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Atanu Roy ChowdhurySenior Product Manager, Altiux Innovations Private Limited

atanu.roychowchury@altiux.comatanurc@post.harvard.edu

January 10, 2015

Who Will Buy IoT Products And Why?

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Practical Business Models for IOT

The IoT ecosystem

Demystifying IoT

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The Internet of ThingsWhat is the hype

about?

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Gartner's 2014 Hype Cycle for Emerging Technologies

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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?

6©The Connectivist , May 05, 2014

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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 architect

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Things in IoT NOT

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OMNISCENCETELEPATHY

SAFEKEEPINGIMMORTALITY

TELEPORTATIONEXPRESSION

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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.

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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 Mgmt Connectivity

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 Partners

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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 cities Smart

apparel

Energy savings

Connected cars

Connected calendars

Connected healthcareC

onsu

mer

s ar

e in

tere

sted

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

optimization

Worker safety

Ent

erpr

ises

are

inte

rest

ed 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 card

Application

server

Design Software stacks

Solution accelera

tion

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

ati

ng

an IO

T p

rod

uct

Ideation

Ecosystem Establishment

Implementation

Go To Market Sustenance

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Discovering new

services

Delivering Supercharge

d Services

Creating supercharge

d 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 c

om

ponent

ven

dors

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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. Busi

ness

best

pra

ctic

es

for

IoT S

olu

tions

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Practical Business Models for IOT

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Delivering an IoT product

IoT Product Compa

ny

Consumer

System Integrator

Enterprise

Service Provider

Innovation Partners

Support Partners

Content Providers

Implementation Partners

B2C

B2B

B2B2B

B2B2B

B2C

B2B

B2B2C

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The Internet of Business Models

Case Studies

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Grants and Capex Leased Opex

Mixed IP transfers

Simple Models

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Freemium Models

Source: http://2lemetry.com/pricing/ Source: http://www.tataindicom.com/mobile-internet.aspx

Whitelabelling

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Usage Based Models

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Activity Based Models Time Based Models

Presence Based Models Location Based Models

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Interaction Based Models Outcome Based Models

Priority Based Models Ecosystem Based Models

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Alternate Revenue Models E-Commerce Models

Gamification Based Models Data Based ModelsSource:http://www.thingworx.com/marketplace/

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

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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