The document discusses the evolution and current challenges of the Internet of Things (IoT) in the context of smart cities, highlighting the importance of multi-sided business models for growth. Despite advancements, issues like slow adoption, limited budgets, and complex regulation persist, impacting cities' ability to implement effective IoT applications. It suggests a systematic approach to innovation, emphasizing collaboration between government, industry, and citizens to maximize the potential benefits of IoT technologies.

1. IoT Convention 2019 – 29/06/2019 1
TEMP-0010-DOT-F-VerhaertPresentation
Multi-Sided Business Models in Smart Cities
Frederik Aldelhof
Business Development Manager – Smart City, Home & Mobility
frederik.aldelhof@verhaert.com
19/06/2019

2. IoT Convention 2019 – 29/06/2019 2
THIS WAS SUPPOSED TO BE THE FUTURE

3. IoT Convention 2019 – 29/06/2019 3
IoT, A HISTORY
• 1982 – Carnegie Mellon Coke
Machine
• 1999 – “Internet of Things” in
RFID presentation at P&G
• 2009 – “The Internet of
Things” is born - Cisco
Systems

4. IoT Convention 2019 – 29/06/2019 4
IoT, A HISTORY
“We need to empower computers
with their own means of gathering
information, so they can see, hear
and smell the world for themselves,
in all its random glory.
RFID and sensor technology enable
computers to observe, identify and
understand the world without the
limitations of human-entered data.”
(Kevin Ashton)
• 1982 – Carnegie Mellon Coke
Machine
• 1999 – “Internet of Things” in
RFID presentation at P&G
• 2009 – “The Internet of
Things” is born - Cisco
Systems

5. IoT Convention 2019 – 29/06/2019 5
IoT, A HISTORY
• 1982 – Carnegie Mellon Coke
Machine
• 1999 – “Internet of Things” in
RFID presentation at P&G
• 2009 – “The Internet of
Things” is born - Cisco
Systems

6. IoT Convention 2019 – 29/06/2019 6
HISTORY OF THE FUTURE OF IOT
Source: Arup (2011)

7. IoT Convention 2019 – 29/06/2019 7
HISTORY OF THE FUTURE OF IOT
Source: Cisco (2012)

8. IoT Convention 2019 – 29/06/2019 8
FUTURE OF IOT
Source: Libelium (2013)

9. IoT Convention 2019 – 29/06/2019 9
SO WHERE ARE ALL THE SMART CITY IOT APPLICATIONS?
• Smart Lighting
• Local Air Quality
Monitoring
• Smart Grids
• Local Noise Monitoring
• Smart Parking Sensors
& Systems
• Smart Sewages
• Smart Trash Cans
• Bicycle sharing &
tracking
• Smart traffic lights
• Smart flower beds

10. IoT Convention 2019 – 29/06/2019 10
HAS ANYTHING CHANGED?
2009
IoT will make our cities
smarter, healthier, more
pleasant and more
efficient.
2019
IoT will make our cities
smarter, healthier, more
pleasant and more
efficient, BUT PRIVACY
and SECURITY…
“I haven’t heard anything new for
the last 10 years”
“Companies are sick of doing pilots”
“Is anyone actually making money
in Smart Cities? “

11. IoT Convention 2019 – 29/06/2019 11
WHY? A NON-SCIENTIFIC 20/80 APPROACH
• Evolving technology
& Standards
• Legacy IT systems
• Political cycles
• Technology Push…
SLOW
ADOPTION
TECHNOLOGICAL
INNOVATION
TAKES TIME
Verhaert

12. IoT Convention 2019 – 29/06/2019 12
WELL-KNOWN DRIVERS SLOW DOWN ADOPTION
Slow
Adoption
Limited
budgets
Regulation
& Policy
Missing
Competences

13. IoT Convention 2019 – 29/06/2019 13
REGULATION
Slow
Adoption
Limited
budgets
Regulation
& Policy
Missing
Competences

14. IoT Convention 2019 – 29/06/2019 14
Slow
Adoption
Limited
budgets
Regulation
& Policy
Missing
Competences
MISSING COMPETENCES IN TECHNOLOGY & INNOVATION
MANAGEMENT
Technology
Understanding
& Application
Innovation
Management

15. IoT Convention 2019 – 29/06/2019 15
Slow
Adoption
Limited
budgets
Regulation
& Policy
Missing
Competences
“…many cities simply don't have pockets
deep enough to pay for needed
improvements, enhancements and
expanded services that citizens demand
and growing populations require.”
(Smart Cities Council)
LIMITED BUDGETS ARE A MAIN BARRIER

16. IoT Convention 2019 – 29/06/2019 16
IT’S NOT JUST A LACK OF MEANS
Limited
Added
Value
Limited
budgets
Limited
Scale
Shared
Respons-
ability

17. IoT Convention 2019 – 29/06/2019 17
MULTI-SIDED BUSINESS MODELS (PLATFORMS) OFFER A WAY
TO SMART CITY IoT GROWTH
Source: MIT Sloan (2014)

18. IoT Convention 2019 – 29/06/2019 18
“SNELLERDOORVLAANDEREN.BE”
• A Great Technology!
Smarter Navigation
Less time wasted in congestion
User Data
• Costs for the Government:
• App Development
• Data Aggregation
• Back-end development
• Running costs
• App Marketing
• But also
• Not 100% matching with long term
policy goals
• Expensive
•  Limited added value
• Founded in 2008
• Acquired by Google
in 2013 ($1,15bn)
• Crowdsourcing of
Information ->
Value for users
• Free app
• Advertizing
• Data exchange
services with
governments to
improve services
and strengthen ties
with stakeholders
• Network effects
– AKA The Waze Case

19. IoT Convention 2019 – 29/06/2019 19
MULTI-SIDED BUSINESS MODELS (PLATFORMS)
OFFER A WAY TO SMART CITY IoT GROWTH
Multi-sided
Platform
Government
Industry
Citizens
Citizens
Industry

20. IoT Convention 2019 – 29/06/2019 20
BIG TECH IS MOVING, ARE YOU?

21. IoT Convention 2019 – 29/06/2019 21
IMPLEMENTING NEW BUSINESS MODELS REQUIRES A NEW
APPROACH
GOVERNMENT INDUSTRY
**50-70% of alliances fail
***75% dissatisfied with their own innovation
capabilities
*85% find experimenting is important, 56% is
satisfied with current efforts
28% is satisfied with how Innovation is
structurally imbedded
74% find clear methods to measure and
manage innovation important, 3% is satisfied
* Verhaert survey - The Netherlands, 2018
** Zineldin&Dodourova, 2005
*** Verhaert survey, 2018 Innovation Day

22. IoT Convention 2019 – 29/06/2019 22
IMPLEMENT A STRUCTURAL MIX
A lively innovation ecosystem needs different ingredients
EXPERIMENT
INDUSTRY R&D
INNOVATIVE
GOVERNMENT,
JOINT R&D

23. IoT Convention 2019 – 29/06/2019 23
TAKE OWNERSHIP OF INNOVATION
A systematic approach to breakthrough innovation

24. IoT Convention 2019 – 29/06/2019 24
START WITH A VISION
An innovation roadmap guides the process

25. IoT Convention 2019 – 29/06/2019 25
DE SLIMME WAAKPAAL
TEN ALLE TIJDEN WETEN WAT ER MET JE FIETS GEBEURT +
DE POLITIE HELPEN DE DIEF OP HETERDAAD TE BETRAPPEN
Slimme waakpaal Slimme waakzone Slimme waakpoortjes

26. IoT Convention 2019 – 29/06/2019 26
UTRECHT – SMART BICYCLE STORAGE
IDEA & NEED ANALYSIS CONCEPT DEVELOPMENT DEPLOY & SCALE
SYSTEM STRESS TESTINGTEST SET UP
CHEAP BIKES
ROADMAP SAFETY &
ENFORCEMENT
TECH SCOUTING &
USE CASE DESIGN
BASIC NFRASTRUCTURE VIA
ALLIANCES?
COMMERCIAL APPLICATIONS
RELEASE TO MARKET PARTIES
(MANDATORY PRIVACY
PRINCIPLE)
CORE APPLICATIONS OWNED BY
CITY? EG BIKE ID, TAGS,
ALARMING THEFT…

27. IoT Convention 2019 – 29/06/2019 27
UTRECHT – SMART BICYCLE STORAGE

28. IoT Convention 2019 – 29/06/2019 28
CITIES  ‘Bouwen aan Morgen’
• See yourself as a service provider
• Remain ‘Headstrong’ to solve your
problems
• Take ownership of your innovation
process
• Remember that you are free to
choose a solution/technology, just
not the supplier

29. IoT Convention 2019 – 29/06/2019 29
SUPPLIERS
“The need to tailor solutions
to each city’s context,
combined with the
unwieldiness of dealing with
multiple stakeholders and
agencies, has made it
challenging for many
providers to crack the smart
city market and do so in a
profitable way.” (HBR - 2018)

30. IoT Convention 2019 – 29/06/2019 30
SUPPLIERS  ‘OPEN INNOVATION’
Business
Opportunity
Strategies of the
partners
Discuss Assets
Value Proposition
(for the whole
ecosystem)
Business Model
Joint VISION Ecosystem
PURPOSE

31. IoT Convention 2019 – 29/06/2019 31
SUPPLIERS  ‘OPEN INNOVATION’

32. IoT Convention 2019 – 29/06/2019 32
CASE – SARWS

33. IoT Convention 2019 – 29/06/2019 33
CASE – SARWS
Insurance
Life style
Telematics
& Agriculture
Car Safety
Weather
& Disaster service

34. IoT Convention 2019 – 29/06/2019 34
SUPPLIERS  MASTER OPEN INNOVATION
• Envision a Future Together
• Build an Ecosystem
• Develop a Healthy (Multisided) Business Model
• Consider the assistance of an Innovation Service Provider

35. IoT Convention 2019 – 29/06/2019 35
One group, five brands
Our services are marketed through 5 brands each
addressing specific missions in product development.
INTEGRATED PRODUCT DEVELOPMENT
ON-SITE
PRODUCT
DEVELOPMENT
DIGITAL
PRODUCT
DEVELOPMENT
OPTICAL
PRODUCT
DEVELOPMENT

36. IoT Convention 2019 – 29/06/2019 36
CONFIDENTIAL
SEE YOU IN 2029