How to tackle Consumer IoT
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1 How to tackle Consumer IoT MORITZ DIEKMANN MD TELEFONICA NEXT GMBH MARCH 2017
2 Contents The IoT opportunity The shortfalls of current offerings The solution driving real value based on consumer insights How Geeny could help you to launch successful IoT propositions
3 The brave new world of IoT thousands of growing graphs 3
4 but not real mass market phenomenon yet questionable use cases complicated setup Still waiting for the tipping point poor DAU / MAU rates constructive feedback 4
5 Contents The IoT opportunity The shortfalls of current offerings The solution driving real value based on consumer insights How Geeny could help you to launch successful IoT propositions
6 Moving products from the analog into the IoT world is a very difficult thing to do Why have so many OEMs not started to smartify their consumer products yet Expertise along the entire IoT development stack is needed Apps Apps SDK 1 Platform Data lake Data analytics and storage yes it is a really hard Things Connectivity Software 4G thing to do! Hardware 1 Software Development Kit, Amazon.com 6
7 but first you should have a close look into real consumer insights 1 Limited functionality 2 FitBand Smart Watch Example: Smart Wearables No truly personalized user experience Example: Dog trackers 5 Focus on tech community, mass market not addressed 3 Isolated applications, consumer lock-in Example: Pebble 4 Uncertainty about data privacy Excerpts of Amazons privacy agreement: "We share Alexa user data with our parent cooperation, Amazon.com Inc., and the subsidiaries it controls, and we may share personally identifying information with third parties [ ]" Example: Amazon and more Example: Smart Home 7
8 Contents The IoT opportunity The shortfalls of current offerings The solution driving real value based on consumer insights How Geeny could help you to launch successful IoT propositions
9 1 Functionality DO YOUR HOMEWORK Today`s IoT solutions IoT is about smartifying products aren`t standalone aren`t accurate can`t connect to the internet on their own not about developing new gadgets for phones Most smart wearables must be connected to smartphone for full functionality Activity trackers are not accurate, can be off by as much as 16% Most smart wearables only connect via Wi-Fi or Bluetooth, no 2G/3G/4G Developing top-notch IoT products is hard. Partnering may help, to develop best in class tech products. Roll-out of NB-IoT should change this 9
10 2 Personalization OFFER MORE THAN GENERIC DATA No personalized recommendations Example dog activity trackers GPS implementation Editorial content Analysis of behavioral patterns Personalized recommendations Real customer value is only created, if personalized recommendations are provided Generic graphs may be meaningful for professionals, but most likely not for end consumer Personalization drives (emotional) bonding and stickiness 10
11 3 Isolated Applications UNLOCK YOUR CUSTOMER Today most devices only connect to products of the same manufacturer only few companies have taken first steps to interconnectivity, showing what is possible example nest IoT solutions provide the most value, if they are part of an connected ecosystem Consumers want to have the full picture, not only excerpts provided by single device and app solutions Tracker can support much more use cases, than they have been originally manufactured for (e.g. emergency tracker communicated with power socket, or kite surfing app using data, generated by a fitness tracker) etc. 11
12 4 Data Privacy Mindset Shift: PUT CONSUMER IN CONTROL OVER HIS DATA Example Amazon Echo: User Amazon Echo/ Alexa 3rd parties IoT increases the importance of data privacy you want to know who has access to your heart rate data! Unclear what user data Amazon is collecting Unclear what Amazon is doing with the data* Unclear which 3 rd parties have access to the data Consumers are willing to share data if they receive a benefit from it, e.g., personalized recommendations or more use cases / Apps on your device, but want to have transparency about what data they share with whom B2C but also C2C. * "We share Alexa user data with our parent cooperation, Amazon.com Inc., and the subsidiaries it controls, and we may share personally identifying information with third parties [ ]" 12
13 5 Mass Market Readiness DON'T TALK TO NERDS ONLY Familiarity with IoT, % Concerns about IoT, % Never heard about IoT Heard about the term IoT Concerned about privacy/ security Concerned about technical issues IoT hasn`t reached mass market yet one key reason is that current IoT solutions do focus on techies Develop IoT solutions that are solving real people's problems and are easy to use. Communicate in a non tech easy to understand language Familiar with IoT 8 13
14 My recommendations how to enter smart consumer propositions What you should do Smartify products Offer consumers a personalized experience Be part of a connected ecosystem what you should avoid don't just offer additional gadgets for phones instead of bombarding them with generic infos instead of offering isolated single app and device solutions 4 5 Become the trusted partner of the consumer and put him in control over his data Solve real consumer problems with your IoT solutions instead of selling the data to 3 rd party services instead of offering techy products to the nerds only.before I come to the advertising break 14
15 Contents The IoT opportunity The shortfalls of current offerings The solution driving real value based on consumer insights How Geeny could help you to launch successful IoT propositions
16 Develop real smart products for consumers - simple, fast, and cost-efficient Offer your customers multiple use cases on a single device enabled by Geeny with full control over their data Develop your smart product within 100 days, supported on our IoT platform and with Geeny ecosystem Benefit from ready-to-use modules software-as-aservice, e.g. GPS-data, movement analyses and business services, e.g. connectivity or billing 1 to 1 1 device 1 app 1 user 1 to n 1 device 1 app multiple users n to n 1 device multiple apps multiple users Quickly find the right hardware suppliers, connectivity standards or design agencies within our partner network 16
17 Geeny is powered by Telefonica NEXT with more innovative solutions enabled by powerful anonymization capabilities Certified anonymization platform.. fuels proposition to build your business: Smart Media Smart Moves target communication at the right time, at the right place understand movement patterns and make datadriven business decisions Smart Retail Smart Sensors understand and accompany your customer along his journey B2B2C IoT Platform based on Data Stewardship 17
18 Let's build smart propositions together! Get in touch with us! Schedule a workshop! Check out our offering for developers! Geeny website Geeny video =BCK-v0cWE3k Technical documentation Telefonica NEXT propositions Moritz Diekmann Managing Director Telefónica Germany NEXT GmbH Charlottenstraße 4, Berlin moritz@geeny.io 18
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