Making Sense of the Internet of Things - Oct 2015 - Maria Thomas

The Internet of Things: Making Sense of an Emerging Megatrend

Maria Thomas

@pesmou #shoporg15 #DigitalRetailFastTrack


The Internet of Things (IoT) Is…



Smart Toothbrushe

s



Smart Clubs & Racquets



Smart Door Locks



Smart Thermostat

s



Smart Meters



Smart Cars



Smart Insurance



Smart Glucose Monitoring



Smart Contact Lenses



Smart Aircraft Engines



Smart Shelf

Labels



Smart Packaging



Smart Shoes



Smart Cows



Smart Cities



Smart Ordering & Fulfillment



IoTis



http://www.wired.com/2013/05/internet-of-things-2/



Sensors and devices

Connectivity / Networks

People / Processes

The Internet of Things connects billions of sensors and devices such as everyday consumer objects and industrial equipment onto networks.

Increasing amounts of data produced by those sensors and connected devices are hence acquired, logged and stored on networks.

Networked inputs are then combined into bidirectional systems for better decision making, increased efficiency, new services or environmental benefits.



Devices Connected to the Internet1 BILLION

Fixed internet in the 1990s

6 BILLION

Mobile internet in the 2000s

28 BILLION

“Things” connected to the internet by 2020

http://www.goldmansachs.com/our-thinking/pages/iot-infographic.html



AUGUST 2014

Creating a Programmable World

AUGUST 2012



9 Things You Should Know

1 IoT Is a Network of Networks2 IoT Is Huge3 IoT Is In Its Infancy4 IoT Will Create New Business Models5 IoT Will Make Us Paranoid (like most new technologies

do)

6 IoT Will Create Unexpected Partnerships7 IoT May Reignite (Some) Retail 8 IoT Will Require Organizational Readiness9 IoT Will Enable Many Winners



IoT Is a Network of Networks

#1

https://hbr.org/2014/11/how-smart-connected-products-are-transforming-competitionhttps://hbr.org/2014/11/how-smart-connected-products-are-transforming-competition

How Smart, Connected Products Are Transforming Competition



Network of NetworksT H E P H Y S I C A L G R A P H

Wearables Cars

HomesCities

IndustryTransport

ationOil and

GasHealthcar

eRetail



Network of NetworksT H E P H Y S I C A L G R A P H

KNOWLEDGE GRAPH

$450 BILLION

SOCIAL GRAPH

$260 BILLION

PHYSICAL GRAPHGoogle? Apple? Samsung? Amazon? Newcomer? $??? BILLION



IoT IS HUGE

IDC$3trillion

by 2020, with

30billion devices

Cisco$19trillion

by 2020, with

50billion devices

#2



WORLDWIDE GDP

$78 trillion

~10% of 2014 GDP

FactoriesCities

HumanRetail

OutsideWork sites

VehiclesHomesOffices

$1.2-3.7T

$.4-1.2T

$.9-1.7T$.2-1.6T

$.6-.9T

$.2-.9T

$.2-.7T

$.2-.3T

$.1-.2T

http://www.mckinsey.com/insights/business_technology/The_Internet_of_Things_The_value_of_digitizing_the_physical_world

IoT IS HUGE



IoT Is In Its

Infancy

#3







Q4 2012 Q4 2013 Q4 2014

26.5 26.8 26.7

Average number of apps used per user per month and average time spent using apps per month

23:02

30:1537:28

http://www.nielsen.com/us/en/insights/news/2015/so-many-apps-so-much-more-time-for-entertainment.html



#4

IoT Will CreateNEW BUSINESS MODELS



https://hbr.org/2015/10/how-smart-connected-products-are-transforming-companies

real-time

over-the-air updates

information convergence

recurring revenue

personalization and context

ecosystem partners





@pesmou 47

Retailers As Smart Home Platform Providers - Lowes





#5

IoT Will Make Us Paranoid

(at least for a while)










“Will consumers and employees leave it to business to set reasonable privacy policies or will they turn to the political and judicial processes to restrict the use of personal data?”

-- Lawrence Lessig




TodayBlanket terms of

use authorizing service providers

to remarket or redeploy user data

IoT Enabled WorldIndication and permissioning at every turn about how consumer data is used?

Nutritional-like labels that data-sharing policies? Energy Star-like seal of approval for privacy

(government) Good Housekeeping-like seal of approval for

privacy? (commercial) x



#6

IoT Will Create

Unex

pect

edPartnerships



Insurance Industry: From Rear View to Real Time



Channel Confusion & Conflict May Arise



Competitors as Partners



#7

IoT May Reignite

(some) Retail



IoT Will Catalyze More Investment in Experiential Retail



Role for Wireless Carriers?





VR Can Help Sell IoT Devices



Don’t Count Amazon Out



#8

IoT Will Require Organizational

Readiness



Impacts Will Be Cross-Functional



Critical Implications for Data Mgmt, Design and Support

Emerging Customer Support ModelsAgent Directed User Directed

Onboarding Omnipresent Support

Break/Fix Troubleshooting

Enablement

http://www.onesheep.org/wp-content/uploads/2014/06/designmatters.pnghttp://www.support.com



New Business Models, New Business Risks



#9

IoT Will Enable Many

Winners



© Matt Turck (@mattturck), David Rogg (@davidjrogg) & FirstMark Capital (@firstmarkcap)

The IoT Landscape

Applications (Verticals)

Platforms & Enablement

(Horizontals)

Building Blocks

https://twitter.com/mattturck

https://twitter.com/davidjrogg

https://twitter.com/firstmarkcap



“Bad news- The scale is threatening to cut off access to the fridge…”





Preparing for the IoT:

To-Gos

1 Establish Agile, Adaptable Culture

2 Invest in Talent to Lead, Through All the IoT Layers

3 Plan for Scope and Volume of Data

4 Prioritize Privacy

5 Think Beyond the Things

6 Consider Potential Competitive Threats from Non-traditional Players

7 Beat 'em, or Buy 'em

8 Brace for the Marketing Impacts of IoT

9 Remember Amara's Law: “We tend to overestimate the effect of a technology in the short run and underestimate the effect in the long run.”



THANK YOUMaria Thomas