It is critical to reassess IoT.
It is essential before architecting and implementing any IoT solution that. some time be spent to describe the IoT use case and value that your projects periodically during. IoT pilot or project will deliver to your enterprise Leaders in Trenitalia s implementation to validate that. engineering department its CIO and other early project champions. for example worked together with other functional leadership to gain the project will still deliver the. internal support including obtaining funding for the initiative from the business goals objectives. company s CEO,outcomes and business value, This step is critical as it describes what new functionality capabilities or. differentiation your IoT project will deliver It links these to the impact on originally expected. customers validates what basic benefits you can expect and establishes. Nathan Nuttall Gartner Research Director, the metrics by which your IoT project s success will be measured. Leading the IoT 8,Leverage the IoT, We often see that IoT projects are challenging for enterprises and that goals objectives outcomes and business value originally expected. they take some unexpected turns as they go through the architecture and Otherwise success of this IoT project and future projects in your. implementation process This is due to a variety of reasons including roadmap may be jeopardized. unexpected complexity in solution design or integration unanticipated. obstacles that need to be worked around unforeseen performance Mapping out the best practices for getting an IoT initiative off the. issues in the field and solutions with higher costs than planned says ground including upfront agreement and mapping of the IoT to. Nathan Nuttall research director Most of these challenges are business objectives development of use cases and creation of a. solvable but they can result in IoT implementations that stray from the vision and roadmap can help you stay on track to deliver on the. original plan It is critical to reassess IoT projects periodically during stated business objectives as your IoT project progresses See. implementation to validate that the project will still deliver the business figure below. BUSINESS PROCESS MAP FOR IoT PROJECT INITIATION,Iterate and Iterate and. Validate Validate,Identify Develop Create IoT Launch Update IoT.
Business IoT Use Vision and IoT Pilot Vision and,Initiative. Goals Cases Roadmap or POC Roadmap,Verify IT and Gain Internal Verify Internal. BU Are in Sync Support Support,Leading the IoT 9,Leverage the IoT. Build a blueprint Things Things can be dumb or smart on their own and store. most of their data on board Things can also be self sufficient and. Getting your IoT project off to a good start is essential to long communicate to the internet for only centralized coordination. term success but the IoT is not a one size fits all solution The and analysis. integration of IoT technologies varies significantly among companies. and industries Implementing the right IoT solution requires an IoT Gateways Gateways may house the application logic store data. architect who must be able to employ solution level thinking and communicate with the internet for the things that are connected. to it Things don t have to be as smart because the gateway can. provide these resources, Mobile devices Smartphones or any mobile device may house the. By 2020 more than application logic store data and communicate with the internet on. 65 65 of enterprises behalf of things that are connected to it Things don t have to be as. smart because the mobile device provides these abilities. up from 30 today, The cloud The cloud can act as the central connection hub power.
will adopt IoT products analytics and provision data storage Things don t have to be as. smart because the cloud will provide these resources. The enterprise This architectural role is focused on keeping. Hung says enterprises will build and adapt their IoT implementations connected machines application logic and analytics and data. to include a combination of five key architectural components things storage on premises that is behind the enterprise firewall. gateways mobile devices the cloud and the enterprise. and sends that data to an on premises private cloud for analytics in near real time At the heart of DMMS is the transformation of maintenance from a mix of corrective reactive activities and maintenance plans based on distance and time to a system based on life and health indicators

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