The document discusses leveraging the Internet of Things (IoT) and cognitive computing/artificial intelligence to build smart data ecosystems and strategies. It outlines how IoT and sensors can generate streaming data and the need for architectures to analyze live data alongside historical data. Porter's five forces model and SWOT analysis are presented as conventional strategic frameworks that must be reexamined. Finally, five ways cognitive/AI technologies combined with IoT data can help organizations better understand customers are described.

1. December 8, 2016
Adrian Bowles, PhD
Founder, STORM Insights, Inc.
info@storminsights.com
Leverage the IOT to Build a Smart Data Ecosystem

2. An Overview of Conventional Strategy
How Does the IOT Change Strategy?
How Does ModernAI/Cognitive Computing Change Strategy?
5 Ways to Create Business Value with #ModernAI & The IOT
Agenda

3. Strengths Weaknesses
Opportunities Threats
New Products, Partnerships,
M&A, Geo-Territories,
Competitors’ Weaknesses
Where Are Our
Competitors Stronger?
Disruption, Displacement
What Are Our
Competitive Advantages?
Internal External
Resources
Capital, Data, Customers,
People, IP…
Processes
Innovation, Manufacturing…
Where Are Our
Risks vs Industry Risks?
Primary Focus
SWOT Analysis
Copyright (c) 2016 by STORM Insights Inc. All Rights Reserved.

4. Suppliers Buyers
Based on Michael Porter: Competitive Advantage, Free Press, 1985.
Threat of
New Entrants
Threat of
Substitute Products
or Services
Bargaining Power
of Buyers
Bargaining Power
of Suppliers
Potential
Entrants
Substitutes
Industry
Competitors
Rivalry Among
Existing Firms
Porter’s Five Competitive Forces
Copyright (c) 2016 by STORM Insights Inc. All Rights Reserved.

5. Suppliers Buyers
Based on Michael Porter: Competitive Advantage, Free Press, 1985.
Threat of
New Entrants
Threat of
Substitute Products
or Services
Bargaining Power
of Buyers
Bargaining Power
of Suppliers
Potential
Entrants
Substitutes
Industry
Competitors
Rivalry Among
Existing Firms
Economies of Scale
Switching Costs/Network Effects
Access to Information
Technology Advances
Buyer Aggregation
Technology Advances
Protected IP
Porter’s Five Competitive Forces
Copyright (c) 2016 by STORM Insights Inc. All Rights Reserved.

6. Based on Michael Porter: Competitive Advantage, Free Press, 1985.
Suppliers Buyers
Potential
Entrants
Substitutes
Industry
Competitors
Rivalry Among
Existing Firms
Porter’s Five Competitive Forces
Copyright (c) 2016 by STORM Insights Inc. All Rights Reserved.
1. PORTER’S THREE GENERIC STRATEGIES
Cost leadership
Differentiate products/services
Focus: develop a market niche
2. SUB-STRATEGIES (DEFENSIVE AND OFFENSIVE)
Alter industry Structure
Create entry barriers Modify Value Chain Linkages
Increase switching costs Form Alliances
Create new products/services
Restructure the FIRM
Downsize Support learning
Flatten Total Quality Management
Build teams Business Process Reengineering

7. 7 Copyright © 2000 by Adrian J. Bowles. All Rights Reserved.
The IP enabled future
• Emware - enabling technology
➢ Uses proprietary software and a home PC
• can control thermostats, door locks, VCR…
➢ CL&P testing it as a solution for targeted
brownouts
➢ Matsushita - using it in >500 medical and
building automation products
Source: Fortune, 10-9-2000
Flashback

8. 8 Copyright © 2000 by Adrian J. Bowles. All Rights Reserved.
Pervasive IP - What will you do with it?
• Where can you put IP?
➢ Soda machine - real time monitoring, price
control based on temp and volume?
➢ Home heating - warm it up from your Pilot on the
way home.
➢ Hotel room security - look at The Charles in
Cambridge, MA
➢ Just about anywhere
Flashback

9. 9 Copyright © 2000 by Adrian J. Bowles. All Rights Reserved.
Impact of new payment schemes?
• DoCoMo I-mode and others let the phone
company act as payment aggregator for
everything from games to soda machines to ???
• How can this change the balance of power?
➢ Who “owns” the customer relationship?
Flashback

10. 10 Copyright © 2000 by Adrian J. Bowles. All Rights Reserved.
How to make money by enabling devices
• How do you identify holes in the market?
• What are the most important characteristics
of opportunities?
Flashback

11. 11
New Roles and Relationships
Your.Biz
Customer
Supplier Sponsor
Partners
Provides resources
Consumes Goods/Svcs
(may be non-exclusive
consumer)
Provides Resources Customer who
Buys Access
$, Information
Goods, Services
$, Content
Access,
Attention
Copyright © 2001 by Adrian J. Bowles. All Rights Reserved.
Flashback

12. 12
The Moving Middleman
Producer Consumer
Intermediary
Traditional retailer
New Real Estate Model
(buyer’s agent)
Provides product,
advice, service…
Intermediary
Intermediary
Copyright © 2001 by Adrian J. Bowles. All Rights Reserved.
Flashback

13. 13
The Missing Middleman
Producer:
Mattel
Consumer
Intermediary
Producers get closer to
consumers,
Channels get squeezed
Toys ‘R’ Us vs toysrus.com vs etoys.com
$29/10 NA
Barbie ™ Porsche ™ Boxster ™
$24.99
Copyright © 2001 by Adrian J. Bowles. All Rights Reserved.
Flashback

14. 14
The New Middleman
Producer:
Rolex
Consumer
$15,900
(full retail price – store warranty)
tourneau.com
Tourneau, Inc.
ashford.com
“Genuine Rolex products are sold
through
Official Rolex Jewellers and are not
available on the Internet. “
Info only
Copyright © 2001 by Adrian J. Bowles. All Rights Reserved.
Flashback

15. 15 Copyright © 2000 by Adrian J. Bowles. All Rights Reserved.
Emerging Technologies/Trends
➢ Voice/Speech
➢ Voice over IP
➢ Collaboration
• Development
• Peer to Peer Computing
Flashback

16. It All Starts With Sensors…and Ends With Insights
Copyright (c) 2016 by STORM Insights Inc. All Rights Reserved.
A sensor is a device that detects the presence of a signal
and reports/signals data about that signal/event
Sensors are Event-driven
May be Stationary or Mobile
How Does the IOT Change Strategy…

17. Sensors May Produce Streaming Data
Copyright (c) 2016 by STORM Insights Inc. All Rights Reserved.
“You could not step twice into the same river.”
Heraclitus 535BC-474BC
To understand the contents (analyze)…
Divert the flow?
Pool the data?
Evaluate everything without changing the flow?
(ask Heisenberg about that one)
Sample? (catch and release?)

18. Streaming Data Architecture
Copyright (c) 2016 by STORM Insights Inc. All Rights Reserved.
DataSources
Store
Process/Transform
Observe
Key
Data Flows on the Edges, Queries Everywhere
Sampling vs Monitoring Everything…

19. IoT Platforms
Predix
Jasper Control Center
Watson IoT
IOT Platforms

20. Conventional
AI
Machine
Learning
Big
Data
How Does #ModernAI/Cognitive Computing Change Strategy?
Copyright (c) 2016 by STORM Insights Inc. All Rights Reserved.

21. Human
Machine
Input Output
Narrative Generation
Data Mgmt
Model
Understand
Gestures
Emotions
Language
Visualization
Reports
Haptics
IoTSensors
Systems
Controls
Learn Plan
Reason
IoT
Copyright (c) 2016 by STORM Insights Inc. All Rights Reserved.
How Does #ModernAI/Cognitive Computing Change Strategy?

22. Combined Impact of the IOT and #ModernAI/Cognitive Computing on Strategy
Copyright (c) 2016 by STORM Insights Inc. All Rights Reserved.
IOT/#ModernAI enable
New technologies
New models
New ecosystems
Intelligence can be
Local to the device
Distributed
Aggregated
When everything is connected…
New sources of data emerge
New sources of value emerge
Old assumptions must be challenged

23. 5 Ways to Create Business Value with #ModernAI & The IOT
Copyright (c) 2016 by STORM Insights Inc. All Rights Reserved.
Know Where Your Customers Are - Or Where They Will Be
Know What Your Customers Want
Know When Your Customers’ Wants Change
Know Your Customers
Anticipate Opportunities
For Each Rule:
Do you have or can you capture streaming data that can increase your value proposition?
Data about your product, supply chain, or customer that can improve performance, reliability, predictability…
Can you create value from new analysis of open data?
Adding your own data/algorithms to open data creates value.
Tip: Choose an infrastructure that allows you to evaluate live streaming data in the context of relevant historical data.

24. Copyright (c) 2016 by STORM Insights Inc. All Rights Reserved.
Know Your Customers
Collect/Track:
Demographics
Psychographics
Emotions
Technologies:
NLP
Analytics
Machine Learning
Captured/Enabled By:
Sensors
Active
Passive
Systems
Profile-Driven
Interactive Interfaces
Profiles
Opt-In
Generated
Purchased
Derived
Current
Data Mgmt
Model
Understand
IoT
Learn Plan
Reason
IoT

25. Know What Your Customers Want
Copyright (c) 2016 by STORM Insights Inc. All Rights Reserved.
Collect/Track:
Behavioral History
Captured/Enabled By:
Sensors
Active
Passive
Systems
Profiles
Opt-In
Generated
Purchased
Derived
Peer Profiles
Product/Service Trends
Current
Technologies:
NLP
Analytics
Machine Learning
Data Mgmt
Model
Understand
IoT
Learn Plan
Reason
IoT

26. Know When Your Customers’ Wants Change
Copyright (c) 2016 by STORM Insights Inc. All Rights Reserved.
Collect/Track:
Behavioral History
Technologies:
Analytics
Machine Learning
Current
Captured/Enabled By:
Sensors
Active
Passive
Systems
Profiles
Opt-In
Generated
Purchased
Derived
Peer Profiles
Product/Service Trends
Data Mgmt
Model
Understand
IoT
Learn Plan
Reason
IoT

27. Know Where Your Customers Are - Or Where They Will Be
Copyright (c) 2016 by STORM Insights Inc. All Rights Reserved.
Collect/Track:
Geo Track/History
Technologies:
Mobile
WiFi
Beacons
Facial Recognition
Analytics
Machine Learning
Captured/Enabled By:
Sensors
Active
Passive
Systems
Profiles
Opt-In
Generated
Purchased
Derived
Current
Data Mgmt
Model
Understand
IoT
Learn Plan
Reason
IoT
Future

28. Copyright (c) 2016 by STORM Insights Inc. All Rights Reserved.
Anticipate Opportunities
Technologies:
Analytics
NLG
Machine Learning
Current
Captured/Enabled By:
Sensors
Active
Passive
Systems
Profiles
Opt-In
Generated
Purchased
Derived
Peer Profiles
Product/Service Trends
Collect/Track:
Demographics
Psychographics
Emotions
Data Mgmt
Model
Understand
IoT
Learn Plan
Reason
IoT

29. Getting Started: What Sensor Data Do Your Customers Already Produce?
Copyright (c) 2016 by STORM Insights Inc. All Rights Reserved.
Type Typical Current Use Potential Use
Accelerometer/motion
Rotate screen, Switch screen to
landscape/portrait
Ambient Light Adjust screen brightness
Barometer Measure altitude
Geo-Location (wifi/cellular) Location/Alerts
3-Axis Gyroscope Rotation rate for games, VR…
Proximity
Turn off screen when phone is by
your head
Touch ID fingerprint Security

30. Find New Uses for Existing Data Sources
Copyright (c) 2016 by STORM Insights Inc. All Rights Reserved.
Copyright (c) 2014 by Umbrellium Ltd.

31. No Shortage of Data
Copyright (c) 2016 by STORM Insights Inc. All Rights Reserved.
What will you do with it
to create value?
Image Courtesy of thingful.net
Copyright (c) 2014 by Umbrellium Ltd.

32. Copyright (c) 2016 by STORM Insights Inc. All Rights Reserved.
What’s Next?
We Are Currently Developing Case Studies
& Use Case Archetypes for:
Insurance
Banking/Financial Services
Healthcare
Pharma
Data Mgmt
Model
Understand
IoT
Learn Plan
Reason
IoT
Please email me if you’d like to participate in this research or see the results.

33. adrian@storminsights.com
Twitter @ajbowles
Skype ajbowles
Upcoming Webinar Dates & Topics
January #Modern AI and Cognitive Computing: Boundaries and Opportunities
February Artificial General Intelligence: When I Can I Get It?
March Data Science and Business Analysis: A Look at Best Practices for Roles, Skills, and Processes
April Machine Learning: Moving Beyond Discovery to Understanding
May Streaming Analytics for Agile IoT-Oriented Applications
June Machine Learning Case Studies
July Advances in Natural Language Processing I: Understanding
August Organizing Data and Knowledge: The Role of Taxonomies and Ontologies
September Advances in Natural Language Processing II: NL Generation
October Choosing the Right Data Management Architecture for Cognitive Computing
November See Me, Feel Me, Touch Me, Heal Me: The Rise of the Cognitive Interface
December The Road to Autonomous Applications
For More Information…
Copyright (c) 2016 by STORM Insights Inc. All Rights Reserved.

34. Template
Copyright (c) 2016 by STORM Insights Inc. All Rights Reserved.
Supplementary Slides

35. Streaming Analytics - Emerging Vendors to Watch

38. Copyright (c) 2016 by STORM Insights Inc. All Rights reserved.
Key Trend:
Streaming
Analytics for IOT
as a Service

39. Copyright (c) 2016 by STORM Insights Inc. All Rights reserved.
Key Trend:
Streaming
Analytics for IOT
as a Service

40. Copyright (c) 2016 by STORM Insights Inc. All Rights reserved.
Key Trend:
Streaming
Analytics for IOT
as a Service

41. Mul$ple'data''
sources'
Hadoop (HDFS)
(Existing)
ETL Jobs
Batch'/'
High5Latency'
Real'$me'/'
Low5Latency'
ODS/ EDW
Real-Time
Applications
Legacy
Applications
Spark Hive
Big Data
Applications
Users'
CDC'
Flume'
KaAa'
Logs'

42. Internode Communication
Distributed Cache
Indexed Results StoreProcessing
Machine Learning
Visualization
Cluster Management
Data
Collection
Data
Delivery
Development
YARN%
Courtesy of STRIIM
The Open Source Ecosystem for Analytics Infrastructure

45. Data Sharpening (Zoomdata)

46. The Impact of the IOT
Copyright (c) 2016 by STORM Insights Inc. All Rights Reserved.
When everything is connected…
New sources of data emerge
New sources of value emerge
Old assumptions must be challenged

47. A Role for Collaboration and Standards
Copyright (c) 2016 by STORM Insights Inc. All Rights Reserved.