The globalization of knowledge and capital since the 1990s has led us to undergo an "upgrade of the innovation model", that is, from the linear innovation model described by Roseville to the network-based innovation model based on modular design. In the new stage of the development of the Internet of Things, it is necessary to achieve a shift from technology-centricity to people-centeredness, fully exploit the potential of the Internet of Things value innovation through value innovation, and realize the combination of technology and business.
The value innovation of IoT mainly stems from: IoT module innovation, IoT integration innovation and IoT business model innovation. Among them, module innovation is the micro-foundation of the IoT value innovation model, integrated innovation forms the buyer's value product (service) carrier, and business model innovation forms a value channel, so that both buyers and sellers can obtain value-added. Module innovation makes the module portfolio more diversified, and business model innovation greatly expands the application boundary of the module, so that value innovation occurs in a larger field.
IoT module innovation is based on modular design
Modular design is a design pattern that is very different from traditional product design. It divides the knowledge required for product design into explicit knowledge and tacit knowledge. Explicit knowledge is design rules, which stipulates the rules and interfaces for information exchange between product subsystems. As long as the design rules are followed, this module can be combined with other modules to function, and the knowledge of how to design inside the module is hidden. This greatly reduces the interdependence between the various parts of the system and brings about the "cost and benefit of information enrichment" in innovation.
The modular design allows people to make full use of the hidden knowledge they master to innovate without having to obtain the "authority" consent. The freedom of innovation has aroused innovation competition, making the technological progress of the electronic information industry unprecedented. Baldwin and Clark equated the application of modular management ideas and methods with the effect of railway transportation on the development of modern industry in the 19th century.
The modular organization is the basic division of labor organization form of the Internet of Things. Compatibility, scalability in the environment, modularity and interactivity are the key design requirements of the Internet of Things. Productive knowledge is increasingly distributed and poses a challenge to traditional authority relationships, making extensive delegation of decision-making power within the organization of the enterprise necessary to coordinate the positioning of rights and knowledge.
The Internet of Things is a distributed knowledge system, and autonomy is the core of the Internet of Things. It requires a non-centralized autonomous system based on peer-to-peer communication to give full play to the advantages of IoT module innovation.
IoT integration innovation based on module concentration
The central problem to be solved by integrated innovation is not the technology supply itself, but the disconnect between the increasingly rich and complex technical resources and practical applications. The logical starting point is to grasp the demand link of technology and create a matching relationship between creating products that meet the needs and the abundant supply of technical resources. From a management perspective, integration refers to a creative fusion process, that is, to inject creative thinking into the process of combining various elements.
Personalized application solutions are the core of the IoT integration innovation model, which means: the solutions provided by the enterprise must be comprehensive and integrated, and can solve the needs of users in one package; To optimize value creation; as a model, companies need to be able to provide customized solutions to many customers in large quantities. According to some connection rules, the independent design of subsystems (modules) can be unified to form a more complex system or process behavior, which is called "module centralization".
In the integrated innovation mode, not only are each module integrated on a unified operating platform according to technical rules, but also the type of module to be integrated is determined according to the direction of buyer value innovation. The innovation, popularization and application of the Internet of Things depends on the extent to which the Internet of Things can create value for customers through integrated innovation. Taking Dell's mass customization business model as an example, the computer's modular structure allows computer enthusiasts to DIY (DoItYourself) themselves, but while Dell meets the buyer's personalized needs through customization, it also homogenizes through a large number of orders. Modules achieve large-scale production (purchasing), and this systematic approach to value innovation is Dell's competitive advantage.
Innovation is "creatively destroying the old combination and realizing the new combination". IoT's module innovations in all aspects of perception, transmission, and intelligent processing provide a large number of alternative combinations for system integration innovation. Through Baldwin-Clark's "module operation", the system can integrate and innovate through the separation, removal, replacement, addition, and integration of modules to provide customers with personalized value and expand technology application space. The expansion of the market further stimulates module innovation and forms a benign cumulative circular relationship, which enables the Internet of Things to have continuous value innovation capabilities.
When the system provides more options, the intelligent processing of the Internet of Things needs to be able to select a few better combinations from these combinations to reduce people's decision-making costs. The integrated innovation of the Internet of Things needs to adhere to the customer value creation orientation. Integrated innovation emphasizes the best matching of new functions and user needs. Therefore, the level of intelligence and computing power of the Internet of Things has become an important factor in determining value innovation.
IoT business model innovation is based on network convergence
The key to network convergence is not the economies of scale in the so-called basic network construction of the integration of several networks, but the value innovation potential brought by the interconnection between the networks. The expansion of the Internet of Things provides the possibility of more module combinations, the system provides consumers with more choices, and network interconnection will make the network value increase geometrically.
At the same time, network integration rather than unity can form a competition for value innovation between the Internet, which will form a huge boost to technological progress and business model innovation. Network convergence has brought the potential for unlimited value innovation. The decentralized modularization of the Internet of Things has formed a wide range of tentacles for the development of industrial applications. The era of networking presents an unprecedented three-dimensional innovation scene.
The Internet of Things mainly lies in open-loop applications, that is, through the interconnection of various networks to form new value creation opportunities. In the open-loop mode, the innovation of the Internet of Things business model needs to solve two key issues: one is the standard system of network interconnection and interoperability, and the other is the ownership of digital assets.
An application with mature technology, perfect service, numerous product types, and friendly application interface will be the result of collaboration between equipment providers, technical solution providers, operators, and service providers. Business model innovation requires the coordination of multiple innovation entities, and it is very important to form an optimized standard system structure.
In an environment where technology is developing rapidly and user needs are changing, the architecture of the Internet of Things is not static. It is necessary to establish enterprise-to-enterprise network connections, integrate decentralized knowledge resources in the form of cooperation, and promote the evolution of the architecture. The business model innovation of the Internet of Things is a networked coordination process.
Under the Internet of Things, the best value assets are not sensors and computers, but their massive data resources. But who owns its property rights? The protection of privacy is only one aspect of the problem. The core is who has the right to control and obtain benefits from these data. When the Internet of Things concentrates a large amount of data of enterprises and individuals, does the ownership of these digital assets belong to the government, enterprises or a large number of consumers? The definition of property rights is not easy, and the arrangement of related systems will greatly affect the Internet of Things business The direction and efficiency of model innovation.
Because digital is an asset, not free, IoT companies must strike a balance between cost (data acquisition) and revenue (customer value creation) when innovating business models. In this regard, companies with strong capabilities will have competition Advantage.
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