From Disadvantages to Advantages with IoT, Cloud, and Big Data

Business Innovationswith Mobile Computing and IoTYen-Ping Shan2015 YPShan

IoT and Mobile are BigWe already know thatWide reaching impacts to almost all industries (Porter/Heppelmann)A lot of opportunities for technology breakthroughsOne CouldSell new tech with existing business modelEnhance existing business with new techCreate brand new businesses2015 YPShan

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How do we spot new businesses?Traditional angles: Competency, Customer, MegatrendsWith tech, typically 3 elements:TechnologyKiller appBusiness modelBusiness model is often importantCan we do better than epiphany or Slap & See?

2015 YPShan

Slap & SeeSlap a keyword on everything and see what sticksFor mobile and IoT, what keyword comes to mind?Smart phone, smart carSmart grid, smart cloudSmart planet/city, smart garbage canSmart sock, smart bra why stop thereSmart Diaper !@#%

2015 YPShan

I kid you not !

2015 YPShan

Emerging Patterns (Parmar, Gartner, et al.)Augment things to generate signal/data Use that to monitor, manage, optimize utilizationDigitize assetsMonetize: incrementally charge for usageSongs by the, engine, insurance

Why stop at the assets themselves? Can we do something about the signal/data they generate?

2015 YPShan

Emerging Patterns (cont.)Trade data More standards will be helpfulCombine data within and across industries

Why stop at the data? Can we sell the best practices too?Codify distinctive service Non-core functions CriticalBrand new

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Business Models (Girotra, Michel et al)What is business model?How organization 1. Create value 2. Capture value

WhatNarrow downLeverage competency to expand outWhatd you do if you were the Smart Diaper company? 2015 YPShan

The Answer is: I kid you not (again)

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Business Models (Girotra et al)WhatNarrow downLeverage competency to expand outWhatd you do if you were the Smart Diaper company?Hedge portfolioDemand fluctuations are negatively correlatedWhat if kids learn to control themselves early?What doesnt exist until nowE.g. System management of billions of things2015 YPShan

Business models (cont.)WhenDelay decisionsChange order or split it up (real-time data)WhoBetter informedBetter in manage risks or most to gainAdjust motivationsChange revenue formulaIntroduce time dimensionIntegrate incentives

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In Search of Business InnovationsDont underestimate Slap & SeeMore systematic ways exist, but none covers all anglesCrossing the passive/active boundaryWhen the things act instead of just watching Security, system management, etc. all pushed to the next levelHumans are part of the internet of things tooBoundary is more dynamic than you thinkThink entire system instead of just pieces: things, people, places, time2015 YPShan

Why do I Care?Combined patterns reshape industry boundaries ( Porter, et al.)Whos Honeywells biggest competitor?GE, Johnson Controls?

Where is the value? Unit or connected eco system?More importantly: its a platform Perfect e.g. of New Entrants in 5 forces Who else are entering?

2015 YPShan

Broad ImplicationsSoftware becomes critical (Iansiti, et al.)Software used to extend the boundaries Jeff Immelt Every industrial company will become a software company.Distribution and service networks disintermediated E.g. Tesla

There are many more 2015 YPShan

3rd Wave of the IT-Driven Transformation1st : automate individual activities2nd : coordinate & integrate across activities and companies3rd : IT becomes integral part of the product itselfTouches almost every industriesThe question is 2015 YPShan

Are You Ready?2015 YPShan

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2015 YPShanThank You