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Ecosystems of Networks and Devices as the Next Competitive Advantage


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My Dreamforce 2014 presentation on the strategic use of Internet of Things to drive competitive advantage. Enterprises that build their ecosystems and network effects now have a chance to build long-term relationships with their customers through highly connected new products and services. Here's how and why to get there.

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Ecosystems of Networks and Devices as the Next Competitive Advantage

  1. 1. IoCP: Ecosystems of networks and devices as the next competitive advantage Dion Hinchcliffe Chief Strategy Officer | Adjuvi @dhinchcliffe
  2. 2. Dion Hinchcliffe Chief Strategy Officer @dhinchcliffe
  3. 3. Vision: Everything that can be connected will be connected What will do you with this power? @dhinchcliffe
  4. 4. Competitive advantage today is about being connected • The Internet of Things – Every non-trivial (and many trivial) object is going to be @dhinchcliffe connected to our networks – 50 billion objects by 2020 – All your customers – All their devices – Value moves from periodic engagement to constant engagement – Required deriving insight and analytics • The Internet of Customers – Connected relationships in scale – Through all devices and channels – Enabled by platforms and applications • That orchestrate, analyze, and provide insight
  5. 5. @dhinchcliffe Internet of Connected Products (IoCP) = IoT: Connecting all devices and all channels Channels Devices
  6. 6. Internet of Customers: When IoT passes through customer touchpoints @dhinchcliffe Customer Touchpoints IoT Cloud and Providers
  7. 7. The first major clues about the strategic value of IoT data @dhinchcliffe
  8. 8. @dhinchcliffe The hype has never been higher So where is the strategic value?
  9. 9. @dhinchcliffe Motivation for IoT and IoC • Your organization is connected to all 1.5B people in the developed world 24 hours a day through their devices and digital touchpoints - What will you do with this historic opportunity? - While there is still first mover advantage • They generate visible data continuously - On social media - From their mobile devices - From applications - From everything connected • This will enable you to make unprecedented insights in real-time. • To drive high impact results
  10. 10. Identifying the Strategic Value in IoC
  11. 11. @dhinchcliffe The major types of IoT
  12. 12. Network effects still the strategy, but IoT revolutionizes the game • Network effects have long become the new ‘digital marketshare’ • Definition: Anything that has value the more than other people have it too • Value is based on an exponential growth curve • Is a force multiplier @dhinchcliffe – But more importantly a zero sum game • The Internet of Things is going to shift the networked value conversation two orders of magnitudes to the right
  13. 13. The network engagement is where the strategic value lies @dhinchcliffe
  14. 14. As a result, systems of record have grown less important • Because of network effects, systems of engagement have becomes the focus @dhinchcliffe
  15. 15. Internet of Things will run our cities, businesses, and homes @dhinchcliffe
  16. 16. @dhinchcliffe The Enterprise View of the Internet of Things
  17. 17. @dhinchcliffe Representative Internet of Things Examples • 12 key examples of Internet of Things – in the consumer and business world • Many of which you’ve probably not heard – Well beyond Nest, Fitbit, Dropcam, Belkin Wemo, Withings scale • And which will project an all new volume of data – The device proliferation will require handling dynamic data types
  18. 18. @dhinchcliffe Delphi Connect • A connected way of keeping in touch with your car, allowing remote control of automobile features and the ability to perform diagnostics
  19. 19. @dhinchcliffe Mother • Sense Mother is at the head of a family of small connected sensors that blend into your daily life to make it serene, healthy and pleasurable
  20. 20. @dhinchcliffe Trakdot • A connected device to continuously keep track of your luggage anywhere in the world • Uses networks of opportunity in 180+ countries
  21. 21. @dhinchcliffe Skybell • SkyBell is a smart WiFi doorbell with video camera, speaker, microphone and motion sensor. See, Hear and Speak with your visitor from iOS and Android
  22. 22. @dhinchcliffe Smart Ice Cubes • Digital ice cubes which pulse to the beat of the music • But also monitor your drinking – How much – How fast
  23. 23. @dhinchcliffe Bikn (beacon) • Tiny electronic tags you can attach to any of your devices and then locate them through your phone’s GPS
  24. 24. @dhinchcliffe Smart Diapers • Disposable digital diapers with built-in sensors that parents can use to track • And pediatricians can use to track baby health.
  25. 25. @dhinchcliffe Telcare’s Smart Diabetes Monitor Source: Vala Afshar
  26. 26. @dhinchcliffe Quirky’s Smart Propane Tank Source: Vala Afshar
  27. 27. @dhinchcliffe Lono’s Smart Sprinkler Control System Source: Vala Afshar
  28. 28. BigBelly’s Smart Garbage Container and Management System @dhinchcliffe Source: Vala Afshar
  29. 29. @dhinchcliffe Smart Dust • A new formal standard for micro and nano-scale IoT objects • Contains sensors (temperature, humidity, location, video, audio, etc.) • Can transmit low power streams of data • Can be used to instrument just about anything • Nano-pollution will be an issue • Will generate trillions of continuous data streams
  30. 30. @dhinchcliffe How to turn the IoT and IoC into business Source: Flexera
  31. 31. @dhinchcliffe The IoT and IoC business case
  32. 32. Why IoT is different than previous connected strategies • Recent ubiquity • Standardization has matured • Protocols and hubs that can support the numbers of devices • Far richer sensor data • Much lower cost floors • Small and lower power devices • Advent of wearables and embeddables @dhinchcliffe – Smart everything
  33. 33. @dhinchcliffe How to capture the strategic value with IoT
  34. 34. Data capture, volume, management, and analysis: The challenge for operationalizing IoT/IoC @dhinchcliffe
  35. 35. The growth of big data from IoT will near dominance in 2015 ...and it hasn’t even started yet @dhinchcliffe
  36. 36. The Virtuous Road to Business Value with IoT and IoC @dhinchcliffe Instrument Your Customer’s Networks Help Them Collect Their Data Gain Insight & Influence
  37. 37. An IoT and IoC High Impact Case Example T-Mobile wanted to get out ahead of customer defections to other carriers. They needed an accurate and scalable source of information. They The Story: looked to social media. The Results: The firm integrated big data across their IT systems, using near real-time the analysis of 33M customer data records, web logs, billing data and social media information. The result: The company was able to cut customer defections in half in a single quarter. @dhinchcliffe 37 Source: Financial Times Cut customer defections in half in 90 days.
  38. 38. Why it’s better to be the IoT intermediary for your customer... A Critical Strategy for Differentiation ...their data is much better when it’s with other people’s data @dhinchcliffe
  39. 39. The advantages of a shared customer view of IoT • Comparison, baselining, benchmarking • Scenario capture, lifecycle modeling • By looking at shared views, norms are established, and variances can be captured: – To replicate (when better techniques are @dhinchcliffe used by customer) – To remediate (when optimizations and improvements are needed • The Bottom Line: Continuous customer relationships are enabling by orchestrating the IoT through IoC “hubs”
  40. 40. Where does this fit into IT or digital product strategy? @dhinchcliffe
  41. 41. What should companies do to leverage IoC and IoT • Offered connected products and services • Integrate data, customers, and engagement into your services • Proactively leverage information convergence from IOT – Provide customers deep, real-time @dhinchcliffe insight based on total knowledge of all customers – Deliver concrete solutions that provide value (accelerate processes, cut costs, drive efficiency) – Make it easy as Google
  42. 42. @dhinchcliffe What will leadership in IoT and IoC require? • Big data skills – “Brontobyte”-scale data volume capabilities – Data science (and scientists) – Cross-disciplinary vertical subject matter expertise (SMEs) • User experience • End-to-end integration capabilities • Scale, Security, and Privacy • DevOps • For Startups – Cohesive, multi-disciplinary teams • For Enterprises – An Internet of Things (IoT) Center of Excellence An IoT Center of Excellence • Best Practices • Shared Tools • Governance • Education • Best Practices • Shared Tools • Governance • Education
  43. 43. @dhinchcliffe How to become an IoT and IoC leader – Find white space in the marketplace – Differentiate your offering (new type of IoT, new classes of data from collection and analytics) – Establish a strong network effect now (zero sum game) – Use and integrate existing networks of IoT and IOC whenever possible (through APIs etc.) – Use your global insight into customers to create value • New value-add features and services • Unique offerings that integrate insights across multiple IoT networks – Aim at becoming indispensable, not a convenience
  44. 44. For slides e-mail
  45. 45. More of the story is in Social Business by Design @dhinchcliffe • The definitive management strategy guide and handbook on social business, big data, digital, and mobile strategy. • Based on real-world experience from nearly 100 high-impact examples. • The most complete and actionable statement on social business and why it’s strategically vital. • Available on Amazon, Kindle, Audio Book, Google Books, and Apple iBook. • Reached #1 on Amazon’s Hot New Releases