the iot scenario in the digital age

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15 – 18 November 2016Goa, India

#GartnerSYM

The IoT Scenario in the Digital Age

Ganesh Ramamoorthy

#GartnerSYM1 CONFIDENTIAL AND PROPRIETARY I © 2016 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner and ITxpo are registered trademarks of Gartner, Inc. or its affiliates.

IoT Will Become a Foundation of the Digital Society

Smart city

Manufacturing

Healthcare

Smart grid

Agriculture

Connected home

Transport and supply chain

………

………

Systems of systems, ecosystems of ecosystems


Key Issues

1. How will organizations use the IoT to create business innovation

and differentiation?

2. What key technologies and market trends will shape the IoT

through 2020?


IoT

The IoT Is Part of a Wider Political and Business Picture

Connected Home Smart Cities

Made in China 2025

Self-Driving VehiclesSustainability and Climate Change

Smart Grid

Industrie 4.0

………Supply Chain Traceability

E-Government


Seek Short-Term Value, Have a Long-Term Vision

Efficiency and effectiveness

New and improved

products and services

IoT digital business

IoT

Busin

ess Innovation

Cost optimization

Improve performance

Drive customer engagement

New payment and revenue models

Smarter products

Environmental goals

Exploit business moments

Things as customers

Ecosystems and

business meshes

The sharing economy

Infonomics

Algorithmic business

Blockchain for things

New value alliances

€$


Through 2018, ROI Will Be Dominated by Simple Use CasesWhat internal IoT initiatives have you implemented or

do you plan to implement by YE18?

Gartner survey 3Q16, U.S., n = 529, organizations

planning/using internal IoT.

What external IoT initiatives have you implemented or

do you plan to implement by YE18?

Gartner survey 3Q16, U.S., n = 441, organizations

planning/using external IoT.

78%

57%

46%

2%

66%

62%

43%

8%

48%

Optimization of operations such

as workflow management, supply

Asset management such as predictive

maintenance of equipment

Buildings or facilities management such

as smart lighting, energy management,

access control

Other

Smart connected products that allow

customer data to be received by

the enterprise

New (non-revenue-generating)

customer services such as enhanced

product features

Customer orders from smart devices,

e.g., automatic replenishment

New revenue-generating services for

customers, e.g., value-added services

Connected home


IoT Will Drive Business Behavior Changes

Predictable business behavior(traditional processes)

Predefined behavior

Less predictablebusiness behavior

(ad hoc activities, business moments)

Situationally adaptive behavior

Act

Orient

Observe

Decide

IoT drives changes to existing processes and business behaviors

IoT enablesnew adaptive business models and behaviors


Use Infonomics to Unlock New Value From IoT Data

Infonomics: The discipline of assigning economic significance to information, despite the limitations of current accounting standards

Information used by internal

IoT solutions

IoT information which might

be monetized

Market/Sell the information

Prepare data for monetization

Compare/Evaluate opportunities

Identify direct and indirect opportunities

Inventory your information assets

Appoint an information product manager


Key Issues

1. How will organizations use the IoT to create business innovation

and differentiation?

2. What key technologies and market trends will shape the IoT

through 2020?


The IoT "Market" Will Remain Fragmented Through 2020

IoT

Software

IoT platforms

Embedded software

Analytics

Management & security

Semiconductors

IoT "things"

Infrastructure

Gateways

Ancillary (e.g., mobiles)

Hardware

Services

Consulting

Implementation

Telecommunications

BPO

Specialist services,

e.g., data science, testing

Cloud, SaaS

Wireless modules


IoT Market Immaturity Will Challenge Buyers

Cybersecurity, safety

Hardware

Silicon chips, components

Software infrastructure

Vertical business

IT and cloud

services

Other

Summary of 48 IoT acquisitions and alliances announced in 1H16

High level of acquisitions, pivots

Immature products and services

Technology vendors broaden their portfolios

New vendors move into IoT

Companies will establish new vertical

business capabilities using IoT

Vendors retarget technologies to IoT

Vendors acquire adjacent capability to

enable new business

Race to get market share and

lock in customers

Lightweight alliances


Adopt the 6 Principles of IoT Risk Management

IoT Risk Management

Driven by business outcomesSecure the business, not the devices

People-centricDigital ethics, safety, privacy

Security staff are facilitatorsNot enforcers

Detect and respondPrevention isn't enough

Risk-basedTo priorities investment

Focus on data flowStatic perspectives

are inadequate


By 2020, over 25% of identified attacks in organizations will involve IoT, up from less than 2% of IT security budgets today.

IoT Security Challenges Will Grow Through 2020

Supporting the SPA:

Most organizations are just starting on their

IoT journey and will increase deployments

through 2020

IoT security is an immature and fast-evolving

domain with no simple off-the-shelf solutions

Many IoT "things" are developed by people

or organizations with insufficient IoT

security knowledge

IoT introduces new types of system risks

and vulnerabilities

Alternate position to the SPA:

Strong IoT security standards will emerge to

address the challenges

Vendors and standards organizations will

react rapidly to deliver the products and

practices necessary to secure IoT effectively

Organizations will rapidly deploy practices

and technologies to address the risk


IoT and Data Science Demand Digital Ethics

Observe legal boundaries

Challenge legal boundaries

Challenge social

conventions

Observe social

conventionsConservative

Revolutionary

Reformist

Evangelist

Digital Ethics Strategies

Location

Behavior

monitoring

Age-related

deductions

Who has

access to

the data?

Information

about crimes

Personal

deductions

Selling or

sharing

data with

partners?

Approval for

usage and

retention?

?

Inappropriate

algorithmic behavior


Master the New IoT Technologies

IoT security tools

Event stream processing

LPWANs

IoT processors

IoT platforms

IoT analytics

IoT device management

Low-power, short-range networks

IoT operating systems

Standards and ecosystems


The Building Blocks of an Agile IoT Architecture

IoT gateways

IoTplatform or IoT features in other tools

Thin

gs a

nd a

gents

Com

ms.

Integration Enterprise systems

Security and analytics


Select Technology to Convert Data into Decisions

Simple decision logic

Statistical analysis

Digital twin

Sensor data

Situational data

Transactions

Operational diagnostics

Context

Machine learning

Examples of increasing decision

sophistication & value in a

maintenance context

Financial / risk optimized

Predictive forecasting

Condition based planning

Time-based planning

Identify failure

Data Analytics Business decisions

Sophis

tication


IoT Wireless Will Remain Fragmented Through 2020

Each technology characteristic is rated as low (1), medium (2) or high (3).

This diagram is intended to highlight key differences rather than provide a precise quantitative comparison

Other selection criteria include hardware cost, operating cost, ecosystem strength, coverage, roaming capability, quality of service, level of standardization.

High-level summary of selected IoT networking technologies


IoT Platforms Will Accelerate Solution Delivery

Megavendors Medium/Large IoT specialists

Small/Startups

Device management

Data acquisition

Application development

Visualization Analytics

Information storage and management Cybersecurity

Enterprise adapters

IoT communications

Business rules and workflow orchestration

"Things" and gateways

Enterprise systems


Standards and Ecosystems Remain a Battleground

Protocols and technologies: MQTT, CoAP, DDS, AMQP, XMPP, ...

Competing ecosystems

Networking

Indicates standards or initiatives which already have, or are likely to gain significant traction.

Note that consortia, standards and vendors are shown as illustrations and are not intended as a complete list.

Industry and government

initiatives

Industrie 4.0Smart grid

Supply chain

Certification

NB-IoT

IoT industry consortia and alliances


Manage the Human Dimension of IoT

Technology

as a tool

Technology as

a subordinate

Technology as

a social peer

Customer issues:

Trust, safety

Attitude to "things" and "intelligence"

Nondeterminism

Weaker personal relationships

Digital ethics

Employee issues:

New working practices and skills, deskilling of some roles

Change in field workforce role from "heroes" to "replacers"

Opaque systems and recommendations

Digital ethics


Create Your IoT Execution Plan

Get started

Scale up early projects

Rationalize and Innovate

Understand how IoT can help your business

Generate ideas, start with internal efficiency/effectiveness

Create multidisciplinary teams or a COE

Integrate data from early IoT initiatives

Manage the risks: Security, ethics, safety, privacy

Choose partners to fill the skills gaps

Rationalize tools and platforms

Explore customer-facing IoT

innovation and new business models

Involve more stakeholders

Barriers

Cybersecurity

Cost/Funding

Implementation

and integration

Data privacy

Regulatory concerns

Potential risks and

liabilities

Difficulty in

predicting benefits

Resistance

to change

Immature

technology


Action Plan for CIOs

Monday Morning:

Become a part of your organization's discussions around IoT and digital business

Establish IT as IoT visionaries

Create and communicate a vision for IoT in your organization

Understand IoT initiatives underway outside the scope of IT, find ways to participate

Next 90 Days:

Understand the IoT strategies of your key vendors

Identify the IoT skills and capabilities you have and those you'll need to acquire

Create a comprehensive risk management approach and apply it to all IoT projects

Next 12 Months:

Architect for change because IoT technologies and vendors will evolve rapidly

Review technology and vendor decisions regularly


Recommended Gartner Research

Market Guide for IoT Platforms

Alfonso Velosa, Yefim V. Natis and Others (G00289432)

Key Considerations in Selecting a Wireless Communications Technology

for Your IoT Project

Mark Hung, Tim Zimmerman and Nick Jones (G00298899)

Hype Cycle for the Internet of Things, 2016

Alfonso Velosa, W. Roy Schulte and Benoit J. Lheureux (G00290227)

How the Internet of Things Will Impact Cybersecurity

Ruggero Contu and Earl Perkins (G00290691)

Solution Path for Executing an Internet of Things Initiative

Paul DeBeasi (G00293163)For more information, stop by Gartner Research Zone.

http://www.gartner.com/document/3380746?ref=ddisp&refval=3380746

http://www.gartner.com/document/code/298899/





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