5 reasons why you need an internet of things strategy in 2015

1. 5 REASONS WHY YOU NEED
AN INTERNET OF THINGS
STRATEGY IN 2015
STARBUCKS
ONSTAR
NEST
////////////// FEBRUARY 2015 //// A CHAOTIC MOON STUDIOS PUBLICATION //////////////

2. CHAOS THEORY—FEBRUARY 20152
INTERNET OF THINGS STRATEGY
HE INTERNET OF THINGS promises to
bring exciting changes to the competitive
landscape as more and more companies
implement an IoT strategy in 2015. Your company
should be one of them.
IT’S KIND OF A BIG DEAL
We’ve heard for the last couple of years, espe-
cially at CES, about how revolutionary, disruptive,
and game-changing IoT will be - that turned out to
be right on the money, literally. Analysts have sized
the market in the trillions of dollars per year. Fortune
500 firms like GM, GE, IBM, Whirlpool, Cisco, John
Deere, and many more are making significant capital
and intellectual investments in IoT and sensor tech-
nology. By 2020, IDC estimates that over 40% of all
data in the world will be a result of machines talking
to each other. This has the attention of investors who
will want to know how you plan to capitalize on IoT.
THE BENEFITS CAN BE IMMEDIATE
Take a deep breath and try to put the idea of bil-
lions of connected devices talking to each other out
of your head. IoT is the natural confluence of the
Internet, chip technology (smaller, faster, cheaper),
more powerful software, and the wonderful world of
the cloud (data storage). Of course, businesses have
been using these puzzle pieces for quite a while. But
when you combine them, it’s a thousand-fold game
changer. But don’t freak out if you do not have any
IoT implementations just yet (and 42% of companies
do not), there are easy places to start and have a big
impact. A good place to start is to look at your oper-
ating expenses. Many IoT implementations increase
efficiency from existing assets, such as companies
using smart sensors on HVAC systems to reduce
energy costs based on zone occupant awareness, all
the way to using sensors on factory robots to predict
maintenance needs.
YOUR CUSTOMERS WILL EXPECT IT
As we said earlier, several big companies are
already all in, and soon the majority of consumers
will expect their products to have some sort of IoT
component. GM is installing OnStar in all its lines
in 2015, and other automakers are following suit
with their own WIFI enabled connected vehicles.
21% of consumers own a wearable device, and
the market is expected to grow by 130 million by
2018. Google just spent $3.2 billion for Nest, who
is selling an estimated 100k thermostats a month.
Starbucks receives 11% of its transactions through
its mobile app. Consumers are already stream-
ing vehicle data to their mechanic and using their
phones to pay for lattes and turn up the a/c before
they get home. They are primed for more positive
IoT experiences and will start asking questions like:
why can’t my fire detectors send me a text when
the batteries are getting low instead of beeping at
3 a.m.?
NO INDUSTRY IS IMMUNE TO IOT
Apart from the consumer space, with all its Fitbits
and and Nest devices, industrial manufacturing
is a predictable early adopter in the application of
IoT, followed closely by medical devices, utilities,
and auto manufacturing. And there will be sev-
eral more IoT implementations in a wide variety
of industries, as well as the birth of completely
new verticals as this rolling snowball quickly
becomes an avalanche. Retailers are becoming
“smarter” and want their suppliers to connect in
with their store and inventory data systems. Even
agriculture http://venturebeat.com/2014/12/07/
surprise-agriculture-is-doing-more-with-iot-innova-
tion-than-most-other-industries/ has been fertile
ground (pun intended) for IoT.
ACT NOW FOR PROFIT AND TO PROTECT YOUR
INFRASTRUCTURE
The Sony hack is the new reality. IoT brings with
it an increase in the velocity, volume, and variety of
data. This (big) data needs to be stored, secured,
IDC ESTIMATES THAT OVER
40% OF ALL DATA IN THE
WORLD WILL BE A RESULT
OF MACHINES TALKING TO
EACH OTHER.
21% OF
CONSUMERS
OWN A
WEARABLE
DEVICE, AND
THE MARKET IS
EXPECTED TO
GROW BY 130
MILLION BY 2018
STARBUCKS
RECEIVES
11%
OF ITS
TRANSACTIONS
THROUGH ITS
MOBILE APP.
T

3. CHAOS THEORY—FEBRUARY 2015 3
accessed, analyzed, and used in a way that best ben-
efits your company. Your IT department will need a
data storage strategy that is cost-effective and scal-
able. You will need to approach privacy and security
with new vigilance. An IoT hack could do much more
damage than a current breach because it gives access
to control systems and not just to view them.
Most companies implementing IoT do not have all
the capabilities needed internally. Of companies who
have implemented IoT, 60% turn to a partner for tech-
nical expertise. Companies pursuing IoT also need to
boost the skills of their employees. IoT data is big. You
are going to need to increase the number of analysts
you have, and the software they can tap into. Your
sales, marketing and product development groups
might need training as your products become more
services than “things.” Making these investments
today will help position your company to move quickly
in the IoT affected marketplace.
Chaos Theory is a Chaotic Moon Studios
publication. We are a creative technology
studio in Austin, TX obsessed with creating
innovative user-centered design and
developing intelligent custom software for
the world’s biggest and best brands. To
engage us about a potential project, send
an email to hello@chaoticmoon.com