Want to adopt IoT? Be ready for change management!
posted by Ivan Dragoev on October 31st, 2016
You are probably already convinced in the benefits you may reap by integrating an IoT solution for your business. You’ve probably already read and heard enough that IoT is the future – it saves costs, increases the revenue, optimized processes and opens a whole world of new possibilities.
It is now time to realize, however, that IoT does not only mean ‘new technologies’. It is a new way of making business, a new way of thinking.
One of the common problems faced by enthusiastic managers seeking IndigoVerge for IoT consultancy is: How to ‘sell’ that IoT vision to the other C-level managers and how to overcome the resistance to the changes it will bring?
Usually the biggest and most loudly spoken resistance comes from the most profitable departments in a company, those with good financial results. They have really low motivation for change, claiming that “If something is working well, there is no need to change it’’. At the same time, other departments fighting for a portion of the budget are pushing to have their new and better idea implemented.
What should be the management approach in such a situation?
To ensure that the integration of IoT would be successful, think about it as change management. You should first change the attitude and the culture in the company, fight the stereotypes, change the processes. Only thus you could be confident that the combination of good intentions, perfect technology for your case and the excellent expected results would lead to successful IoT integration.
You need a strong communication strategy targeted at key people and departments in your company. You need to explain IoT in the language of those targeted groups and show how IoT would affect those aspects of their work that are really important for them. For this, you will need additional support from these 3 positions:
- Business-side C-level managers. Get those people excited via – numbers! Make your calculations, figure out the benefits and assign a numeric value to them – give them the numbers! For finance people the integration of IoT should be presented as a simple calculation with a positive financial outcome at the bottom line.
- Technology-side C-level managers (CTO, CIO, plant engineers, production managers, etc) – explain them the immediate results from the integration of IoT, gather data, illustrate the results with examples – how IoT will reduce the number of breakdowns, how the daily operations will become easier, etc.
- Mid managers and workers – convince them that IoT integration will not threaten their jobs, but rather – give them new competencies and qualification.
Without the full support of these 3 positions, your IoT project may not be successful. If you have fully supportive finance people, but those responsible for the actual IoT integration are not convinced – IoT will not be integrated. If you managed to integrate IoT, but those involved in the everyday operations are not willing to adopt it – you will face true resistance by them.
You need to talk to and put each of the above groups on your side, before proceeding with any IoT integration steps. Create an army of inspired supporters and you are bound to be successful with integrating IoT for your business and reaping the excellent results from it.