“WHO WILL PAY FOR IoT AND WHY? " was a thought-provoking session. Here are the Lounge47 key takeaways: 1.IoT is a self-organizing system of Internet connected peripheral systems providing new and improved converged services 2.The value of the digitally charged thing in IoT comes from an extension of the local function with new digital services. Thing(s) + IT=Local function + measurements (historical, instantaneous) leading to new services and supercharged functions 3.The IoT hype is about the opportunity to monetize services from 50b connected devices by 2020 4.IoT devices can be classified by human desires - to know (omniscence), for human connection (telepathy), to protect & be protected (safekeeping), to be healthy & vital ( immortality), to move effortlessly (teleportation), to create, make and play (expression) 5.The IoT difference: Edgeware driving value, the “ecosystem of devices” paradigm and the possibilities for entrepreneurship 6.PC to Mobile industry to IoT is transitioning the traditional “top down” to a more collaborative approach 7.Value to the customer: a.high resolution real-time information b.M2M silos interconnected for greater visibility c.Interoperated and leveraged common infrastructure d.low cost solution solving specific consumer pain points e.improved traceability, resource utilization, health and safety 8.Value to developer: a.can handle multiple business models b.can handle multiple deployment models c.can create new products and services to diversify revenues d. Services in addition to devices can be created by developers 8. The actors in the IoT ecosystem – those that, discover new services, deliver supercharged services, create supercharged services, create Smart Things 9.Technical best practices: a.cost of data acquisition is not homogeneous b.diversity in sensors, devices and vendors is endemic c.business requirements can exceed technology reach d.device failures will happen, plan to handle them e. ensure that products are certified f.security is not an afterthought 10.Business best practices: a.device costs are a function of volumes, functionality and robustness b.there is a creepiness factor to IoT solutions c.new services require training d.market potential is hard to guesstimate e.Know your competition f.understand local regulations and tax regimes g.Process changes will be resisted h.Disgruntled customers seldom return 11. Different Business Models should be considered.
In summary, IoT offers significant opportunities, but the successful players will be those that emphasize and deliver value relative to existing services rather than just offer new functionality with undeterminable value.
Escorts Service Arekere ☎ 7737669865☎ Book Your One night Stand (Bangalore)
Who will pay for IoT and why? - Atanu Roy Chowdhury, Senior Product Manager at Altiux Innovations
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?
1
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
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
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
13
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
17
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
18
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
28
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
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.
40