IoT is hotter than July right now. We take a business design and experience perspective on the topic and present three main shifts that every company connecting their business need to think about.

1. IoT
Turn your connected business into great customer experiences

2. BRAND &
BUSINESS
DESIGN
by Seventy

3. AGENDA FOR TODAY
1. IOT - THE HISTORY
2. THE BIG SHIFTS
3. WHAT TO DO

4. IoT - THE HISTORY

5. IOT – WHAT IS IT
The Internet of things is the internetworking of physical devices,
vehicles (also referred to as "connected devices" and "smart
devices"), buildings, and other items embedded with electronics,
software, sensors, actuators and network connectivity that enable
these objects to collect and exchange data

6. IS CONNECTED STUFF JUST A PIPE DREAM?
The LG R-S73CT
Source: ITWeb. December 13, 2000
IN 2000 LG
LAUNCHED THE
FIRST CONNECTED
FRIDGE
IT WAS A MASSIVE
FAILURE!

7. A COMPELLING OFFER?
”The LG refrigerator provides the same Internet functions as an
independent computer. Through the exclusive portal
site, www.dreamlg.com, buyers can access a wealth of lifestyle data
and enjoy home shopping, as well as watch television and exchange
e-mail.
The fridge boasts a TFT-LCD (thin-film transistor-liquid crystal display)
screen with TV functionality and Local Area Network (LAN) port. "For
users unskilled in Internet use, an exclusive Graphic User Interface
(GUI) and touch screen were adopted so that they can easily access
information on product prices and stock trades," explains Botha.
The high-tech refrigerator also enables video mail as well as data
messaging. It allows the taking of family photos through a fixed
camera, storing pictures like an album. The Webcam doubles up as a
scanner, to scan food in and out and keep up with exactly what
inventory is in the refrigerator and how long it has been in there. The
fridge can be programmed to automatically send out orders,
provided that the nearby grocery shops are on-line. With an MP3
player, even music can be played and stored.”
The LG R-S73CT
Source: ITWeb. December 13, 2000

8. BUT BACK THEN WE DIDN’T HAVE…

9. And maybe more importantly
NO DIGITAL CONSUMER

10. THE STARS ARE ALIGNING
BUSINESS MODELS AND
ECOSYSTEM
USER BEHAVIOURS
TECHNOLOGY
ENABLERS

11. DRIVE NOW
New business model
to monetize cars
JOHN DEERE
Increase productivity
through IoT
TESLA
Reshaping the car
experience
IOT HAS STARTED TO PROVE ITSELF

12. ENORMOUS VALUES TO BE UNLOCKED
Source: McKinsey 2015
Home
Chore automation
& security
$200B - 350B Offices
Security & energy
$70B - 150B
Factories
Operations & equipment
optimization
$1.2T - 3.7 T
Vehicles
Autonomous vehicles &
condition-based maintenance
$210B - 740B
Retail environments
Automated checkout
$410B - 1.2T
Worksites
Operations optimization/health & safety
$160B - 930B
Human
Health & fitness
$170B - 1.6T
Outside
Logistics & navigation
$560B - 850B
Cities
Public health
& transportation
$930B - 1.7T
Total potential economic impact of
$3.9 trillion -11.1 trillion per year
by 2025

13. A NEW WAY OF BUILDING COMPANIES
GROWTH
STRATEGY
VALUE
PROPOSITION
COMPETITIVE
STRATEGY
PRICING MODEL
CHANNELS
(DISTRIBUTION &
PROMOTION)
MARKET
SEGMENTS
COSTS
CAPABILITIES
PARTNERS
Devices & manufacturers
Connectivity
Security
Service & experience
development
Device & connectivity
management
Data analytics & mgmt.
Interoperability
…
How to monetize IoT
What services grow
What data is valuable
Differentiation
Additional value
Data as differentiator
New interfaces for services
Direct sales vs. resellers
Ecosystem management
Pay as you go
Service models
Value charging
What industries
What customers
What challenges
should we solve

14. TODAY WE FOCUS ON THE FRONT END
GROWTH
STRATEGY
VALUE
PROPOSITION
COMPETITIVE
STRATEGY
PRICING MODEL
CHANNELS
(DISTRIBUTION &
PROMOTION)
MARKET
SEGMENTS
COSTS
CAPABILITIES
PARTNERS

15. TODAY WE FOCUS ON THE FRONT END
GROWTH
STRATEGY
VALUE
PROPOSITION
COMPETITIVE
STRATEGY
PRICING MODEL
CHANNELS
(DISTRIBUTION &
PROMOTION)
MARKET
SEGMENTS
COSTS
CAPABILITIES
PARTNERS
BRAND & BUSINESS
DESIGN

16. THE BIG SHIFTS

17. THREE MAIN SHIFTS
COMMUNICATION
INTERACTION
TURN PRODUCTS INTO SERVICESBUILD A DATA DRIVEN BUSINESS
Loyalty driven by data and numbers
Data as fuel in your ecosystem
Product development based on data
Evolve your experience continuously
Create a direct to customer offering
Build service based business models
RESHAPE YOUR BRAND
Rebuild brand for a service proposition Develop a mobile & connected first identity Interact directly with the end users

18. TURN PRODUCTS
INTO SERVICES
COMMUNICATION
INTERACTION

19. PRODUCTS TURN INTO SERVICES AS YOU CONNECT THEM
your experience
continuously
a direct to customer
offering
service based business
models
EVOLVE CREATE BUILD
COMMUNICATION
INTERACTION

20. EVOLVE YOUR EXPERIENCE CONTINUOUSLY
HARDWARE
HARDWARE
LOCAL/APP
SOFTWARE
CLOUD
SOFTWARE
Inflexible
Inflexible
Flexible
Flexible
Physical product Product + service
COMMUNICATION
INTERACTION

21. EVOLVE YOUR EXPERIENCE CONTINUOUSLY
TESLA
Get a better car every month
COMMUNICATION
INTERACTION

22. CREATE A DIRECT TO CUSTOMER OFFERING
OEM RESELLER CUSTOMER
Data & interactions
Direct relationship
COMMUNICATION
INTERACTION

23. MYJOHNDEERE IS A TRACTOR OPERATIONS CENTER AND SUPPORT UNIT
COMMUNICATION
INTERACTION

24. COMPLETELY RESHAPING THE ROLE OF THE RESELLER
COMMUNICATION
INTERACTION
OEM RESELLER CUSTOMER
Data & interactions
Direct relationship

25. BUILD SERVICE BASED BUSINESS MODELS
PRODUCT SERVICE
Charge for a product Charge for a service
Cost for production
+
margin
Value
for
customer
COMMUNICATION
INTERACTION

26. HUSQVARNA BUILDS A SERVICE BUSINESS ON CONNECTED DEVICES
COMMUNICATION
INTERACTION

27. BUILD A DATA DRIVEN
BUSINESS
COMMUNICATION
INTERACTION

28. CONNECTED DEVICES HARVEST DATA ACROSS YOUR COMPANY
driven by data and
numbers
as fuel in your ecosystem
of partners & customers
development based on
data and insights
LOYALTY DATA PRODUCT
COMMUNICATION
INTERACTION

29. LOYALTY DRIVEN BY DATA AND NUMBERS
An unconnected customer is
an unknown customer
A connected customer becomes
visible and known
Customer Customer
COMMUNICATION
INTERACTION

30. HOME DEPOT CONNECTS THE INSTORE EXPERIENCE FOR LOYALTY
Loyalty
app
Personal
welcome
Store
navigation
Beacons &
offering
CRM &
promotion
Contextual
experience
COMMUNICATION
INTERACTION

31. DATA AS FUEL IN YOUR ECOSYSTEM OF PARTNERS AND CUSTOMERS
DATA
EXCHANGE
DATA
PROVIDERS
DATA
CONSUMERS
Data
Aggregated
anonymized data
RevenuesIncentives to
share data
COMMUNICATION
INTERACTION

32. IBM IS TAKING DATA SERIOUSLY
Weather
company data
Analytics by
Watson
Industry
offerings
COMMUNICATION
INTERACTION

33. TELIA BECOMING AN ECOSYSTEM MAKER
COMMUNICATION
INTERACTION

34. PRODUCT DEVELOPMENT BASED ON DATA AND INSIGHTS
CUSTOMER/
USAGE
COMPANY/
PRODUCTION
Features
Data on usage
COMMUNICATION
INTERACTION

35. TRANE DEVELOPS NEW PRODUCTS BASED ON USAGE
Product in
action
Next product in
pipeline
Improve product
in action
Data
Understanding usage
Relationship to other units
Improving design
Predictive maintenance
Manage systems, not units
New services & revenues
COMMUNICATION
INTERACTION

36. RESHAPE
YOUR
BRANDCOMMUNICATION
INTERACTION

37. RESHAPE YOUR BRAND
directly with the end
users
a mobile & connected
first identity
brand for a service
proposition
INTERACTDEVELOPREBUILD
COMMUNICATION
INTERACTION

38. SELLING SERVICES REQUIRE A DIFFERENT BRAND
PRODUCT
Products are used Services are experiences
Products are tangible Services are emotional
Products are sold on features Services are sold on value
SERVICE
COMMUNICATION
INTERACTION

39. UNDER ARMOUR BRAND MOVES FROM TIGHT SHIRTS TO A FITNESS SERVICE
COMMUNICATION
INTERACTION

40. COMMUNICATION
INTERACTION

41. DEVELOP A MOBILE & CONNECTED FIRST IDENTITY
INTERACTIVE
SERVICE DRIVEN
SMALL SCALE
FLEXIBLE
INTUITIVE
DATA DRIVEN
COMMUNICATION
INTERACTION

42. VERISURE - A NEW IDENTITY TO EMPOWER INTERACTION
The interface as the product
An identity across units Really small scale visuals
COMMUNICATION
INTERACTION

43. INTERACT DIRECTLY WITH THE END USERS
OEM RESELLER CUSTOMER
COMMUNICATION
INTERACTION

44. CONNECTING WELDERS MADE ESAB BUILD A DIRECT INTERFACE WITH USERS
COMMUNICATION
INTERACTION

45. SMART METERS ENABLE VATTENFALL TO TALK TO CONSUMERS
Vattenfall inCharge
Vattenfall EnergyWatch
COMMUNICATION
INTERACTION

46. WHAT TO DO
And what we do

47. SOME IMPORTANT QUESTIONS TO ANSWER WHEN CONNECTING
DEFINE A SERVICES
BUSINESS
LEVERAGE DATA
EVERYWHERE
What data to collect from products?
What experiences to build on data?
How should data be used in operations?
What services does your customers want?
What value should we provide?
How to sell services instead of products?
CREATE YOUR CONNECTED BRAND
What does your connected
customer journey look like?
What is your new value prop
to build brand on?
What interfaces and identity
will power you services?
COMMUNICATION
INTERACTION
How do customers interact with you?
What business model will help you?
How to organize to use troves of data?
What new competences do you need?
What messages should you
bring to the market?

48. WHAT WE DO TO MAKE YOUR IOT STRATEGY COME ALIVE
Insight
Trends & Opportunities
Consumer & user behavior
Drivers & Segmentation
Competition & market
dynamics
Strategy
Business model
innovation
Brand positioning &
value prop
Offering & bundling
Service Design
Service innovation
Service design drivers
Customer journey
Interface design
Production
Interaction design
Design & interaction
strategy
System & hierarchy
Visual design
Communication
Marketing innovation
Communication concepts
Brand films
Motion graphics

49. Now go connect! J