- Forrester Councils
- Councils Overview
- log in
Posted by Stefan Ried on February 5, 2014
Internet of Things is a hype - no question. But let's talk about the INTEGRATION Of Things.
It’s been a while since Bosch completed the acquisition of the Germany BPM and Integration vendor Inubit AG in October 2011. Two years later Inubit has not only well arrived in the Bosch Group, it became even the nucleus of Bosch’s allover software business and helps the traditional manufacturer of automotive parts and consumer electronics to embrace an additional business model of a software vendor.
Nevertheless calling the conference ConnectedWorld articulates the repositioning of the former general purpose BPM and Integration software into the internet of things. This is where Bosch with its dominant automotive footprint and their good market share of home appliance in Europe is strong. It is a natural move to focus Bosch Software Innovation’s in the areas of Bosch core business. In this context, it is no surprise that every second visitor of the show is a Bosch employee who likes to understand if and how their Bosch units can use the new software assets. Ideally this results not only in internal use, but in joint external products. Today the clear majority of Bosch's software revenues are external and not yet related to other Bosch products.
Bosch SI's new CEO, Dr. Rainer Kallenbach realized that today’s software business, both in the B2B world and in the consumer world, is a major disruption to their traditional strategy. Even more, he said that "every B2B business is at the end a consumer related business". While selling devices (from engine control units in cars down to washing machines) is a manufacturing business, the software business in the age of the customer is an ongoing services and live-cycle engagement. But, realizing the issues and delivering the change are two different steps and Forrester assumes the transformation into such a modern software business model is still critical for Bosch.
Here’s what makes me optimistic about the current setup:
In a nutshell, the external and internal ecosystem of Bosch's Software division is the unique proposition. However, with all these opportunities, Software under the roof of Bosch is still on a critical path. After listening to presentations and talking to many people at the Bosch Connected World, I have identified these key challenges that Bosch Software Innovation’s new CEO, Dr.-Ing. Rainer Kallenbach needs to address:
Finally, becoming a Software vendors is not enough, Bosch should not only become a software vendor, but directly a cloud provider. Cloud apps are finally more sticky than devices.
If you like to read more about the Integration Of Things, I recommend to read the Forrester Wave Hybird Integration to be published next week.
Save Money On Your Next Software Negotiation
Work with our software negotiation experts to save 10–20% on your next contract »
Lead BT Transformation
Develop customer-obsessed strategies to drive growth »
Forrester's CX Index
Predict how actions to improve CX will affect revenue performance.
Measure the customer experiences that matter most »