Is the current Internet of Things the new bubble? I don't think so, because we have seen previous hype cycles with Smart Phones and in that market the size of the hype was underestimated. The IoT industry will be massive if it can resolve issues around User Value, Privacy, and Technology Standards. Change the problem to connect users vs connecting things.

1. Sce Pike
Chief Experience Officer @ Citizen, Inc.
twitter: @spike75, @pluscitizen
pluscitizen.com
Internet of Things
The Next Bubble?

2. SCE PIKE & CITIZEN 2014 CONFIDENTIAL. ALL RIGHTS RESERVED. ©@spike75
The promise of
Internet of Things
is huge.
2

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1. It’s easier to make hardware
2. It’s easier to control things with
phones
3. It’s easier because the ecosystem
is in place
- @mattturck, FirstMark Capital
How did we get here?

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Projected Number of Connected Objects in 2020
How much is just hype?
4
Cisco’s
prediction
April 2010
Intel’s
prediction
Mar 2009
Morgan Stanley’s
prediction
Oct 2013
15B
50B
75B

5. SCE PIKE & CITIZEN 2014 CONFIDENTIAL. ALL RIGHTS RESERVED. ©@spike75
How much is just hype?
5
IDC’s
prediction
Oct 2013
GSMA’s
prediction
Feb 2012
Cisco’s
prediction
Jan 2014
2.5T
8.9T
19T
Projected Revenue in 2020

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Previous Hype
6

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Hype Realized
7

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Where we are today is only at
Connected Things.
!
Where we can go tomorrow is
going to be so much more than
just Connected Things.

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but this future
will never happen…
9

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… at least not without these:
Tech
Standardization
Privacy
Resolution
Value to
Users

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USERS

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think do
Start with users since they will
be the drivers of adoption of IoT.
feel
SCE PIKE 2014 CONFIDENTIAL. ALL RIGHTS RESERVED. ©

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why? how?
But the problem is,
current solutions are tech-centric
what?
SCE PIKE 2014 CONFIDENTIAL. ALL RIGHTS RESERVED. ©

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Smart Home = Consumer IoT Battleground

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Early Adopters
in 20s and 30s.
Rents, can’t
retrofit.
DIY is deterrent Can’t afford
high cost to
experiment
These issues will slow the adoption of
Internet of Things which negates its value
CONFIDENTIAL. ALL RIGHTS RESERVED. ©
The consumer’s reality

16. SCE PIKE & CITIZEN 2014 CONFIDENTIAL. ALL RIGHTS RESERVED. ©@spike75
Users want access to value vs ownership

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Current cost of ownership
17
Lowe’s kit:
$179-299+
$9.99/mth subscription
Belkin WeMo:
$50-80/plug
Comcast kits:
$99-399+
$29.95/mth subscription

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18
Change the problem,
stop connecting things and
connect people instead
SCE PIKE 2014 CONFIDENTIAL. ALL RIGHTS RESERVED. ©

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Identify who you want to
connect and why, then how.

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The elephant in the room.

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PRIVACY

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Privacy is all the rage

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“Right to be forgotten”
!
Good idea
or
Bad idea?

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“Right to be forgotten”
!
Gives a lot of
power to search
engines like Google.

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Google gets to decide now
25
Take it down!
Violates privacy
Journalistic,
artistic, or literary
exception

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But in the US, you get different results
26
Take it down!
Violates privacy
Journalistic,
artistic, or literary
exception

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Is your privacy really protected
if Google gets to decide what is
private?

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Or are we just giving more power
to the Digital Oligarchs?

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What if we could own and manage
our own data and profiles?

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Managing preferences for
75 billion devices will be beyond
our comprehension.

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Instead, what if we had an
Artificial Intelligence that
managed it for us?

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her
AI AGENT
This AI or Privacy Agent would
know you, who you are and your
preferences.

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Abilities
Goals/Preferences
Prior Knowledge
Observations
Past Experiences
Actions
Environment
her
AI AGENT

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TECH STANDARDIZATION

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Step 1 - Get the world online
Step 2 - Control things from online
Step 3 …
The evolutionary steps

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Saying “Hello” M2M Style
36
Our
Product
Other
Product
“How ya doin?”
“Que Pasa?”

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Bluetooth
Wi-Fi
37
Our
Product
Other
Product
Saying “Hello” M2M Style

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Nest API
Apple HomeKit
38
Our
Product
Other
Product
Saying “Hello” M2M Style

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Our
Product
Other
Product
Zigbee
Zwave
Saying “Hello” M2M Style

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Intel Open
AllJoyn
40
Our
Product
Other
Product
Saying “Hello” M2M Style

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Current Technology Landscape
41
COMMS
NETWORK
HARDWARE
OS/PLATFORM
SOFTWARE
DATA
MACHINE LEARNING
PRINTED ETHERNET POWERLINE RFID
ANT
NFC 6LoWPAN ZIGBEE Z-WAVE UWB
BLUETOOTH WIFI DASH 7 LICENSE-FREE SPECTRUM WIMAS WEIGHTLESS
2G/GSM/EDGE,CDMA, EVDO
3G-GPS/GPRS CELLULAR 4G/ LTE LTE ADVANCED
IPv4 IPv6 UDP TCP DTLS
WIRELESS SoC ARDUINO RASPBERRY PI BEAGLEBONE BLACK
RIOT TINYOS CONTIKI NANO-RK LITEOS ALLJOYN SAPPHIRE EMBER NITROGEN FREERTOS ABACUS
REST SOAP WEBSOCKET CoAP XMPP AMQP MIHINI/M3DA DDS
MQTT DTLS ROLL LLAP LWM2M SSI IOTDB SENSORML
THINKWORX EVRYTHNG OPEN.SEN.SE AXEDA BUGSWARM NIMBITS SENSORCLOUD THINGSPEAK
GROK AZURE MACHINE LEARNING LIONSOLVER MATLAB NUEROSOLUTIONS RAPIDMINER SAS ENTERPRISE MINER STATISTICA

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Step 1 - Get the world online
Step 2 - Control things from online
Step 3 - Get things to talk to each
other
Step 4 - …
The evolutionary steps

44. SCE PIKE & CITIZEN 2014 CONFIDENTIAL. ALL RIGHTS RESERVED. ©@spike75
The next step
44
AUTOMATE
Planned Patterns
ADAPT
Breaks in Patterns
ANTICIPATE
Learn New Patterns

45. SCE PIKE & CITIZEN 2014 CONFIDENTIAL. ALL RIGHTS RESERVED. ©@spike75 45
Step 1 - Get the world online
Step 2 - Control things from online
Step 3 - Get things to talk to each
other
Step 4 - Make things intelligent
The evolutionary steps

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When we provide these things:
Tech
Standardization
Privacy
Resolution
Value to
Users

47. SCE PIKE & CITIZEN 2014 CONFIDENTIAL. ALL RIGHTS RESERVED. ©@spike75
The opportunity of
Internet of Things
will be truly compelling.
SCE PIKE 2014 CONFIDENTIAL. ALL RIGHTS RESERVED. ©
47

48. Sce Pike
Chief Experience Officer @ Citizen, Inc.
twitter: @spike75, @pluscitizen
sce@pluscitizen.com
pluscitizen.com
Thank You.