We are rapidly approaching the summer vacation for 2014 and with that we have also covered half of "The year of Internet of things". So far, I think that the trend predictions from late last year has been spot on.
The year started with Google taking a big step into the smart home with the acquisition of NEST for 3.2 billion dollars and the latest rumors online are that they are looking at DropCam also. Google is however not alone and the list of companies making a play in the area are long with names like Apple, Intel, GE, Qualcomm, Bosch, Microsoft and all the startup's without legacy that can move much quicker.
Last week came the Internet Trends 2014 from Mary Meeker, which has become an institution when it comes to showing the status and the latest statistics to everything Internet related. The slide deck is well worth browsing for everyone and I will here highlight some of my biggest takeaways from the slide deck related to Internet of Things.
The rapid growth of connected devices/things/products is fueled by several things and I would argue that the main driving trends are
- decreased technology cost (computing, data management, sensors, cloud etc)
- smartphone adaption (remote control, apps, internet connectivity etc)
- customer expectations (efficiency, context, intelligent etc).
These two slides really shows how the costs are going down and just imaging how this would look 2020 when Ericsson is talking about 50 billion connected devices.
From the business side one of my most important questions to my customers is always the following “When you connect your product there is an opportunity to connect you customers/users with a community in an ecosystem around the usage. For your product and your customers what could that ecosystem be and can you be a leader in that ecosystem or would you integrate into somebody’s else ecosystem?”. The important part is not if you can lead an ecosystem or not, but how can you improve the customer value and solve a bigger customer pain/need when connecting the product. In the slide deck there is this slide around Houzz which I think illustrate some of the parts that you would need in such an ecosystem (Content + Community + Commerce = Customer value).
With all the connected devices about to hit the market two risks (or challenges) are important to highlight which are privacy and security. On the latter the following slide shows why this should be taken seriously!
So I hope you have found my first blog post interesting and more will come! Feel free to comment or contact me if you want to discuss the content.