the internet of things everyone will need an iot...

The Internet Of Things Everyone Will Need An IoT Business Plan

Vernon Turner, SVP & IoT Research Fellow

November, 2015

Agenda : The Reality Of The Internet Of Things

Connecting IoT With The Digital Transformation

IoT Proof Points

Inputs For Your Business Plan


Leadership Transformation

Omni-Experience Transformation

Information Transformation

Operating Model Transformation

WorkSource Transformation

Digital Transformation is the approach by which enterprises drive changes in their business models and ecosystems by leveraging digital competencies.

Digital Transformation is Multifaceted and Accelerated

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4






Worldwide, $1.3T Will be Spent on Technology

for Digital Transformation Initiatives in 2015

28% of total DX technology spending In 2015

19% of total DX technology spending in 2015





2015

Source: IDC, Digital Transformation Spending Guide, 2015






By 2020, We Move From Building the Digital Enterprise

to Building the Information-Based Enterprise

25% of total DX technology spending In 2020






2020

Source: IDC, Digital Transformation Spending Guide, 2015



3rd Platform Technologies are Fueling IoT Investments…..

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The Catalyst

The way people work,

interact in a more

productive, flexible &

ubiquitous way

The Enabler

The required

simplification &

standardization of ICT.

A new platform to

build flexible

innovation &

scalable services

The Transformer

The way business

processes are conducted in

the organization, shifting

behaviors from a

transactional

perspective to an

interactive one

The Disruptor

To business

models, markets,

enabling new ways

of understanding

customers & anticipating

needs & behaviors

……and IoT is part of every conversation.

Devices, connectivity and IT services will make up the majority of the IoT market in 2020 with more than

70% of the total spend.

The worldwide Internet of Things market will grow from $655 billion in

2014 to $1.7 trillion in 2020.

In 2020 there will be more than 30 billion devices connected.

IoT: An Evolving Market


Source: Worldwide Internet of Things Forecast, 2015–2020 (IDC #256397)

The Next Wave is About Connecting Machines and People


9

2015

2020

+ 48M IoT Sensors

Added To Corporate

Networks

+ 79M IoT Sensors

Added To Corporate

Networks

The Impact Of IoT Sensors Every Week

After The Hype, B2B Takes Over From Consumer

Business-to-

Business (B2B) 46%

Consumer 47%

[CATEGORY NAME]

[PERCENTAGE]

Business-to-

Business (B2B) 53%

Consumer 41%

Federal, State, Local

government

6%

2014

2015


Knowing Where You Are On The Journey


IDC Defines the Internet of Things (IoT) as…

“A network of networks of uniquely identifiable end points (or things) that communicate without

human interaction using IP connectivity”



1. Private Sector

2. Public Sector

3. Enterprise

4. Consumer

#1: Know Your Final Recipient Of Your IoT Outcomes:


Ask The Right IoT Question?

#2: The Votes Are In - CIOs Remain The IoT Decision Makers


Close The CIO/Line of Business Gap

Get Buy In To That The Digital Strategy Is The Business Strategy

Enterprise Business Tech Governance Must Be Integral Part Of Board Governance

Challenge Legacy & Take Risk

Architecture leader. Business Innovator

CIOs Take The Lead

53%

Business Units

Only 21% Of The

Time

CIOs Own The

Budget 67%

Business Units

33% Of The Time

IoT MaturityScape Five Stage Overview

Almost Completely

Unconnected

Individuals create proof of

concepts for IoT solutions

without the support and

knowledge of business units

and IT. IT lacks IoT budget

or mandate.

Business Outcome

Little to no monetary or

business value achieved.

Unmet Demand for

Outcomes

Lines of business create IoT

projects that are looking for

customer endorsements. IT

infrastructures consume

excessive IT and network

resources.

Business Outcome

LoB leaders pressured

by competitor and

customer needs to

accelerate IoT rollouts

IoT Supports Business

Transformation

Infrastructure maturity

enables IoT solutions to be

deployed at scale and speed

without impact on existing

IT workloads. IoT solutions

are managed by robust IoT

platforms.

Business Outcome

Integrated IoT solutions

roadmaps are shared

with IT suppliers , LoB

and IT

IoT Drives Corporate

Agility

IoT metrics provide LoB and

IT management with critical

data to drive efficiencies

across the supply change.

Enriched outcomes from

hybrid cloud / analytics

speed up product innovation.

Business Outcome

IoT solutions impact the

Capex and Opex metrics

of the company, bringing

early transformation.

IoT Value Engineering

Analytics-driven results

dictate changes to business

supply chain; the blurred line

between IT and LoB enables

the IoT environment to run

seamlessly, automatically,

while IoT is firmly on the

strategic road map.

Business Outcome

IoT functions as major

influence and key driver

of company’s digital

transformation.


#3: IoT Is Strategic To Enterprise

Transformative

24%

Strategic

58% Considering

13%

Enterprise decision makers think IoT is…

N=2350


Source: IDC’s Global IoT Decision Maker Survey, August 2015

Industry view of IoT strategic benefits differ

18

Transformational Strategic To consider Not important

OVERALL 23.7% 57.5% 12.7% 4.1%

Healthcare 17.6% 72.4% 6.8% 2.8%

Transportation 18.4% 66.6% 9.9% 2.6%

Manufacturing 24.8% 66.1% 6.9% 1.0%

Retail 28.4% 59.6% 7.9% 3.7%

Finance 20.0% 58.4% 15.2% 5.6%

IT 27.7% 50.4% 11.0% 6.2%

Professional Services 29.6% 45.8% 15.7% 7.4%

Government 24.4% 41.5% 25.2% 7.7%

Other 22.7% 45.1% 21.9% 4.4%

Source: IDC’s Global IoT Decision Maker Survey, August 2015 N=2350

Increase Productivity Time To Market Process Automation

14.2% 11.8% 10.1%

#4: Top 3 Factors That Influence Your Organization Decision To Create An IoT Strategy


Source: IDC Enterprise Internet of Things Survey, IDC, July, 2015

N=1971

Top IoT Applications Deployed Or Planned (Multiple Choices).

© IDC Visit us at IDC.com and follow us on Twitter: @IDC 20 0 -15 (Cool) 16 -30 (Warm) +30 (Hot)

Source: IDC Enterprise Internet of Things Survey, IDC, July, 2015

IoT Reference Architecture

Sensors

IoT

Device

IoT

Device

IoT

Device

Data Management

Process Automation

Resource Mgmt

Communication

Data Management

Process Automation

Resource Mgmt

Communication Communication

IoT Gateway

Data Management

Process Automation

Resource Mgmt

Communication

IoT Platform

Data Management

Process Automation

Resource Mgmt

Communication The

Edge

The

Enterprise


#5: Understand Where IoT Content Will Be Created

0 10 20 30 40 50 60

Don't know

Collect and tranfer to data center

Collect and process at "the edge"

2014 2015

Edge

Enterprise

Edge

Enterprise 54%

43%

40%

54%

Q. How will your organization manage data generated by the IoT sensors?

Retail

Manufacturing N=2350

Sensors

IoT

Device

IoT

Device

IoT

Device

IoT Gateway

Data

Manag

ement

Proces

s

Autom

ation

Resour

ce

Mgmt Comm

unicati

on

IoT Platform

Data

Manag

ement

Proces

s

Autom

ation

Resour

ce

Mgmt Comm

unicati

on

The Edge

The

Enterprise



Bu

sin

ess V

alu

e

Sensors

IoT Gateways

IoT Platforms (City, Automotive, Home, Industrial, Medical, etc.)

Sense & Respond Analytics ( Business Solutions)

Business Innovation & Disruption

“The Value of the IoT Solution is proportional to the speed and the

number of times the original IoT data is analysed” 1

$

Time

1. Turner’s Law of IoT

Increasing The Value Of IoT Outcomes


The Exponential Rise In Connectivity

#6: Challenges As Viewed By Enterprises

Security

Finance

India

Medium-size Companies

Upfront Costs

IT

All of Latin America

Medium-size Companies

Ongoing Costs

Manufacturing

China

Large-size Companies

Top Respondents

N=2350


Q. What do you think will hinder the deployment of an "Internet of Things" solution at your organization in the next two years?


The Move To Digital Transformation: A User Case


Connect Transform Analyse Innovate Act

Augmented Reality

Big Data

Digital Twin


By 2020, 90% of IT networks will have had an IoT-based security

breach.

By 2018, 60% of global 1000 companies, will integrate IT and OT at

the technology, process, security, and

organizational levels to fully realize the value of their IoT investments.

By 2020, 50% of IT networks will transition

from having excess capacity to handle the

additional IoT devices to being network constrained.

2020, over 90% of all IoT data will be hosted on

service provider platforms.

By …


Source: IDC FutureScape: Worldwide Internet of Things 2015 Predictions (IDC #252872)

Essential Guidance: The IoT Business Plan

28

Actively Engage In A Very Broad IT and Industry Based Eco-System

Evaluate The Shifts Of Profit Pools In All Workflows

Integrate Mobile, Cloud and Analytics IoT Offerings Into A Single Coherent IoT Platform Solution, Managed As A System Of Systems

Disrupt Your Supply Chain and Add Value At Every Point Of Your Value Chain – Be Relentless!

Thank you: How to reach me for questions.


Vernon Turner

Senior Vice President, Enterprise and Research Fellow (Internet Of Things)

@vernonxt

[email protected]

+1 508 524 5076

mailto:[email protected]

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