Internet of Things is at the top of the Gartner Hype Cyle and scores of entrepreneurs are out building IoT products and solutions. A key question that requires discussion and clarity is – Who will pay for IoT and why? This talk demystifies the novelty of IoT and explains the roles played by various actors in the IoT ecosystem.

1. Atanu Roy Chowdhury
Senior Product Manager, Altiux Innovations Private Limited
atanu.roychowchury@altiux.com
atanurc@post.harvard.edu
January 10, 2015
Who Will Buy IoT Products
And Why?
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2. Practical Business Models for IOT
The IoT ecosystem
Demystifying IoT
2

3. The Internet of Things
What is the hype about?
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4. Gartner's 2014 Hype Cycle for Emerging Technologies
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5. 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?
5

6. ©The Connectivist , May 05, 2014
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7. The Hype
is about the opportunity to monetize
services from a very large number of
connected devices.
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8. The Internet of Things
What really is it?
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9. 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

10. Things in IoT NOT
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11. 11
OMNISCENCE
TELEPATHY
SAFEKEEPING
IMMORTALITY
TELEPORTATION
EXPRESSION

12. 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

13. The Internet of Things
What’s different about it?
Edgeware, Ecosystem and Entrepreneurship
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14. Device
Mgmt
Access
Mgmt
Compute
Mgmt
Protocol
Mgmt
Data Mgmt
Connectivity
Mgmt
Edgeware
Peripheral
Devices
Edge
Gateways
Field Area
Gateway
Enterprise
Gateways
Storage
Systems
Data
Processing
Systems
Applications Workflows
Operational Technologies Information Technologies
IoT Edgeware*
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15. Ecosystem
Wireless
photo
printing
Scan to mail Predictive
maintenance
Content
delivery
Remote
printing
Social
Integration
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16. Entrepreneurship
© Claro Partners16

17. 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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18. 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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19. The Internet of Things
Some Examples
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20. Thing
tracking
Home
surveillance
Connected
homes
Smart
wearables
Infotainment
Multimodal
interaction
Digital
assistants
Smart
lighting
Smart
parking
Smart
buildings
Smart cities
Smart
apparel
Energy
savings
Connected
cars
Connected
calendars
Connected
healthcare
Consumersareinterestedin…
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21. 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
optimization
Worker safety
Enterprisesareinterestedin…
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22. Practical Business Models for IOT
The IoT ecosystem
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23. Not all IoT products are Things
CE product Line card
Application
server
Design
Software
stacks
Solution
acceleration
Integrated
solution
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24. 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
CreatinganIOTproduct
Ideation
Ecosystem Establishment
Implementation
Go To Market
Sustenance
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25. 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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26. IoTcomponentvendors
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27. The Internet of Things
What are the pitfalls?
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28. 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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29. 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.
BusinessbestpracticesforIoTSolutions
29

30. Practical Business Models for IOT
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31. Delivering an IoT product
IoT
Product
Company
Consumer
System Integrator
Enterprise
Service Provider
Innovation
Partners
Support
Partners
Content
Providers
Implementation
Partners
B2C
B2B
B2B2B
B2B2B
B2C
B2B
B2B2C
31

32. The Internet of Business Models
Case Studies
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33. Grants
and Capex
Leased
Opex
Mixed
IP
transfers
Revenue
sharing
Simple Models
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34. Freemium Models
Source: http://2lemetry.com/pricing/
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Source: http://www.tataindicom.com/mobile-internet.aspx
Whitelabelling

35. Usage Based Models
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36. Activity Based Models
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Time Based Models
Presence Based Models Location Based Models

37. Interaction Based Models
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Outcome Based Models
Priority Based Models Ecosystem Based Models

38. 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

39. Application mashup models
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40. Summary
This 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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41. Thank You
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