Everyone is talking about IoT and so are setting crazy expectations. How to make sure these expectations do not disappoint.

1. The Effect of Over-Hyped
IoT Expectations On
Customer Satisfaction

3. Think Back to Your Very First (Real) Kiss

4. Is This What You Expected?

5. Is This What You Experienced?

6. Was Your First Kiss Over-Hyped?

7. Was Your Dissatisfaction Temporary?

8. Enough Talk About Kissing

9. 3 Definitions (From the Title)
1. Internet of Things (IoT)
2. Expectations
3. Customer Satisfaction

10. Defination #1 - Internet of Things
Things
• People
• Cars
• Cities
• Oceans
• Jet Engines
Sensors

11. Sensors

12. Defination #1 - Internet of Things
Analytics
• Big Data
• IBM Watson
• Merge Data
Streams
Communications
• RFID
• WiFi
• Satellite
• M2M
• Internet
Things
• People
• Cars
• Cities
• Oceans
• Jet Engines
Sensors
• GPS
• Cameras
• Acceleration
• Temperature
• ECG
Value
&
Growth

13. Defination #2 - Expectations
What screws us up most
in life is the picture in our
head of how things will
turn out.

14. Defination #3 - Customer Satisfaction
 For each touchpoint or interaction,
CSAT= Experience – Expectation
 Overall,
CSAT = Weighted ∑ Individual CSAT

15. Time For
IoT & Hype

17. Google Search Results
Search Terms Number of Results
Sex 1,740,000,000
Internet of Things 756,000,000
Apple Watch 649,000,000
Climate Change 142,000,000
Tesla 138,000,000
Sliced Bread 5,800,000

18. Google Search Trends – May 2015
1
100
Internet of Things

19. Gartner Hype Cycle

20. How Do Hype Cycles Work?
Technology Trigger: A potential technology breakthrough kicks things off. Early
proof-of-concept stories and media interest trigger significant publicity. Often no
usable products exist and commercial viability is unproven.
Peak of Inflated Expectations: Early publicity produces a number of success
stories — often accompanied by scores of failures. Some companies take action;
many do not.
Trough of Disillusionment: Interest wanes as experiments and implementations fail
to deliver. Producers of the technology shake out or fail. Investments continue only
if the surviving providers improve their products to the satisfaction of early adopters.
Slope of Enlightenment: More instances of how the technology can benefit the
enterprise start to crystallize and become more widely understood. Second- and
third-generation products appear from technology providers. More enterprises fund
pilots; conservative companies remain cautious.
Plateau of Productivity: Mainstream adoption starts to take off. Criteria for
assessing provider viability are more clearly defined. The technology's broad market
applicability and relevance are clearly paying off.

21. Hype Cycle - 2014

22. Growth Of Connected Devices – Part 1

23. Growth Of Connected Devices – Part 2

24. Capabilities Being Built Into New Products
Oxford Economics

25. IoT – Opportunities and Risks

26. What Customers Will Expect –
Fail At Your Peril

27. Winners and Losers in the CSAT Race
• Early adopters
(Nest)
• iWatch
• Sets Standards
• Adds real value
• Great UI
• “its all about the
network”
• Already “all in”
• GE, Siemens
• Great leaders
• Long history w/
technology
• John Deere
• Monsanto
• Cisco
• Tied to past
• Timid
• Very low tech
• Afraid of
software
• Low price
mentality
• Tied to past
• Timid
• Very low tech
• Afraid of
software
• Low price
mentality
B2C B2B
Leaders
Laggards

28. Already Winners
 Well established businesses
 GE, PTC, Philips, Bosch, Oracle, Monsanto
 Newbies
 Tesla, Nest
 In transition
 Ford, Mercedes-Benz, BMW

29. Why Experiences ≠ Expectations
 Leadership fails - organizational paralysis or underestimate effort
 Marketing fails –
 Do not commercialize new services
 Low value returned
 Regulations stop everything
 Sales fails – can’t sell services (consultatively)
 Design fails –
 compatibility at all levels
 Don’t understand software, sensors, communication, computing
 Manufacturing fails – can’t morph from products to solutions
 IT fails – weak infrastructure
 Support fails – to complex
 HR fails - not enough data analysts to go around
 Finance fails – can’t shift to variable, recurring revenue accounting

30. Lack of Customer’s Trust Will Be a Real Buzz Kill
 How much information is being collected?
 What are they doing with the information?
 Are they selling my personal data to others?
 Is this all safe and secure?

31. Remember, IoT = Value Creation

32. Businesses That Fail To Create Customer Value

33. Businesses That Focus On Creating Customer Value

34. The Outcome Lies In The Hands,
Heads, and Hearts of Leadership
The Customers Will Only Vote With Their
Wallets, Not Make The Decisions

35. Sam Klaidman, Principal Adviser
Middlesex Consulting
508-877-1924
Sam@MiddlesexConsulting.com
www.middlesexconsulting.com
LinkedIn http://www.linkedIn.com/in/samklaidman
Contact Sam to discuss IoT, value creation and
your business