IoT is not new, the concept of devices connected to the internet and exchanging data is been around for quite some while. Right now, there are 8.3 billion smart devices in the world. Five years from now, that number will have surged with 10% a year to 18.5 billion.
The term "The Internet of Things" was coined by Kevin Ashton in a presentation to Proctor & Gamble in 1999. Ashton is a co-founder of MIT's Auto-ID Lab. ATMs went online back in 1974, and are considered to be one of the first IoT devices. https://www.covisint.com/blog/the-evolution-of-iot/
The market is getting outside the early adopters phase/maturing rapidly, you see that with the raise of start-ups / companies entering IoT, number of IoT platforms, number of news items, etc.
Global IoT Market: $151B market in 2018, forecasted to grow to $1,567B by 2025 The global industrial IoT market will reach $922 billion by 2025 IoT startup funding reached $16.7B in Q4, 2018
Bron - https://iot-analytics.com/iot-investments-m-and-a-market-update-2018/
IoT shows the most value for companies in two areas: more operational efficiency and create new business models. Operational efficiency: get live data from your machines, analyse when repair needs to take place (predictive maintenance), optimize the production process better (track & trace, efficiency through better energy management), therefor lower the costs and stay ahead of the competition New business models: based on the (live) insights of the usage companies can offer completely new services to their clients; offer pay per use models, offer completely new services with multiple suppliers, more connection with their client based on data, etc.
IoT is dus al overal – zelfs op plekken waar je het niet verwacht.
Ron’s eigen voorbeeld: Combines – rijdende machines, sensors – met value added services omheen, john deer, caterpillar, rijden autonoom,
IoT can enable access/user vs ownership economy Ownership is becoming less important. Consumers want to pay for the usage, instead of owning or being lured into long term contract. They want to keep control and overview (financially). Examples are: Swapfiets, Peerby, Greenwheels, Ioniq/BMW initiatives, Bundles, Dott. You can even lease a pet today. ;-)
Het is een mooie volgende stap, er is veel behoefte aan meer meten Business modellen zijn nog niet zo advanced, gaan naar maandabonnementen. Dat is niet zo ingewikkeld. Tot die tijd sub-optimale subscription model – time based. Schiet ik niet veel mee op. Ownen vs sharen, ja. Maar sharen nog niet. Too much hassle. Sharing vs convencience
Biggest challenges in IoT 1. Technology still sucks – specifically the technical implementation challenge. Het totaal wijzigen van logistieke keten is een grotere uitdaging! (van handover naar service economy) 2. Security / Privacy aspects – de bekende voorbeelden (Target, Miele, Casino) 3. Lack of (international) regulation – Cybersecurity Raad rapporten 4. Monetization - companies struggle with: how do I earn money with IoT? Need for investment / do I build myself? Has to link with the strategy of the company (from product strategy to service strategy)
Monetization of IoTfrom product sales to service model
There are numerous business cases out there of potential paid services Based on the (live) insights of the usage of their products, companies can offer completely new services to their clients; offer pay per use models offer completely new services with multiple suppliers, get into more connection with their client based on data, create their own IoT ecosystems, etc.
Product model - Philips maakt product, verkoopt via retailer Expert. Als product stuk is dan naar Expert. Maintenance model – Miele regelt de service monteur Service model – preventief onderhouden, metering enzo. Is een heel ander business model!
IoT makes our lives get more convenient. What if your car pays for the toll automatically, you don’t need to stick out your arm through the window. Convenience! Or your dishwasher orders automatically refill. Convenience! For this convenience, people are willing to pay. Ownen vs sharen, ja. Maar sharen nog niet. Too much hassle. Sharing vs convenience
What does it mean to implement a pay-per-use business for a company? In general, we see that companies that want to change their distribution model, found a lot of challenges. Dealing with operations, maintenance, subscription management, billing, etc
Main pain points: Smart devices not smart yet – technology sucks Data – how to store it? How to get access to client data? Integration – how to integrate in current (legacy) systems? How to integrate with 3d parties? Working together – service providers en makers koppelen aan users Pay per use billing – how does this payment world work? How to deal with micro payments? Companies thinking of requesting a PSD2 license as the best solution
This is where FINN comes in FINN is a start-up initiative of ING. Born in the Innovation Bootcamp in 2017 and grew in the Accelerator Program at ING Labs, both part of the Innovation Journey/Strategy of ING (h3). The FINN team: currently 10 people in the team, doing commercial pilots, showcasing the business model, showing growth potential
It’s all about the people
What is FINN? With FINN’s software, smart devices are able to make payments on the customer’s behalf. Enabling effortless pay per use business models.
Solving: FINN enables micro-transactions and pay per use business models FINN solves the challenges of managing event triggers, connecting to 3rd parties (makers, suppliers, users) FINN is built with the bank security protocols FINN facilitates the shift to “Product as a Service”
FINN´s goal is to become the standard in IoT payments – helping companies to innovate and to take that big step into IoT.
FINN is built with the bank security protocols and all the knowledge of building the banking app Bank/PSP agnostic – can be used with any bank. No need to bank at ING Payments are done via Payvision, a 75% owned PSP Open source SDK, in several programming languages Ongoing product development / new features are requested by the community
FINN 1.0 consists of: FINN platform for device management and to configure events and triggers (open source) FINN Code for in IoT device (SDK) FINN App (iOS & Android) for user mandate management FINN Core (Cloud)
LIVE DEMO door Pim– ongeveer 7 minuten
Graafmachine op tafel/standaard Tweede scherm live stream portal
Pim will use the live demo to explain the whole model and position makers, suppliers and buyers + to explain what makes FINN unique
Ron legt uit hij zo enthousiast is: Super trots zoiets moois binnen ING kan groeien, ruimte geven Laaiend enthousiast - iedere case kun je opbouwen, FINN kent unlimited upside! Laat je overtuigen met het team @ netwerkborrel
Banking of Things: Monetization & IoT
Banking of Things: Monetization &
Ron van Kemenade, CIO ING & Pim Stolk, Tech Lead FINN
22 mei 2019
The number of connected devices which are part of the
Internet of Things will grow to 18.5 billion the coming years
Internet has always been about connecting people and machines
IoT is now past the hype
$ 151 B $ 16.7 B
IoT start-up funding Q4 2018Global IoT Market 2018
$ 1,576 B
Global IoT Market 2025
IoT shows most value for companies by increasing
operational efficiency and enhancing new business models
• Analyse data
• Predictive maintenance
• Optimize production process
New business models:
• Complete new services
IoT supports business cases based on usage and
convenience over ownership
model for bikes
From cars to
machines as a
Monetization of IoT
From product sales to service model
This is where
FINN – Banking of Things
• FINN is a start-up initiative of ING
• Innovation Bootcamp winner 2017
• Innovation accelerator at ING Labs
• The team consists of 10 professionals
• FINN 1.0 was launched to Europe in Dec ´18
The value proposition of FINN
FINN enables smart devices to make
payments on the customer's behalf
• FINN enables micro-transactions and pay per
use business models
• FINN solves the challenges of managing event
triggers, connecting to 3rd parties (makers,
• FINN is built with the bank security protocols
• FINN facilitates the shift to “Product as a
What does FINN offer?
IoT Device SDKs
Apps & App SDKs
Android ThingsFINN Admin
iOS SDK SlicePay
How doesFINN work?