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www.ParksAssociates.com | 972.490.1113 | © PARKS ASSOCIATES 1


Tom KerberDirector of ResearchParks Associates

Vish PaiProduct Manager,

Cloud ServicesAyla Networks

Aditya PendyalaHead of Products

mnubo


Unlocking the Value of Connected Products

Agenda

• Introductory Presentations

• Data Analytics—Driving Operational Efficiency

• Data Analytics—Driving Consumer Value

• Build vs. Buy

• Q&A


Audio Recording

Parks Associates has invited you to view and listen to the webcast recording.

View Recording: https://attendee.gotowebinar.com/recording/2945946063461020673


Data Collection

Display

Modeling

Notification

Prediction

Intelligent Control

Reporting

Adapt and Learn

Data Creating Growing Value



7

Product A

Sensors

Actuators

Networks

Cloud Storage

Data Analytics

Value Added Service

Sensors

Actuators

Networks

Cloud Storage

Data Analytics

Value Added Service

Sensors

Actuators

Networks

Cloud Storage

Data Analytics

Value Added Service

Product B Product C

Weather

Location

Industry

Social Media

Transactions

Interests

External Data

Data Analytics

Value Added Service

Data Analytics

Value Added Service

Data Analytics

Value Added Service

Data Analytics

Value Added Service

Data Analytics

Value Added Service

Additio

nal

Service Layers


Unlocking the Value of Smart Meters

8

ModelingConsumption

Identify InefficientAppliances

Track History ofAppliance

Performance

Identify Signs ofImpendingFailure

Model NormalDaily Routine

Health MonitoringService

UnderstandLoad

Interactions

Appliance Replacement

Leads

Performance Degradation

Service

Equipment Failure

Notification

Thermostat And LightingOptimization

Thermostat Data

Lighting Data

Utility Meter

Meter DataManagement

BackhaulNetwork

Home AreaNetwork

In Home DeviceGateway

Weather Data

ModelingConsumption

Daily Budget Notifications

Real TimeAlerts

DataAnalytics

ValueAddedService

DataAnalytics

Value AddedService

DataStorage

Network

Sensor ExternalData

Graphical UsageSummary

Bill Analysis andInquiry Tools

High Freq.Disaggregation

Itemized BillingBreakout


Creating Value for the Consumer

9

58%42%

Smart Thermostat: Preference (Q2/14)

$99—A programmable thermostat that can:‐Be monitored for status or controlled from a smartphone, tablet or computer

$299—A programmable thermostat that can:‐Be monitored for status or controlled from a smartphone, tablet or computer

‐Display the current weather forecast

‐Use weather forecast to save money by running your air conditioner or furnace when it is most efficient

‐Increase your home’s energy efficiency by “learning” your daily routines and temperature preferences

‐Automatically make minor adjustments to save money by operating your system when electricity prices are low



10

47%

53%

Smart Smoke Detector: Preference (Q2/14)

$29—A smoke detector that can:‐Be monitored for status or controlled from a smartphone tablet or computer

$129—A smoke detector that can:‐Be monitored for status or controlled from a smartphone, tablet or computer

‐Send you alerts when the battery needs to be replaced

‐Send you alerts when the alarm is triggered telling you about the event and location

‐Automatically shut off the furnace or air conditioner in the event of a fire



11

While it’s still working properly,

61%

Only when it stops working properly,

39%

Advanced Smart Smoke Detector: Likelihood of Replacing Functioning Unit (Q2/14)


Creating Value for the Enterprise

12

• Feedback

• Use Case

• Features

• Crowd Sourcing

• Business Models

• Partnerships

• Bundling

Product Management Design Manufacturing Support

• Cloud Services

• Apps

• Data Analytics

• Firmware

• Communication HW

• Industrial Design

• Supply Chain Management

• Quality Management

• Remote Diagnostics

• Warranty Support

• Product Upgrades

14Copyright © 2015 Ayla Networks

• Internet of Things (IoT) is happening now!

• Connectivity, security, and data management and analysis not the core expertise for most manufacturers

• The true value of IoT is in the data: Ayla’sgoal is to provide our customers with a feedback loop to learn faster and adapt

Ayla helps manufacturers navigate the jungle of product connectivity, enabling them to find the gold that is in the data

Agile Mobile Application Platform

Device

Embedded

Linux

Gateway

Rules Engine

Ayla Insights

Monitor

Analyze

Ayla PaaSCloud

ValueAddedServices

B2B & B2C Partners

Customer Business Systems

Customer’sCloud Partners

local remote

Copyright © 2015 Ayla Networks 15


< 1 % Analyzed Today

99% Sits Unused!

Source: IDC

Data Generation over Time


1st Step—Connecting devices

2nd Step—Collecting data from the devices (many of which weren’t designed to be connected i.ewater heaters)

3rd Step—Data feedback loop: analyzing and improving devices for consumers

Benefits: Shorter Time to Market

Faster Product Iterations with Actionable Insights

No need to hire data team

Purpose‐built for the IoT

18

Three Levels1) Basic2) Advanced3) Designer

Copyright © 2015 Ayla Networks


How many products have been sold, to whom, and where?

How often are products used, at what times, and for how

long?

Are customers having any

difficulties with the products?

How many are still in

distribution channels?

Are the products

performing to specs?

How many devices are

online or offline at any particular

time?

Manufacturers gain information about how customers are using their connected products


• Up and running quickly• Manufacturers do not need to hire data

analytics expertise or write custom software code to extract powerful feedback from their connected products

• Own the data• Manufacturers retain ownership of their IoT

data

• Role‐based access• Role‐based access to IoT data and analytics

tool

• Vertical‐specific reports• Manufacturers gain both a general,

horizontal view and an industry‐specific, vertical‐market focus into their IoT data

WWW.AYLANETWORKS.COM


@mnubo

Internet of Things (IoT) Data Analytics as a Service

extracting value from IoT Data

connected product… now what?

• platform purpose-built for IoT analytics• faster time-to-insight• complex IoT data streams: variety & velocity• actionable business value:

– improve the product based on feedback– improve operational efficiency and services

• build vs. buy – focus on using insights vs. tools

25

The value is rapidly shifting right…

Value Added Services DomainConnectivity DomainHW Domain

Network Connectivity

Connection Mgmt. Device Mgmt. Application

Mgmt.

Data and Analytics

Mgmt.

Data Science and Machine

Learning

SIM/Module Device

Partner Ecosystem

making connected products, smarter

IoT VALUE CHAIN

the smart home industry…at a tipping point

NEED FOR PERSONALIZATION

DATA-DRIVEN SERVICES

SEAMLESS EXPERIENCE

smart hom

esm

artp

hone

it’s a bi-lateral connection(!)

distinct user profiles

usage (operational) feedback

HUB

LIGHT

THERMOSTAT

MOTION

days/year days/year

smart home data value for multiple stakeholders

smart hom

e

HUB

LIGHT

THERMOSTAT

MOTION

Smart Home Product Manufacturers & Service Platforms

MSOs | Cable Cos | Security Companies

Dealers | Wholesalers | Retailers

OEMs | 3rd Services

per-collection analyticsper-object analyticsper-user analytics

aggregate analyticspredictive analytics

1. aggregated data and analytics across all connected home products2. understand product usage and transform it into strategic insights and benefits3. build new data-driven features for greater value-add and customer stickiness4. improve operational efficiency and lower costs by identifying problems in advance

key benefits of IoT Analytics

28

Product & Service

Feedback

Usage (Behaviour)

Tracking

Operation Analysis

Contextual Awareness

Predictive Analysis (and Maintenance)

Analysis of connected things metrics to determine trends, patterns and issues.

Assessing connected products’ quality and behaviour and improving development and service feedback

Usage, consumption and interactions of a connected product or service are tracked and analyzed

Monitor and optimize connected data assets to improve operations and business processes

Connected physical objects are used to collect data from surroundings to dynamical adapt operations (augmented by data enrichment)

Characteristics of IoT Analytics platform

29

• Handle multiple types of data (signal, sensor, event time-series data)

• Fast data processing and methods of analysis

Enrichment and Augmentation

Data Logic and Fast Processing

IoT Data Science

• Enrich IoT data with open (external) data and linked data streams for contextual awareness

• Augment IoT data with derived data and computed data to drive results

Challenge 1:Fast ingestion of a variety of IoT data from multiple data sources

Challenge 2:Contextualize IoT insights and link it with business data

Challenge 3:Drive business outcomes (ROI) with relevant, actionable insights

• Productize data science algorithms to get crucial insights when you need it

• Apply predictive models and machine learning to power smarter IoT applications

Levels of IoT Analytics

30

Real-time Analytics

On-Demand Analytics

Augmented Data Analytics

• Trends & Scoring• Real-time Algorithms• Event-driven Computations• Anomaly Detection

Examples:• Is my equipment performing

below-par?• What’s the current system

health score?

• Object & Event Distributions• Ad-hoc Reports• Geo analysis• Profiling and Clustering

Examples:• What/when/where are the

object events happening?• product engagement: top &

bottom usage, trend shifts?

• Contextual Analytics• Custom Algorithms• Predictive Models• DS and Machine Learning

Examples:• Preventive repair

recommendations• 360-degree context• Self-learned optimization

models

insights as the data streams insights when you ask for it insights in context

out-of-the-box insights for manufacturers and service providers

31

Geo AnalyticsACTIVITY BY REGION

On Demand AnalyticsFlexible queries to derive insights and analyze the ‘what, when, where’ of connected products

MOST ACTIVE HOMES

EVENT TYPES PER HOME

Product Usage FeedbackPopular features? Unused features? Updates? Faults & Issues?

Others• Object Lifecycle Management• Product Anomalies & Failures• Distribution based on OS, FW, SW versions• Performance Benchmarking• Health Score etc.

Product Usage: uc1 home usage profiling

business questions• Which home owners use my products

the most/least? • And, how does the usage vary over

time?

32

USAGE SCORE ACROSS HOMES

Movement along the scoring curve over time represents shift/changes in usage

desired business outcomesunderstand home owner usage behavior to:+ drive data-driven, richer applications + focus R&D spend+ gain better customer insights to lower churn

84%

22%

Reason:Activated rule to take camera snapshots when outdoor motion sensor is activated after 8.00pm

Reason:Light ID xx-a3De broken and not replaced for 2 weeks!

Operational Efficiency: uc2 predictive battery life

business questions• where/when are the batteries of

home products going to run out?• how should I schedule the trucks for

battery replacement?

desired business outcomes+ lower service costs of battery replacement programs (for monitored alarm services)+ improve customer experience+ better after-market services (warranty etc.)

BATTERY LEVELS ACROSS HOMES

Additional IoT Data Science Value:- Failure prediction- Anomaly detection

Optimized cost of service truck rollsReplace battery packs in Home IDs (…….), at Locations (……), T.T.D is (….. weeks)

www

smart home is the next big data frontier…

• under-utilized data asset• more efficient, safer, smarter• new business models and services



What are some of the leading applications for internal use of smart product data?Aditya Pendyala

Head of Productsmnubo

Data Analytics and Operational Efficiency



What type of investment is necessary to deliver applications that drive operational efficiencies?Vish Pai

Product Manager, Cloud Services

Ayla Networks




What are some of the more novel or interesting use‐cases for using smart product data for operational efficiency?


mnubo




What are the key trends in this area? How will data analytics drive operational efficiency in five years?Vish Pai

Product Manager, Cloud Services

Ayla Networks




What are some good examples of how data is driving consumer value today?Aditya Pendyala


Data Analytics Driving Consumer Value



What type of investment is required to deliver consumer facing solutions?






What are some examples of the more advanced data driven applications that are driving consumer value?Aditya Pendyala





What are the key considerations for manufacturers weighing the decision to build their own data analytics capability or leverage the expertise of partners?



Data Analytics – Build vs. Buy



Data analytics is increasingly becoming a significant source of differentiation for products and services. Does that mean that companies must invest in their own resources?


mnubo

Data Analytics – Build vs. Buy





mnubo


15950 N. Dallas Parkway, Suite 575Dallas, Texas 75248

Office: 972.996.0211Fax: 972.490.1133

[email protected]

Tom Kerber, Director of Research

Vish Pai, Product Manager, Cloud Services

607 W California Ave.Sunnyvale, CA 94086

Office: 408.830.9844

[email protected]

1751 Rue Richardson #4110Montreal, QC H3K 1G6

Canada

Office: +1 514.313.1400

[email protected]

Aditya Pendyala, Head of Products

parksassociates.com parks associates · unlocking the value of smart meters 8 modeling consumption...

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