“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.