making sense of the internet of things - oct 2015 - maria thomas
TRANSCRIPT
The Internet of Things: Making Sense of an Emerging Megatrend
Maria Thomas
@pesmou #shoporg15 #DigitalRetailFastTrack
@pesmou #shoporg15 #DigitalRetailFastTrack
The Internet of Things (IoT) Is…
@pesmou #shoporg15 #DigitalRetailFastTrack
@pesmou #shoporg15 #DigitalRetailFastTrack
Smart Toothbrushe
s
@pesmou #shoporg15 #DigitalRetailFastTrack
@pesmou #shoporg15 #DigitalRetailFastTrack
Smart Clubs & Racquets
@pesmou #shoporg15 #DigitalRetailFastTrack
@pesmou #shoporg15 #DigitalRetailFastTrack
Smart Door Locks
@pesmou #shoporg15 #DigitalRetailFastTrack
@pesmou #shoporg15 #DigitalRetailFastTrack
Smart Thermostat
s
@pesmou #shoporg15 #DigitalRetailFastTrack
@pesmou #shoporg15 #DigitalRetailFastTrack
Smart Meters
@pesmou #shoporg15 #DigitalRetailFastTrack
@pesmou #shoporg15 #DigitalRetailFastTrack
Smart Cars
@pesmou #shoporg15 #DigitalRetailFastTrack
@pesmou #shoporg15 #DigitalRetailFastTrack
Smart Insurance
@pesmou #shoporg15 #DigitalRetailFastTrack
@pesmou #shoporg15 #DigitalRetailFastTrack
Smart Glucose Monitoring
@pesmou #shoporg15 #DigitalRetailFastTrack
@pesmou #shoporg15 #DigitalRetailFastTrack
Smart Contact Lenses
@pesmou #shoporg15 #DigitalRetailFastTrack
@pesmou #shoporg15 #DigitalRetailFastTrack
Smart Aircraft Engines
@pesmou #shoporg15 #DigitalRetailFastTrack
@pesmou #shoporg15 #DigitalRetailFastTrack
Smart Shelf
Labels
@pesmou #shoporg15 #DigitalRetailFastTrack
@pesmou #shoporg15 #DigitalRetailFastTrack
Smart Packaging
@pesmou #shoporg15 #DigitalRetailFastTrack
@pesmou #shoporg15 #DigitalRetailFastTrack
Smart Shoes
@pesmou #shoporg15 #DigitalRetailFastTrack
@pesmou #shoporg15 #DigitalRetailFastTrack
Smart Cows
@pesmou #shoporg15 #DigitalRetailFastTrack
@pesmou #shoporg15 #DigitalRetailFastTrack
Smart Cities
@pesmou #shoporg15 #DigitalRetailFastTrack
@pesmou #shoporg15 #DigitalRetailFastTrack
Smart Ordering & Fulfillment
@pesmou #shoporg15 #DigitalRetailFastTrack
@pesmou #shoporg15 #DigitalRetailFastTrack
IoTis
@pesmou #shoporg15 #DigitalRetailFastTrack
@pesmou #shoporg15 #DigitalRetailFastTrack
http://www.wired.com/2013/05/internet-of-things-2/
@pesmou #shoporg15 #DigitalRetailFastTrack
@pesmou #shoporg15 #DigitalRetailFastTrack
Sensors and devices
Connectivity / Networks
People / Processes
The Internet of Things connects billions of sensors and devices such as everyday consumer objects and industrial equipment onto networks.
Increasing amounts of data produced by those sensors and connected devices are hence acquired, logged and stored on networks.
Networked inputs are then combined into bidirectional systems for better decision making, increased efficiency, new services or environmental benefits.
@pesmou #shoporg15 #DigitalRetailFastTrack
@pesmou #shoporg15 #DigitalRetailFastTrack
Devices Connected to the Internet1 BILLION
Fixed internet in the 1990s
6 BILLION
Mobile internet in the 2000s
28 BILLION
“Things” connected to the internet by 2020
http://www.goldmansachs.com/our-thinking/pages/iot-infographic.html
@pesmou #shoporg15 #DigitalRetailFastTrack
@pesmou #shoporg15 #DigitalRetailFastTrack
AUGUST 2014
Creating a Programmable World
AUGUST 2012
@pesmou #shoporg15 #DigitalRetailFastTrack
@pesmou #shoporg15 #DigitalRetailFastTrack
9 Things You Should Know
1 IoT Is a Network of Networks2 IoT Is Huge3 IoT Is In Its Infancy4 IoT Will Create New Business Models5 IoT Will Make Us Paranoid (like most new technologies
do)
6 IoT Will Create Unexpected Partnerships7 IoT May Reignite (Some) Retail 8 IoT Will Require Organizational Readiness9 IoT Will Enable Many Winners
@pesmou #shoporg15 #DigitalRetailFastTrack
@pesmou #shoporg15 #DigitalRetailFastTrack
IoT Is a Network of Networks
#1
https://hbr.org/2014/11/how-smart-connected-products-are-transforming-competitionhttps://hbr.org/2014/11/how-smart-connected-products-are-transforming-competition
How Smart, Connected Products Are Transforming Competition
@pesmou #shoporg15 #DigitalRetailFastTrack
@pesmou #shoporg15 #DigitalRetailFastTrack
Network of NetworksT H E P H Y S I C A L G R A P H
Wearables Cars
HomesCities
IndustryTransport
ationOil and
GasHealthcar
eRetail
@pesmou #shoporg15 #DigitalRetailFastTrack
@pesmou #shoporg15 #DigitalRetailFastTrack
Network of NetworksT H E P H Y S I C A L G R A P H
KNOWLEDGE GRAPH
$450 BILLION
SOCIAL GRAPH
$260 BILLION
PHYSICAL GRAPHGoogle? Apple? Samsung? Amazon? Newcomer? $??? BILLION
@pesmou #shoporg15 #DigitalRetailFastTrack
@pesmou #shoporg15 #DigitalRetailFastTrack
IoT IS HUGE
IDC$3trillion
by 2020, with
30billion devices
Cisco$19trillion
by 2020, with
50billion devices
#2
@pesmou #shoporg15 #DigitalRetailFastTrack
@pesmou #shoporg15 #DigitalRetailFastTrack
WORLDWIDE GDP
$78 trillion
~10% of 2014 GDP
FactoriesCities
HumanRetail
OutsideWork sites
VehiclesHomesOffices
$1.2-3.7T
$.4-1.2T
$.9-1.7T$.2-1.6T
$.6-.9T
$.2-.9T
$.2-.7T
$.2-.3T
$.1-.2T
http://www.mckinsey.com/insights/business_technology/The_Internet_of_Things_The_value_of_digitizing_the_physical_world
IoT IS HUGE
@pesmou #shoporg15 #DigitalRetailFastTrack
@pesmou #shoporg15 #DigitalRetailFastTrack
IoT Is In Its
Infancy
#3
@pesmou #shoporg15 #DigitalRetailFastTrack
@pesmou #shoporg15 #DigitalRetailFastTrack
@pesmou #shoporg15 #DigitalRetailFastTrack
@pesmou #shoporg15 #DigitalRetailFastTrack
@pesmou #shoporg15 #DigitalRetailFastTrack
@pesmou #shoporg15 #DigitalRetailFastTrack
Q4 2012 Q4 2013 Q4 2014
26.5 26.8 26.7
Average number of apps used per user per month and average time spent using apps per month
23:02
30:1537:28
http://www.nielsen.com/us/en/insights/news/2015/so-many-apps-so-much-more-time-for-entertainment.html
@pesmou #shoporg15 #DigitalRetailFastTrack
@pesmou #shoporg15 #DigitalRetailFastTrack
#4
IoT Will CreateNEW BUSINESS MODELS
@pesmou #shoporg15 #DigitalRetailFastTrack
@pesmou #shoporg15 #DigitalRetailFastTrack
https://hbr.org/2015/10/how-smart-connected-products-are-transforming-companies
real-time
over-the-air updates
information convergence
recurring revenue
personalization and context
ecosystem partners
@pesmou #shoporg15 #DigitalRetailFastTrack
@pesmou #shoporg15 #DigitalRetailFastTrack
@pesmou #shoporg15 #DigitalRetailFastTrack
@pesmou #shoporg15 #DigitalRetailFastTrack
@pesmou 47
Retailers As Smart Home Platform Providers - Lowes
@pesmou #shoporg15 #DigitalRetailFastTrack
@pesmou #shoporg15 #DigitalRetailFastTrack
@pesmou #shoporg15 #DigitalRetailFastTrack
@pesmou #shoporg15 #DigitalRetailFastTrack
#5
IoT Will Make Us Paranoid
(at least for a while)
@pesmou #shoporg15 #DigitalRetailFastTrack
@pesmou #shoporg15 #DigitalRetailFastTrack
IoT Will Make Us Paranoid
@pesmou #shoporg15 #DigitalRetailFastTrack
@pesmou #shoporg15 #DigitalRetailFastTrack
IoT Will Make Us Paranoid
@pesmou #shoporg15 #DigitalRetailFastTrack
@pesmou #shoporg15 #DigitalRetailFastTrack
IoT Will Make Us Paranoid
“Will consumers and employees leave it to business to set reasonable privacy policies or will they turn to the political and judicial processes to restrict the use of personal data?”
-- Lawrence Lessig
@pesmou #shoporg15 #DigitalRetailFastTrack
@pesmou #shoporg15 #DigitalRetailFastTrack
IoT Will Make Us Paranoid
TodayBlanket terms of
use authorizing service providers
to remarket or redeploy user data
IoT Enabled WorldIndication and permissioning at every turn about how consumer data is used?
Nutritional-like labels that data-sharing policies? Energy Star-like seal of approval for privacy
(government) Good Housekeeping-like seal of approval for
privacy? (commercial) x
@pesmou #shoporg15 #DigitalRetailFastTrack
@pesmou #shoporg15 #DigitalRetailFastTrack
#6
IoT Will Create
Unex
pect
edPartnerships
@pesmou #shoporg15 #DigitalRetailFastTrack
@pesmou #shoporg15 #DigitalRetailFastTrack
Insurance Industry: From Rear View to Real Time
@pesmou #shoporg15 #DigitalRetailFastTrack
@pesmou #shoporg15 #DigitalRetailFastTrack
Channel Confusion & Conflict May Arise
@pesmou #shoporg15 #DigitalRetailFastTrack
@pesmou #shoporg15 #DigitalRetailFastTrack
Competitors as Partners
@pesmou #shoporg15 #DigitalRetailFastTrack
@pesmou #shoporg15 #DigitalRetailFastTrack
#7
IoT May Reignite
(some) Retail
@pesmou #shoporg15 #DigitalRetailFastTrack
@pesmou #shoporg15 #DigitalRetailFastTrack
IoT Will Catalyze More Investment in Experiential Retail
@pesmou #shoporg15 #DigitalRetailFastTrack
@pesmou #shoporg15 #DigitalRetailFastTrack
Role for Wireless Carriers?
@pesmou #shoporg15 #DigitalRetailFastTrack
@pesmou #shoporg15 #DigitalRetailFastTrack
@pesmou #shoporg15 #DigitalRetailFastTrack
@pesmou #shoporg15 #DigitalRetailFastTrack
VR Can Help Sell IoT Devices
@pesmou #shoporg15 #DigitalRetailFastTrack
@pesmou #shoporg15 #DigitalRetailFastTrack
Don’t Count Amazon Out
@pesmou #shoporg15 #DigitalRetailFastTrack
@pesmou #shoporg15 #DigitalRetailFastTrack
#8
IoT Will Require Organizational
Readiness
@pesmou #shoporg15 #DigitalRetailFastTrack
@pesmou #shoporg15 #DigitalRetailFastTrack
Impacts Will Be Cross-Functional
@pesmou #shoporg15 #DigitalRetailFastTrack
@pesmou #shoporg15 #DigitalRetailFastTrack
Critical Implications for Data Mgmt, Design and Support
Emerging Customer Support ModelsAgent Directed User Directed
Onboarding Omnipresent Support
Break/Fix Troubleshooting
Enablement
http://www.onesheep.org/wp-content/uploads/2014/06/designmatters.pnghttp://www.support.com
@pesmou #shoporg15 #DigitalRetailFastTrack
@pesmou #shoporg15 #DigitalRetailFastTrack
New Business Models, New Business Risks
@pesmou #shoporg15 #DigitalRetailFastTrack
@pesmou #shoporg15 #DigitalRetailFastTrack
#9
IoT Will Enable Many
Winners
@pesmou #shoporg15 #DigitalRetailFastTrack
@pesmou #shoporg15 #DigitalRetailFastTrack
© Matt Turck (@mattturck), David Rogg (@davidjrogg) & FirstMark Capital (@firstmarkcap)
The IoT Landscape
Applications (Verticals)
Platforms & Enablement
(Horizontals)
Building Blocks
@pesmou #shoporg15 #DigitalRetailFastTrack
@pesmou #shoporg15 #DigitalRetailFastTrack
“Bad news- The scale is threatening to cut off access to the fridge…”
@pesmou #shoporg15 #DigitalRetailFastTrack
@pesmou #shoporg15 #DigitalRetailFastTrack
@pesmou #shoporg15 #DigitalRetailFastTrack
@pesmou #shoporg15 #DigitalRetailFastTrack
Preparing for the IoT:
To-Gos
1 Establish Agile, Adaptable Culture
2 Invest in Talent to Lead, Through All the IoT Layers
3 Plan for Scope and Volume of Data
4 Prioritize Privacy
5 Think Beyond the Things
6 Consider Potential Competitive Threats from Non-traditional Players
7 Beat 'em, or Buy 'em
8 Brace for the Marketing Impacts of IoT
9 Remember Amara's Law: “We tend to overestimate the effect of a technology in the short run and underestimate the effect in the long run.”
@pesmou #shoporg15 #DigitalRetailFastTrack
@pesmou #shoporg15 #DigitalRetailFastTrack
THANK YOUMaria Thomas