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The Organizational Psychology of the Internet of ThingsHow to Use Technology to Drive Behavioral Change
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The worldis turning digital.
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Analysts are
predicting big things
• 30 billion IoT devices in service by 2020- IDC, 2015
• 50 percent of new business products and services with IoT elements by 2020- Gartner, 2016
• $11 trillion of economic impact via IoT technologies by 2025- McKinsey, 2015
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So how are organizations responding?
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Anticipated impact on the rise
2015
23%
2016
18%
2017
17%
Low or no impact
* Source: Smart Industry 2017 State of Initiative Report
2015
32%
2016
22%
2017
14%
Neutral impact
2015
45%
2016
59%
2017
69%
High or critical impact
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Digital strategies are maturing
‘15
45%
‘16
28%
‘17
19%
’15
30%
‘16
32%
‘17
33%
‘15
13%
‘16
20%
‘17
21%
‘15
12%
‘16
19%
‘17
27%
No strategy Informal strategy 1-2 year horizon 3+ year horizon
None or informal strategy Formal strategy with timeline
76%
(2015)
61%
(2016)
52%
(2017)
24%
(2015)
39%
(2016)
48%
(2017)
* Source: Smart Industry 2017 State of Initiative Report
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1. Lack of executive sponsorship
2. Organizational misalignment
3. Low cross-departmental collaboration
4. Culture that is slow to adopt change
5. Inconsistent market feedback
* Benson, Mark D. “Five Avoidable Complications Of Corporate IoT Innovation Programs.” Forbes
(December 2016).
But people still present the biggest challenges
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Getting an IoT product market ready is tough.
Organizational change and alignment is tougher.
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IoT projects are similar to
assembling a complex puzzle
REQUIRESPEOPLE
HAS LOTS OFDISCONNECTED
PIECES
DOESN’T INCLUDE
DIRECTIONS
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When solving a puzzle,
there are two primary strategies
INSIDE OUT OUTSIDE IN
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IoT initiatives fail because they typically
invite misalignment from the start.
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Any organization that
designs a system will
produce a design whose
structure is a copy of the
organization’s
communication structure.
Melvin Conway
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Systems mimic the organizations that produce them
HIERARCHICAL MILITARISTIC SELF-ORGANIZED
CULT-FOLLOWING LOPSIDED
LegalEngineering
TERRITORIAL
*Adapted from Manu Cornet
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User Experience,
Sales, and Marketing
Information
Technology
Systems
Engineering
Embedded
Engineering
Service and
Support
Your Web-based
Administration
Your Mobile App
Your Corporate
Data Archive
Your Gateway
Solution
Your Connected
Sensors
Your Connected
Product
Your Monitoring
Service
DEVICE COMMUNICATION USER INTERFACE
Your
Application
Servers
Your Data Mining
& Analysis Efforts
INFRASTRUCTURE
MANAGEMENT
+
Your Security
Identification
Process
Your Device
Provisioning
Process
Your Device
Management &
Support Tools
INFRASTRUCTURE
+
Your BLE
Connectivity
Your Cellular
Uplink
72 $
$
$
$
$
$
$
$
Rigid organizational structures…
produce IoT systems…
that are fragmented, brittle, and susceptible to failure
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Successful organizations view IoT as a strategic decision
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Resulting in a cohesive digital strategy
that ensures everyone is working
toward the same outcome.
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Inverted Conway Maneuver
Design a system that models
the way in which your future
organization should
communicate and behave
Mark Benson
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“All things are difficult before they are easy.”
- Thomas Fuller, 17th century English historian and churchman
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Conscious Competence Learning Model
UNCONSCIOUS INCOMPETENCE
UNCONSCIOUS COMPETENCE
CONSCIOUS INCOMPETENCE
CONSCIOUSCOMPETENCE
Generally unaware and blissfully naive
Mastery as second nature
Acknowledgement of competency deficit
Success via concerted effort
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The Trickiest Parts Are The Transitions
UNCONSCIOUS INCOMPETENCE
UNCONSCIOUS COMPETENCE
CONSCIOUS INCOMPETENCE
CONSCIOUSCOMPETENCE
Generally unaware and blissfully naive
Mastery as second nature
Acknowledgement of competency deficit
Success via concerted effort
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These companies all innovate from the outside in
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Five best practices for how organizations can build a sustainable IoT competency
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1. Have a baseline current IoT competence in the areas
of digital innovation, technology maturity, business
model clarity and market readiness.
Best Practices for Building an Organizational IoT Competency
* Benson, Mark D. “Building An Organizational IoT Competency: What You Need To Know.” Forbes
(April 2017).
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2. Develop and communicate a clear, compelling,
actionable IoT strategy across the organization that
includes executive support, funding from the top and a
mandate for cross-departmental collaboration.
Best Practices for Building an Organizational IoT Competency
* Benson, Mark D. “Building An Organizational IoT Competency: What You Need To Know.” Forbes
(April 2017).
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3. Start small with early wins targeted at reducing
business risk while addressing pressing questions early.
Best Practices for Building an Organizational IoT Competency
* Benson, Mark D. “Building An Organizational IoT Competency: What You Need To Know.” Forbes
(April 2017).
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4. Look for opportunities to standardize and reuse
common components across divisions and projects.
Best Practices for Building an Organizational IoT Competency
* Benson, Mark D. “Building An Organizational IoT Competency: What You Need To Know.” Forbes
(April 2017).
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5. Close the knowledge gap by building the organization
from the outside in. Start with external help and,
simultaneously, develop and grow internal core IoT
competencies over time.
Best Practices for Building an Organizational IoT Competency
* Benson, Mark D. “Building An Organizational IoT Competency: What You Need To Know.” Forbes
(April 2017).
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The way organizations respond to the IoT trend will define their success for the coming decade
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Thank You.
Mark Benson
https://twitter.com/markbenson
https://www.linkedin.com/in/markbenson
http://exosite.com http://markbenson.io
https://twitter.com/exosite
https://www.linkedin.com/company/exosite