Brands as Services: How the IoT Is Creating New Ecosystems

Smart Devices, Smarter Brands:
How the IoT Is Creating New Ecosystems
May 22, 2014

© 2013 IPG Media Lab. Proprietary & Confidential
Why all of this attention on the IoT?
Data makes devices—and brands—smarter. Although it’s just in its beginning stages, the Internet of Things (IoT) is already
creating a wealth of data from every aspect of consumers’ lives.
2

It’s worth a lot of money
• Cisco has estimated that the IoT will be worth
$19 trillion by 2020, and consist of over 50
billion connected devices.
• 96% of companies plan to use the IoT in the next
three years, and 68% of companies are
budgeting for the IoT
3
“Cisco CEO:We’re all in on the Internet of Everything,” Information Week

http://www.theverge.com/2014/1/13/5305282/google-purchases-nest-for-3-2-billion

http://www.psfk.com/2014/03/internet-of-things-infographic.html#!FMNpK

It’s moving really fast
We have seen in the past 18 months:
• Automobiles become mobile devices
• Watched home appliances tweet and text owners
• Cameras broadcast from homes to the cloud
• Fitness become a data stream from socks,
wristbands and shoes
4

It is causing new ecosystems to be created
As more devices come online, they create data that developers and marketers can use to deliver value
to both companies and users. Three industries in particular are leading the way:
5
Sources: http://www.wired.com/2012/08/umtri-michigan-connected-car/vehicleswithcircleshighway-660/

http://siliconangle.com/blog/2014/01/21/the-connected-home-is-streets-ahead-of-wearable-tech/connected-home-kitchen/

http://www.isaac-katz.com/blogs/news/8333671-3d-printing-and-the-future-of-retail

!
Cars Home Retail

What we really think about IoT at the lab
• Focused view on IOT is, human behavior evolving around
tools and utilities. Audiences are moving based on where
content can be accessed and controlled around these
behaviors.
• It matters to brands, because most of them are tools and
utilities
• It manifests itself best with brands as services
!
6

Where we can partner with you
User experience around behaviors
!
Functional development of experiences with utility
!
Solving business problems with technology
7

Things we all must to do to succeed
Identify existing data streams
!
Find the right pieces to add
!
Innovate on top of existing platforms
!
!
8

Identify Existing Data Streams

1. Identify existing data streams
Now that two-thirds of Americans have smartphones, the everyday tech user is already creating data streams (even
though they may not be aware of it).
!
Let early adopters and brand evangelists lead you: they’re already creating work-arounds and hacks to make their data
more accessible and useful.
!
For your consideration:
• How and where are people already creating data?
• Should users have direct access to data, or should it be a closed system?
• What services could you partner with to make data more user-friendly?
10

Data provides location-based
insights and opportunities
!
Inexpensive after-market devices can easily plug into cars
and retrieve data on usage and location, which has the
potential to disrupt:
• Insurance
• Repairs and Service
• Radio and Advertising
11

Retail offers unprecedented targeting
12

Wearables tracking fitness, social, and content engagement
allows marketers access to even more data
Become part of this ecosystem and have a built-in method to gather data on audience. Or have them interact with
Beacons and NFC technology
13

Leveraging data correctly helps us put it all together to be
useful
14

2. Find the right pieces to add
To consumers, the IoT sounds very futuristic—and expensive. It’s especially challenging to create a new ecosystem
when elements like cars and homes are major purchases that are only purchased every seven (or more) years on average.
!
As a result, it’s important to identify inexpensive hacks that people can add on after-market, minimizing expense and
level of commitment. Arduino and Raspberry Pi, for instance, are inexpensive tools that can be adapted to a variety of
uses, while Philips Hue lights are stand-alone pieces that don’t require rewiring a home.
!
The right pieces might not even be devices—IFTTT allows people to create “recipes” of triggers and actions based on
services and devices they already have.
!
• What elements can you develop that stand alone or are inexpensive to install?
• What do your users believe is an acceptable price range for entry into the IoT?
• How can you plan to integrate older devices into the ecosystem as technology improves?
16

Selling extends into
the living room
17

(No, really, laziness has won)
18

Notification and value are key to success
19

Just make it easy to connect the dots
20

Innovate on top of existing platforms

3. Innovate on top of existing platforms
Look for underutilized digital assets—whether a technical capability or a mobile app—that provide
the perfect opportunity to tinker. Launch small-scale experiments and invite users to participate. It
may not create the next million-dollar idea, but it will provide feedback on what it technologically
possible and what users want, positioning you for the IoT boom.
!
For example: LINUX-based systems for consumer facing applications is now booming again.
!
• What forgotten apps or projects can you quickly and cheaply bring back to life or enhance?
• Who are the key players, both inside and outside of your organization, who can drive the projects
forward?
• What questions do you want to answer?
22

New partnerships are driving
the car ecosystem
Car manufacturers, telecom companies, and tech
companies are partnering to create user-friendly
interfaces within the car itself:
• Google announced the Open Automotive Alliance
with Audi, GM, and Honda to launch Android-
based infotainment systems.
• GM and AT&T are building 4G LTE into Chevy
vehicles, turning cars into mobile devices.
• Apple’s CarPlay brings iOS and Siri into the car
itself
!
23

Cars connect to the rest of the ecosystem
!
24

The home becomes a platform…
25

…that everyone can contribute to
!
26

Why it is important for us to work together
to create value for users

If we can’t find ways to work together on this, we get very useful
chaos. Just like on South Park
28

Examples of chaos to explore on your own
Jawbone
!
• + dogs
• http://gigaom.com/2014/05/06/jawbone-integrates-whistles-canine-activity-data-into-the-up-app/
• + cars
• http://www.wired.com/2014/05/to-show-their-worth-fitness-trackers-must-go-way-beyond-10000-steps/
!
Philips/DESSO
!
• Light transmissive carpets
• https://www.youtube.com/watch?v=fm6N9uvEyZs
29

So once again how can we build the future of the IoT together?
!
1. Identify existing data streams
2. Find the right pieces to add
3. Innovate on top of existing platforms
30

Thanks!
!
If you have questions or want to talk more about helping us
build the future of media, please contact us:
!
!
The Lab:
ipglab.com
info@ipglab.com
212.883.4751
@ipglab
31
Mel Wilson (me):
Head of Strategy
melvin@ipglab.com
347.624.1387
@c3mlw

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