Presentation to a group of startups on the Internet of Things and what really matters

1. © 2014 IBM Corporation@Sandy_Carter#TiEcon
The Internet of Things:
What Really Matters?
Sandy Carter
IBM General Manager Ecosystem Development
& Social Business Evangelist
@Sandy_Carter#TiEcon

2. © 2014 IBM Corporation@Sandy_Carter#TiEcon2
$1BInvested by VCs in IoT
ventures in 2013
50%Funding for IoT
companies up
in 2013 over 2012
26BIoT units installed by 2020
$300B
Incremental revenue from
IoT products and services
by 2020
Investment and Opportunity in IoT is skyrocketing!
Sources: Gartner “Forecast: The Internet of Things, Worldwide, 2013”, November 18, 2013;
CB Insights, “Internet of Things Companies Haul In More than $1 Billion in Venture Capital in 2013“, March 18, 2014

3. © 2014 IBM Corporation@Sandy_Carter#TiEcon
T
I
E Ecosystem
Integrated Solution
What Really Matters?
The Right
Focus
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4. © 2014 IBM Corporation@Sandy_Carter#TiEcon
The Right Focus: 3D vision
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5. © 2014 IBM Corporation@Sandy_Carter#TiEcon
The Right Focus: Domain expertise
Opportunity Exists by Industry:
Automotive
Asset
Management
Energy /
Utilities
Healthcare
Home / Building
Automation
Retail
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Industrial
#1 #2 #3 #4
Source: IDC, “Worldwide Internet of Things (IoT) 2013–2020 Forecast: Billions of Things, Trillions of Dollars”, October 2013

6. © 2014 IBM Corporation@Sandy_Carter#TiEcon
The Right Focus: Drivers of value
Value-driven use cases
Target the right “buyer”
- Facility manager vs IT
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7. © 2014 IBM Corporation@Sandy_Carter#TiEcon
The Right Focus:
Design will be a crucial differentiator
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User-centered design
Focus on the outcome, not the device
- Innovation Experiments
- Great storyboards and wireframes
- “Hills” focus on the value to the user
not features and functions
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8. © 2014 IBM Corporation@Sandy_Carter#TiEcon
Data from Facebook
fed real-time onto
store racks
Social Hanger:
Domain, Driver of Value and Design
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9. © 2014 IBM Corporation@Sandy_Carter#TiEcon
$237B Opportunity $370B Opportunity$187B Opportunity
AnalyticsData Cognitive
Integrated Solution: Opportunity
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*Source: Gartner, “Worldwide IT Spending Forecast”, January 2014

10. © 2014 IBM Corporation@Sandy_Carter#TiEcon
Integrated Solution: Long-term opportunities
Short-term opportunity:
Connectivity products
$60B
By 2016
$180B
By 2016
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Long-term opportunity:
Data, analytics
*Source: Harbor Research, “Markets: Where Will Value Be Created In The Internet Of Things & People?”, April 7, 2014
Connectivity
Products
Data,
Analytics
$0
$20B
$40B
$60B
$80B
$100B
$120B
$140B
$160B
$180B

11. © 2014 IBM Corporation@Sandy_Carter#TiEcon
Integrated Solution Example:
IBM working with Honda
Collect
Data about battery performance in
EVs on the road
Optimize
data to improve performance of EVs and
increase customer satisfaction
Analyze
massive amounts of operating data
Device performance Maintenance contracts Warranties / recalls Customer serviceOther Opportunities:
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12. © 2014 IBM Corporation@Sandy_Carter#TiEcon
Analyze and Optimize
Unstructured Data
Predicting irrigation needs
based on conditions & weather
Collect
100B
sensor readings
daily by 2020
Integrated Solution Example:
OnFarm working with GA Flint River Basin
Reconcile and merge unstructured
data from multiple sources
Utilize multiple protocols and
technologies to build data from
devices
Collect Analyze Optimize
Crop
Weather Sensors
People
Other Opportunity Areas:
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13. © 2014 IBM Corporation@Sandy_Carter#TiEcon
Integrated Solution Example:
Streetline working with City of Los Angeles
Collect
Parking spot data (garage, street,
campus)
Optimize
Parking usage to reduce city congestion
and increase motorist satisfaction
Analyze
Demand for parking by hour of day and
location
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14. © 2014 IBM Corporation@Sandy_Carter#TiEcon
End to End Technology &
Business Mentoring
Seek the expertise
you need to succeed.
Raise Capital
Get access to top VCs and
funds.
Scale Globally
Go global with a partner
network.
Ecosystem Value
Watson Talent Hub:
500+ subject matter experts
Watson Developer Cloud:
1700+ engaged innovators
Watson Content Store:
$100M
Watson Ecosystem
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15. © 2014 IBM Corporation@Sandy_Carter#TiEcon
Ecosystem Example: Connected Car
Predicts part
failure
Pay as
you drive
Insurance
Smart
Home
Sends alerts
to vehicle
Smarter City
Events:
Anti lock brakes,
Air bag deployed,
Vibration detected,
Location change
Schedules appointment
with car owner
Unlock
my car
Find
my car
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16. © 2014 IBM Corporation@Sandy_Carter#TiEcon
Ecosystem Example: Connected Car
Domain: Automotive
Ecosystem consisting of:
- Car manufacturers
- Parts suppliers
- Tire manufacturers
- Insurance company
- Emergency services
- Cell phone companies
- … more
Mentoring by:
Various participants in Ecosystem
Capital:
- VCs, car companies,
technology companies
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17. © 2014 IBM Corporation@Sandy_Carter#TiEcon
Ecosystem: Get tech mentoring and know how
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18. © 2014 IBM Corporation@Sandy_Carter#TiEcon
Ecosystem:
Digital mentoring is a recipe for success
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19. © 2014 IBM Corporation@Sandy_Carter#TiEcon
IoT Marketecture:
Collect, analyze and optimize data
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Industry Centric Solutions
Design Operate Manage
Analyze and Optimize
Collect and Connect
Security/Privacy
Device protocols
Assets, Products,
Infrastructure

20. © 2014 IBM Corporation@Sandy_Carter#TiEcon
T
I
E
Ecosystem:
- Mentoring
- Capital
- Scale Globally
Integrated Solution:
- Collect, Analyze, Optimize
- Focus on Long-term Profit
What Really Matters?
The Right Focus:
- Domain knowledge
- Drivers of Value
- Design
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21. © 2014 IBM Corporation@Sandy_Carter#TiEcon
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