1.
IoT West
Navigating the IoT Universe

2.
Before we
begin…
• The IoT will never be truly standardized,
nor does it need to be.
• The IoT opportunity is worth even more
than the hype.

3.
Gartner’s Hype Cycle
Hype vs
opportunity

4.
Not
insurmountable,
but difficult to
resolve.
Many different
stakeholders
with different
objectives
(companies,
governments, end
users/networks).
Not only in the
technical area
changes in
mentality and
functionality
required at all
levels within
organizations.
There will be
winners and losers
in the IoT race.
Success depends on
the agility of the
players to adapt to
the new business
environment.
So what are
we waiting for?
Hurdles
Who?
Where?
Why?

5.
Winners and
losers

6.
Disruption in
the automotive
industry

7.
The shift to “Mobility as a Service”
3500
6700Today
Traditional automotive revenues New automotive revenues, 2030
Recurring
revenue
Aftermarket
One-time
vehicle sales

8.
What's the catalyst?
Electrification Connectivity
Autonomous
driving
Diverse
mobility
v
Triggered by
• Regulation/urban design
• Technology/business model
• Consumer preferences
CURRENT
AND
FUTURE
ENABLING
FORCES
TREND
(Source
Mckinsey
Global
Institute)
Slicker designs
Enhanced/cheaper
batteries
Increase in charging
stations
Regulations on
emissions
Connected car
trend
Regulation on
vehicle safety
Advent of 5G
Disruption from
tech companies
Cheaper
sensors/processors
Regulation across
states
Media hype
Interest from tech
giants and start-
ups
Car sharing
trend
Use of smart
phone apps
Incentives for
corporations and
consumers
Urban congestion
High profile of
shared mobility
providers

9.
Winners and losers
in the media
industry

10.
• Explosion in number and
variety of IoT devices
• Cheaper components (sensors,
connectivity)
• Investment in startups developing end-
to-end solutions
• Huge growth market, especially in the
B2B segment
• Lack of consistency and interoperability
• Lack of demand in the consumer
segment
• Concerns about security
• Changes needed at an organizational
and regulatory level
Where are we today?

11.
• Mission critical platforms
• Streamlined efficiency
• Cost control
• Improved user experience
• New revenue streams
What does IoT utopia look like?
This requires new mentality to
change business models, skill
sets, technical infrastructure,
processes and operations.

12.
Who is nearing
IoT Utopia?

13.
What are the main
hurdles to overcome?
Technical Organizational Regulatory
• Hurdle 1
Interoperability
•Hurdle 2
Security
• Hurdle 3
Business
Models
•Hurdle 4
Killer
Applications
• Hurdle 5
Government
Policy and
organizational
structure

14.
Interoperability
• Unlocks between 40%
and 60% of value
• Degrees of
interoperability -
technical or semantic
• IPv6 is needed to allow
for the huge increase
in devices that will
connect to the Internet
• Connectivity protocols
such as NB IoT for
cellular or LPWAN
offer different benefits
for different
applications
• No value in connecting
everything to
everything. The
challenge is to identify
where value can be
created from
connecting devices or
networks together
HURDLE 1

15.
Interoperability winners and losers
+ +

16.
Security
Spending on IoT security
HURDLE 2
IT security
budgets
$547million
in 2018 Spending on
IoT security 25%
10%

17.
Security winners and losers

18.
Business Models
• Shift from
products to
services
• Value added
services sold on
top of the core
product
HURDLE 3
• More difficult for
competitors to disrupt
• The IoT market will
shift from end-to-end
solutions to software
platforms and
analytics
• Creates an additional
recurring revenue
stream
• Ties customers in to a
long term relationship
they value

19.
Business model winners and losers

20.
Killer Apps
• Factories
($3.7 trillion per
year) - Operations
optimization,
predictive
maintenance,
inventory
optimization,
health and safety
HURDLE 4
• There is unlikely to be
one Killer App since
the market is so
broad
• Cities ($1.7 trillion per
year in 2025) - Public
safety and health,
traffic control,
resource management
(Source Mckinsey Global
Institute)

21.
Killer Apps winners and losers

22.
Regulatory
• Public policy: Some
apps require more
legislation than
others (e.g.
connected
vehicles)
• Who owns the
data?
HURDLE 5
• Control: consumer
reticence to deploy smart
objects in the home also
related to reluctance to let
machines take over
• Liability: who is liable if the
sensors or communications
malfunction and transmit
incorrect information?
• Cybersecurity/hacking:
The more things
connected to other
things, the greater the
security risk
• Privacy: what/how
much information can
be accessed?

23.
Regulatory winners and losers

24.
•Can all aspects of the IoT ever
be standardized?
•How can the issue of
interoperability be overcome?
• What can developers of IoT
applications do now to ensure
their devices can successfully
navigate the IoT universe?
How can
we move
forward?