My Dreamforce 2014 presentation on the strategic use of Internet of Things to drive competitive advantage. Enterprises that build their ecosystems and network effects now have a chance to build long-term relationships with their customers through highly connected new products and services. Here's how and why to get there.

1. IoCP:
Ecosystems of networks and devices
as the next competitive advantage
Dion Hinchcliffe
Chief Strategy Officer | Adjuvi
@dhinchcliffe

2. Dion Hinchcliffe
Chief Strategy Officer
@dhinchcliffe

3. Vision: Everything that can be connected will be connected
What will do you with this power?
@dhinchcliffe

4. Competitive advantage today is about being connected
• The Internet of Things
– Every non-trivial (and many trivial) object is going to be
@dhinchcliffe
connected to our networks
– 50 billion objects by 2020
– All your customers
– All their devices
– Value moves from periodic engagement to constant
engagement
– Required deriving insight and analytics
• The Internet of Customers
– Connected relationships in scale
– Through all devices and channels
– Enabled by platforms and applications
• That orchestrate, analyze, and provide insight

5. @dhinchcliffe
Internet of Connected Products (IoCP) = IoT:
Connecting all devices and all channels
Channels
Devices

6. Internet of Customers:
When IoT passes through customer touchpoints
@dhinchcliffe
Customer Touchpoints
IoT
Cloud and
Providers

7. The first major clues about the strategic value of IoT data
@dhinchcliffe

8. @dhinchcliffe
The hype has never been higher
So where
is the
strategic
value?

9. @dhinchcliffe
Motivation for IoT and IoC
• Your organization is connected to all 1.5B people in the
developed world 24 hours a day through their devices
and digital touchpoints
- What will you do with this historic opportunity?
- While there is still first mover advantage
• They generate visible data continuously
- On social media
- From their mobile devices
- From applications
- From everything connected
• This will enable you to make unprecedented insights in
real-time.
• To drive high impact results

10. Identifying the Strategic Value in IoC

11. @dhinchcliffe
The major types of IoT

12. Network effects still the strategy, but IoT revolutionizes the game
• Network effects have long
become the new ‘digital
marketshare’
• Definition: Anything that has
value the more than other people
have it too
• Value is based on an exponential
growth curve
• Is a force multiplier
@dhinchcliffe
– But more importantly a zero sum
game
• The Internet of Things is going to
shift the networked value
conversation two orders of
magnitudes to the right

13. The network engagement is where the strategic value lies
@dhinchcliffe

14. As a result, systems of record have grown less important
• Because of network
effects, systems of
engagement have
becomes the focus
@dhinchcliffe

15. Internet of Things will run our cities, businesses, and homes
@dhinchcliffe

16. @dhinchcliffe
The Enterprise View of the Internet of Things

17. @dhinchcliffe
Representative Internet of Things Examples
• 12 key examples of Internet of Things
– in the consumer and business world
• Many of which you’ve probably not heard
– Well beyond Nest, Fitbit, Dropcam, Belkin Wemo, Withings scale
• And which will project an all new volume of data
– The device proliferation will require handling dynamic data types

18. @dhinchcliffe
Delphi Connect
• A connected way of
keeping in touch
with your car,
allowing remote
control of
automobile
features and the
ability to perform
diagnostics

19. @dhinchcliffe
Sen.se Mother
• Sense Mother is at
the head of a
family of small
connected sensors
that blend into your
daily life to make it
serene, healthy
and pleasurable

20. @dhinchcliffe
Trakdot
• A connected device to
continuously keep track of your
luggage anywhere in the world
• Uses networks of opportunity in
180+ countries

21. @dhinchcliffe
Skybell
• SkyBell is a smart WiFi doorbell
with video camera, speaker,
microphone and motion sensor.
See, Hear and Speak with your
visitor from iOS and Android

22. @dhinchcliffe
Smart Ice Cubes
• Digital ice cubes which pulse to the
beat of the music
• But also monitor your drinking
– How much
– How fast

23. @dhinchcliffe
Bikn (beacon)
• Tiny electronic tags you
can attach to any of your
devices and then locate
them through your
phone’s GPS

24. @dhinchcliffe
Smart Diapers
• Disposable digital diapers with
built-in sensors that parents can
use to track
• And pediatricians can use to
track baby health.

25. @dhinchcliffe
Telcare’s Smart Diabetes Monitor
Source: Vala Afshar

26. @dhinchcliffe
Quirky’s Smart Propane Tank
Source: Vala Afshar

27. @dhinchcliffe
Lono’s Smart Sprinkler Control System
Source: Vala Afshar

28. BigBelly’s Smart Garbage Container and Management System
@dhinchcliffe
Source: Vala Afshar

29. @dhinchcliffe
Smart Dust
• A new formal standard for
micro and nano-scale IoT
objects
• Contains sensors (temperature,
humidity, location, video, audio,
etc.)
• Can transmit low power
streams of data
• Can be used to instrument just
about anything
• Nano-pollution will be an issue
• Will generate trillions of
continuous data streams

30. @dhinchcliffe
How to turn the IoT and IoC into business
Source: Flexera

31. @dhinchcliffe
The IoT and IoC business case

32. Why IoT is different than previous connected strategies
• Recent ubiquity
• Standardization has matured
• Protocols and hubs that can
support the numbers of devices
• Far richer sensor data
• Much lower cost floors
• Small and lower power devices
• Advent of wearables and
embeddables
@dhinchcliffe
– Smart everything

33. @dhinchcliffe
How to capture the strategic value with IoT

34. Data capture, volume, management, and analysis:
The challenge for operationalizing IoT/IoC
@dhinchcliffe

35. The growth of big data from IoT will near dominance in 2015
...and it hasn’t even started yet
@dhinchcliffe

36. The Virtuous Road to Business Value with IoT and IoC
@dhinchcliffe
Instrument
Your
Customer’s
Networks
Help Them
Collect
Their
Data
Gain
Insight &
Influence

37. An IoT and IoC High Impact Case Example
T-Mobile wanted to get out ahead of customer defections to other carriers. They
needed an accurate and scalable source of information. They The Story: looked to social media.
The Results:
The firm integrated big data across their IT systems, using near real-time the analysis
of 33M customer data records, web logs, billing data and social media information.
The result: The company was able to cut customer defections in half in a single
quarter.
@dhinchcliffe 37
Source: Financial Times
Cut customer defections in
half in 90 days.

38. Why it’s better to be the IoT intermediary for your customer...
A Critical
Strategy
for
Differentiation
...their data is much better when it’s with other people’s data
@dhinchcliffe

39. The advantages of a shared customer view of IoT
• Comparison, baselining,
benchmarking
• Scenario capture, lifecycle modeling
• By looking at shared views, norms
are established, and variances can
be captured:
– To replicate (when better techniques are
@dhinchcliffe
used by customer)
– To remediate (when optimizations and
improvements are needed
• The Bottom Line: Continuous
customer relationships are enabling
by orchestrating the IoT through IoC
“hubs”

40. Where does this fit into IT or digital product strategy?
@dhinchcliffe

41. What should companies do to leverage IoC and IoT
• Offered connected products and
services
• Integrate data, customers, and
engagement into your services
• Proactively leverage information
convergence from IOT
– Provide customers deep, real-time
@dhinchcliffe
insight based on total knowledge of all
customers
– Deliver concrete solutions that provide
value (accelerate processes, cut costs,
drive efficiency)
– Make it easy as Google

42. @dhinchcliffe
What will leadership in IoT and IoC require?
• Big data skills
– “Brontobyte”-scale data volume capabilities
– Data science (and scientists)
– Cross-disciplinary vertical subject matter expertise
(SMEs)
• User experience
• End-to-end integration capabilities
• Scale, Security, and Privacy
• DevOps
• For Startups
– Cohesive, multi-disciplinary teams
• For Enterprises
– An Internet of Things (IoT) Center of Excellence
An IoT Center of
Excellence
• Best Practices
• Shared Tools
• Governance
• Education
• Best Practices
• Shared Tools
• Governance
• Education

43. @dhinchcliffe
How to become an IoT and IoC leader
– Find white space in the marketplace
– Differentiate your offering (new type of IoT, new
classes of data from collection and analytics)
– Establish a strong network effect now (zero sum
game)
– Use and integrate existing networks of IoT and
IOC whenever possible (through APIs etc.)
– Use your global insight into customers to create
value
• New value-add features and services
• Unique offerings that integrate insights across
multiple IoT networks
– Aim at becoming indispensable, not a convenience

44. For slides e-mail dion@adjuvi.com

45. More of the story is in Social Business by Design
@dhinchcliffe
• The definitive management
strategy guide and handbook
on social business, big data,
digital, and mobile strategy.
• Based on real-world experience
from nearly 100 high-impact
examples.
• The most complete and
actionable statement on social
business and why it’s
strategically vital.
• Available on Amazon, Kindle,
Audio Book, Google Books,
and Apple iBook.
• Reached #1 on Amazon’s Hot
New Releases