Guest post contributed by Dr. Trent Salvaggio, Executive Director of the IoT Talent Consortium (IOTTC), an industry-wide initiative focused on building and growing IoT talent. MIT Sloan Executive Education’s Associate Dean, Dr. Peter Hirst, is a member of the IOTTC board.
The link to the blog is: https://executive.mit.edu/blog/digitize-or-die-an-interview-with-nicolas-windpassinger#.XPaCfCgzYuV
Recently I had the opportunity to speak with Nicolas Windpassinger, the Global Vice President of Schneider Electric’s EcoXpert™ Partner Program and author of the recently published book Digitize or Die. Windpassinger’s book dissects the digitization phenomenon, reviews the potential and promise of the Internet of Things (IoT), and opens a world of possibilities for companies hoping to transform in this context. According to Windpassinger, the window of opportunity for companies to “digitize to profitize,” is rapidly closing; today’s leading companies must understand how to prepare their organization for all possible changes in order to survive, thrive, and lead in the digital transformation.
NW: Originally, I did not set out to write a book. Three years ago, was looking for a book with a methodology for the analog-to-digital transformation, and I discovered it didn’t exist. So, I decided to write it. I set about to create a reference, or a recipe for transforming a company’s “ingredients” from an analog offering to a digital one. To stay with the recipe analogy, it is very hard to bake a great cake, for example, if you don’t understand what all the ingredients are, or the techniques required.
Honestly, it was like marathon—there were plenty of times when I wanted to quit. It took about two years to complete. Also, it wasn’t my intent to profit off this book, which is why the proceeds go to charities (the Alzheimers Foundation and Fondation de France), I just saw a real need for this text.
TS: Who is the audience?
NW: I wrote it for those who have seen the opportunity and the risk of the IoT and know they need to do something for their company or portfolio. It’s for the CEOs, CDOs, and employees of companies that have built a performing analog business and are asking questions about what the IoT holds in store, good or bad, for them. It’s for people who have seen companies disappear and understand the need to be educated and savvy so that their organization doesn’t suffer the same fate.
The IoT transformation is at its inflection point, but it’s not too late to adapt, especially if you leverage your existing assets and resources to counteract the threats. This book presents what I call the IoT4 strategic methodology, which addresses all the important aspects of an IoT strategy for analog companies to avoid commoditization and beat competition.
TS: Who is best poised to win in this new era?
NW: The IoT will unleash an unprecedented flow of data. Owning the source of that data, building value from it, and improving the business relevancy to the end user will be among the game changers—it’s a game that is less about selling products than owning the relationships and the data. Tomorrow’s winners will be the ones that have managed to not only connect their customers but have made sense of the consequential flow of data to the end user.
TS: To this point, your methodology wisely starts with customers. How would you summarize your model from there?
NW: Yes, the IOT4 strategic methodology starts with the needs and pain points of customers, then clarifies different aspects of how to digitize an analog portfolio into an IoT one. This includes understanding how the IoT is structured from a technology standpoint; differentiation strategies; business models; and the transition from an analog to a digital customer experience.
TS: At the IOTTC, we ask, how does an organization prepare for IoT and broader digital transformation? And we know—because research proves—that the answer isn’t about the implementation and use of cutting-edge technologies. Organizational-level factors, such as culture and leadership, are essential to successful digital transformation efforts. How do you address this in Digitize or Die?
NW: That’s right. It’s a multidimensional construct, it’s about having an organization that allows for the transformation to happen. If an organization isn’t set up to allow for or inspire new product offerings and business models, we never seen those come to fruition. It starts with people.
In this book I emphasize the importance of “digital mine canaries.” In a digital transformation environment, there is often someone who will understand the necessary steps toward that transformation before their peers and thus challenge the status quo. They may receive a lot of push back or skepticism, initially. But like canaries in a coal mine, they can act as an early warning detection system. Digital mine canaries are those people you need to protect to enable and accelerate the digital transformation.
Often companies focus on their customers, channels, and branding while underestimating the importance of the internal communication needed to streamline the execution of that strategy. But when properly tackled, digital transformation can ignite a sense of purpose among teams. So, leadership that energizes people around a shared vision is a key factor. Ultimately, this means creating the environment in which employees can challenge the status quo by enhancing the business model, processes, products, services, and the corporation itself.
TS: Staying on the human side of this conversation for a moment, what do you think IoT means for the future of work?
NW: The future of digital transformation is a positive one. I see jobs being better for people. IoT is going to enable us to flourish in roles that are more uniquely human jobs. Like finding solutions to some of the world’s biggest problems. Doing those things that we as humans do uniquely better than machines.
In every transition there is opportunity and risk. For technology and for humans. That’s why it’s so important to educate yourself. If you don’t understand what’s happening, your putting everyone at risk. We must transform ourselves as well and be willing to expand our expertise, not just to survive the transformation but also to drive it. This is why the IoT Talent Consortium is so important, as your objective is to improve education for the future workforce to address this enormous gap in IoT talent.