Atanu Roy Chowdhury

Senior Product Manager, Altiux Innovations Private Limited

atanu.roychowchury@altiux.com

atanurc@post.harvard.edu

January 10, 2015

Who Will Buy IoT Products And Why?

1

Practical Business Models for IOT

The IoT ecosystem

Demystifying IoT

2

The Internet of ThingsWhat is the hype about?

3

Gartner's 2014 Hype Cycle for Emerging Technologies

4

Thing(s) + IT = Local Function +

Measurements

Instantaneous

Historical

Supercharged Function

$$$New Services$$$

The value of the digitally charged thing in IoT comes from an extension of the local function with new digital services

Why the IoT hype?

5

©The Connectivist , May 05, 20146

The Hypeis about the opportunity to monetize services from a very large number of

connected devices.

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The Internet of ThingsWhat really is it?

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Defining the Internet of Things

“IoT is just M2M reincarnated with connectivity” –a manufacturing client

“IoT is a hyper-connected graph with a disproportionate ratio of leaf nodes” -a security researcher

“IoT is the interconnection of uniquely identifiable embedded computing devices within the existing Internet infrastructure”-Wikipedia

“IoT is a self organizing system of Internet connected peripheral systems providing new and improved converged services” –our architect9

Things in IoT NOT

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11

OMNISCENCETELEPATHY

SAFEKEEPINGIMMORTALITY

TELEPORTATIONEXPRESSION

Characteristics of IoT systems

All nodes have computation and communication capabilities of varying degrees.

There are several intermediaries between communication end points who may use different protocols across all layers of the OSI stack.

Any node is uniquely addressable from any other system.

Any node can offer a service. Additionally it can discover and consume any service offered by another node.

Nodes and services do not exist in isolation.

Any node can align itself with a logical network. 12

The Internet of ThingsWhat’s different about it?

Edgeware, Ecosystem and Entrepreneurship

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Device Mgmt

Access Mgmt

Compute Mgmt

Protocol Mgmt

Data MgmtConnectivity

Mgmt

Edgeware

Peripheral Devices

Edge Gateways

Field Area Gateway

Enterprise Gateways

Storage Systems

Data Processing

Systems Applications Workflows

Operational Technologies Information Technologies

Event based actions on real time high velocity data Query based action on non

real time high volume data

IoT Edgeware*

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Ecosystem

Wireless photo

printing

Scan to mail Predictive maintenance

Content delivery

Remoteprinting

Social Integration

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Entrepreneurship

© Claro Partners16

Can provide high resolution real-time information.

Can interconnect M2M silos for greater visibility.

Can interoperate and leverage common infrastructure.

Can provide low cost solution for solving a specific consumer pain point.

Can improve traceability, resource utilization, health and safety.

The Value Proposition for Customers

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Can handle multiple business models.

Can handle multiple deployment models.

Can create new products and services to diversify revenues.

Services and devices can be created by developers.

The Value Proposition for Developers

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The Internet of ThingsSome Examples

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Thing tracking

Home surveillance

Connected homes

Smart wearables

Infotainment Multimodal interaction

Digital assistants

Smart lighting

Smart parking

Smart buildings

Smart citiesSmart

apparel

Energy savings

Connected cars

Connected calendars

Connected healthcareC

on

su

mers

are

inte

reste

d in

…

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Predictive maintenance

Loss prevention

Asset utilization

Inventory tracking

Disaster planning and

recovery

Downtime minimization

Energy usage optimization

Device performance effectiveness

Network performance management

Capacity utilization

Capacity planning

Demand forecasting

Pricing optimization

Yield management

Loading balancing

optimizationWorker safety

En

terp

rise

s a

re in

tere

ste

d in

…

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Practical Business Models for IOT

The IoT ecosystem

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Not all IoT products are Things

CE product Line cardApplication

serverDesign

Software stacks

Solution acceleration

Integrated solution

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Market discovery

Product design

Concept validation

Product architecture

Product engineering

Contract manufacturing

Application Hosting

Content provider

Data connectivity

SLA definition

Prototyping

Ecosystem validation

Implementation

Integration

Alpha testing

Production

Distribution channel creation

Installation and commissioning

Market outreach

Revenue Realization

After sales support

Product maintenance

Cre

atin

g an

IOT

pro

du

ctIdeation

Ecosystem Establishment

Implementation

Go To Market

Sustenance

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Discovering new services

Delivering Supercharged

Services

Creating supercharged

services

Creating Smart Things

IoT company

Silicon providers

ODM/OEM

CMS

PES

SI

Connectivity providers

Content providers

Application hosting service

providers

Marketers

Thought leaders

Customers

Service providers

Distributors and retailers

Installation and commissioning

After sales

Actors in the IoT ecosystem

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IoT

com

po

nen

t ve

nd

ors

26

The Internet of ThingsWhat are the pitfalls?

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The cost of data acquisition is not homogeneous.

There will be diversity in sensors, devices and vendors.

Business requirements can exceed technology reach.

Plan for device failures and handle them.

Ensure that products are certified.

Security is not an afterthought.

Technical best practices for IoT Solutions

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Device costs are a function of volumes, functionality and robustness.

There is a creepiness factor with IoT solutions.

New services require training.

Market potential is hard to guesstimate.

Know your competition.

Understand local regulations and tax regimes.

Process changes will be resisted.

Disgruntled customers seldom return. Bu

sin

ess

bes

t p

ract

ices

for

IoT

Solu

tio

ns

29

Practical Business Models for IOT 30

Delivering an IoT product

IoT Product

Company

Consumer

System Integrator

Enterprise

Service Provider

InnovationPartners

Support Partners

Content Providers

Implementation Partners

B2C

B2B

B2B2B

B2B2B

B2C

B2B

B2B2C

31

The Internet of Business ModelsCase Studies

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Grants and Capex

Leased Opex

Mixed

IP transfers

Revenue sharing

Simple Models

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Freemium Models

Source: http://2lemetry.com/pricing/

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Source: http://www.tataindicom.com/mobile-internet.aspx

Whitelabelling

Usage Based Models

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Activity Based Models

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Time Based Models

Presence Based Models Location Based Models

Interaction Based Models

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Outcome Based Models

Priority Based Models Ecosystem Based Models

Alternate Revenue Models

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E-Commerce Models

Gamification Based Models Data Based Models

Source:http://www.thingworx.com/marketplace/

Source: http://www.microsoft.com/en-us/server-cloud/internet-of-things.aspx

Application mashup models

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SummaryThis is an introductory discussion on IoT and its ecosystems, both of

which are in its nascent stages.

There is significant scope for entrepreneurs to create new IoT devices and services.

Both end consumer and enterprises are willing to pay for IoT solutions

BUT

There must be a demonstrable value addition over existing services, at an acceptable price point, that can result in resource optimization, improved traceability or better health and safety or even enhanced social presence.

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Thank You

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