The Analyst's Dilemma: Matt Hatton, Machina Research at IoT14

The Analyst's Dilemma: Matt Hatton, Machina Research at IoT14

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  Machina Research AnAnalyst’s Dilemma – what if I were an IoT entrepreneur? Matt Hatton, Director IoT14 – 15 April 2014
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  Two sides tothe story Sealed Air Helsinki City Transport eCall Big Belly Solar Gerbercutter Z7 Zipcar Machina Research 2
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  “The future isalready here – it’s just not very evenly distributed” William Gibson Machina Research 3
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  Big and fastgrowth applications • The biggest growth and the largest opportunities o Tracking – pets, children etc. o Healthcare o Automotive o Home automation • NB – This is not all of the apps we track, just the crème de la crème Application revenue in the UK, 2013-22 Source: Machina Research 2014 Machina Research 4
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  “The second halfof the chess-board” Andrew McAfee Machina Research 5
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  Look beyond apps,look for trends Changing business models Caring for (and securing) others • The greatest revenue opportunity comes from changing business models completely - disrupting the status quo that opportunities appear • Shift between companies, which means potential spectacular growth and super-normal margins • M2M/IoT provides (or can provide) that stimulus • Examples: o Zipcar bought for USD500m by Avis. Disruptive model for car ownership stimulated by connectivity. Also disruptive to Avis. o Sealed Air and all those other capex-to-opex transformative business models. o PTC paid USD112m for ThingWorx, recognising the need for connectivity in its offering • Care for self is generally a poor motivator • Care for others, however, is a strong one • Numerous IoT applications provide peace-of-mind in this respect: o Limmex watch o Child (and even pet trackers) o Building automation solutions o Indirectly Stolen Vehicle Recovery • As a result of this, the gifting (formal or informal) market is an attractive one • So think about the overall motivation for the application Machina Research 6
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  Providing M2M/IoT servicesis like feeding a person when they are hungry Back in the mists of time it looked like this If you’re poor If you’re rich Machina Research 7
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  Providing M2M/IoT servicesis like feeding a person when they are hungry Today it looks like this Machina Research 8
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  We’re evolving froman M2M to IoT world Traditional M2M markets Emerging IoT world Solutions were designed to monitor hundreds and thousands of remote assets Solutions will be required to monitor, manage and actuate millions of remote assets and devices Solutions were structured as vertical “stovepipes”: typically standalone developments Solutions will be designed with shared functionalities in mind to enable multiple uses Application development required developers to consider the entire functionality stack Developers will focus on applications, requiring access to more “off the shelf” enabling functionality Machina Research 9
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  So who iswhat? = Machina Research 10
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  So who iswhat? = Machina Research 11
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  Providing M2M/IoT servicesis like feeding a person when they are hungry As it evolves, who does what, and what am I looking for? Machina Research 12
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  Providing M2M/IoT servicesis like feeding a person when they are hungry As it evolves, who does what, and what am I looking for? Best and cheapest ingredients necessary to build an application An easy, palatable, complete solution at a reasonable price The ability to build my own Machina Research 13
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  So where wouldI put my money? Verticals ‘The industry’ • Some specifics: o Healthcare o Security and home automation o Automotive • Some wishy-washy analyst speak: o ‘Search for the disruptive’ o ‘Look for the motivation’ • Frightfully gauche to name names • There is no single right recipe – if you want a kebab, you have a kebab • Evolution from M2M to IoT produces a greater desire to build it yourself, and that is where the scale lies Machina Research 14
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  Contact me MattHatton, Director matt.hatton@machinaresearch.com Mobile: +44 7787 577886 Twitter: @MattyHatton = Machina Research 15