the internet of things (iot) - what really matters for a start-up

© 2014 IBM Corporation @Sandy_Carter #TiEcon

The Internet of Things: What Really Matters?

Sandy Carter IBM General Manager Ecosystem Development

& Social Business Evangelist

@Sandy_Carter #TiEcon

© 2014 IBM Corporation @Sandy_Carter #TiEcon 2

$1B Invested by VCs in IoT

ventures in 2013

50% Funding for IoT companies up

in 2013 over 2012

26B IoT units installed by 2020

$300B Incremental revenue from IoT products and services

by 2020

Investment and Opportunity in IoT is skyrocketing!

Sources: Gartner “Forecast: The Internet of Things, Worldwide, 2013”, November 18, 2013; CB Insights, “Internet of Things Companies Haul In More than $1 Billion in Venture Capital in 2013“, March 18, 2014


TI

E Ecosystem

Integrated Solution

What Really Matters?

The Right

Focus

3


The Right Focus: 3D vision

4


The Right Focus: Domain expertise

Opportunity Exists by Industry:

Automotive Asset

Management

Energy /

Utilities Healthcare

Home / Building

Automation Retail

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Industrial

#1 #2 #3 #4

Source: IDC, “Worldwide Internet of Things (IoT) 2013–2020 Forecast: Billions of Things, Trillions of Dollars”, October 2013


The Right Focus: Drivers of value

Value-driven use cases

Target the right “buyer”

- Facility manager vs IT

6


The Right Focus: Design will be a crucial differentiator

7

User-centered design

Focus on the outcome, not the device

- Innovation Experiments

- Great storyboards and wireframes

- “Hills” focus on the value to the user

not features and functions

T


Data from Facebook

fed real-time onto

store racks

Social Hanger:

Domain, Driver of Value and Design

8


$237B Opportunity $370B Opportunity$187B Opportunity

AnalyticsData Cognitive

Integrated Solution: Opportunity

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*Source: Gartner, “Worldwide IT Spending Forecast”, January 2014


Integrated Solution: Long-term opportunities

Short-term opportunity:

Connectivity products

$60B By 2016

$180B By 2016

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Long-term opportunity:

Data, analytics

*Source: Harbor Research, “Markets: Where Will Value Be Created In The Internet Of Things & People?”, April 7, 2014

Connectivity

Products

Data,

Analytics

$0

$20B

$40B

$60B

$80B

$100B

$120B

$140B

$160B

$180B


Integrated Solution Example: IBM working with Honda

Collect Data about battery performance in EVs on the road

Optimize data to improve performance of EVs and

increase customer satisfaction

Analyze massive amounts of operating data

Device performance

Maintenance contracts

Warranties / recalls

Customer service

Other Opportunities:

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Analyze and Optimize Unstructured Data Predicting irrigation needs based on conditions & weather

Collect 100B

sensor readings daily by 2020

Integrated Solution Example: OnFarm working with GA Flint River Basin

Reconcile and merge unstructured

data from multiple sources

Utilize multiple protocols and

technologies to build data from

devices

Collect Analyze Optimize

Crop

Weather Sensors

People

Other Opportunity Areas:

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Integrated Solution Example: Streetline working with City of Los Angeles

Collect Parking spot data (garage, street, campus)

Optimize Parking usage to reduce city congestion

and increase motorist satisfaction

Analyze Demand for parking by hour of day and

location

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End to End Technology &

Business Mentoring

Seek the expertise

you need to succeed.

Raise Capital

Get access to top VCs and funds.

Scale Globally

Go global with a partner network.

Ecosystem Value

Watson Talent Hub:

500+ subject matter experts Watson Developer Cloud:

1700+ engaged innovators

Watson Content Store:

$100M

Watson Ecosystem

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Ecosystem Example: Connected Car

Predicts part

failure

Pay as

you drive

Insurance

Smart

Home

Sends alerts

to vehicle

Smarter City

Events:

Anti lock brakes,

Air bag deployed,

Vibration detected,

Location change

Schedules appointment

with car owner Unlock

my car

Find

my car

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Ecosystem Example: Connected Car

Domain: Automotive

Ecosystem consisting of:

- Car manufacturers

- Parts suppliers

- Tire manufacturers

- Insurance company

- Emergency services

- Cell phone companies

- … more

Mentoring by:

Various participants in Ecosystem

Capital:

- VCs, car companies,

technology companies

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Ecosystem: Get tech mentoring and know how

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Ecosystem: Digital mentoring is a recipe for success

18


IoT Marketecture: Collect, analyze and optimize data

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Industry Centric Solutions

Design

Operate

Manage

Analyze and Optimize

Collect and Connect

Se

cu

rity / P

riva

cy

Device protocols

Assets, Products,

Infrastructure


TI

EEcosystem: - Mentoring

- Capital

- Scale Globally

Integrated Solution: - Collect, Analyze, Optimize

- Focus on Long-term Profit

What Really Matters?

The Right Focus: - Domain knowledge

- Drivers of Value

- Design

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