The Internet of Things (IoT) – networks of physical devices built with embedded tech, ones that sense, upload, build intelligence and even interact with each other – is estimated to push machine capabilities to new dimensions, some known, and some yet to be discovered. IoT will definitely have one impact – it will increase the number of computers we will use in business and our personal lives. In conjunction with the Social, Mobile, Cloud and Big Data elements, what will IoT settle into? Who will be the winners, what business models will prevail – a plethora of questions that only time will answer. But – to start – for an entrepreneur – a single burning question overshadows all others.
Chandrashekhar (CS) Raman, Engagement Manager, IoT Strategy, Cisco who is currently focused on building the Innovation ecosystem strategy. His 13 years in the technology industry have been in roles of Application Development, Consulting, Product Management and Corporate Strategy. His interests include Raspberry Pi projects and political blogging.
“Internet of Things (IoT) – Where is the Money?” – This talk highlighted the need for innovative business and technical models.
Top 5 key takeaways from the session:
1) Analyze business models from the perspective of targeting “control points” (allows disproportionate share of value e.g. platform), “network externalities” (users generate more users e.g. facebook) and “virtuous cycle” (self-propogating value system e.g. Twitter: tweets generating more, value, tweeters and users)
2) Fog computing (solutions at the edge of the network) should be considered for “time sensitive” or “mission critical” solutions
3) IoT Stats 2013: $1.7B funding, 186 deals, 30% up YOY, 75% up on exits, largely in platforms; Cisco estimates 50B connected devices by 2020, economic value of 19 trillion added in next decade
4) Manufacturing and Smart Cities most immediate opportunities in Enterprise space
5) Key challenges are security and time-sensitive networking. In summary, IoT Startups focused in a hot space need to pick clever business models relative to the competition.
