where is the real action in iot?

Where is the Real Action in IoT?

Analyst Panel

Analysts Panel• Michael Chui, Partner, McKinsey Global Institute

• Vernon Turner, Senior Vice President of Enterprise Systems & Fellow (The Internet of Things), IDC

• Bill McBeath, Chief Research Officer, ChainLink Research

• Doug Banks (Moderator), Executive Editor, Boston Business Journal

Technology Phenomenon


Application Phenomenon

• 1926 – First Oil Well Telemetry

• 1920s – Tachograph

• WWII – RFID

• 1975 – X10 / Smart Home

• 1970s – Remote x-ray & electrocardiograph

• 1990s – GPS / telematics


Marketing/ Market

Phenomenon

Application Phenomenon

Source: Google Trends Chart for “Internet‐of‐Things” as of 3/8/15

1970

Marketing/Market Phenomenon

1980 1990 2000 2010 2015

IoT Solutions and ServicesIoT Solutions and Services Market Size IoT Solutions and Service Providers

Who Realizes Value

Source: ChainLink Research

What’s Counted

Products and Services Using IoTIncremental Revenue from Adding IoT to Products and Services

Manufacturers, Building Owners, Fleet Owners, and Others Integrating IoT Into Their Products and Offerings

Value Realized by End CustomerTotal Value Realized by Using IoT End Customer


Who Realizes Value


What’s Counted




IDC• $1.46T in 2020


Who Realizes Value


What’s Counted




Cisco• $19T 2013‐2022 (Avg. $1.9T/Year)– $14.4T Private Sector– $4.6T Public Sector‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐

• $2.5T: ‘Asset Utilization’—efficiencies, reduced SGA, COGS

• $2.5T: ‘Employee Productivity’• $2.7T: ‘Supply Chain & Logistics’• $3.7T: ‘Customer Experience’—i.e. lifetime value, market share

• $3.0T: ‘Innovation/time‐to‐market’ —return on R&D, new business models/revenue streams

McKinsey• $0.3T – $0.9T in 2015• $1.3T – $3.6T in 2020 (avg. $2.4T)• $3.9T – $11.1T in 2025‐‐‐‐‐‐‐‐‐‐‐2025 numbers‐‐‐‐‐‐‐‐‐‐‐‐

• $1.2T – $3.7T—Factories• $930B – $1.7T—Cities• $170B – $1.6T—Human Health• $410B – $1.2T—Retail• $560B – $850B—Logistics• 160B – $930B—Worksites • $210B – $740B—Vehicles• $200B – $350B—Home• $70B – $150B—Offices

GE• $15.3T in 2030 GDP• YoY productivity growth–1.5%/yr. increase in US–0.75%/yr. increase in ROW

Analysts Panel• Michael Chui, Partner, McKinsey Global Institute

• Vernon Turner, Senior Vice President of Enterprise Systems & Fellow (The Internet of Things), IDC

• Bill McBeath, Chief Research Officer, ChainLink Research

• Doug Banks (Moderator), Executive Editor, Boston Business Journal

Devices: Platforms (e.g. Raspberry Pi, Arduino, BeagleBone), Phones, ReadersComponents: Sensors, Controllers, Processors, Comms, GPS/Location, RFID, I2C

Local Communications: Ethernet, WiFi, Bluetooth, RFID, Gateways, Routers

Device Management / Abstraction: Device Independence, Device Clouds, Connectors, Configuration, Mgmt.

Security: Encryption, Authe

ntication, Access, Iden

tity, Trust

System

s Integration:

Desig

n, Im

plem

entatio

n, Rollout, Sup

port

IoT Development Platforms: rapid dev IDE, Device/Middleware connect, security

Storage Platforms: High scalability, NoSQL, security

IoT Analytics: Complex Event Processing, Geospatial Systems, Predictive Analytics, Holistic Analytics (IoT data, Enterprise data, social data, etc.)

IoT Applications: Logistics, Remote Monitoring, Alerting, Remote Control, Maintenance, Safety, Security, Optimization, Autonomous Intelligence

Middleware Platforms:Workflow, business rules, cloud‐enabled, open standards

Local Intelligence/Gateway:‘Thing‐level’ sensor‐data filtering,

summarizing, pattern detection, inter‐preting, processing, analytics, algorithms.

Devices‐to‐WAN gateway

Wide Area IoT Communication Platforms: Cellular, Satellite, Cable, μwave, Private Networks. Device, rate/cost, SIM management. Diagnostics.

Source: C

hainLink

Research

Smart BuildingsHVAC, Security, People Moving, Energy, Lighting

AgriculturePrecision Planting, Smart Irrigation, Animal Health, Harvesting

Smart CityTransit Systems, Traffic, Waste Management, Parking, Utilities, Security, Safety

Smart GridMeters/AMI, Crew

Safety, Communications, Phasor Measurement Units, Automation

FactoriesInstrumentation, Connected Robots, Worker Safety,

Predictive Maintenance, Smart Racks and Conveyances,

Monitoring, Process Control

HealthcareMobile Health, Smart Prosthetics, Personal Monitoring, Teleheath, Surgical Equipment, Asset tracking, Drug

Dispensing, ER

Oil & GasWellhead Telemetry,

Safety & Environment, Smart

Pipes, Rig Instrumentation

Smart HomeSmart Appliances,

Entertainment System, Security and Access,

Lighting, Pets, Utilities

RetailSignage, Kiosks, Smart

Dressing Room, Item‐level RFID, Video System, POS, Smart Mirror, Personal Shopping Assistant,

Security, Shrink Prevention


VehiclesAutonomous Driving,

Predictive Maintenance, Entertainment System, Safety, Self‐Fueling, Fleet Efficiency and

Optimization