iot west2016 presentation: navigating the iot universe
TRANSCRIPT
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IoT WestNavigating the IoT Universe
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Before we begin…
• The IoT will never be truly standardized, nor does it need to be.
• The IoT opportunity is worth even more than the hype.
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Gartner’s Hype Cycle
Hype vs opportunity
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Not insurmountable, but difficult to resolve.
Many different stakeholders with different objectives (companies, governments, end users/networks).
Not only in the technical area changes in mentality and functionality required at all levels within organizations.
There will be winners and losers in the IoT race. Success depends on the agility of the players to adapt to the new business environment.
So what are we waiting for?
HurdlesWho?
Where?Why?
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Winners and losers
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Disruption in the automotive industry
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The shift to “Mobility as a Service”
3500
6700Today
Traditional automotive revenues New automotive revenues, 2030
Recurring revenue
Aftermarket
One-time vehicle sales
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What's the catalyst?
Electrification ConnectivityAutonomous driving
Diverse mobility
v
Triggered by
• Regulation/urban design
• Technology/business model
• Consumer preferences
CURRENT AND FUTURE ENABLING FORCES
TREND
(Source Mckinsey Global Institute)
Slicker designs
Enhanced/cheaper batteries
Increase in charging stations
Regulations on emissions
Connected car trend
Regulation on vehicle safety
Advent of 5G
Disruption from tech companies
Cheaper sensors/processors
Regulation across states
Media hype
Interest from tech giants and start-ups
Car sharing trend
Use of smart phone apps
Incentives for corporations and consumers
Urban congestion
High profile of shared mobility providers
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Winners and losers in the media industry
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• Explosion in number and variety of IoT devices
• Cheaper components (sensors, connectivity)
• Investment in startups developing end-to-end solutions
• Huge growth market, especially in the B2B segment
• Lack of consistency and interoperability
• Lack of demand in the consumer segment
• Concerns about security
• Changes needed at an organizational and regulatory level
Where are we today?
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• Mission critical platforms
• Streamlined efficiency
• Cost control
• Improved user experience
• New revenue streams
What does IoT utopia look like?
This requires new mentality to change business models, skill sets, technical infrastructure, processes and operations.
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Who is nearing IoT Utopia?
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What are the main hurdles to overcome?
Technical Organizational Regulatory
• Hurdle 1Interoperability
•Hurdle 2 Security
• Hurdle 3Business Models
•Hurdle 4 Killer
Applications
• Hurdle 5Government Policy and organizational structure
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Interoperability
• Unlocks between 40%and 60% of value
• Degrees of interoperability -technical or semantic
• IPv6 is needed to allow for the huge increase in devices that will
connect to the Internet
• Connectivity protocols such as NB IoT for cellular or LPWAN offer different benefits for different applications
• No value in connecting
everything to everything. The challenge is to identify where value can be created from connecting devices or networks together
HURDLE 1
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Interoperability winners and losers
+ +
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Security
Spending on IoT security
HURDLE 2
IT security budgets
$547million
in 2018 Spending on IoT security 25%
10%
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Security winners and losers
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Business Models
• Shift from products to services
• Value added services sold on top of the core product
HURDLE 3
• More difficult for competitors to disrupt
• The IoT market will shift from end-to-end solutions to software platforms and analytics
• Creates an additional recurring revenue stream
• Ties customers in to a long term relationship they value
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Business model winners and losers
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Killer Apps
• Factories ($3.7 trillion per year) - Operations optimization, predictive maintenance, inventory optimization, health and safety
HURDLE 4
• There is unlikely to be one Killer App since the market is so broad
• Cities ($1.7 trillion per year in 2025) - Public safety and health, traffic control, resource management
(Source Mckinsey Global Institute)
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Killer Apps winners and losers
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Regulatory
• Public policy: Some apps require more legislation than others (e.g. connected vehicles)
• Who owns the data?
HURDLE 5
• Control: consumer reticence to deploy smart objects in the home also related to reluctance to let machines take over
• Liability: who is liable if the sensors or communications malfunction and transmit incorrect information?
• Cybersecurity/hacking: The more things connected to other things, the greater the security risk
• Privacy: what/how much information can be accessed?
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Regulatory winners and losers
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•Can all aspects of the IoT ever be standardized?
•How can the issue of interoperability be overcome?
• What can developers of IoT applications do now to ensure their devices can successfully navigate the IoT universe?
How can we move forward?
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