How is the procurement process different with digital transformation versus a regular IT software?
In many IIoT projects, you have a significantly higher complexity, because you need:
· Complex custom embedded hardware, potentially customized for different regions
· Complex custom embedded software
· Complex custom backend software
· Specialized IoT WAN coverage for different regions
Furthermore, because we are dealing with physical assets and not only purely digital solutions, you will face more complexity with regards to requirements, scalability, robustness, verification and validation, safety, security and last but not least regulatory requirements.
All of the above are also drivers of sourcing complexity.
IoT is more than IT for Things. DX and IoT will add several perspectives to the procurement process: