The IOT hype has not translated into ground level projects, even though there is a large ecosystem trying to create new solutions. In this talk we look at where these initiatives falter and how they can be surpassed.
3. 3
âCan I connect a smartwatch to the Internet and deploy an app?â
âa banking client
âIoT is just M2M reincarnatedâ
âa manufacturing client
âIoT is a self organizing system of peripheral systems providing new and
improved converged servicesâ
âour architect
Diversity in IOT Definition
4. 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
Working definition of IOT
4
6. 6
The IOT Hype in Numbers
http://www.postscapes.com/internet-of-things-market-size/
Publisher Title Highlights
Markets & Markets Internet of Things Technology Market by Hardware,
Platform, Software Solutions, and Services, Application,
and Geography - Forecast to 2022
Expected to grow from USD 130.33 Billion in 2015 to USD 883.55 Billion by 2022, at a CAGR of 32.4% between 2016
and 2022
Cisco Cisco Visual Networking Index (VNI) Complete Forecast
for 2015 to 2020
- Over the next five years, global IP networks will support up to 10 billion new devices and connections, increasing from
16.3 billion in 2015 to 26.3 billion by 2020. There are projected to be 3.4 devices and connections per capita by 2020â
up from 2.2 per capita in 2015.
- Globally, M2M connections are calculated to grow nearly three-fold from 4.9 billion in 2015 to 12.2 billion by 2020,
representing nearly half (46 percent) of total connected devices.
Ericsson Ericsson Mobility Report - Between 2015 and 2021, IoT CAGR of 23 percent, making up close to 16 billion of the total forecast 28 billion
connected devices by 2021.
Gartner Gartner Symposium/ITxpo IoT Forecast - 6.4 billion connected things will be in use worldwide in 2016, up 30 percent from 2015, and will reach 20.8 billion by
2020.
- Gartner estimates that 4 billion connected things will be in use in the consumer sector in 2016, and will reach 13.5
billion in 2020
Business Insider The Internet of Things Report - There will be 34 billion devices connected to the internet by 2020, up from 10 billion in 2015. (IoT devices will
account for 24 billion, while traditional computing devices (e.g. smartphones, tablets, smartwatches, etc.) will comprise
10 billion.)
- Nearly $6 trillion will be spent on IoT solutions over the next five years.
Mckinsey Unlocking the potential of the Internet of Things - The IoT has a total potential economic impact of $3.9 trillion to $11.1 trillion a year by 2025
IDC Worldwide Internet of Things Forecast, 2015â2020 - Market to Grow 19% in 2015
- Spend will grow from $591.7B in 2014 to $1.3 trillion in 2019 with a compound annual growth rate of 17%.
- The installed base of IoT endpoints will grow from 9.7 billion in 2014 to more than 25.6 billion in 2019, hitting 30
billion in 2020
Machina Research Global IoT Opportunity - Value of that wider IoT at USD900 billion in 2014, rising to USD4.3 trillion in 2024
- The total number of IoT connections will grow from 6 billion in 2015 to 27 billion in 2025, a CAGR of 16%.
Mckinsey The Internet of Things: Sizing up the opportunity - The Internet of Things on the global economy might be as high as $6.2 trillion by 2025
Goldman Sachs IoT Primer - Making sense of the next mega-trend - The IoT has the potential to connect 10X as many (28 billion) âthingsâ to the Internet by 2020
EMC / IDC Digital Universe - 20 billion connected things in 2013, and there will be 32 billion by 2020
IOT market forecasters are talking about tens of
Trillions of dollars
7. Gartner's 2015 Hype Cycle for Emerging Technologies
7http://www.gartner.com/newsroom/id/3114217
*The 2016 hype curve drops âIOTâ in favor of components âIOT platformsâ as a rising innovation trigger. This is interesting
because the landscape has matured and the components are individually more useful.
10. 10
Sensor MCU PAN radio MPU PAN radio WAN radio
( Network
Infrastructure )
Backend Consuming devices
Constrained Network (Un) Constrained
Network
Unconstrained
Network
Unconstrained
Network
Developing The Technology Prototype
11. 11
End to end IP communication
Constrained Network (Un) Constrained
Network
Unconstrained
Network
Unconstrained
Network
Commercializing The Prototype
Alliance protocols Bridge management Network management Multi tenancy Single Sign On
Application protocols Multi radio convergence Telco integration Data isolation Dynamic and Responsive UI
Data exchange protocols Security protocol support Connection management Cloud management User management
Firmware management Access management Packet routing Infrastructure scalability Billing and charging
Routing management Edge analytics SMS integration Device management Support mechanisms
Duty cycle management Multi protocol convergence Network function integration Firmware management Ordering and reservations
Power management Multi cloud connectivity Registration management Rule engines Multi device/OS testing
Control plane management Topology management Identity management Real time algorithms Role definitions and Views
RTOS integration Proxy functionalities Service management Location tracking Actuations
Memory management Diagnostic support Location management Workflow integration Email integration
More actors ⊠more components ⊠more complexity
12. Getting the hardware right
Understanding the solution requirements
Handling change management
Building a delivery team with skillset diversity
Sticking to the monetization path
12
5 Keys to Crossing the POC Chasm
13. Account for timelines to evolve the hardware
Understand the roadmap of key chips used in the hardware
Leverage SDKs provided by silicon vendors to accelerate development
Over-engineering will lead to BOM and time overruns
Consider certification and regulatory compliance
13
Getting the hardware right
14. Understand the users and hidden actors in the system
Plan for simplifying field testing and deployments
Simplifying integrations by investing in an abstraction framework
Invest in a scalability framework upfront
Security is not an afterthought
14
Understanding the solution requirements
15. Plan for convergence between alliances and technologies
Hear the voices from the field and the challenges they face
Product selling and service selling require different organizational setup
Backward compatibility and legacy system support is essential for
brownfield deployments
Expect frequent workflow changes as product matures
15
Handling change management
16. Connected solutions have multiple technology touchpoints requiring
specific development skills
Specific skillsets also required for field engineering and support teams
Leverage specific specialist skillsets from your ecosystem â core
product feature development may have to be outsourced
Domain experience plays a key role in solution development
16
Building a delivery team with skillset diversity
17. Understand the value that the solution is providing to the customers
and their spending capacity for that value
Value can be realized through the products, experiences or ecosystem
Take a leadership role if you are creating a market
Understand the critical mass of your solution and be patient
Anticipate changes to both customer base and ARPU post launch
17
Sticking to the monetization path
18. âą IOT is part of an evolutionary continuum
âą IOT is NOT a silver bullet for all solutions, but very important to
understand the purpose of the solution
âą Challenges to developing mature IOT solutions are not
unsurmountable, but has to be thought through beforehand
18
In Summary
Trillion sin value unlocked, billions in revenues , 33%CAGR, billions of devices ⊠is it real ?
IOT at peak of inflated expectations
Where are the 100 mill projects? 10 M ?
We need to get to the plateau of productivity asap .. But even with the intent, why are we lagging behind ?
Attribute to Mediatek
In out looking glass approach, we flip this situation around a bit and look at IOT not from the perspective of how to create an IOT product, but rather âhow can we address the business problem â âdo we need a connected solution?â âwhat is the best way to go about building that?â âwhat help can I get from what is out there â ⊠essentially starting out with by defining the purpose of the solution .. the reason for its existence.
The reason for existence is either inwards facing or outward facing .. ie for improving internal processes or for creating a product .. one affects the bottomline and the other affects the topline. Inward facing solution are actively administered and controlled .. whereas outwards facing solutions bring about a BYOD kind of complexity. This complexity has to be managed and therefore IOT product managers cannot afford to be caught unware when their products hit the market.
Connected light bulb example
API fications
IOT as the internet of business models
Reduction in entry barrier = more competitors
IOT product development is really like an iceberg. There is always a lot more than what meets the eye. The very fact that it is a connected product implies that there are many more actors in the system which in turn makes the system much more complex. More things have to be kept track of than ever before⊠plethora of roles and responsibilities, user interactions, service consumption, device data, device metadata, control planes, network conditions, administrative overrides