The Internet of Things demands new thinking. Internet of Things impact will go beyond financial metrics to help solve grand challenges.
New thinking about IoT business model sustainability, profitability, authentic value creation and data policy is required.
Learn the 5 key questions that must be asked to get started on the path of driving value, profit and impact in Internet of Things markets.
2. The Internet of Things –
Digitizing Our Physical World
“The most disruptive technology to 2025.”
– McKinsey Global Institute
“A $14.4 trillion profit market for our joint customers over
the next decade."
– Cisco Systems
“IoT impact will go beyond financial metrics to help solve
grand challenges.”
-- INEX Advisors
4. Three Shapers of IoT Opportunities
Impact – Making Money and Meaning
Data Democratization – Deployers Rule, Not SPs
Social Business – Collaboration is the New
Requirement
Winners will excel at finding & managing tensions
5. Challenges
Lack of Authentic Value & Clear ROI
Fragmentation Implication for Scale
Business Models Beyond Freemium, Social, Mobile, IT
Privacy, and Data Deployment Standards of Conduct
Commercial issues outweigh technical
6. Challenges
Security – In Clouds and Fog
Standards Soup – Technologies and Policies
Accessible Display, Visualization and Analytics
Integration – with Decision Support Tools and Operations
Technology is largely there, but which ones?
7. Opportunities
Impact -- Make Money and Meaning, Drive Real Value
Recurring Revenue – Only Through Sustainable Value
Expanded Productivity - Driving Profit and Other Gains
Data Democratization -- Write the New, Better Rules on Data
Address Grand Challenges -- Based in the Physical World
Lessons abound, but, IoT is full of green fields
8. Why IT strategies fall short
Many dimensions. First among them, IT is framed almost entirely as a productivity tool
aimed at GAAP income statements, balance sheets and their impact on financial
investors, and little else. On the contrary, IoT speaks to a much broader canvas of
opportunities.
Why mobile strategies fall short
Many dimensions. Two above all others. (1) The handset market has ever-more uniform
requirements versus the IoT market with its massive fragmentation (2) Handsets are
attended devices optimized for humans to consume information versus IoT devices which
are first designed to create intelligence.
Why social strategies fall short
Many dimensions. Too numerous to list. (1) Freemium, where people trade time and give
away both financial and data treasure. (2) Social service providers serve one master
above all others: Marketing and advertising clients, NOT service users. (3) Social
strategies are focused on capturing people’s time, IoT is focused on freeing it.
IoT requires unique strategies
Reactions to status quo, demands of a new future
9. 5 Key Questions to Get Started
IoT markets demand new thinking about data, value
1. What physical assets, inventories, areas of operation are we talking about?
Start with important questions: What value does connectivity create or enable?
2. What data are we talking about?
Persistent reduction in the cost of sensors and communications open up new options for creating
more data. Our best thinking must differentiate what we should collect from what we can.
3. Who owns what data?
Most IoT business models will not be freemium, so the service creators will not be the presumptive
owners of the data. Deployers and paying subscribers increasingly demand ownership and control.
4. Which stakeholders have access rights to what data?
Most, but not all, IoT solutions will serve multiple stakeholders, for at least one ‘typical generation’.
Who ‘owns’ or controls, and is responsible for, what data?
5. What are access rights holders authorized to do with the data?
Complicating these markets further, access rights will not be uniform. It is likely that access rights
holders will have different rules for internal versus external data sharing and deployment.
10. Contact Us
INEX Advisors LLC
Chris Rezendes, President
cjr@inexadvisors.com
508-415-5022
Pam Sefrino, Principal
ps@inexadvisors.com
508-525-9700
www.inexadvisors.com