Gartner Research

Key Impacts to Consider When Building an IoT Service Sourcing Strategy for Digital Business Success

Published: 15 July 2015

ID: G00274080

Analyst(s): Jim Longwood, DD Mishra, Ruby Jivan

Summary

The Internet of Things enables generating new revenue streams and transforming business processes. Sourcing managers must develop an IoT sourcing strategy that addresses a multivendor integrated ecosystem, balances risks and rewards, and integrates the enterprise information strategy.

Table Of Contents
  • Impacts

Analysis

Impacts and Recommendations

  • Cost optimization and increased investment in new business models are driving the adoption of IoT solutions, requiring sourcing managers to understand how to integrate IoT endpoints and platforms with relevant technology systems
  • There are no dominant IoT platforms, requiring buyers to assemble IoT solutions from multiple providers, and sourcing managers to manage an integrated delivery
  • Adopting IoT solutions in innovation initiatives tends to be much more iterative, requiring pilots, sandboxes or test trials, which sourcing managers need to address in their sourcing, evaluation and selection processes
  • IoT initiatives should align with the organization's EIM strategy, so sourcing managers must ensure that data and information requirements are well-documented and compatible with enterprise systems

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