Mighty Things | Strategic Partner For The Connected World

Mighty Things

For the Connected World

2015: A Mighty Year For The Internet Of Things

2015…this is it: “Back to the Future” year. So, here’s to a Mighty year!

It’s the beginning of the year and it’s the season of resolutions, predictions and gadgets at the Consumer Electronic Show (CES) in Las Vegas. But let’s be honest: nobody really cares about our resolutions; nobody really has a clue what 2015 has in store; and Apple is already dominating the 2015’s biggest tech show without even showing up. Every year, experts, bloggers and VCs make guesses about the year ahead, and each year they get hit by unexpected events that make them look clueless. Is Google Glass definitely dead? Will drones covered in mistletoe fly at our face? Will the Apple Watch be a hit or a flop? When are we getting flying cars?


Don’t Predict. Anticipate

We have an opinion for each of those, but we won’t predict the future. All we know is that Nike will come up with real versions of those wicked self-lacing shoes from Back to the Future II by the end of this year. At least, that’s what we’ve heard this week in Vegas. And that makes us happy. In all seriousness, we can’t predict the future. Yet we love to anticipate and prepare for it at Mighty Things.

“The best way to predict the future is to create it” – Abraham Lincoln

So, instead of predicting what’s ahead, we prefer to tell you what will make our hearts beat in 2015. We can sum up everything that fed the fire in us in three words: “Internet of Things”. (I know… you might have already read or heard that phrase around 10,000 times today).

When we founded Mighty Things in 2012 as a mobile strategy-consulting firm, we looked at wearable technologies, sensors, and the Industrial Internet with a spark of interest. In 2013, we lighted a fire. In 2014, we fed a fire to make a flame. In 2015, we will spread a fire to make a blaze with the Internet of Things.


Think “New Paradigm”

The Internet of Things (IoT) is not just the latest tech buzzword; it’s a new paradigm for business and consumer lives. It connects the physical world to the Internet. It’s the ability for all devices to communicate with one another.

We live in a world of accelerating contradiction: more people now have access to a mobile device than have access to running water in many parts of the planet. Everything is becoming more connected, in almost every way. This transformation is happening at a speed we can barely imagine with the rapid proliferation of connected objects and devices. The Internet of Things is this strange, sometimes diluted into near non-sense, term everyone is talking about. But what does it really mean for organizations?


Don’t Wait. It’s Already Here. Now

I guess we can be labeled as early adopters, but truth is the Internet of Things is already shifting from buzzword to mainstream. It rapidly permeates our consumer lives and it’s just the beginning. With the Apple Watch, the entire watch industry is prime for disruption. So are potentially healthcare and mobile payments. At IFA 2014 Opening Keynote in Berlin, Samsung promised safer, healthier and more energy-efficient homes within two years. The home of the future will figure out when you wake up and start the coffee; it’ll suggest recipes that use up ingredients before they go bad; it’ll give your loved ones across the country a virtual place at the dinner table. At CES 2015, Samsung announced that 90% of its products will focus on the Internet of Things by 2017, and 100% of their devices would cater to this trend five years from now. Clearly, Samsung is betting its entire future on the Internet of Things.

I guess we can be labeled as early adopters, but truth is the Internet of Things is already shifting from buzzword to mainstream. It rapidly permeates our consumer lives and it’s just the beginning. With the Apple Watch, the entire watch industry is prime for disruption. So are potentially healthcare and mobile payments. At IFA 2014 Opening Keynote in Berlin, Samsung promised safer, healthier and more energy-efficient homes within two years. The home of the future will figure out when you wake up and start the coffee; it’ll suggest recipes that use up ingredients before they go bad; it’ll give your loved ones across the country a virtual place at the dinner table. At CES 2015, Samsung announced that 90% of its products will focus on the Internet of Things by 2017, and 100% of their devices would cater to this trend five years from now. Clearly, Samsung is betting its entire future on the Internet of Things.


Don’t Ignore The Internet Of Things

Beyond the latest consumer gadgets and driverless cars at CES, the industrial Internet of Things will advance how manufacturers create, operate and service products. Opportunities in enterprises are actually rather enormous. IDC projects that more than 212 billion “things” will be part of the Internet of Things, generating nearly 9 trillion in annual sales by 2020.

“Tech right now is basically an entrepreneur’s time machine. Every company and industry created from 1890s-1960s is being rebuilt digitally” – Aaron Levie, CEO of Box

From manufacturing to utilities, IoT revenues projections are staggering in every category. IoT cannot be ignored because it will affect every industry, every company, every job, and every person.

The Internet of Things is fascinating because it proposes a new paradigm as it will create and capture value differently. It is both a driver of new product cycles generating new revenues, and another leg of cost efficiencies improving productivity and cost savings. Those who seize the opportunities of the Internet of Things by shifting their mindset now will emerge stronger in an ever-changing world.


Adapt or Die

Organizations can now address needs in real-time and even in a predictive manner. Thanks to sensors, we can get instant feedback and measure our performance while we’re golfing or playing tennis. Non-technological products can now become smart. They are no longer one-and-done, nor obsolete over time. They are also no longer isolated, creating synergy value along the way. Thanks to a simple over-the-air software update, my smoke detector can now tell the difference between smoke and steam. Organizations can leverage the Internet of Things to respond to customer behavior more efficiently thanks to new analytics. Just think about the implication in health for example. Proteus Digital Health is working to create a pill containing a tiny sensor than can communicate information about your medication-taking behaviors and how your body is responding. Once the data is in the cloud, doctors and other caregivers can monitor it.

For businesses, the Internet of Things will enable recurring revenue, including value-added services, subscriptions and apps, which can easily exceed the initial product purchase price. For example, Voyce, a sensor-packed collar for dogs, is coming with a monthly subscription fee to access exclusive insights about your pet behavior. Organizations can “lock in” customers with personalization and context gained through information gained over time. Nike did it perfectly by combining the NikeFuel platform and decades of deep insight in sport. Last year, the company collected data from its most active Fuelband and Nike+ Running users and visualized it, creating over 100,000 customized animated films designed to capture individual people’s 2014 athletic exploits. Finally, organizations will have to learn to grow partnerships and further understand how others in the ecosystem make money instead of just leveraging competencies and existing resources. In Europe, Coca-Cola Enterprises has been placing sensors on goods and in vending machines to help track inventory and help retailers offer discounts to customers participating in digital loyalty programs.

The Internet of Things is a disrupting force to any business, and it will be necessary to keep you ahead of your competitors. Without doubt, the Internet of Things will create new winners long before losers find out they’re losing. The future belongs to the organizations brave enough to adapt and evolve their business models around those new technologies. What matters now is getting ready to create the future, not predictions. If this vision resonates with you, we’re here to help. So, come and feed the fire with us.

 

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