Coeus Consulting helps client review its IoT operating model

Business strategy and IT advisory firm Coeus Consulting has helped a consumer goods company revamp its organisational design and operating model for its Internet of Things (IoT) function, resulting in better planning, quicker deliveries and higher agility.

Distributing across nearly 40 countries, the consumer goods company was struggling to streamline its expansive supply chain. External suppliers and contractors formed the heart of the business, limiting control over the operating model and leaving the company open to myriad risks.

The challenge is a common one, and experts have long positioned Industry 4.0 technologies as the solution. The client in question was considering an IoT nearshore development centre – a subsidiary tech team in a similar time zone as company headquarters, working on IoT innovation that could solve supply chain issues.

Coeus Consulting was tasked with strategising this nearshore development centre, while also suggesting improvements to the broader operating model. The consultancy’s work began with a detailed roundup of the current state of affairs – spanning IoT capabilities, operating models and organisational structure. 

The IoT function was screened against global best practices, which allowed the consultants to hone in on gaps and risk areas. Coeus also conducted a “maturity assessment” to see if the client was ready for agile methods and practices. With this overview, the focus areas became clear.

Coeus consultants then worked with client leadership to design and develop a future operating model, which included: key design principles, a blueprint of the proposed structure; and a detailed skills matrix that laid out a staffing strategy – with recommendations on which skills to source externally and which to bring in-house.

Also in the package was an implementation plan for the IoT near shore development centre, complete with a business case and a detailed strategy on choosing the best possible location for the company. Lastly, Coeus presented the client with a “high-level roadmap,” which featured the implementation strategy, key performance indicators and milestones.

According to Coeus’ Consumer Products & Retail lead Tim Morley, the client was left with the tools to continue on its own. “The roadmap was underpinned with a resource and commercial model which helped provide the client with an actionable plan for implementing the IoT development centre itself.”

Topping this off, “Coeus Consulting transferred its knowledge to the client in-house team, to ensure that the organisation would be self-sufficient and could be fully responsible for the live operation.” And the results have been remarkable.

The client reports a more accurate planning and resource allocation system, which delivers better outcomes. The IoT nearshore development centre has contributed a notable pool of internal knowledge, which helped improve delivery times and reduce development learning lifecycles. Standardised solutions developed at the centre can be deployed across the supply chain instantly. Lastly, the success of this initiative has warmed the company leadership to further digitalisation efforts.

If supply chain digitalisation was imperative earlier, it is a necessity now in the wake of Covid-19. Disrupted travel and unpredictable consumer activity has exposed many businesses to the lack of flexibility and efficiency in their supply chains. A redesign will likely be on the cards for other businesses as well.