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Consulting Accelerating the adoption of Internet of Things “Where lies the future of IoT?”
Consulting
Acceleratingthe
adoption of
Internet of Things
“Where lies the future of IoT?”
Consulting
Acceleratingthe
adoption of
Internet of Things
Origen, hype and ¿disillusion? of IoT
Consulting
Acceleratingthe
adoption of
Internet of Things
Almost nobody doubts that the opportunity in IoT will be huge
Human$170B – $1.6T
Home$170B – $1.6T
Retail$410B – $1.2T
Offices$70B – $150B
Factories$1.2T – $3.7T
Worksites$160B – $930B
Vehicles$210B – $740B
Cities$930B – $1.7T
Outside$560B – $850B
…$3.9 trillion – $11.1 trillion
per year in 2025
Major applications
Health and fitness (monitor and manage illness); improve productivity / performance in the workplace
Energy management, safety and security, chore automation, usage-based design of appliances
Automated checkout, layout optimization, smart CRM, in-store personalized promotions, inventory shrinkage prevention
Organizational redesign and worker monitoring, augmented reality for training, energy monitoring, building security
Operations optimization, predictive maintenance, inventory optimization, health and safety
Operations optimization, equipment maintenance, health and safety, IoT enabled R&D
Condition-based maintenance, reduced insurance
Public safety and health, traffic control, resource management
Logistics routing, autonomous cars and trucks, navigation
(1) McKinsey Global Institute: “The internet of things: Mapping the
value beyond the hype” June 2015
(1) McKinsey Global Institute: “The internet of things: Mapping the value beyond the hype” June 2015
Consulting
Acceleratingthe
adoption of
Internet of Things
But most of the companies are asking us, Where is the money in IoT?
Source: Arthur D Little
High Volume, Low Margins,
Premium revenue
High Volume,
Mid-High Margins,
Data-volume revenue
High Volume,
High Margins,
Recurring revenue
Low-Mid Volume,
Mid-High Margins,
Recurring revenue
Smart Module
SmartObjects
Network Connectivity
Service Provider
Service Enablement
System Integration
Share Of Total Value
5 - 10% 10 - 20%15 - 20%30 - 40%10 - 20%
• Sensor
• Peripherals
• Actuator
• Controller
• Appliance
• Trucks
• Store
• Factories
• Connectivity
• M2M Data Plans
• Platforms
• Aggregation
• Analytics
• Apps
• Solution
build-up
• OT/IT
• Interfaces
• Service
provisioning
• Billing
• Consultancy
Low Volume,
Mid-High Margins,
Project revenue
Mid-High Volume, Mid Margins,
Premium revenue
5 - 10 %
• New
MVNO’s
Business investment will grow from $215 billion to $832 billion versus consumers at $72 billion in 2015 to $236 billion in 2020.
$6 trillion will be spent on IoT solutions between 2015 and 2020 (compounded).
Source: BI Intelligence, THE INTERNET OF THINGS 2015: Examining How The IoT Will Affect The World, November 2015
Consulting
Acceleratingthe
adoption of
Internet of Things
Is the in Industrial IoT or Consumer IoT?
Consulting
Acceleratingthe
adoption of
Internet of Things
For most analysts the money in IoT is in Industrial IoT
Consulting
Acceleratingthe
adoption of
Internet of Things
However, there are technological challenges
Consulting
Acceleratingthe
adoption of
Internet of Things
And ecosystem and alliances challenges
Consulting
Acceleratingthe
adoption of
Internet of Things
Industries collaboration is necessary to realise the potential of IoT
• Capture more data from devices and users to improve usability and engineering
• Delivering new capabilities and services
• Predictive maintenance to maximize device/equipment efficiency
Manufacturing Healthcare• Hospitals testing “smart
beds” to connected electrocardiograms
• Connected patient badge
• Improve the lives of patients
• Enable new insurance plans
• Assign score to customer behaviour
• Eliminate fraud
Insurance
Consulting
Acceleratingthe
adoption of
Internet of Things
Companies are moving from product-based offerings to service-based offerings by building platforms, expanding revenues and building stickiness
Source: PwC
Consulting
Acceleratingthe
adoption of
Internet of Things
The future lies in “The Internet of Things as Platform”
Source: http://sloanreview.mit.edu/article/platform-strategy-and-the-internet-of-things/
Consulting
Acceleratingthe
adoption of
Internet of Things
Thank you!
Questions?
CONTACT:FRANCISCO MAROTOCEO OIES [email protected]@fmarotob
