An explosion of new technologies is creating new winners and losers in nearly every industry. You only have to look at the changing fortunes of Apple and Hewlett-Packard in the personal computer/tablet arena over the last decade to see how innovation can propel one company into superstar status, while another becomes irrelevant in the same market space.
Technology Strategy: Develop a technology strategy based on internal and external scans of rapidly emerging capabilities. These should include an assessment of each technology’s ability to disrupt, its stage of incubation, differentiating factors, competitive alternatives, and identification of platform choices. Developing a business and technology architecture for how the technology fits into your company’s platform portfolio is a critical step in this analysis.
Ecosystem Management: Arrange and manage ecosystem partners by assessing the need for technologies to perform certain functions that extend beyond your own internal capabilities, such as the ability to connect to a broader environment. You will need to understand existing and future profit pools to validate partner choices. For example, providing “smart services,” such as analytics, can extend a product’s useful life and be the source of long-term profitability, for both you and the ecosystem partners that deliver them.
Market Interactions: Prepare and execute detailed plans for managing market interactions, from initial introduction through full-scale market management. This includes an ongoing analysis of customer reactions, portfolio management, media communications, and potential competitors.
I think the enterprises of the future will look very different from those of today. Organizations will become leaner and more virtualized as their business processes grow more reliant on ecosystem partners. Process boundaries will transcend a specific entity.
Many macroeconomists believe that real shareholder value (and, ultimately, economic growth) will be driven by the speed and quality of innovation. Historically, enterprises have been successful by capitalizing on a disruption (market transition) that plays into their core strengths, competency, and market position. Read More »
Last week at the ODVA Annual Conference--as part of ODVA’s announcement of a new energy initiative and white paper--Cisco’s Bryce Barnes roused a packed-house audience representing ODVA’s ~200 industrial and automation suppliers with a compelling speech on the immediate need for Optimization of Energy Usage (OEU™) in the Production domain. Energy consumption statistics for the industrial sector are staggering, most estimates suggesting half of the world’s total delivered energy, and that amount is projected to increase by 40% over the next 25 years. For Manufacturers, energy typically constitutes the first or second highest portion of product variable costs, and most manufacturing companies now report as part of their governance a sustainability strategy that is core to their overall business strategy. Furthermore, volatility of energy markets--closely linked to the stability of governments, international relations and policies--raises the risk profile for continuity of supply, production and satisfaction of customers. Optimizing energy consumption, minimizing energy costs and mitigating energy risks are clearly top of mind business imperatives for the Manufacturing CEO.
Mark Wylie discusses the importance of energy optimization to sustainable manufacturing operations. Check out Mark’s December blog on factory energy management.