The IOT focus has been on Technology. But for the usage to increase with consumers the focus needs to change from technology to the Value Model, Business Model and Ecosystem.
My INSURER PTE LTD - Insurtech Innovation Award 2024
Frame work for Consumer IOT
1. Frame work for IOT for consumer
How will the future of IOT pan out for the consumer
Fundamental change in business model for IOT to scale
2. Understand : Incremental Value of IOT
in most use cases is limited.
I don’t want my
washing
machine/dishwasher
to tell me online that
it has finished
washing clothes and
has reordered
detergent and has
also spoken to my
fridge and the vaccum
cleaner and ordered
milk and vaccum
bags. Or perhaps if it
tells only me and not
the washing machine
manufacturer or the
detergent
manufacturer.
Or my toaster or
fridge to tell me that
the milk has run out
and it has ordered it
from Good foods, but
I don’t want it, since I
am going on a
holiday for the next
10 days. Anyway I
scrap the fridge and
my toaster after 15
to 20 years since it
does not look good.
3. Use commonsense
Defocus from Technology
Focus on Value
But start with customer connect
Use technology to deliver the value
4. From Me to We
From I own your data to I enable
From Company to customer
From Control to Collaboration
From PUSH to PULL
Start with the Value
5. Any product will be IOT but some ..Q
TRAIN
MOTORCYCLECAR
BOAT
DOGCAMERA
MOBILE
PRINTER
WASHING
MACHINE
FRIDGESUBSCRIBE
TO DATA
IN AN OPEN
API
COMMUNICATES
DIRECTLY THROUGH
HMI
MOBILITY
WHIRLPOOL
LG
ELECROLUX
TOYOTA, BMW
NIKON,MINOLTA
THEM
YOU
THEM
THEM
6. Your Mobile identity and you are merging
YOUR
COMMUNICATION
DEVICE
YOUR IDENTITY
YOUR IDENTITY
YOUR MOBILE
IDENTITY
YOUR IDENTITY
YOUR MOBILE
IDENTITY
YOUR LOCATION
YOUR MOBILES
LOCATION
Your Location as
well is merging
Location
Mobile Identity
Connectivity
1980s
2000s
Your Data
8. Will it be My Circle ? My Identity?
My Login? OR Communication
Channels for IOT
Your or Their Login?
Fine..
But what does it
mean in practice.
100 Apps and
logins?
My Circle
Their Circle
But what does IOT
mean and I buying
a service mean?
Have I brought or
leased?
If brought, have I
brought
maintainence?
Who has my data?
And do I control it.
And if I do not control it.
What do they use it for?
Their Circle Their App?
Their Login?
WHO OWNS MY DATA, HAVE I AUTHORISED IT
WHAT IS THE PURPOSE MY DATA IS USED FOR
IS THAT DATA MONETISED BY SOMEONE
9. Suppose I buy a BMW Car and use it for daily travel, and is IOT enabled. I and my son also owns a fit bit
HOME
OFFICE
LIBRARYFACTORY
BMW
AN EXAMPLE
How fast I drive or till what time I drive. Do they share this data with someone else like an Insurance company.
If I own it the first question is have I given them permission to use data about my car and myself related to aspects of the car.
What is the data being collected? And what is the service they provide in return.
Or do they sell If it as service for upkeep of the Car only data required for upkeep of the car to be given to BMW. Which
means no location But what about the miles
Do they charge me for that or is it a free service like google and they monetise the data.
Who owns that data
SCHOOL
BMW
20 kms
10 kms
2 kms
The first question is, do I own the Car or is it leased it to me for a service? If I own the Car, do I own the Data also since I own
the car physically and logically I should own the Data. If it is leased, is the data about the car or is it linked to me.
Fit bit also can corroborate the same data about location which the BMW gave, do both collaborate on data and marketing
10. THE KEY QUESTION IS WHO OWNS MY DATA, HAS ACCESS AND MONETISES IT
We also come to two key issues for IOT, the first is managing the different IOT devices which I have and their data feed to me.
If the business model centered around me or if it is centered around the companies who give me IOT devices?
It has to be centered around me. Since I cannot have to remember different logins and passwords. My life should be made
easier, by centering it around me.
The second issue is who owns that data generated by my IOT device, what is the value delivered to me, who monetizes that
data, am I in control of the data.
Generator
of Data
Consumer
of Data
The ownership of Data
should lie with the
Generator of Data and in
case it is not a physical
entity, it should like with
the organization which
owns the entity. This
decides where the Data
should flow to.
SECURITY
COMPANY
TRAIN OPERATOR
HOME
ALARM
11. WE NOW COME TO THE ISSUE OF VIRTUAL OWNERSHIP WHICH SOLVES THE DATA ISSUE
When the Internet started we had a way to send data to prosects much more efficiently, so the first stage involved giving
people data about the products, services, which were all physical and with a real physical form. Physical trading was the way
the world and business around the world was carried out for thousands of years. We brought physical goods, food, goods etc
OFFICE
FACTORY
GIVE
INFORMATION
TO
DO BUSINESS
But then there was business to be done on information, and the news papers are a testament to the idea of doing business on
information. It was old school and the flow of information was much slower, horse riders , telegraphs, telephones and now
internet. This meant the trajectory of information flow became faster and faster with each paradigm.
Business models evolved around how information was got and how it was monetized. But while the information flow got faster
and new information flow like ebooks, egames evolved the structure of information flow got skewed with business models like
facebook or linkedin where they offered one value to the customers and they got data for free and monetized it.
FB, GOOGLE, LINKEDIN
CLOSED REVENUE LOOPS
GET
INFORMATION
TO
DO BUSINESS
12. VIRTUAL OWNERSHIP MEANS YOU OWN YOUR DATA
Virtual Ownership solves the challenges we have seen earlier.
VO PLATFORM
OPEN REVENUE LOOPS
PUT
INFORMATION
BECOMES THE FRAMEWORK FOR IOT
REVENUE STREAMS FOR ADMIN
13. Communication
Channels for IOT
My Circle
Their Circle
Anything which I own.
Is centered around me.
Anything which I lease
Is centered around the
Entity that owns the
Product, goods or
Services.