With today’s accelerated pace of change in the business landscape, companies globally are struggling to stay competitive, especially by navigating new technologies and working around legacy systems.

In The Changing landscape of disruptive technologies, a survey done by KPMG that captures the opinions of over 750 global technology industry leaders, Internet of Things (IoT) was named as the number one key technology disruptor, ahead of AI and robotics in the following categories

1.Driving business transformation

2.Driving the most benefit to life, society, and the environment

3.Driving unprecedented change in consumer markets.

In Thailand, the government, through its Thailand 4.0 policy along with the development of the Eastern Economic Corridor (EEC), has implemented many initiatives that will foster IoT in Thailand. These include smart city initiatives in many provinces such as Bangkok, Chachoengsao, Chiang Mai, Chonburi, Khon Kaen, Phuket and Rayong; and an IoT institute to be set up within EEC.

“With the increase in adoption of IoT and the pressure to stay competitive in the age of digital disruption, companies should be aware of the danger of jumping in headfirst without a clear direction and goal. Adoption of any technology can cause more harm in the long run if done without a proper vision,” says Natasak Rodjanapiches, Advisory Director, KPMG in Thailand.

In implementing IoT, here are a set of principles to consider to help capitalize the opportunity, whilst keeping risk manageable.

1.Define the business problem

Clearly define why you are looking to utilize the IoT. What’s the business problem to be solved and the benefit sought – in terms of cost reduction, customer experience, quality, productivity, growth, improving products or risk reduction? Define a clear problem statement, use cases, value statement and success criterion.

2. Collaborate to create value

IoT’s power is when talking, sharing and connecting happens. From devices to people, processes and data – the richer the sharing, the wider the span, and the more benefit that will be achieved. Open standards and interoperability play a critical role, reducing cost and improving success. Know which ones exist and apply to you.

3.Re-think skills and culture

IoT will disrupt the way your business operates. New experiences, new processes and new products will emerge. Don’t assume your current team has all the skills or mind set to work optimally in this new environment without extra training. A balanced mix of creative, analytic, data, technical and business process skills will be critical – with the ability to span silos and functions.

4.Experiment

Apply the adage ‘think big, start small’. Develop a richer understanding of IoT benefits and risks for your business through testing and learning solutions. Assess successes and failures. Measure the value and degree of disruption. Run gradually bigger experiments as you learn – building stronger capabilities.

5.Know the risks and rules

With value comes risk. IoT will likely take your business places it’s never been. Understand any regulations or risks associated with your initiative. Security, privacy and safety are important (but are not the only things) to consider. Ensure you are thinking across customers, employees, assets, partners and all other stakeholders.

6.Establish your ecosystem

IoT requires a connected ecosystem of ‘components’ to deliver value. Your solution won’t rely on one vendor or product, but many working together. With your problem in mind, create a clear view of who your partners need to be in each area, and how you want them to work with each other.