Precision Capital Is it time to invest in IOT?

EE392B

Industrial Internet of Things

Stanford University

timothy.ck.chou@gmail.com

2

Objective

Table of Contents

• What is IOT Software? (Hint – It’s not IOP)

• Why do enterprises care?

• Early Investors

• Customers by Industry

• Startups

• Challenges

Internet of People (IoP) Applications

Things are Not People

© Lecida, Inc.

People

Internet of Things (IoT)

© Lecida, Inc.

Do

Learn

Collect

Connect

Things

People

Sensors

Things

IoT

Things

IoP

Things

Connect

IoT

Things

Connect

IoP

Collect

Connect

Things

IoP

Learn

Collect

Connect

Things

IoT

Learn

Collect

Connect

Things

IoT

Do

Learn

Collect

Connect

Things

Enterprises that Build Machines

Precision Combine

Improve Quality of Service

Precision Construction Reduced Cost of Service

Machine of the Future

Product + Service

Assisted Service

Machine as a Service

Early Investors

GE

GE Digital presentation– June 23, 2016

PTC

Do

Learn

Collect

Connect

Things

PTC

2013 - Acquired ThingWorks $112M. 2014 - Acquired Axeda $170M 2015 - Acquired Coldlight $105M 2015 - Acquired Kepware $118M (6x multiple)

Building

Building

Customers by Industry

Why does GE (Builder of Machines) care?

Seven Verticals

Power

Construction

Maintenance for 3300 classes of equipment $628M, $604M and $563M for the 2015, 2014 and 2013, respectively.

Healthcare

Healthcare

10 machines

Transportation

Agriculture

Oil & Gas

Building

Startups

IoP is not IoT

© Lecida, Inc.

Do

Learn

Collect

Connect

Things

IoP

Internet of Things (IoT)

Do

Learn

Collect

Connect

Things

Thing Management

Learn

Collect

High Performance Last mile

Thing Stack; Security

Call to action

• Book (cases)

45

www.precisionstory.com/class

Market Size: 2/3 of the global GDP

“During the past 15 years, the Internet revolution has redefined business-to-consumer (B2C) industries such as media, retail and financial services. In the next 10 years, the Internet of Things revolution will dramatically

alter manufacturing, energy, agriculture, transportation and other industrial sectors of the economy which, together, account for nearly

two-thirds of the global gross domestic product (GDP). It will also fundamentally transform how people will work through new interactions

between humans and machines.”

http://www3.weforum.org/docs/WEFUSA_IndustrialInternet_Report2015.pdf

Third Generation of Enterprise Software

Do

Learn

Collect

Connect

Things

IoP