1. There Is No Internet Of Things
Sarah Rotman Epps, Senior Analyst
Forrester Research
@srepps
Things Vint Symposium 2013
June 11, 2013

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What do you mean, “there is no
Internet of Things?”

3. There Is No Internet Of Things, Yet
Sarah Rotman Epps, Senior Analyst
Forrester Research
@srepps
Things Vint Symposium 2013
June 11, 2013

4. “Smart” Things today are
fragmented, with limited utility

5. We’re starting to build systems of
engagement, so Things can make us smarter
Image source: http://www.nba.com/warriors/sf
• Network infrastructure
• Sensors
• Content streams
• Data analysis
• APIs
• Mobile devices
• Public displays
• Real-time player
biometrics
• “You be the coach”
• Stadium effects
coordinated with
audience biometrics
• “Uber” for concessions
• Parking and taxi
streamlining

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Systems of engagement function like an
organism
› Imagine connected devices as organs
› Each organ on its own isn’t that smart
› Intelligence comes from the entire
organism functioning together
› Data is the lifeblood

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SFpark’s sensor system is smarter than
individual meters—or people using them
› 14% fewer parking citations
› 27% more net meter revenue
› 11% more net revenue overall
(meters + citations)
Source: http://sfpark.org/wp-content/uploads/2012/01/SFpark_New_Meter_Evaluation_12_12_2011.pdf

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Raytheon’s sensor-connected screws prevent
people from creating manufacturing defects
Image source: http://www.businessweek.com/articles/2012-12-11/raytheons-missiles-now-made-by-robots

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Disney’s MagicBands are only part of the
real magic
› The wristband is part of a larger
system: MyMagic+
› Knits together trip
planning, CRM, asset
management, and in-park
experience
› Increases revenue, reduces
inefficiencies, and improves the
guest experienceImage source: Disney (http://disneyparks.disney.go.com/)

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Beam’s toothbrushes get a lot smarter
when they connect to Delta Dental of KY
Image source: Beam (http://www.beamtoothbrush.com/)
› Internal and external pilots to
combine behavioral data with
actuarial models
› Their goal is to create better
models and offer more competitive
pricing while increasing revenue

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HermannMiller uses sensors in its chairs
to create a services business
Space Utilization Service mote
Image source: Herman Miller (http://www.hermanmiller.com/)

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› Increase revenue
› Reduce inefficiencies
› Improve customer experience
› Build competitive advantage
› Shift toward services
Systems of engagement let you harness
the business value of Things

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Okay, but how big will Things get?

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Cisco forecasts 50B connected Things
by 2020—up from 10B today
Source: Cisco IBSG, 2013 http://www.cisco.com/web/about/ac79/docs/innov/IoE_Economy.pdf

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McKinsey forecasts Things’ economic
impact will exceed $2.7 trillion by 2025

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I like this sentiment best:
“Trying to determine the market
size of the Internet of Things
is like trying to calculate the
market for plastics, circa 1940.”
Michael Nelson
Former director of Internet Technology at IBM

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So who wins?

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There won’t be just one…
› Business model
› Connectivity protocol
› Set of power players

19. There Will Be Internets Of Things
Sarah Rotman Epps, Senior Analyst
Forrester Research
@srepps
Things Vint Symposium 2013
June 11, 2013

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Source: http://proteusdigitalhealth.com/technology/
Is this device…
Proteus Digestible
Sensor

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In the same market as this one?
Craftsman AssureLink
Internet-Connected
Garage Door Opener

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Or this one?
Lapka
Radiation
Sensor

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There will be Internets of Things
› Things today are fragmented and limited in utility
› Systems of engagement will propel Things to yet
unimagined importance
› But even when the market is enormous, it will
still be heterogenous

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What it means
› Things, and the systems of engagement that
activate them, will impact every industry
› Every business can seize competitive
advantage by harnessing the power of Things
› But so can your (new) competitors: Expect
competition from adjacent markets

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Recommendations
› Think big
› Think sideways
› Think systems, not just Things

26. Thank you
Sarah Rotman Epps
srotman@forrester.com
Twitter: @srepps