ecosystems of networks and devices as the next competitive advantage

IoCP: Ecosystems of networks and devices as the next competitive advantageDion HinchcliffeChief Strategy Officer | Adjuvi@dhinchcliffe

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Dion HinchcliffeChief Strategy Officer@dhinchcliffe

@dhinchcliffe

Vision: Everything that can be connected will be connected

What will do you with this power?

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Competitive advantage today is about being connected• The Internet of Things

– Every non-trivial (and many trivial) object is going to be connected to our networks

– 50 billion objects by 2020– All your customers– All their devices– Value moves from periodic engagement to constant

engagement– Required deriving insight and analytics

• The Internet of Customers– Connected relationships in scale– Through all devices and channels– Enabled by platforms and applications

• That orchestrate, analyze, and provide insight

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Internet of Connected Products (IoCP) = IoT: Connecting all devices and all channels

Channels

Devices

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Internet of Customers: When IoT passes through customer touchpoints

Customer Touchpoints

IoT Cloud andProviders

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The first major clues about the strategic value of IoT data

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The hype has never been higher

So where is the strategic value?

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• Your organization is connected to all 1.5B people in the developed world 24 hours a day through their devices and digital touchpoints

- What will you do with this historic opportunity?- While there is still first mover advantage• They generate visible data continuously- On social media- From their mobile devices- From applications- From everything connected• This will enable you to make unprecedented insights in

real-time.• To drive high impact results

Motivation for IoT and IoC

Use to introduce a

demo, video, Q&A, etc. Identifying the Strategic Value in IoC

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The major types of IoT

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Network effects still the strategy, but IoT revolutionizes the game• Network effects have long

become the new ‘digital marketshare’

• Definition: Anything that has value the more than other people have it too

• Value is based on an exponential growth curve

• Is a force multiplier– But more importantly a zero sum

game• The Internet of Things is going to

shift the networked value conversation two orders of magnitudes to the right

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The network engagement is where the strategic value lies

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As a result, systems of record have grown less important• Because of network effects, systems of engagement have becomes the focus

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Internet of Things will run our cities, businesses, and homes

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The Enterprise View of the Internet of Things

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Representative Internet of Things Examples• 12 key examples of Internet of Things

– in the consumer and business world• Many of which you’ve probably not heard

– Well beyond Nest, Fitbit, Dropcam, Belkin Wemo, Withings scale• And which will project an all new volume of data

– The device proliferation will require handling dynamic data types

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Delphi Connect• A connected way of keeping in touch with your car, allowing remote control of automobile features and the ability to perform diagnostics

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Sen.se Mother• Sense Mother is at the head of a family of small connected sensors that blend into your daily life to make it serene, healthy and pleasurable

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Trakdot• A connected device to continuously keep track of your luggage anywhere in the world

• Uses networks of opportunity in 180+ countries

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Skybell• SkyBell is a smart WiFi doorbell with video camera, speaker, microphone and motion sensor. See, Hear and Speak with your visitor from iOS and Android

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Smart Ice Cubes• Digital ice cubes which pulse to the beat of the music

• But also monitor your drinking– How much– How fast

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Bikn (beacon)• Tiny electronic tags you can attach to any of your devices and then locate them through your phone’s GPS

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Smart Diapers• Disposable digital diapers with built-in sensors that parents can use to track

• And pediatricians can use to track baby health.

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Telcare’s Smart Diabetes Monitor

Source: Vala Afshar

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Quirky’s Smart Propane Tank

Source: Vala Afshar

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Lono’s Smart Sprinkler Control System

Source: Vala Afshar

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BigBelly’s Smart Garbage Container and Management System

Source: Vala Afshar

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Smart Dust• A new formal standard for micro and nano-scale IoT objects

• Contains sensors (temperature, humidity, location, video, audio, etc.)

• Can transmit low power streams of data

• Can be used to instrument just about anything

• Nano-pollution will be an issue• Will generate trillions of continuous data streams

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How to turn the IoT and IoC into business

Source: Flexera

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The IoT and IoC business case

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Why IoT is different than previous connected strategies• Recent ubiquity• Standardization has matured• Protocols and hubs that can support the numbers of devices

• Far richer sensor data• Much lower cost floors• Small and lower power devices• Advent of wearables and embeddables– Smart everything

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How to capture the strategic value with IoT

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Data capture, volume, management, and analysis: The challenge for operationalizing IoT/IoC

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The growth of big data from IoT will near dominance in 2015

...and it hasn’t even started yet

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The Virtuous Road to Business Value with IoT and IoC

Instrument Your

Customer’s Networks

Help Them CollectTheirData

Gain Insight & Influence

@dhinchcliffe 37

T-Mobile wanted to get out ahead of customer defections to other carriers. They needed an accurate and scalable source of information. They looked to social media.The Story:

The Results:The firm integrated big data across their IT systems, using near real-time the analysis of 33M customer data records, web logs, billing data and social media information. The result: The company was able to cut customer defections in half in a single quarter.

Source: Financial Times

Cut customer defections in half in 90 days.

An IoT and IoC High Impact Case Example

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Why it’s better to be the IoT intermediary for your customer...

...their data is much better when it’s with other people’s data

A Critical Strategy

for Differentiation

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The advantages of a shared customer view of IoT • Comparison, baselining, benchmarking

• Scenario capture, lifecycle modeling• By looking at shared views, norms are established, and variances can be captured:– To replicate (when better techniques are

used by customer)– To remediate (when optimizations and

improvements are needed• The Bottom Line: Continuous customer relationships are enabling by orchestrating the IoT through IoC “hubs”

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Where does this fit into IT or digital product strategy?

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What should companies do to leverage IoC and IoT• Offered connected products and

services• Integrate data, customers, and

engagement into your services• Proactively leverage information

convergence from IOT– Provide customers deep, real-time

insight based on total knowledge of all customers

– Deliver concrete solutions that provide value (accelerate processes, cut costs, drive efficiency)

– Make it easy as Google

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What will leadership in IoT and IoC require?• Big data skills

– “Brontobyte”-scale data volume capabilities– Data science (and scientists)– Cross-disciplinary vertical subject matter expertise

(SMEs)• User experience• End-to-end integration capabilities• Scale, Security, and Privacy• DevOps• For Startups

– Cohesive, multi-disciplinary teams• For Enterprises

– An Internet of Things (IoT) Center of Excellence

An IoT Center of Excellence

• Best Practices• Shared Tools• Governance• Education

• Best Practices• Shared Tools• Governance• Education

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How to become an IoT and IoC leader– Find white space in the marketplace– Differentiate your offering (new type of IoT, new

classes of data from collection and analytics)– Establish a strong network effect now (zero sum

game)– Use and integrate existing networks of IoT and

IOC whenever possible (through APIs etc.)– Use your global insight into customers to create

value• New value-add features and services• Unique offerings that integrate insights across

multiple IoT networks– Aim at becoming indispensable, not a convenience

For slides e-mail dion@adjuvi.com

@dhinchcliffe

More of the story is in Social Business by Design• The definitive management

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