idc vendor briefing: what's hot, what's not & what's next for iot - and what that...
TRANSCRIPT
IoT: What’s Hot, What’s Not & What’s Next
Charles Reed AndersonVice President
Head of Mobility & Internet of ThingsIDC Asia Pacific
@CRASingapore
sg.linkedin.com/in/charlesreedanderson
@IDCAP
…and what it means for vendors
Connected“Things”
Market Opportunity
@CRASingaporeSource: IDC Internet of Things Spending Guide, 2016
2020: IoT in APeJ
0.8 1.6 1.9 2.0 2.6 2.8 3.14.1
5.26.9
8.4
11.2 11.7
IN PH VT ID HK TH MY PRC TW SG NZ SK AU
IoT Market Maturity in 2020IoT Units/Capita
@CRASingapore
Source: IDC Asia/Pacific Internet of Things Practice
4
What’s HOT
@CRASingapore
5
Below the Surface Innovation
What the public sees
What is being delivered
#1
@CRASingapore
Asset Tracking
Road Tolls
Traffic Monitoring
Connected Cars
Predictive Analytics
Digital Signage
Weather & Environmental Sensors
Wearables
Smart LightingSmart Building
Intelligent Routing
Security
IoT is Everywhere
Connected Streetlights
@CRASingapore
7
1 Increase productivity
5 Faster/better decision making
4 Reduce costs
2 Improve product quality/time to market
3 Process automation
Source: IDC WW IoT Survey, Sep 2015: AP=840
IoT Market Drivers
@CRASingapore
8
Operational Excellence
of APeJ enterprises will see IoT as an opportunity for revenue generation in 2016
Source: IDC WW IoT Survey, Sep 2015: AP=840; IDC Internet of Things Spending Guide, 2016
1. Manufacturing Ops
2. Freight Monitoring
3. Production Asset Mgmt
4. Smart Grids
5. Smart Buildings
Top 5 APeJ IoT Use Cases
@CRASingapore
9
plan to take their IoT initiatives international
Source: IDC WW IoT Survey, Sep 2015: AP=840
of APeJ IoT initiatives were internationally-focused in 2015
@CRASingapore
Key Innovation Questions
Source: IDC Asia/Pacific Internet of Things Practice@CRASingapore
Do you save them money? If so, how? IoT solutions depend on a business case –
make sure customers understand how your solutions cut costs or drive efficiencies
1
Does the customer know the journey? Explain how the solution will evolve over time Cost savings to revenue generating
2
Is the customer ready? Can their infrastructure support the solutions? Status of 3rd platform technologies
3
11
of Asian-based MNCs will integrate IT & OT at the technology, process, security and organizational levels by 2018
Bridging the IT/OT Divide#2
@CRASingaporeSource: IDC Futurescape: 2016 Internet of Things Predictions
12
IT & OT: the same challenges
Source: IDC WW IoT Survey, Sep 2015: WW=1971 AP=840 AU=135 CH=236 IN=135 SG=126 KR=124 @CRASingapore
68%
32%
Worldwide
58%42%
India
72%
28%
Asia/Pacific
32%
68%
Australia
84%
16%
China
46%54%
Singapore
63%37%
South Korea
Who Holds the IoT Budget?
IT
Line of Business
Source: IDC WW IoT Survey, Sep 2015: WW=1971 AP=840 AU=135 CH=236 IN=135 SG=126 KR=124@CRASingapore
14
0%
20%
40%
60%
80%
100%
Total WW AP Australia China India Singapore South Korea
Which group drove the IoT solution decision?
Internal – IT Internal – Business unit(s)
Internal – New business created for IoT External (e.g. customers, partners, vendors)
The New Decision Makers
Source: IDC WW IoT Survey, Sep 2015: WW=1971 AP=840 AU=135 CH=236 IN=135 SG=126 KR=124
@CRASingapore
Key IT/OT Questions
Source: IDC Asia/Pacific Internet of Things Practice@CRASingapore
Who is your customer audience? Does IT or the line of business make the decision? Do you have people & skills to help both IT & OT?
1
Partnerships: Friend or Foe? Traditional competitors could make good partners The rise of coopetition
3
Who owns the customer? IoT solutions involve multiple products from
multiple vendors – what is your role?2
16
What’s NOT
@CRASingapore
Devices Value#1
@CRASingapore
18
Missed Earnings Forecast:
shares drop 20%
Launched Blaze Smartwatch at CES:
shares drop 30%
The Risk of a “Me Too” Solution
The stock market demands more…
Source: Google Finance, IDC Asia/Pacific Internet of Things Practice
and the consumer demands more@CRASingapore
19
4,000+ smart device startups in China
of these vendors will be eliminated through competition by 2018
Source: IDC Futurescape: 2016 Internet of Things Predictions@CRASingapore
20
The Next Wave of Wearables
@CRASingapore
Specific-Purpose, not “One Size Fits All”
Key Wearables Questions
Source: IDC Asia/Pacific Internet of Things Practice@CRASingapore Enterprise-focused
What are the user requirements? Handsfree (e.g. doctors, emergency services) Tracking, notifications, information
1
Does it improve a process? Enterprise wearables don‘t have to be the solution,
they can enhance the solution Predictive analytics in manufacturing
2
Why can’t it be done on a smartphone? Wearables are an additional cost – if it can be done on a
smartphone and deliver the same benefits – it will be3
22
Conventional Thinking
@CRASingapore
#2
@CRASingapore
23
There’s too much Tech for Tech’s sake! @CRASingapore
Multiple Building Mgmt Systems (BMS)
No more data, more intelligence
No action plans
Limited budgets
Transforming Smart Buildings
Manage multiple BMS through a single, cloud-based platform
Filters existing data to deliver prioritized alerts
Collaborative system to track actions & progress
OPEX model, ROI in as little as 2 months
Can’t afford downtime Installation in less than half a day
@CRASingaporeSource: IDC Asia/Pacific Internet of Things Practice
25
A different approach changes the discussion
@CRASingapore
Key Approach Questions
Source: IDC Asia/Pacific Internet of Things Practice@CRASingapore
What problem do you solve? Change the discussion – many vendors have
technology...few solve customer problems2
Are you selling technology or a solution? Customers want to talk to vendors who understand their
industry and business drivers, not one who sell widgets1
Which partners would enhance your “image”? Many vendors provide the tech that solutions run on –
partner to showcase innovative solutions running on your tech
3
27
What’s NEXT@CRASingapore
IoT at the Edge
of APeJ IoT-created data will be stored, analyzed & acted upon at the “edge” of the network by 2019
#1#1
Source: IDC Futurescape: 2016 Internet of Things Predictions @CRASingapore
IoT at the Edge in a City
Vehicle to Vehicle
Telco Sites
CCTV
Intelligent RoutingConnected Cars
Environmental Sensors
Digital Signage
Water Infrastructure Mgmt
@CRASingapore
Key IoT at the Edge Questions
Source: IDC Asia/Pacific Internet of Things Practice@CRASingapore
Technically we can do it – now what? Having the capability is different than being able to deliver Focus on the non-technical implications (e.g. Operations)
1
What Use Cases need it? Understand what will drive the customer buying decision
(e.g. financial, operational, quality of service, etc.) Support the Use Cases with the Business Case
2
How does it fit with the overall solution? Do you have the partners to deliver the end-to-end solution? Who will design, manage, implement and support?
3
Low Power WANs#2
@CRASingaporeSource: IDC Asia/Pacific Internet of Things Practice
Creating Dedicated IoT Networks
@CRASingapore
LPWAN Competitors
Network
Backers
Availability
Target Customers
Guarantee QoS
Deployment Costs
Works on GSM & LTE Unlicensed Spectrum
Equipment vendors, operators Operators, cities, energy co’s
Lower costs than traditional VERY low
Late 2016 at best Now
Operators Operators, SIs, cities, new co’s
Yes NoSource: IDC Asia/Pacific Internet of Things Practice
NB-IoT vs.
Nationwide LPWAN Rollouts
@CRASingapore
Jul 2016
Jul 2016Aug 2016
Apr 2016
Source: IDC Asia/Pacific Internet of Things Practice
34
The Improved Business Case
19% 9% 55% 17%
0% 20% 40% 60% 80% 100%
Smart Meter Costs – SIM-based SolutionConnectity
Hardware
Software
Services
2015SIM-based solutions
$12 - $60 per year
FutureLow Power WAN solutions
$1 - $12 per year*
+ potential to reduce hardware, software & services costs
* Anticipated pricing levels @CRASingapore
Key LPWAN Questions
Source: IDC Asia/Pacific Internet of Things Practice@CRASingapore
Will the IoT ecosystem evolve? Connectivity is only one piece of the
IoT puzzle – we need apps & solutions 1
You know it’s a Race to Zero, right? Connectivity is not the revenue
opportunity – it’s software and services3
How will the Operators respond? Which – if any - LPWAN & When? Will they Partner or Build Their Own?
2
36
HOT #1 Below the Surface Innovation
#2 Bridging the IT/OT Divide
NOT #1 More Devices, Less Value
#2 Conventional Thinking
NEXT
#1 IoT at the Edge
#2 Low Power, Wide Area NetworksSource: IDC Asia/Pacific Internet of Things Practice @CRASingapore
37
16
2
3
5
7
8
1
5
2
3
4
6
7
SolutionTechTech
Org
Low Power WANs
IoT at the Edge
IoT Security
Smart Cities
Wearables in the Enterprise
IT/OT Convergence
IoT & Digital Transformation
FY17 IoT Research Focus Areas
8
IoT Platforms
4
38
IoT Event Options FY2017Option 2
Concept: Roundtable format – small audience
Cities: Focus on Sydney, HK, Beijing and SG -other cities possible if sponsored
Timing: One theme per quarter
Sponsors: Sponsors aligned to specific theme
Theme: Select a quarterlytheme based on vendor interest –align to the 8 CIS themes. Limited attendees
Option 1
Concept: Standard event format – large audience
Cities: Focus on Sydney, HK, Beijing and SGNZ have own co-sponsored event on1 November 2014
Timing: Q1 FY2017
Sponsors: Multiple sponsors across themes
Theme: Align event format to 3 themes in IoT CIS to attract a variety of IT & OT vendors, Sis, and eventattendees
SolutionTechTech
Org
39
FREE IDC IoT Content
IDC IoT Videos & Podcasts
40
IoT Asia 2016 Keynote: IoT in Asia – What’s Hot, What’s Not & What’s Nexthttps://www.youtube.com/watch?v=Vx2Hptz6Fco
IoT Asia 2016 Panel Discussion: Pathways to Value for IoThttps://www.youtube.com/watch?v=M3Smfk6Rm-I
IoT Asia 2016 Panel Discussion: Compelling Use Cases for Wearables https://www.youtube.com/watch?v=Vx2Hptz6Fco
IDC Asia/Pacific: Capitalizing on the Internet of Things Market Opportunity https://www.youtube.com/watch?v=EchF-rguLXo
IDC Asia/Pacific: Introduction to the Internet of Thingshttps://www.youtube.com/watch?v=58SnYBcddBc
IDC Asia/Pacific’s Top 10 Internet of Things Predictions for 2015https://www.youtube.com/watch?v=0RyFcFXLoNo
IDC IoT Videos & Podcasts
41
Stop Chasing Pokemon for 2 minutes to learn What’s Hot, What’s Not & What’s Next for IoThttps://www.linkedin.com/pulse/stop-chasing-pokemon-2-minutes-learn-whats-hot-next-iot-anderson?trk=pulse_spock-articles
BUZZWORDS are back! LPWAN Battle Hits Singapore! UnaBiz to launch Singapore's first dedicated IoT Networkhttps://www.linkedin.com/pulse/buzzwords-back-lpwan-battle-hits-singapore-unabiz-launch-anderson?trk=pulse_spock-articles
IoT BUZZWORD ALERT! Let the Low Power WAN Battles Begin!https://www.linkedin.com/pulse/iot-buzzword-alert-let-low-power-wan-battles-begin-anderson?trk=pulse_spock-articles
"A Day in the Life" of IoT in Asia/Pacifichttps://www.linkedin.com/pulse/day-life-iot-asiapacific-charles-reed-anderson?trk=pulse_spock-articles
Review of Computex Taipei 2016: Evolution, Not Revolutionhttps://www.linkedin.com/pulse/review-computex-taipei-2016-evolution-revolution-anderson?trk=pulse_spock-articles
The BUZZ around IoT is taking off in Asia Pacific – this is why we should be scared!https://www.linkedin.com/pulse/buzz-around-iot-taking-off-asia-pacific-why-we-should-anderson?trk=pulse_spock-articles
The State of IoT in Asia Pacifichttps://soundcloud.com/analyseasia/episode-118-the-state-of-iot-in-asia-pacific-with-charles-reed-anderson
Smart Cities in Asia Pacifichttps://soundcloud.com/analyseasia/episode-90-smart-cities-in-asia-pacific-with-charles-reed-anderson
Podcast
Blogs
43
Charles Reed AndersonVice President, Head of Mobility & Internet of Things, IDC Asia Pacific
@CRASingapore
sg.linkedin.com/in/charlesreedanderson