Businesses have seen multiple DNA-shifting technology revolutions in the past century, and today, we're in the midst of the fourth: the arrival of connected devices. It's becoming more and more apparent that businesses will need to adapt to survive. With the onset of the connected device revolution, businesses are having to transform the way they operate, and even more challenging - change the way they are structured. Key Takeaways: • What's the real value of connected devices for businesses? • What does the infrastructure and architecture of a connected device look like? • How will this revolution necessitate the transformation of businesses structures and operations?

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How to prep your business for success in the connected device revolution
IoT & BUSINESS
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2. JOE SALOWITZ
Director at Universal Mind
@joesalowitz
bit.ly/momoGR

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AGE OF MANUFACTURING

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CONNECTION COMES TO BUSINESSES

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CONNECTION COMES TO CONSUMERS

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CONNECTION COMES TO PRODUCTS

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THE TIME IS NOW
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Forbes
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Over the next three years, every major
manufacturer will have to include connectivity in its
business product lines or logistics. Consumers will
demand it soon, but Wall Street will demand it first.

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Automotive
TESLA
Appliance
Whirlpool
Energy
Consumers Energy
Furniture
Autonomous
Health
Brighter
Insurance
Helium
Homes
Nest
Property Management
Stout
Cities
Smart Cities
Retail
Macy’s

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The anatomy of a connected device

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Monitoring
Control
Optimization
Autonomy

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External Information Sources
Integration with Business Systems
Lots of Software, Rules & Analytics Engine,
and a Complex Data Database
Product Cloud
Network Communications
Connectivity
Hardware SoftwareProduct
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For businesses, IoT requires a shift in
mindset because they will create
and capture value differently.
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Lots of Software, Rules & Analytics Engine,
and a Complex Data Database
Network Communications
Hardware Software
Integration
‣New networks, cloud services,
and data center equipment.
‣New applications and
platforms.
‣New integration points with
other business systems.
‣New security protocols.
Information Technology
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Manufacturing
Traditional products need
to smarten up, and new
products need to be created.
Teams now need to
collaborate with Software and
IT and adapt processes to
maintain products long-term.
One of the world leaders in traditional smoke
and CO2 sensing alarms for decades, First
Alert now offers an IoT-enabled product line.

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People are putting sensors on the machines
that do the manufacturing, which allows
them to process the data to see something
trending toward poor quality
Nick Kramer, Senior Director of Data and Analytics at SSA & Co
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PR & Marketing
New feature updates to
connected hardware
need to be remarketed.
Businesses even need to
be prepared to manage
customer backlashes.
In December 2015, Philips Hue pushed a
firmware update to it’s devices that locked
out competition from being compatible.

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Marketers can now get very specific
data on individual customers, allowing
for a one-on-one relationship with
each customer that can last a lifetime
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Sales
Enable recurring revenue
through value-adding
services, subscriptions,
apps and more.
Voyce, a wellness manager for dogs, is a
$199 device. But it also offers a $9.50/mo
subscription to access your dog’s data.
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When you understand that customer
really well, you move from it being
a one-time transaction to selling
them a product as a service
Ryan Lester, Director of IoT Strategy at Xively
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Customer Support
Proactive monitoring
and triaging over reactive
diagnosis becomes the norm
Nest customers can receive custom
diagnostic updates to their devices
from customer support as needed.

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Imagine a scenario where the dryer
company books a service appointment
for you as soon as your machine
self-diagnoses a potential issue
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Human Resources
Tracking activity and engagement
to improve performance.
Attracting skilled IoT specialists to
support the new infrastructure.
Building internal apps
to increase engagement.

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IoT will generate an unprecedented amount
of data associated with people and how
they perform their jobs on a daily basis
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The common thread is data

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Biggest challenge facing businesses
is in building the systems to gather,
interpret, maintain, and utilize data
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Almost all companies agree that making
data actionable is important, but…
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Only 51%
are actually collecting data
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Almost all companies agree
that making data actionable is
important, but…

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Almost all companies agree
that making data actionable is
important, but…
Only 51%
are actually collecting data
And less than 30%
are
actually analyzing it and
m
aking it actionable
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MANUFACTURING MARKETING SALES
CUSTOMER
SUPPORT
IT R&D
FINANCE HR
CEO
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MANUFACTURING MARKETING SALES
CUSTOMER
SUPPORT
IT R&D
FINANCE HR
CEO
DATA
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It’s estimated that by 2017, as many
as a quarter of all large firms will
have dedicated data units
Gartner
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MANUFACTURING MARKETING SALES
CUSTOMER
SUPPORT
IT R&D
FINANCE HR
CEO
DATA
DEV-OPS
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MANUFACTURING MARKETING SALES
CUSTOMER
SUPPORT
IT R&D
FINANCE HR
CEO
DEV-OPS CUSTOMER SUCCESS
DATA
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Winners will know they’re winning long
before losers find out they’re losing.
HBR

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Lots of Software, Rules & Analytics Engine,
and a Complex Data Database
Network Communications
Hardware
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IoT isn’t about the devices,
it’s about the infrastructure.
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2
Get into the game by focusing
internal. Have operations and facility
managers use smart things to
optimize internal systems.
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3
Move value creation
toward service-based
revenue models.
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Make data actionable
and accessible.
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MANUFACTURING MARKETING SALESR&D
FINANCE HR
CEO
5
Dedicate personnel to managing
data, customer success, and
ongoing maintenance.
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47. JOE SALOWITZ
Director at Universal Mind
@joesalowitz
bit.ly/momoGR