The Internet of Things: The possibilities are endless, but how will we get there? Charles Reed Anderson Head of Telecoms, Mobility & Internet of Things Research, IDC Asia Pacific cranderson@idc.com CRASingapore
The Internet of Things Market Size 30,000 25,000 20,000 15,000 10,000 5,000 278 186 278 - Millions of IoT Units Shipped 9,278 2,468 3,127 2,941 27,214 8,021 7,228 816 544 816 9,787 2014 2020 AP C&E Europe Latam MEA NA W Europe AP will provide 31.9% of total units shipped in 2014 rising to 36.0% in 2020 AP Units Shipped will have a CAGR of 22.9% through 2020, WW 20.5% The 2014 IoT TAM will be USD 619B in AP out of USD 1,961B globally The 2020 IoT AP TAM will be USD 2.60 trillion out of USD 7.45 trillion globally IDC Visit us at IDC.com and follow us on Twitter: @IDC 2
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Battle of the buzzwords M2M v IoT v IoE Machine to Machine M2M Internet of Things IoT Internet of Everything IoE A device that captures an event transmits it over a network to an application. that translates it into meaningful information. Where physical objects, or things, seamlessly connect to the internet and can become active participants in business processes. Bringing together the people, process, data & things to make networked connections more relevant by turning information into actions. IDC Visit us at IDC.com and follow us on Twitter: @IDC 4
Internet of Things Ecosystem IDC Visit us at IDC.com and follow us on Twitter: @IDC 5
Six key areas for IoT solutions IDC Visit us at IDC.com and follow us on Twitter: @IDC 6
Changing the way we interact IDC Visit us at IDC.com and follow us on Twitter: @IDC 7
Changing the way we manage our homes IDC Visit us at IDC.com and follow us on Twitter: @IDC 8
Changing the way we shop IDC Visit us at IDC.com and follow us on Twitter: @IDC 9
Changing the way companies operate IDC Visit us at IDC.com and follow us on Twitter: @IDC 10
Changing the way industries work together IDC Visit us at IDC.com and follow us on Twitter: @IDC 11
Changing the way cities are managed IDC Visit us at IDC.com and follow us on Twitter: @IDC 12
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Challenge #1: Where s the Business Case? IDC Visit us at IDC.com and follow us on Twitter: @IDC 21
Connecting the icommerce Value Chain Supermarket Local Port Shipping Co. Foreign Port Farm Ground Transport IDC Visit us at IDC.com and follow us on Twitter: @IDC 22
New Business Models will Emerge Enables SmartAppliance solution Drives additional appliance sales White goods manufacturer with SmartAppliance solution Telco s to offer Supermarket as a Service? Customer acquisition Customer loyalty Distribution center versus physical stores Cross/upsell products Supermarket with distribution Network Operator with SmartHome solutions Deepen customer relationship New revenue stream Customers IDC Visit us at IDC.com and follow us on Twitter: @IDC 23
Challenge #2: Skills Acquisition Technical Strategic Operational IDC Visit us at IDC.com and follow us on Twitter: @IDC 24
Challenge #3: Security Devices Data Applications Processes IDC Visit us at IDC.com and follow us on Twitter: @IDC 25
Challenge #4: Where s the innovation? The innovation drivers behind the Internet of Things IDC Visit us at IDC.com and follow us on Twitter: @IDC 26
Consumer wearables need to be enabled Leveraging innovative technologies to deliver industry-changing solutions IDC Visit us at IDC.com and follow us on Twitter: @IDC 27
Once enabled, the opps are endless Leveraging technology to see what isn t there Construction Mining Warehouse Automotive IDC Visit us at IDC.com and follow us on Twitter: @IDC 28
But, an appcessory ecosystem must evolve ISV Communities Application Hubs R&D Communities Analytics xcommerce Industry Solutions Healthcare Retail Extend Usability Mobile Advertizing Mining Construction IDC Visit us at IDC.com and follow us on Twitter: @IDC 29
Challenge #5: Fragmentation and Lack of Standards IDC Visit us at IDC.com and follow us on Twitter: @IDC 30
How to link the individual solutions? IDC Visit us at IDC.com and follow us on Twitter: @IDC 31
Challenge #6: Lack of an Ecosystem Hub? IDC Visit us at IDC.com and follow us on Twitter: @IDC 32
Essential Guidance Focus on driving operational efficiencies quick wins with tangible value Start building a partner ecosystem Build your intenal skills and capabilities Develop a flexible solution roadmap Look at adjacent industries to identify opportutnies and potential threats Get involved NOW! Industry forums Standards bodies Vendors Frenemies IDC Visit us at IDC.com and follow us on Twitter: @IDC 33
Charles Reed Anderson Head of Telecoms, Mobility & Internet of Things Research, IDC Asia Pacific cranderson@idc.com CRASingapore IDC Visit us at IDC.com and follow us on Twitter: @IDC 34