Advantech: Evolution of Its IoT Ecosystem Strategy

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Advantech: Evolution of Its IoT Ecosystem Strategy

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Publication Date:
October 01, 2018

Industry:
Consumer Electronics

Industry:
Manufacturing

Industry:
Technology

Source:
China Europe International Business School

This case describes why and how Advantech Co., Ltd. (hereinafter referred to as Advantech) has transformed in the age of the Internet of Things (IoT). Aware of the ecosystem attributes of the IoT industry and committed to the company’s principle of altruism, Advantech strategically positioned itself as an “IoT platform provider” and an “enabler” of IoT applications. Since carrying out reforms in terms of its internal management, external cooperation, and development model, Advantech has evolved from an industrial computer maker into an IoT solution provider. Since the launch of the “co-creation model” at the end of 2016, Advantech has drawn attention from many excellent companies in traditional industries. With the Internet of Everything close at hand, Chairman KC Liu is well aware that there are many challenges to overcome as Advantech strives to build an industrial IoT ecosystem, the evolution continues. Case discussion will be carried out based on a three-step analysis of ecosystem strategy (seeing the ecosystem-choosing your position-winning the game) proposed by Ron Adner. Students will take a close look at the critical decisions made by Advantech as it made inroads into the IoT ecosystem as well as its organizational transformation and exploration as the company implemented strategic decisions. Through this case, students will not only learn about the latest developments of the emerging IoT industry, but will also gain a systematic understanding of “ecosystem strategy” and get to know a new corporate growth model called “co-creation.”

Copyright © 2021 Harvard Business School Publishing. All rights reserved. Harvard Business Publishing is an affiliate of Harvard Business School.

Advantech: Evolution of Its IoT Ecosystem Strategy

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