The document discusses the Internet of Things (IoT), which refers to connecting physical objects through sensors that allow them to communicate over the internet. As objects become embedded with sensors and gain the ability to communicate information networks, this promises to create new business models and disrupt existing ones. The IoT is expected to transform products into services that generate recurring income. It will also impact many industries like retail, logistics, and healthcare by providing context about the physical world.

1. Internet of Things
New Technology
& its Impact on Business Models
Kate Carruthers
July 2013

2. The next generation of the digital
revolution is called the “Internet of
Things” or IoT.
July 2013 © Kate Carruthers | www.katecarruthers.com 2

3. Objects are becoming embedded
with sensors and gaining the
ability to communicate.
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4. The resulting information networks
promise to create new business
models and disrupt existing
business models.
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5. Internet – web 1.0
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Source: Web Focus: Ways of Exploiting New Technologies, 19 July 1998 http://www.ariadne.ac.uk/issue16/web-focus

6. Internet – web 2.0
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Source: Launching the Web 2.0 Framework, Ross Dawson, May 30, 2007
http://rossdawsonblog.com/weblog/archives/2007/05/launching_the_w.html

7. Web 2.0 foundations
1. Participation
2. Standards
3. Decentralization
4. Openness
5. Modularity
6. User Control
7. Identity
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Source: Launching the Web 2.0 Framework, Ross Dawson, May 30, 2007
http://rossdawsonblog.com/weblog/archives/2007/05/launching_the_w.html

8. INTERNET OF THINGS
The digital revolution continues
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9. “The Internet of Things, I think
will be the biggest leverage
point for IT in the next 10 years,
$14 trillion in profits from that
one concept alone”
Cisco Chief Executive Officer John Chambers, AllThingsD D11 Conference May 2013
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Source: Internet of Things Poses Big Questions, Ben Rooney, July 3, 2013
http://online.wsj.com/article/SB10001424127887323899704578583372300514886.html

10. July 2013 © Kate Carruthers | www.katecarruthers.com 10
Source: By SRI Consulting Business Intelligence/National Intelligence Council via Wikimedia Commons

11. IoT Landscape
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Source: Making Sense Of The Internet Of Things, Matt Turck 25 May 2013 http://techcrunch.com/2013/05/25/making-sense-of-the-internet-of-things/

12. Connected devices are transformed
from a single purchase product
into a service that generates
recurring income.
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IoT value is not in the devices, but in
new services related to the devices.

13. Technical ‘plumbing’
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Source: Ronak Sutaria and Raghunath Govindachari in "Making sense of interoperability: Protocols and Standardization initiatives in IOT"

14. Ubiquitous connectivity
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15. App ecosystem
“Between 2008 and
2017, Google Play and
Apple’s App Store will be
responsible for a mind-
blowing number of
mobile app downloads:
350 billion.”
July 2013 © Kate Carruthers | www.katecarruthers.com 15
Source: http://www.mobilemarketingwatch.com/the-decade-of-350-billion-app-downloads-26932/

16. New business models
• Open models will rule the new
landscape
• Collaboration & loose
confederations
• Agile, change ready organisations
• Restructured supply chain
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17. Industries
• Retail
• Logistics
• Pharmaceutical
• Food
• Health
• Intelligent
home
• Transportation
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18. Context
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Source: http://commons.wikimedia.org/wiki/File:Google's_Lexus_RX_450h_Self-Driving_Car.jpg

19. July 2013 © Kate Carruthers | www.katecarruthers.com 19
Source: Autonomous Intersection Management project at the University of Texas at Austin. http://www.cs.utexas.edu/~aim/

20. New consumer behaviours
• Quantified self
• Gamification
• Collaboration
• Social
consumption
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21. Connected devices
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Source: http://moorescloud.com

22. July 2013 © Kate Carruthers | www.katecarruthers.com 22

23. “We tend to overestimate the
effect of a technology in the short
run and underestimate the effect
in the long run.”
-- Amara's law
July 2013 © Kate Carruthers | www.katecarruthers.com 23

24. July 2013 © Kate Carruthers | www.katecarruthers.com 24
Thank-you
Slides on: slideshare.net/carruthk
@kcarruthers