smart data slides: leverage the iot to build a smart data ecosystem

December 8, 2016

Adrian Bowles, PhD

Founder, STORM Insights, Inc. [email protected]

Leverage the IOT to Build a Smart Data Ecosystem

mailto:[email protected]?subject=

An Overview of Conventional StrategyHow Does the IOT Change Strategy?How Does ModernAI/Cognitive Computing Change Strategy?5 Ways to Create Business Value with #ModernAI & The IOT

Agenda

Strengths Weaknesses

Opportunities Threats

New Products, Partnerships,M&A, Geo-Territories,Competitors’ Weaknesses

Where Are Our Competitors Stronger?

Disruption, Displacement

What Are Our Competitive Advantages?

Internal External

ResourcesCapital, Data, Customers,People, IP…

ProcessesInnovation, Manufacturing…

Where Are Our Risks vs Industry Risks?

Primary Focus

SWOT Analysis

Copyright (c) 2016 by STORM Insights Inc. All Rights Reserved.

Suppliers Buyers

Based on Michael Porter: Competitive Advantage, Free Press, 1985.

Threat ofNew Entrants

Threat ofSubstitute Productsor Services

Bargaining Powerof Buyers

Bargaining Powerof Suppliers

Potential Entrants

Substitutes

IndustryCompetitors

Rivalry AmongExisting Firms

Porter’s Five Competitive Forces


Suppliers Buyers


Threat ofNew Entrants

Threat ofSubstitute Productsor Services

Bargaining Powerof Buyers

Bargaining Powerof Suppliers

Potential Entrants

Substitutes

IndustryCompetitors


Economies of ScaleSwitching Costs/Network Effects

Access to Information

Technology Advances

Buyer Aggregation

Technology AdvancesProtected IP




Suppliers Buyers

Potential Entrants

Substitutes

IndustryCompetitors




1. PORTER’S THREE GENERIC STRATEGIES Cost leadership Differentiate products/services Focus: develop a market niche

2. SUB-STRATEGIES (DEFENSIVE AND OFFENSIVE)

Alter industry Structure Create entry barriers Modify Value Chain Linkages Increase switching costs Form Alliances

Create new products/services

Restructure the FIRM Downsize Support learning Flatten Total Quality Management Build teams Business Process Reengineering

7 Copyright © 2000 by Adrian J. Bowles. All Rights Reserved.

The IP enabled future• Emware - enabling technology

➢ Uses proprietary software and a home PC • can control thermostats, door locks, VCR…

➢ CL&P testing it as a solution for targeted brownouts

➢ Matsushita - using it in >500 medical and building automation products

Source: Fortune, 10-9-2000

Flashback


Pervasive IP - What will you do with it?

• Where can you put IP? ➢ Soda machine - real time monitoring, price

control based on temp and volume? ➢ Home heating - warm it up from your Pilot on the

way home. ➢ Hotel room security - look at The Charles in

Cambridge, MA ➢ Just about anywhere

Flashback


Impact of new payment schemes?• DoCoMo I-mode and others let the phone

company act as payment aggregator for everything from games to soda machines to ???

• How can this change the balance of power? ➢ Who “owns” the customer relationship?

Flashback


How to make money by enabling devices

• How do you identify holes in the market? • What are the most important characteristics

of opportunities?

Flashback

11

New Roles and Relationships

Your.Biz

Customer

Supplier Sponsor

Partners

Provides resources Consumes Goods/Svcs (may be non-exclusive consumer)

Provides Resources Customer who Buys Access

$, Information

Goods, Services

$, Content

Access, Attention

Copyright © 2001 by Adrian J. Bowles. All Rights Reserved.

Flashback

12

The Moving Middleman

Producer Consumer

Inte

rmed

iary

Traditional retailer New Real Estate Model (buyer’s agent)

Provides product, advice, service…

Inte

rmed

iary

Inte

rmed

iary


Flashback

13

The Missing Middleman

Producer: Mattel Consumer

Inte

rmed

iary

Producers get closer to consumers, Channels get squeezed

Toys ‘R’ Us vs toysrus.com vs etoys.com $29/10 NA

Barbie ™ Porsche ™ Boxster ™

$24.99


Flashback

http://www.shopmattel.com/product.asp?OID=4141594&SC=1105650

14

The New Middleman

Producer: Rolex Consumer

$15,900(full retail price – store warranty)

tourneau.com

Tourneau, Inc.

ashford.com“Genuine Rolex products are sold through

Official Rolex Jewellers and are notavailable on the Internet. “

Info only


Flashback

http://www.ashford.com/scripts/display.exe/item?itemid=855&category=New_Watches&sid=19502926983134584426868832000329123743


Emerging Technologies/Trends➢ Voice/Speech ➢ Voice over IP ➢ Collaboration

• Development • Peer to Peer Computing

Flashback

It All Starts With Sensors…and Ends With Insights


A sensor is a device that detects the presence of a signal and reports/signals data about that signal/event

Sensors are Event-driven

May be Stationary or Mobile

How Does the IOT Change Strategy…

Sensors May Produce Streaming Data


“You could not step twice into the same river.”Heraclitus 535BC-474BC

To understand the contents (analyze)… Divert the flow? Pool the data? Evaluate everything without changing the flow?

(ask Heisenberg about that one) Sample? (catch and release?)

Streaming Data Architecture


Data

Sou

rces Store

Process/Transform

Observe

Key

Data Flows on the Edges, Queries Everywhere

Sampling vs Monitoring Everything…

IoT Platforms

Predix

Jasper Control Center

Watson IoT

IOT Platforms

ConventionalAI

MachineLearning

BigData

How Does #ModernAI/Cognitive Computing Change Strategy?


Human

Machine

Input Output

Narrative Generation

Data Mgmt

Model

Understand

Gestures

Emotions

Language

Visualization

Reports

Haptics

IoTSensors

SystemsControls

Learn Plan

ReasonIoT


How Does #ModernAI/Cognitive Computing Change Strategy?

Combined Impact of the IOT and #ModernAI/Cognitive Computing on Strategy


IOT/#ModernAI enable

New technologiesNew modelsNew ecosystems

Intelligence can be

Local to the deviceDistributedAggregated

When everything is connected…

New sources of data emergeNew sources of value emergeOld assumptions must be challenged

5 Ways to Create Business Value with #ModernAI & The IOT


Know Where Your Customers Are - Or Where They Will Be

Know What Your Customers Want

Know When Your Customers’ Wants Change

Know Your Customers

Anticipate OpportunitiesFor Each Rule: Do you have or can you capture streaming data that can increase your value proposition?

Data about your product, supply chain, or customer that can improve performance, reliability, predictability…

Can you create value from new analysis of open data? Adding your own data/algorithms to open data creates value.

Tip: Choose an infrastructure that allows you to evaluate live streaming data in the context of relevant historical data.


Know Your Customers

Collect/Track:

DemographicsPsychographics

Emotions

Technologies:

NLPAnalyticsMachine Learning

Captured/Enabled By:

SensorsActivePassive

SystemsProfile-Driven

Interactive Interfaces

ProfilesOpt-InGeneratedPurchasedDerived

Current

Data Mgmt

Model

Understand

IoT

Learn Plan

ReasonIoT

Know What Your Customers Want


Collect/Track:

Behavioral History



Systems


Peer ProfilesProduct/Service Trends

Current

Technologies:

NLPAnalyticsMachine Learning

Data Mgmt

Model

Understand

IoT

Learn Plan

ReasonIoT

Know When Your Customers’ Wants Change


Collect/Track:

Behavioral History

Technologies:

AnalyticsMachine Learning

Current



Systems



Data Mgmt

Model

Understand

IoT

Learn Plan

ReasonIoT

Know Where Your Customers Are - Or Where They Will Be


Collect/Track:

Geo Track/History

Technologies:

MobileWiFiBeaconsFacial RecognitionAnalyticsMachine Learning



Systems


Current

Data Mgmt

Model

Understand

IoT

Learn Plan

ReasonIoT

Future


Anticipate Opportunities

Technologies: AnalyticsNLGMachine Learning

Current



Systems



Collect/Track:

DemographicsPsychographics

Emotions

Data Mgmt

Model

Understand

IoT

Learn Plan

ReasonIoT

Getting Started: What Sensor Data Do Your Customers Already Produce?


Type Typical Current Use Potential Use

Accelerometer/motion Rotate screen, Switch screen to landscape/portrait

Ambient Light Adjust screen brightness

Barometer Measure altitude

Geo-Location (wifi/cellular) Location/Alerts

3-Axis Gyroscope Rotation rate for games, VR…

Proximity Turn off screen when phone is by your head

Touch ID fingerprint Security

No Shortage of Data


What will you do with itto create value?

Image Courtesy of thingful.netCopyright (c) 2014 by Umbrellium Ltd.

http://thingful.net


What’s Next?

We Are Currently Developing Case Studies & Use Case Archetypes for:

InsuranceBanking/Financial ServicesHealthcarePharma

Data Mgmt

Model

Understand

IoT

Learn Plan

ReasonIoT

Please email me if you’d like to participate in this research or see the results.

[email protected] Twitter @ajbowles Skype ajbowles

Upcoming Webinar Dates & Topics

January #Modern AI and Cognitive Computing: Boundaries and Opportunities February Artificial General Intelligence: When I Can I Get It? March Data Science and Business Analysis: A Look at Best Practices for Roles, Skills, and Processes April Machine Learning: Moving Beyond Discovery to Understanding May Streaming Analytics for Agile IoT-Oriented Applications June Machine Learning Case Studies July Advances in Natural Language Processing I: Understanding August Organizing Data and Knowledge: The Role of Taxonomies and Ontologies September Advances in Natural Language Processing II: NL Generation October Choosing the Right Data Management Architecture for Cognitive Computing November See Me, Feel Me, Touch Me, Heal Me: The Rise of the Cognitive Interface December The Road to Autonomous Applications

For More Information…


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Template


Supplementary Slides

Streaming Analytics - Emerging Vendors to Watch

Mul$ple'data''sources'

Hadoop (HDFS)

(Existing) ETL Jobs

Batch'/'

High5Latency'

Real'$me'/'

Low5Laten

cy' ODS/ EDW

Real-Time Applications

Legacy Applications

Spark Hive

Big Data Applications

Users'

CDC'

Flume'

KaAa'

Logs'

Internode Communication

Distributed Cache

Indexed Results Store Processing

Machine Learning

Visualization

Cluster Management Data

Collection Data

Delivery

Development

YARN%Courtesy of STRIIM

The Open Source Ecosystem for Analytics Infrastructure

Data Sharpening (Zoomdata)

The Impact of the IOT


When everything is connected…

New sources of data emerge New sources of value emerge Old assumptions must be challenged

A Role for Collaboration and Standards
