iot entrepreneurship: a framework for success - mahbubul alam

10/31/16 www.movimentogroup.com 1

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Mahbubul AlamCTO/CMO Movimento Groupwww.mahbubulalam.com

https://www.linkedin.com/in/maalam

@mahbubulalam

Background

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The world is moving towards trillions of connected devices that in afew years will be not smartphones, but virtually anything – most ofwhich have never been connected before. The authors evaluatethe opportunities that emerge as a result of the Internet of Thingsfocusing on the impact to individuals, industries and societiesalong with the challenges ahead to harvest the full value of thisongoing evolution. Volume 1 ‘The Rise of Internet of Things’ isthe debut of the ‘The Age of the Software Defined Vehicle’series and it showcases the vision towards connecteddevices paving the road towards the Internet of Things. Thevolume will also talk about five key areas – smarter spectrum,smarter workforce, smarter investments, smarter security andsmarter regulations. This Volume 1 of the series lays the foundationfor understanding today’s connected car and points in thedirection of the Software Defined Vehicle of the future.

Publication Date: 1st Jan 2017Format: eBook

Agenda• Paradigm Shift• Hype Cycle vs. Tech Trends• Identifying Opportunity• Value Proposition & ROI Impact• Business Model• Insights into LaaS and Automotive• Key Takeaways10/31/16 4www.mahbubulalam.com

Paradigm Shift

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• Product: Physical Digital Virtual Assets• Technology: Trend vs. Fashion• Regulatory: Constrains Freedom• Monetization: Direct Indirect• Business Model: OEM CO-X

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Hype Cycle

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Tech Trends

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Disruptive Logarithmic

Bleeding Edge

EarlyAdopters

SmartIoTservices VirtualReality

Flexible DisplayUniversalDigital ID

StemCells

CognitiveTechnologies

BlockchainTech

BioBatteries

AutonomousVehicle

CollaborativeMonetization

PredictiveAnalytics

RoboticsAugmentedReality

3DPrinting AutonomousDrone

MLbasedCyberSecurity


Identifying Opportunity

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Investment

Societal Challenge ROI Time


Value Proposition

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ExistingBusiness as usual

HR Dept.Employer Based

EvolutionEnhance the role and value chain

Online HREmployer Based

DisruptionReverse the role and

new value chain

TBDEmployee Based


Impact on ROI

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OperationalEfficiency

Time

New ValueCreation

Business Impact


Business Model


KeyResources

CostStructure

Company Business Model

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Customer Relationships

SalesChannels

KeyPartnership

CompanyCulture

Customer Segments

ValuePropositions

RevenueStreams


Business Model: Building Blocks• Customer Relationship: Establish and maintain customer relationship

for focus customer segment – it is about customer acquisition, retention, upsell & cross-sell

• Sales Channels: Delivery to customer through go-to-market and sales channel - rising awareness among customers

• Customers Segments: Several customer segments or focus• Key Partnership: Strategic alliances and partnership, co-operation,

joint venture and buyer-supplier relationship• Company Culture: Set of collective beliefs, value & attitudes -

corporate culture influences management, decisions and all business functions from accounting to production


Business Model: Building Blocks• Value Propositions: Solve customer problems which satisfy needs• Revenue Streams: Business models for different types of revenue

streams, transactions vs returning revenues• Key resources: Most important assets “physical, financial, intellectual

or human” required to make a business model work• Cost Structure: Influenced by key resources, key activities & key

partnership


Street LightingLighting-as-a-Service (LaaS)


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Street Lighting: Challenges


Transformation of Experience & Product


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LaaS to XaaS


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Smart Street Lighting-as-a-Service


Financial: 150 Street LightingsCAPEX• 150StreetLightincl.Installation ($10K/Pole) $1,500,000

OPEX• UtilityBillfor10yrs ($10/mth)• BulbReplacement for10yrs ($250/bulb)• Maintenance VehicleService for10yrs• ProjectManagement for10yrs ($100K/yr)• TotalOPEX

$180,000$375,000$375,000

$1,000,000$1,930,000

TOTALINVESTMENT $3,430,000


Financial: 150 LaaSCAPEX(10yrs contract)OPEX(LaaS per10yrs - $100/mth)

SLA(Avg.Downtime43minpermonth)

$0$1,800,000

99.9%------ OR-----

50%CAPEX(10yrs contract)50%OPEXSaving

Total

SLA

$750,000$965,000

$1,715,000

99.9%


Economics: LaaS vs. XaaS

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$1,500,000

$130,000

CAPEXSaving

OPEXSaving

$1,630,000

TOTALBenefit

$1,800,000Lighting

LaaS Provider:RevenueOpportunitiesCity:SavingsfromLaaS

WiFi AP

CellTower

VideoSurv

GunshotDet

$900,000

$900,000

$900,000

$180,000

$4,680

,000


AutomotiveA Software Platform


Automotive Software

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F-22 Raptor Fighter Jet~1,500,000 lines of code

Boeing 787~13,000,000 lines of code

Facebook~61,000,000 lines of code

Modern High-End Vehicle100,000,000+ lines of code

Engine16%

Body & Structural

15

Electronics & Electrical

12%Transmission9%

Interior8%

Axles, Driveshafts & Components

5%

Climate Control & Engine Cooling

5%

Suspension 3%

Steering 2%

Other14%

Today

Software40%

Hardware40%

Content20%

The “Future”

Change in vehicle value from hardware to software

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Era of the Software Defined Car

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Vehicleas a Software Platform


Cybersecurity Challenges


Software-Related Vehicle Recalls

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0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

0

10

20

30

40

50

60

70

80

2011 2012 2013 2014 2015 2016NumberofRecalls NumberofAffectedVehicles

Num

ber o

f Rec

alls

Num

ber o

f Affe

cted

Veh

icle

s


Automotive Over-The-Air Platform

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Select & Target Customers

Domain Expertise& Knowledge

Platform

OEM and Tier-1 supplier relationships and integration know-how

Future opportunity

AUTOMOTIVE

OTA PLATFORMRobust platform with FOTA / SOTA updates, security best practices, bidirectional dataflow and data analytics

Notes:FOTA: Firmware Over-the-Air SOTA: Software Over-the-Air

Transportation Energy Manufacturing Agriculture/ Construction

Trucks


Key Takeaways1. Keep Focus – Be as Specific as Possible

– Understand ROI vs. Timeline2. Define Strategy – Structure – Resource3. Formulate Corporate Culture4. Keep an Open Mind Towards Business Model

– Focus on Frugal Innovation5. Timing is Key


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Mahbubul AlamCTO and CMO, Movimento Groupwww.mahbubulalam.com

https://www.linkedin.com/in/maalam

@mahbubulalam
