carl ford on iot market opportunity

The IoT ElephantHow Huge is Huge!

CARL FORD, CEO CROSSFIRE MEDIAPRODUCER DEVCON5 & IOT EVOLUTION

Simple Agenda

• A Guided Tour of IoT

• Why Companies Use IoT

• A Survey Of IoT Users

• How to Get Involved

IoT Over Hyped or Under ‘Huged’ ?

The Blind are Leading

IoT One With Everything

$19 Tby

2020!

50 Bby

2020!

This is the largest growth in the history of humans,” says Bryzek known as “the father of sensors”.

Senior Citizen Wearables

IoT Works For Me!

Smart Home

Shared As A Service

Shared As A Service

IOT Vertical Markets

IOT Verticals

Industrial Internet

2% Solution

Reality CheckThis represents 90% of the $17

T Forecast

Includes; Manufacturing,

3D Printing,

Industrial IoT

BIG DATA & ANALYTICS$266 B

BIG DATA IS HUGE

2003 2005 2015 20200

5

10

15

20

25

30

35

Population (Billion) Connected Devices (Billion)

4 ZB

44 ZB

Source: IDC 2015

We Are Out Numbered

Perspective on Big Data1 Trillion Drops of Water

Enterprises use IoT for:– Compliance

– Healthcare HIPPA– Trucking elogs– Cold Chain / Food Safety

– Efficiency– Industrial – Field Reporting– Surveillance

– Profit– Jet Engines sold by thrust.– Point of Use Distribution– Shared Assets

Survey Results

James Brehm surveyed our audiences to learn where they are in IoT deployment. • Over 100 different companies participated

• 61% had already deployed an IoT Solution only 10% had nothing planned

• Two to One B2B vs. B2C

65% 32%

Survey Respondent Profile

14

31%

22%

How many employees are in thecompany you work for?

<1010 - 49 14%

50 - 499 18%500 - 999 6%

1K - 5K 9%5K+

Research12%

ProductManagement

10%

Marketing9%

Sales / BusinessDevelopment

18%

Executive21%

Student2%

System Integrator4%

Other8%

Architect8% Business

Operations3%

BusinessData Analyst Stakeholder

2% 2%

What isyourPRIMARYrole in yourcompany’sIoTprojects?

22%

Many Years Of 1 - 2 Years OfIoT Experience IoT Experience

<1 Year Of IoTExperience

8%

Limited IoTExperience

4%No IoT

Experience

How long have you been working onIoT projects?

34%

Employee-Executive

39%

25%Employee -Individual

Contributor17%

Consultant

13%Other6%

What is your job function?Employee

–Manager

17%

12%

5%

EMEA

AP

LatinAmerica

Geographic LocationNorth

America

n=130

Improve A BusinessProcess

Why Are Companies Working on IoT?

3

20%

60%

11%

12%

Reduce Costs

Grow The Business

Keep Up WithCompetitors

Regulation &Compliance

What is the purpose of your company’s IoTprojects?

24%

2

60%of Companies working on IoT to

Grow Revenue & Profits

n=122

45% Home Security

5

39%

38%

36%36%

35%

34%

29%

29%

28%

EnergyManagement

Asset TrackingBuilding

AutomationFleet

ManagementConnected Car

HomeAutomationAgriculture

Smart Meters

Business Security& Surveillance

27%27%

24%

22%21%

20%

19%

17%

15%12%

11%

RetailSecurity /Defense

Digital Signage

Natural ResourceMonitoring

Vending

Fitness / Wellness

DronesUsage BasedInsurance

Other

What IoT ApplicationsAre Being Developed & Deployed?

What use case / industry does yourcompany’s IoT solution address?

IndustrialMonitoring

Healthcare 45% Wearables

Nearly½ working on Healthcare &Industrial Monitoring Applications

4

More than 1/3 working on Telematics

n=113

Perceived Challenges

7

64%

51%

27%

22%

31%

44%

14%

16%

14%

Interoperability

Hardware Integration

Network Connectivity

Cost

Can’t Prove the ROI

Data Storage & Analysis

Maintenance

Other

What are the barriers to growth of IoT?

Security

Security: Proliferation of connected devices creates newchallenges for physical & cyber security

Interoperability & Hardware Integration:Notruly intelligent systems if things can’t communicate with each

other. Need focus on Ease of Use

Barriers address the need for industry standards

Can’t ProveThe ROI: Need strong business casedevelopment to forecast incremental revenues & cost savings

Cost: Up-front & recurring costs can scare off potentialbuyers

Need to get past the hype and focus on how IoT benefitsthe bottom line

Network Connectivity,Maintenance,& DataAnalysis rank lower on the list of barriers to growth but callcontribute to the complexity that is IoT

n=108

Connectivity for IoT

8

44% 41%

25%19% 19%

11%

Wi-FiCellular Bluetooth Ethernet ZigbeeSatellite LPWA Other

What types of connectivity for yourcompany's IoT Solutions?74%

69% 70%+Using Wi-Fi or Cellular for IoT

~40%Using Bluetooth or Ethernet

<25%Zigbee, Satellite, LPWA, Other

n=108

10%

Measuring IoT Success

9

37%

Goals but noquantifiablemetrics or

KPIs23%

Goal is tolearn &

improve IoTexpertise23%

How does your company measure the success ofIoT projects?

Other6%

We do notmeasure

success ofIoT projects Quantifiable

Metrics& KPIs

<40%of Companies have quantifiable

metrics & KPIs to measure success

n=107

12

41%

22%

23%

15%

Capture, analyze, store, & makeinformed & timely decisions on data

Capture & store some data but don'tdo any analysis

Analyze data in real-time to makedecisions

Don’t captureor store any data

Maximizing The Value From DataWhat does your company do with data from IoT?

22%Not DoingAny DataAnalysis

Only41%Making Informed &Timely

Decisions on Data

n=102

13

Significantlyimprove52%

No Impact13%

Nice tohave but

not critical35%

Maximizing The Value From DataWould better analytics improve the ROI of yourIOT project?

87%Link Improved

DataAnalytics toIncreased ROI

n=102

Summary Results

15

Top IoT ApplicationsIndustrial MonitoringHealthcareEnergy ManagementAssetTrackingBuildingAutomationFleet ManagementConnected Car

45%45%39%38%36%36%35%

73%Of respondentsat companies

currently active in IoT

60%Of companies working on

IoT to GrowRevenue & Profits

68%Of companies working on

B2B IoT Solutions

<40%of Companies have

quantifiable metrics & KPIsto measure IoT success

70%+UsingWi-Fi or Cellular

For Connectivity

CompaniesPerceivedAsIoT Leaders

Challenges to Growth in IoT

SecurityInteroperabilityCan’t Prove the ROICostHardware IntegrationConnectivity

64%51%44%31%27%22%

Parting Thoughts• Pareto Paradox

– 80% of the Huge Noise about IOT will be Consumer driven– 80% of the Huge Value will be in the Enterprise

• Download my Whitepaper:Connected Home & Building Market Forecast: http://www.connectedhomecon.com/west/

• Download the surveyhttp://www.iotevolutionexpo.com/west/iot-industry-report.aspx

• Reach out to me Carl@crossfiremedia.com