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Things, and the internet.

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A presentation exploring the Internet of Things, and the commercial opportunities and implications.

Published in: Marketing
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Things, and the internet.

  1. 1. Things, & the internet. Simon Nash
  2. 2. Royal Mail. Service Naming.Simon Nash, Hugo & Cat - Things, and the internet. A keen futurist with a passion for emerging technologies and digital customer experience. snash@hugoandcat.com Twitter: @simonnash uk.linkedin.com/in/simonnash Introduction
  3. 3. I use a connected thing every day Withings Scales, my weight, health tracking, and todays weather. Simon Nash, Hugo & Cat - Things, and the internet.
  4. 4. I’m not alone. Simon Nash, Hugo & Cat - Things, and the internet.
  5. 5. Rapid growth in connected home products and services Simon Nash, Hugo & Cat - Things, and the internet.
  6. 6. Royal Mail. Service Naming.Simon Nash, Hugo & Cat - Things, and the internet. Several clients already active E.ON Smart Hub Sony LifeSpace UX
  7. 7. Analysts predict a massive market for ‘connected things’ in 2016 Simon Nash, Hugo & Cat - Things, and the internet. Category 2014 2015 2016 2020 Consumer 2,277 3,023 4,024 13,509 Business: Cross-Industry 632 815 1,092 4,408 Business: Vertical-Specific 898 1,065 1,276 2,880 Grand Total 3,807 4,902 6,392 20,797 Table 1: Internet of Things Units Installed Base by Category (Millions of Units) Source: Gartner (November 2015)
  8. 8. Simon Nash, Hugo & Cat - Things, and the internet. How does it make us feel? It makes us feel clever. For me, that’s the best word. It’s not nerdy, it’s not technical. It makes you feel, you know, ‘God, that was clever!’ [...] It’s a sense of being empowered, that sort of slightly self-satisfied sense, that, ‘Well, that was efficient.’ Andrew Brem – Chief Digital Officer, AVIVA
  9. 9. Reduce friction of (getting something) Control & Monitor (environment & activity) Automation Personalisation IoT 1.0 Simon Nash, Hugo & Cat - Things, and the internet.
  10. 10. Royal Mail. Service Naming.Simon Nash, Hugo & Cat - Things, and the internet. Not just about consumer products The sexy thing from my perspective is the data science side of it. I love the idea of a Minority Report style engineer turning up just long enough to say Hello before your boiler fails. Jim Anning, data & analytics, British Gas
  11. 11. Royal Mail. Service Naming.Simon Nash, Hugo & Cat - Things, and the internet. Huge potential for organisations Channel shift isn’t necessarily about moving enquiries from one platform to another. With IoT we can change the narrative, developing the capability to intervene and respond automatically.
  12. 12. I’m not alone. Still more potential for industry, where IoT is building on the foundations of SCADA technologies that have been established since the 1970s. (Supervisory Control And Data Acquisition)
  13. 13. A smart New York lawyer once said Everything is a thing, and we are just connecting the internet to everything. Simon Nash, Hugo & Cat - Things, and the internet.
  14. 14. IoT is a convergence of existing technologies & trends... ● DIY sensors & connectivity ● Wi-fi and mesh networks ● Wearable technologies ● Virtual / augmented reality ● Artificial intelligence ● Speech and gesture recognition ● Conversational interfaces ● Data science and analytics ● Personalisation & automation ● Remote monitoring Simon Nash, Hugo & Cat - Things, and the internet.
  15. 15. And it could be described as evolution Still fundamentally a distribution / delivery innovator, taking rapid advantage of new technologies. Simon Nash, Hugo & Cat - Things, and the internet.
  16. 16. It’s very hard to imagine how things will play out, just as it was in the early days of the Internet. Who might have predicted the rise of Uber and Airbnb… What will the next big disruptive business look like? But we’ve barely scratched the surface Simon Nash, Hugo & Cat - Things, and the internet.
  17. 17. Connected Cars offer an indication of things to come
  18. 18. Machine to Machine Comms Features and Capabilities Content and services Data and monitoring Simon Nash, Hugo & Cat - Things, and the internet.
  19. 19. To fully appreciate the potential of IoT we need to avoid getting stuck on the idea that an individual interacts with an object. With IoT, all the world’s a stage. Imagine scenarios where multiple actors, and multiple objects are in play. Where the environment, and everything within it, are potential participants and contributors. Simon Nash, Hugo & Cat - Things, and the internet.
  20. 20. In these new scenarios, brands and technology will not be centre stage Simon Nash, Hugo & Cat - Things, and the internet. Technology and advertising play an increasingly intrusive role in our daily lives. The big promise of the internet of things is that it will enable a more human experience. Complex technologies interacting behind the scenes to simplify and declutter our lives.
  21. 21. BUT Battles for supremacy threaten progress Simon Nash, Hugo & Cat - Things, and the internet. Many players aim to achieve dominant positions in the new IoT ecosystem, creating unhelpful complexity.
  22. 22. Authentication & trust are the key Authentication technology and the need to manage trust efficiently. Increasing expectations of simplicity and automation. Less desire for human intervention. Connected things working behind the scenes using distributed networks. Simon Nash, Hugo & Cat - Things, and the internet.
  23. 23. ‘Open’ approaches should be a priority Common schemas could allow proprietary technologies to talk to each other without convergence on a central O/S or protocol. By classifying common actions and objects, proprietary software should be able to communicate at a basic level. Simon Nash, Hugo & Cat - Things, and the internet.
  24. 24. ‘Open’ approaches should be a priority Blockchain could well solve the authentication riddle and provide a means of establishing trust in distributed networks. So called self-executing smart contracts will enable processes and transactions to take place automatically in the background. Simon Nash, Hugo & Cat - Things, and the internet.
  25. 25. What does all this mean on a commercial level?
  26. 26. The progression of economic value “With transformations, the customer is the product! The individual buyer of the transformation essentially says, ‘Change me’.” Pine & Gilmore ‘The Experience Economy’ HBR 1999 Simon Nash, Hugo & Cat - Things, and the internet.
  27. 27. Welcome to the “outcome economy” — where companies create value not just by selling products and services, but by delivering solutions that directly produce quantifiable results.” Paul Daugherty, WSJ.com Simon Nash, Hugo & Cat - Things, and the internet.
  28. 28. Time for a shift in mindset Simon Nash, Hugo & Cat - Things, and the internet.
  29. 29. Closer to customers than ever Predicting needs and customising services delivers to new meaning to personalisation. Industries like Insurance will be able to redefine their products and the ways in which they are bought and consumed. Expect highly contextual personalisation. Simon Nash, Hugo & Cat - Things, and the internet.
  30. 30. Closer to customers than ever Privileged position in personal spaces combined with automated billing means fewer barriers to consumption of a product or service. Amazon are embedding their Dash instant replenishment concept into products that rely on consumables. Simon Nash, Hugo & Cat - Things, and the internet.
  31. 31. Closer to customers than ever However consumers will expect that this delivers better value, savings passed to customer, and billing tied to more closer to consumption. This will increase competitive pressure, force the creation of more granular services, and drive down profit margins. Simon Nash, Hugo & Cat - Things, and the internet. Drivers in the US can already install simple device to track their driving and link their driving performance to insurance savings.
  32. 32. Connected products as services Connected products can be updated automatically, and can therefore carry a continuous new stream of services into the home. Capabilities can be baked into a product to support future services & integrations. The modern hardware business is a trojan horse for software. Ben Epstein Simon Nash, Hugo & Cat - Things, and the internet.
  33. 33. Connected products as services Fewer opportunities for product sales and upgrade fees, consumers will expect firmware to automatically update and be free to install. Business models will need to anticipate a huge long tail cost for maintaining the product/service in perpetuity. Nest have just bricked recent home hub purchase Revolv - customers had invested £200 for ‘lifetime service’. Simon Nash, Hugo & Cat - Things, and the internet.
  34. 34. Rich sources of data and opportunity The data captured by trillions of new connected devices takes us beyond the realm of big data and into a realm of massive data. Convergence of multiple sources of data will unlock enormous potential for organisations to exploit data for commercial gain. Simon Nash, Hugo & Cat - Things, and the internet.
  35. 35. Rich sources of data and opportunity Consumers are already concerned by invasions of privacy and increasingly sensitive to brands abusing their data. We can expect significant pushback from customers and regulators. And there is a growing call for consumers to profit from their own data. Simon Nash, Hugo & Cat - Things, and the internet.
  36. 36. Connected products will open up opportunities for manufacturers and content owners to partner in delivering personalised content. This will enhance relationships and potentially create new revenue streams. Many more ‘network effects’ likely to emerge. Opportunities for partnership Simon Nash, Hugo & Cat - Things, and the internet.
  37. 37. Opportunities for partnership In 2014 we saw Vine users and the platform itself under fire from the premier league for supposed rights abuses i.e. live clips of goals being shared. Will these sorts of dispute reach into our connected homes? Simon Nash, Hugo & Cat - Things, and the internet.
  38. 38. Complimentary revenue streams Product manufacturers can create new revenue streams and extend relationships beyond the purchase. All Traffic Solutions transitioned from selling automated signage to measuring real-time traffic data and offering web based services to traffic managers. Simon Nash, Hugo & Cat - Things, and the internet.
  39. 39. Complimentary revenue streams Fridges capable of ordering groceries are finally here. But as traditional products take new roles, they may suffer unintended consequences. Will the Internet Fridge meet the same fate as the Set Top Box? Given away by online grocers in order to tie customers into long-term ordering contracts? Simon Nash, Hugo & Cat - Things, and the internet.
  40. 40. Traditional businesses are ill-equipped to handle these emerging opportunities. Agility and adaptability will be critical for organisations embracing IoT. Partnerships and new commercial propositions will leverage new skills and competences. Infrastructure, technology, and data, will need to be fundamentally re-designed.
  41. 41. Conclusions Summing up... A challenge for today not tomorrow We need to work behind the scenes to deliver value Business model reinvention the key to success Network effects will unlock new opportunities Digital Transformation is a prerequisite Consider risks as well as rewards

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