Busy doing nothing?

August 28, 2015

busy-working-quotes-6Companies who want to utilise a new technology have to work hard to get on top of it. First they need to understand how it works and what it could be used for in general and the emerging eco system. Then they need to understand how it fits into what they currently do and what could be achieved if they were able to utilise this new technology. From there on they need to make a business case quantifying what it takes and what it could give. Then comes changed processes and organisations, mitigation of risks, prototyping, testing, competitive analysis, marketing and sales strategies and plans and so on. It definitely takes a while.

With shorter cycles, fierce competition, parallel developments and challenged management comes pressure to move fast and show progress. That’s when companies typically only have three options: partnership programs, alliances and competitions.
When IoT came on top of Gartner’s Hype curve most organisations wanted to be part of the IoT revolution and get their fair share of the 50 billion connected devices. Most of us involved know that IoT solutions are very complex with several industries involved in any solution, combinations of hardware, software and communication is hard to develop and manage and huge fragmentation to meet specific industry and customer demand. By now very few organisations have figured out what to do with IoT why we probably have beaten all possible records when it comes to partner programs, alliances and competitions. This is an interesting paradox since it is quite unlikely that one alliance will standardise the intelligent buildings and that partnership programs suddenly will create a lot of business. But the biggest paradox of them all is that while tech entrepreneurs need to focus on developing their solution with customers we keep them really busy filling in applications and forms, pitching at events and twitter.
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IoT is hot hot hot

October 30, 2014

hot-peppersGartner certainly got it right when they put IoT on the top of the hype curve. This many people have never been interested in what I am working with, not even when I worked with Wi-Fi. Last week for example, Stockholm Business Region, an agency promoting Stockholm, organized a breakfast meeting. But this one was about IoT and 150 people signed up within one hour! Since they had room for 80 persons in the venue they had to shut down the registration and find a bigger place. They ended up with the largest cinema in Stockholm, some 600 registered people, exhibitors in the entrance hall and a strong line-up of speakers.

I am managing an IoT Idea Challenge for an EU organization, EIT ICT Labs, and we set our target to 100 submissions. The submission period was September and with one day to go we had received 72 cases. The last day we received 91! For IoT to change our society, businesses and lives the way we want, everyone has to be involved. Therefore I’m glad that 18% of the submissions came from women – at least a good start. Today we announced the eleven finalists – all amazingly interesting young companies who will pitch in Stockholm November 13.

Well, now when a lot of people got the first part right – it is time to look into IoT – let us start prototyping and testing in order to get the whole thing right.


Hype or not? Both!

October 16, 2014

Gartner_Hype_Cycle.svgIoT is hotter than ever! Gartner just placed IoT at Peak of Inflated Expectations in their Hype Curve and forecast 5-10 years until the Plateau of Productivity. But our baby is growing much faster than anything else we have seen before and I stick to my previous view that our baby will be grown up, but still young, 2016 after only three years as teenager. Good enough technology and infrastructure are in place since a couple of years and when organizations started to go from Powerpoint and thinking to trials and pilots we reached the teens. Four things have been missing to leave the teens behind: solid participation from the IT players, a hot M&A market, active and seriously engaged enterprises and efficient easy-to-use prototyping tools for users of IoT. All these things are starting to happen now which is one of the reasons why I dare to challenge Gartner on their projection. But there is another aspect of IoT which is underestimated: how the value is created.

In most cases we build something and when it’s done we start harvest. And if customers like what we built it takes off. It might take a couple of years at least  to plan, develop and start produce, then we start market and after another year or so it might take off. That explains Gartner’s 5-10 years to Plateau of Productivity, if one ever gets there. But IoT applications deliver value when the information created is distributed to an IT system, shows up in an app, makes an alarm go off somewhere or change a road sign. Initially all IoT applications had to be created end to end – from sensor to terminal – which made them expensive to make and maintain. But now we can leverage existing networks, platforms, tools, terminals and applications making it much cheaper and quicker. So far we have seen this primarily in the consumer market where a connected sensor providing data to an app has been good enough. In enterprises data management and delivery is more complicated and changes in processes and business models takes time, but they are getting there. When they do, the operational value (cheaper, faster, etc) will be obvious and the strategic value (brand, innovation, employer attractiveness, etc) will be visible in the horizon. One only has to look at what GE is doing with Industrial Internet to understand that the impact will be massive.

Everyone promoting the story about billions of connected devices delivering data to impressive Big Data systems creating trillions of $ benefits clearly put IoT at the peak of inflated expectations. But all hard-working organizations and entrepreneurs working on industry or company specific IoT applications, well-integrated and cleverly implemented, are changing the world very fast. These efforts will start pay off soon putting competitors who haven’t started yet in a very difficult situation similar to when the frequent flyer program happened or Richard Fosbury jumped 2.24 at the Olympic Games in Maxico City 1968  using a “redicolous” new technique.

The only major difference between when we connected people and businesses to the Internet and when we connect things is that ignorance will not be an acceptable excuse this time. Beyond some clever start-ups the winners will be organizations who best understand when and how to improve their business using IoT solutions.


Context is king!

February 20, 2014

MWC14_Logo-whiteBGAn old friend wrote: “Hi Magnus, Great to hear from you. Sounds like you are in the sweet spot of the next digital revolution.” Internet of Things is on everyone’s lips now! If we wouldn’t have had the M2M hype phase over ten years ago I would definitely be nervous, but this is for real. Kudos to Gartner who provided us with the hype curve!

IoT is still in the teenage phase but growing very fast. The industry obviously remains excited on ever new levels. But what makes me believe that we will be grown up by 2015 is the rapidly growing requests from businesses across industries and nations. They want better decision-making, faster processes, competitive advantages, security, sustainability, profitability and bottom line, success. And more and more we end up talking about strategic issues like addressing adjacent markets, “re-defining our industry”, brands and new business models. Somehow a lot of decision makers got the point: it’s time to act! Leaving discussions and PowerPoint behind and jump into trials and action.

The value of M2M becomes visible when the information appears in decision-making systems and processes. The data collected and blended will have to end up in the IT systems why solutions require context, i.e. industry experience, and will be developed by specialized companies. As vehicle specialist Springworks put it: “it took as a while to learn the difference between a hard break and a crash”. Specialized M2M Service Enablement remains the most critical part of building the Internet of Things. Context is king!

The Swedish M2M Service Enablers alliance (SMSE) was established 2012 on this insight and we are already 21 members – Imagimob and Expektra joined earlier this week. And we are now sponsored by six organizations including four operators. We believe the M2M service enablement business will have to be international for M2M to grow up. And with all national players competing on an international market, only the specialized ones will win. It is simply not good enough to connect a couple of things to the Internet, collect some data and distribute it to an App or web page. One needs the context to develop and sell really useful Service Enablement solutions.

We are working hard to demonstrate our combined skills and experience in M2M, or Internet of Things if you like, and that Sweden is a great place to look for advanced M2M applications. Over the last 12 months we have been on several trade missions including Italy, France, Spain, Holland and Germany. And starting on Monday nine of our members – Springworks, Maingate, Kombridge, Possio, EvoThings, Fym, WSI, Info24 and Wbird – represent SMSE in the Swedish Pavilion (7F41) at Mobile World Congress in Barcelona. Please come by and visit us during the week! And as proud sponsors of the traditional Sweden@MWC Cocktail we invite you for a drink with us on Monday afternoon as well!

Adelante!


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