who will pay for iot and why? - atanu roy chowdhury, senior product manager at altiux innovations
TRANSCRIPT
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Atanu Roy Chowdhury
Senior Product Manager, Altiux Innovations Private Limited
January 10, 2015
Who Will Buy IoT Products And Why?
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Practical Business Models for IOT
The IoT ecosystem
Demystifying IoT
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The Internet of ThingsWhat is the hype about?
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Gartner's 2014 Hype Cycle for Emerging Technologies
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Thing(s) + IT = Local Function +
Measurements
Instantaneous
Historical
Supercharged Function
$$$New Services$$$
The value of the digitally charged thing in IoT comes from an extension of the local function with new digital services
Why the IoT hype?
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©The Connectivist , May 05, 20146
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The Hypeis about the opportunity to monetize services from a very large number of
connected devices.
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The Internet of ThingsWhat really is it?
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Defining the Internet of Things
“IoT is just M2M reincarnated with connectivity” –a manufacturing client
“IoT is a hyper-connected graph with a disproportionate ratio of leaf nodes” -a security researcher
“IoT is the interconnection of uniquely identifiable embedded computing devices within the existing Internet infrastructure”-Wikipedia
“IoT is a self organizing system of Internet connected peripheral systems providing new and improved converged services” –our architect9
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Things in IoT NOT
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OMNISCENCETELEPATHY
SAFEKEEPINGIMMORTALITY
TELEPORTATIONEXPRESSION
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Characteristics of IoT systems
All nodes have computation and communication capabilities of varying degrees.
There are several intermediaries between communication end points who may use different protocols across all layers of the OSI stack.
Any node is uniquely addressable from any other system.
Any node can offer a service. Additionally it can discover and consume any service offered by another node.
Nodes and services do not exist in isolation.
Any node can align itself with a logical network. 12
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The Internet of ThingsWhat’s different about it?
Edgeware, Ecosystem and Entrepreneurship
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Device Mgmt
Access Mgmt
Compute Mgmt
Protocol Mgmt
Data MgmtConnectivity
Mgmt
Edgeware
Peripheral Devices
Edge Gateways
Field Area Gateway
Enterprise Gateways
Storage Systems
Data Processing
Systems Applications Workflows
Operational Technologies Information Technologies
Event based actions on real time high velocity data Query based action on non
real time high volume data
IoT Edgeware*
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Ecosystem
Wireless photo
printing
Scan to mail Predictive maintenance
Content delivery
Remoteprinting
Social Integration
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Entrepreneurship
© Claro Partners16
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Can provide high resolution real-time information.
Can interconnect M2M silos for greater visibility.
Can interoperate and leverage common infrastructure.
Can provide low cost solution for solving a specific consumer pain point.
Can improve traceability, resource utilization, health and safety.
The Value Proposition for Customers
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Can handle multiple business models.
Can handle multiple deployment models.
Can create new products and services to diversify revenues.
Services and devices can be created by developers.
The Value Proposition for Developers
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The Internet of ThingsSome Examples
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Thing tracking
Home surveillance
Connected homes
Smart wearables
Infotainment Multimodal interaction
Digital assistants
Smart lighting
Smart parking
Smart buildings
Smart citiesSmart
apparel
Energy savings
Connected cars
Connected calendars
Connected healthcareC
on
su
mers
are
inte
reste
d in
…
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Predictive maintenance
Loss prevention
Asset utilization
Inventory tracking
Disaster planning and
recovery
Downtime minimization
Energy usage optimization
Device performance effectiveness
Network performance management
Capacity utilization
Capacity planning
Demand forecasting
Pricing optimization
Yield management
Loading balancing
optimizationWorker safety
En
terp
rise
s a
re in
tere
ste
d in
…
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Practical Business Models for IOT
The IoT ecosystem
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Not all IoT products are Things
CE product Line cardApplication
serverDesign
Software stacks
Solution acceleration
Integrated solution
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Market discovery
Product design
Concept validation
Product architecture
Product engineering
Contract manufacturing
Application Hosting
Content provider
Data connectivity
SLA definition
Prototyping
Ecosystem validation
Implementation
Integration
Alpha testing
Production
Distribution channel creation
Installation and commissioning
Market outreach
Revenue Realization
After sales support
Product maintenance
Cre
atin
g an
IOT
pro
du
ctIdeation
Ecosystem Establishment
Implementation
Go To Market
Sustenance
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Discovering new services
Delivering Supercharged
Services
Creating supercharged
services
Creating Smart Things
IoT company
Silicon providers
ODM/OEM
CMS
PES
SI
Connectivity providers
Content providers
Application hosting service
providers
Marketers
Thought leaders
Customers
Service providers
Distributors and retailers
Installation and commissioning
After sales
Actors in the IoT ecosystem
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IoT
com
po
nen
t ve
nd
ors
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The Internet of ThingsWhat are the pitfalls?
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The cost of data acquisition is not homogeneous.
There will be diversity in sensors, devices and vendors.
Business requirements can exceed technology reach.
Plan for device failures and handle them.
Ensure that products are certified.
Security is not an afterthought.
Technical best practices for IoT Solutions
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Device costs are a function of volumes, functionality and robustness.
There is a creepiness factor with IoT solutions.
New services require training.
Market potential is hard to guesstimate.
Know your competition.
Understand local regulations and tax regimes.
Process changes will be resisted.
Disgruntled customers seldom return. Bu
sin
ess
bes
t p
ract
ices
for
IoT
Solu
tio
ns
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Practical Business Models for IOT 30
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Delivering an IoT product
IoT Product
Company
Consumer
System Integrator
Enterprise
Service Provider
InnovationPartners
Support Partners
Content Providers
Implementation Partners
B2C
B2B
B2B2B
B2B2B
B2C
B2B
B2B2C
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The Internet of Business ModelsCase Studies
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Grants and Capex
Leased Opex
Mixed
IP transfers
Revenue sharing
Simple Models
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Freemium Models
Source: http://2lemetry.com/pricing/
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Source: http://www.tataindicom.com/mobile-internet.aspx
Whitelabelling
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Usage Based Models
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Activity Based Models
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Time Based Models
Presence Based Models Location Based Models
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Interaction Based Models
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Outcome Based Models
Priority Based Models Ecosystem Based Models
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Alternate Revenue Models
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E-Commerce Models
Gamification Based Models Data Based Models
Source:http://www.thingworx.com/marketplace/
Source: http://www.microsoft.com/en-us/server-cloud/internet-of-things.aspx
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Application mashup models
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SummaryThis is an introductory discussion on IoT and its ecosystems, both of
which are in its nascent stages.
There is significant scope for entrepreneurs to create new IoT devices and services.
Both end consumer and enterprises are willing to pay for IoT solutions
BUT
There must be a demonstrable value addition over existing services, at an acceptable price point, that can result in resource optimization, improved traceability or better health and safety or even enhanced social presence.
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Thank You
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