Earlier this year I attended Connected Things 2015 at MIT. This conference was focused on the state of the Internet of Things (IoT) and the near-term implications on retail, healthcare, manufacturing, and security.
Connected Things 2015: The IoT Killer App
Here are highlights from the closing session featuring John Sallay, Managing Director of The NextVista Group, and James E. Heppelmann, CEO of PTC.
IoT is the third disruptive pass in IT.
The first disruption occurred when we realized that capturing data and passing it from one step to the next would improve value chain processes.
The second occurred when we realized we can have extended value chains – with customers on one end and suppliers on the other.
The third is happening now, with IoT. Connected things are active participants in their own value chain.
IoT is disrupting business with new product types, new service lines, and new ways to provide customer service.
Product types are evolving.
Simple things
Smart things (intelligent)
Connected things (network-able)
Families of connected things (network-able systems)
Services are evolving.
Customer Relationship Management (CRM) will evolve into Product Relationship Management (PRM).
IoT introduces new direct communication paths: product-to-consumer and product-to-manufacturer.
Products will become platforms.
Platforms are connected products orchestrated to work together and include an interface for data interpretation.
Systems as a service.
Groups of products that work together and are marketed as a service, for example a home security package.
Systems of systems as a service.
These are services that are bundled into a larger service, for example a smart home package consisting of security, lighting, and temperature control.
Organizations will define new ways to focus on the customer.
Organizations will focus on after-sale value.
Keeping customers through ever-evolving products and services.
Organizations will restructure
You’ll see Customer Success teams emerge.
IT, Customer Service, and Engineering teams will be invigorated with a customer success purpose.
Companies need to define their angle, and they need to do it now.
Be the leap-frogger
Do something already done in some radical new way, before someone else.
Work the business model
Buying things & barely using them gives way to the Sharing Economy.
Consider Uber, they tie into the Sharing Economy through latent transportation capacity.
Look at mini-ecosystem opportunities
Make a business out of becoming part of an ecosystem, like Apple or Fitbit.
Strategic differentiation
Identify what makes your business better than your competition and use IoT to exploit it.
Operational efficiency
Focus on how IoT allows you to do your business better through:
Customer relationships, services, automation, etc.
Massive opportunities to drive profit up and cost down
Best quote of the session:
Competitive Advantage has 2 legs: operational efficiency and strategic differentiation
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