the challenges of bringing iot products to market
TRANSCRIPT
iotmethodology.com
@snillocmot
Joined the iStart program!
The ‘Internet of Things’ is here and now.
It’s approachable and viable opportunities are everywhere.
Intro’
Beyond the technology lie real challenges, namely to
identify and capture value,
To sell your ‘story’ and simplify complexities.
There’s a vast chasm between the hype and reality,
but here’s a preview, of the trends, predictions, value domains
and routes to make your own initiatives a success.
A few market trends
Industry Trends
Industry Trends
Industry Trends
Industry Trends
Industry Trends
What can we learn from the past hype?
Hype Trends
Hype 2010
Cloud Mobile apps
III II
Internet of
Things
I
BigData
I
Wear-ables
Hype 2011
Cloud Mobile apps
III IIWear-ables
BigData
Internet of
Things
III
II
Hype 2012
Cloud Mobile apps
IIII IIIIWear-ables
BigData
Internet of
Things
III
III
Hype 2013
Cloud Mobile apps
IIWear-ables
BigData
Internet of
Things
IIII
IIIII
IIIIIIII
Hype 2014
Cloud Mobile apps
IIWear-ables
BigData
Internet of
Things
IIIIIII
IIII
_
IIII
_IIII
Hype 2015
Cloud Mobile apps
IIWear-ables
BigData
Internet of
Things
IIIIIIII
IIII_
_
IIII
_IIII I
Quantify the hype?
Wearables
2025
$70 Billion
Internet of Things
2020
$7.1 trillion
Big Data
2015
$125 billion
Cloud Computing
2018
$205 billion
Mobile app
2016
$77 billion
2025$11 Trillion
Market Predictions According to McKinsey 2015
Wearablesmobile app
big data cloud
$500,000,000,000 +/-
So where’s the value?
The missing trillions?
Cities - Public health and transportation $930B−1.7TPollution, traffic management, social initiatives
Human - Health and fitness $170B−1.6TAssisted living, hospital automation, personal health
Retail - Environments, Automated checkout $410B-1.2TConverged on-offline marketing, new shopping experiences
Outside - Logistics and navigation $560B−850BBest-route optimisation, GPS in everything, Smart fleets
Vehicles - Autonomous vehicles and condition-based maintenance $210B-740BThink Tesla, 24/7 car telematics, Insurance as a service
Worksites - Operations optimization/health & safety $160B−930BSmarter tools, asset management, Smart architecture
Homes - Chore automation and security $200B-350BClassic home automation
Offices - Security and energy $70B-150BClassic building automation
Factories - Operations and equipment optimization $1.2T−3.7TOTT Sensors, optimise production management and quantify TCO for everything
What competitors are out there?
Order Out of Chaos
Who has a problem we can solve?
What existing skills can we wrap into a product?
How do we market our products, especially to
different verticals?
Will prospects understand the technology easily?
What partners do we rely on to provide our
service?
How does the market expect to pay for solution now?
How do we approach pricing for our complex solution?
Should we make existing products better, faster,
more efficient?Do we improve old business
processes?
Do we look for entirely new opportunities?
How do we keep our current market healthy?
Order Out of Chaos
What competitors are out there? What’s our selling point?
Order Out of Chaos
Who has a problem we can solve?
What existing skills we can wrap into a product?
How do we market our products, especially to
different verticals?
Will prospects understand the technology easily?
What partners do we rely on to provide our
service?
How does the market expect to pay for solution now?
How do we approach pricing for our complex solution?
Should we make existing products better, faster,
more efficient?Do we improve old business
processes?
Do we look for entirely new opportunities?
How do we keep our current market healthy?
2. Solution fit
4. Market fit
5. Ecosystem fit
3. Pricing fit
1. Product vs Bespoke Become Product OR Consultancy focused
Can you identify a real customer - Today?
How do customers expect to pay, and how do you portray the total perceived value?
Who are the other players focusing on new innovation? Who are the existing players? Beyond the market, IoT is about ecosystem, to create mutual value across domains, between stakeholders, in specific settings
Order Out of Chaos
What can you do?
Mobile apps - Use an existing hardware platform (Already mature, everyone has one in their pocket, packed with unused tech’)
A possible route - Making use of assets around you
Cloud computing - Highly scalable services for recurring revenue (Integrate and make use of multiple platform, consider Everything-as-a-service)
Wearables/Platform - Building and owning your platform is a huge endeavour and a vibrant community is key (third-party developers become advocates and revenue sources)
Big Data - Service enrichment - Platform means metadata, and a great opportunity to capture knowledge from dimensional domains, allowing new recurring revenue sources to materialise fast (Consider tesla auto-pilot)
IoT - Frictionless transaction services, data brokerage across dimensional markets (Interoperability between all of the above)
Get excited with consumer IoT - Learn their inner workings, the app design, the interactions,
appreciate how the technology responds, learn about the sensor data, think about them in different setting
Tom’s top tips
The geeks aren’t customers - They’re hardcore, they want everything for nothing, and they want to
build it themselves
Don’t sell it all on your ‘first date’ - It’ll just overwhelm your prospect
‘IoT’ isn’t a USP!
Don’t compare traditional competitor solutions for the sake of analogy - Place them as complementors in the value chain, find a totally different analogy
Dimensional business models - Products that can create future value in later stages (Only tell
customers one story at a time, but look at the settings for later revenue)
Design Business Develop
Ideation Tool Kit@driesderoeck
Business Model Canvas
IoT Canvas & App mockups
Concept storyboards
Value Proposition & Value Chain
Analysis
Device Prototype
BOM and manufacturing plan
PitchIOT OSI
Architecture Breakdown & user
stories
Cost
Conceptualfocus
Ideate
Materialise
Gain support
Valorise!
Technical Focus
Solutions
Product Fit Market Fit Development roadmap
Rapid Development Kit
Prototype Hardware, Cloud & Mobile in hours not days
Value Proposition Canvas
Truly get into the mind of the customers
IoT Ideation Toolkit
Ideation workshop to explore and understand value in ideas
IoT Methodology
Your roadmap and toolbox to capture value in IoT
Business Model Generation
Business Model Canvas adapted to focus on connected products
Radical Idea to Validated Proposition (in 48 hours)
‘Shark’ pitch
4’ presentation to ‘sell’ your value proposition to sharks
That’s all folks