This document discusses how companies can succeed in the data experience economy created by the Internet of Things. It identifies three key challenges IoT creators face: complexity from bridging the physical and digital worlds, technical tradeoffs required, and difficulties scaling prototypes. To win, companies need strength in user affinity, data vision, and innovation engine. Global tech giants are well positioned due to capabilities across these attributes, while industry specialists will struggle. The document advocates focusing on understanding users and delivering valuable experiences rather than just technology.

1. 1 |
How to Win in the Data
Experience Economy
Claro Partners | 22 November 2016 | Internet of Things World Europe
Image by Duncan Hull

2. 2 |
CHALLENGE 1 | IoT Creators face multiplied complexity when bridging the physical
and digital

3. 3 |
CHALLENGE 1 | IoT Creators face multiplied complexity when bridging the physical
and digital

4. 4 |
CHALLENGE 2 | IoT Creators must make technical tradeoffs
POWER
CONNECTIVITY
Storage on deviceSTORAGE
ON DEVICE
INTELLIGENCE
ON DEVICE
• Stationary, mobile, wearable
• Form factor/size
• Cost
• Efficiency
• Time between charges
• Compress data
• Sort data
• Make decisions
• Take action
• Security
• Type
• Robustness
• Frequency
• Seamless setup
• Bandwidth

5. 5 |
POWER
ON DEVICE
CONNECTIVITY
Storage on deviceSTORAGE
ON DEVICE
INTELLIGENCE
ON DEVICE
POWER
ON DEVICE
CONNECTIVITY
INTELLIGENCE
ON DEVICE
STORAGE
ON DEVICE
INTELLIGENCE
ON DEVICE
POWER
(MAINS)
CONNECTIVITY
ZERO STORAGE
ON DEVICE
Senseaware by Fedex
Viewsy sensor
Nike Fuelband
CHALLENGE 2 | IoT Creators must make technical tradeoffs

6. 6 |
CHALLENGE 3 | IoT Creators struggle most when scaling up to a commercial offer
Deliver
Manufacture
Prototype
Concept
Challenges:
• Prototyping hardware was not scalable
• Programmed elements needed to be
redesigned
• Multiple other elements: product casing,
platform and cloud services, etc.

7. 7 |
Monetisation of data from the
Internet of Things was never
going to be easy.

8. 8 |
Different IoT players are not sharing data for different reasons
Supplier
Focused on core business; can’t access or
indifferent to end user data
Focused on core business; can’t access or
indifferent to end user data
78% have concerns about sharing data;
unable to export or use data elsewhere
Focused on core business; concerned
about security and privacy risks
Business case
Business case
Business case
Value proposition and
standards
SITUTATION INCENTIVE NEEDED
User
ODM/
OEM
Brand

9. 9 |
Value from IoT data will not be immediate, as the development of data
experiences requires cooperation
z

10. 10 |
A leader is necessary to unlock data’s potential to fuel exciting new experiences
z
“Customers [brands] don’t consider
interoperability today. But they will need
it and will not know how they ever lived
without it.”

11. 11 |
$
Time
z z
z
z
z
z
z
z z z
z
Monetisation of IoT data requires resources, commitment and vision
EXPERIENCES
SOLUTIONS
INGREDIENTS

12. 12 |
Lack of data sharing is a key
bottleneck in the development
of the Internet of Things

13. 13 |
IoT data from wearables is special, but its full potential value is realized when
combined with data from other sources
Low-friction
Real-time
Personal
Measures body
Always-on
Image by Withings

14. 14 |
New data sets can push us from uncovering insights to delivering experiences
✚
John is running Alice is in the office
INSIGHT:
No one is home
TRIGGERSDATA VISIONUSER AFFINITY

15. 15 |
✚
✚ ✚
John is running Alice is in the office
Door opened w/o key Face of visitor scanned Friend database checked
INSIGHT:
Stranger is alone in apartment
TRIGGERSUSER AFFINITY
New data sets can push us from uncovering insights to delivering experiences

16. 16 |
EXPERIENCE:
Home safety & peace of mind
✚
✚
✚
✚
✚ ✚
John is running Alice is in the office
Door opened w/o key Face of visitor scanned Friend database checked
Light blinks red Radio sounds off alarm Neighbors are notified Police visits apartment
TRIGGERSACTIONS
New data sets can push us from uncovering insights to delivering experiences

17. 17 |
VALUE OF HOME SECURITY DATA EXPERIENCE:
User: $70/month
2015 TAM : $31B
✚
✚
✚
✚
✚ ✚
John is running Alice is in the office
Door opened w/o key Face of visitor scanned Friend database checked
Light blinks red Radio sounds off alarm Neighbors are notified Police visits apartment
TRIGGERSACTIONS
New data sets can push us from uncovering insights to delivering experiences

18. 18 |
New data sets can push us
from insights to creating
new experiences

19. 19 |
This framework helps
identify potential leaders
in the data experience
economy.
It directed how we
analysed the competitive
environment.
The Data Experience framework covers attributes essential to win in the
data experience economy

20. 20 |
USER AFFINITY
PURPOSE
To know what is
happening
WHAT TO IDENTIFY
• Empathy to uncover
user needs
• Ability to know how
to improve lives

21. 21 |
DATA VISION
PURPOSE
To envision what
could happen
WHAT TO IDENTIFY
• Data design
capability
• Inspiration on how
data could be used

22. 22 |
INNOVATION ENGINE
PURPOSE
To make what could
happen reality
WHAT TO IDENTIFY
• Ability to execute
• Willingness to
execute

23. 23 |
Strength across all attributes leads to winning in the data experience economy
INNOVATION ENGINE

24. 24 |
USER AFFINITY DATA VISION INNOVATION ENGINE
Global tech giants are well-positioned to lead the data experience economy
Low Medium High

25. 25 |
Industry-specific players will struggle to lead
USER AFFINITY DATA VISION INNOVATION ENGINE
Low Medium High

26. 26 |
USER AFFINITY DATA VISION INNOVATION ENGINE
Investigate potential partnerships from unlikely sources
Low Medium High

27. 27 |
User affinity, data vision and
innovation engine are key to
delivering data experiences

28. 28 |
Technology is a limited starting point when developing IoT and data solutions
Multiplied complexity
Technical tradeoffs
Scaling up

29. 29 |
USER AFFINITY
DATA VISION
INNOVATION ENGINE
Multiplied complexity
Technical tradeoffs
Scaling up

30. 30 |
Focus on understanding,
collaborating with and delivering
valuable experiences to people

31. 31 |
How to Win in the Data
Experience Economy
hans.villarica@claropartners.com
22 November 2016 | Internet of Things World Europe
Image by Duncan Hull