IoT a business perspective
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The document provides an overview of the Internet of Things (IoT), including its market landscape, business models, and technological drivers. It discusses the economic potential and anticipated growth of IoT, highlighting both business-to-consumer and business-to-business applications. Key challenges such as security, data protection, and the intricacies involved in launching an IoT startup are also addressed.
IoT a business perspective
- 1. IoT: A business perspective Carlos Perez, PhD, MSc July 19th 2017
- 2. What’s IoT? The market landscape Technologies supporting IoT Applications: B2B & B2C Business models Security, data protection and ethical issues What does it take to starting an IoT company? A business case: Johan sports What’s next? Outline
- 3. What’s internet of things (IoT) "The transformation of any physical object into a digital data product“ Matt Turck, VC Expectations: • $4 – 11 trillion in economic value by 2025 • 127 new devices connected every second • 21B objects connected by 2020 (6.4M in 2016) Source: Gartner, McKinsey NEW Actionable Information
- 6. The IoT hype cycle Drivers: • Data analytics • IoT services • Standardization & security • Cheap HW and development • Edge computing • Battery lifetime management 5-10 years to become mainstream
- 7. Technologies 1/2 Thing: Sensors + Arduino + raspbperry Pi Protocols: MQTT HTTP Transmission: Zigbee LPWAN (SigFox, LoRa) 5G Arduino UNO 17€ Raspberry Pi 3 35€ + Temperature sensor 5€ + = 57€ Integration cost (€/MM) SigFox extension board for Arduino 54€ Tx costs: 0.7 – 8€/year @140 msgs/day max = 54€ HW cost = 111€
- 8. Technologies 2/2 Data collection & analytics: Cloud based (€/h) Application: SaaS Mobile Data visualization: Existing solutions (€/user) Development cost (€/MM) ~ 25€/month/user
- 9. Applications: Overview B2C B2B Sorce: Gartner
- 10. Applications: B2C 4M objects sold in 2016 (63% of objects sold) $546M in value (2016) Drivers: • Easiness to use • Perceived usefulness • Price tag Trends: Toward the “Quantified Self” Health care & wellness Energy consumption mgt
- 11. Applications: B2B Drivers: • ROI • Security • Standardization & Integration Trends: • Deliver new insights leading to better decision reducing costs, increase revenues and reduce risks • Expected pay-back time: < 3 years Sorce: Gartner
- 12. Only 1 key success factor: The OS Those who own the OS, own the ecosystem and own the market Video link
- 13. Applications: Biomass CHP plant Power: 150MW Investment: 250M€ Operation lifetime: 20 years Expected ROI: 5-10% Yearly revenue: 120M€ Yearly costs: 84M€ IoT gain: 1% IoT gain: 840k€ IoT ROI improvement: ~3% 1% cost reduction translates into +3% ROI
- 14. IoT Business Models The industry is immature and hasn’t found yet a viable BM Data is not knowledge anymore, data is money The data is at the core of revenue streams: B2C, B2B…but not always visible to users Market startup (2012 – 2015) Market up take (2015 – 2020) Market maturity (2020 – 2025) Sell the device • Higher price tag than not connected objects • Setup is still not simple enough • Compatibility issues with other devices • Major security issues • € from one-shot sales Sell a new service • Appealing mostly to early adopters • ROI/benefits not proven • IoT services: Try and error • € from recurrent revenues Sell new offers from current services • Appealing to mass market • A Company owns , operates and manages the device • Devices becomes a comodity • Stardardization of interfaces • Data protection, ownership and management regulated • € from personalized services € €€ €€€€
- 15. Security: A major feasibility requiremet A major Go/No Go for IoT services Security by design: • HW • SW • Tx (no protection: 75% of devices) • Access to devices • Data storage • End to end applications Sensible personal data are fully exposed
- 16. Hacking a car Video link
- 17. Data protection & ethical issues B2C: Who owns the personal data: • The person • The device maker • The company operating the device Today, no legal framework defines who owns the data and the dos & don’ts A major condition for B2C mass market adoption 1996: HIPAA 1998: Safe Harbor 2013: FDA FTC 1995: EU directive 95/45/EC on the right to access and manage the collected data 1978: Loi Informatique et Libertés (Art 34) on personal data protection
- 18. What does it tale to start an IoT startup SW startup IoT startup MVP develoment approach YES YES Protoyping budget 100k€ >250k€ Prototyping delay A few weeks >24 weeks Mechanics NA 10-30k€ Electronics NA 10-20k€ Packaging NA 4.5-15k€ Parts sourcing & materials NA 8-10k€ Other engineering (e.g. security) Variable 10-20k€ Industrialization budget 500k€ >1 000k€ (5 000 units) Fabrication delay 24 weeks >14 weeks Certification delay NA 2-4 weeks
- 19. What does it tale to start an IoT startup SW startup IoT startup Logistics NA Very expensive Stock management NA Mandatory Commerciallization SaaS, Apps PoS, online Revenu sharing with retailers Optional Mostly mandatory Launch delay and required funding: SW startup: ~27 weeks, ~600k€ vs. IoT startup: >42 weeks, >1 250k€
- 20. Sport data analytics: State of the art System installed and never moved: A complex system High positioning accuracy based on GPS with correction: mm Very expensive: starting at 1M€ each
- 21. Sport data analytics: Johan Sports 1. Track your activity 2. Analyze results 3. Improve your game
- 22. Sport data analytics: Johan Sports Johan Sports video Sensor: A few tenths of € each Whole system: A few thousands of € each Open new markets: • professionals • amateurs • Individuals 20 clubs, 484 sensors deployed
- 23. What’s next Technology: • Bespoke processors • Data analytics on a $5 board • Making current objects smart • Energy harvesting Security & data protection: • Adoption of security by design • Regulation for data protection and ownership BMs: • IoT as a service openMSP430 µcontroller - FPGA
- 24. Sorce: SIGREF
- 25. The IoT trends: http://www.gartner.com/smarterwithgartner/7-technologies-underpin-the-hype-cycle-for-the-internet-of-things-2016/ Technology: https://store.arduino.cc/arduino-uno-rev3 Johan Sports http://www.johan-sports.com/ Catapult sports http://www.catapultsports.com/fr/ GPSports http://gpsports.com/ RESSOURCES
- 27. The most popular HW platforms Arduino Raperry Pi™ Intel® Galileo Intel® Edison Beaglebone Black UDOO Parallella