The IoT Market Analysis Using A Need-Capability-Matrix. Yuan Wang Arrow Electronics
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1 The IoT Market Analysis Using A Need-Capability-Matrix Yuan Wang Arrow Electronics
2 Arrow at a Glance Founded: 1935 Ticker Symbol: Web Site: ARW (New York Stock Exchange) Sales: $22.7 billion Employees: 16,500 Locations: Global network of more than 470 locations in 55 countries and territories Corporate Headquarters: Customers: 115,000 Suppliers: 12,000 Fortune 500 Rank: 131 Englewood, Colorado
3 Arrow Suppliers 3
4 Questions for the IoT Technologies What is the current capability of the existing IoT technologies? Have the IoT technologies been applied to satisfy every aspect of our needs? What could be the next step of the IoT future development? 4
5 Outlines 1. IoT Market Segmentation Review 2. Porter s 4 Capabilities of Smart Connected Things 3. Maslow s Hierarchy of 8 Human Needs 4. IoT Market Analysis using a Unique Need-Capability-Matrix 5. Future of the IoT Development 5
6 1. IoT Market Segmentation Review The IoT Landscape from Goldman Sachs Global Investment Research: Wearables Connected Cars Connected Homes Connected Cities Industrial Internet Transportation Oil & Gas Healthcare 6
7 1. IoT Market Segmentation Review Industrial Classification from United Nation Statistics Division: A agriculture, forestry and fishing B mining and quarrying C manufacturing D electricity, gas, stream and air conditioning supply E water supply; sewerage, waste management and remediation activities F construction G wholesale and retail trade; repair of motor vehicles and motorcycles H transportation and storage I accommodation and food service activities J information and communication K financial and insurance activities L real estate activities M professional, scientific and technical activities N administrative and support service activities O public administration and defense; compulsory social security P education Q human health and social work activities R arts, entertainment and recreation S other service activities T activities of households as employers; undifferentiated goods- and servicesproducing activities of households for own use U activities of extraterritorial organizations and bodies 7
8 1. IoT Market Segmentation Review IoT Market Segments for Investigation Connected Planet Industrial Internet Connected Cities Connected Homes Connected Cars Satellite Aerospace Healthcare Transportation Manufacturing Government Retail Hospitality Appliances Utilities Buildings Mining Energy Water Process Financial Services Education Information Wearables 8
9 2. Porter s 4 Capabilities of Smart Connected Things New Technology Stack for Smart Connected Things 9
10 2. Porter s 4 Capabilities of Smart Connected Things Autonomy Optimization Control Monitoring Sensors and external data sources enable the comprehensive monitoring; Monitoring also enables alerts and notifications of changes. Software embedded in the product or in the product cloud enables control of product function, and personalization of the user experience. Monitoring and control capabilities enable algorithms that optimize product operation and use. Combining monitoring, control and optimization allows: Autonomous product operation; Self-coordination of operation with other products and systems; Autonomous product enhancement and personalization; Self-diagnosis and service. 10
11 3. Maslow s Hierarchy of 8 Human Needs Tran scen Selfactual Aesthetic Cognitive Esteem Love & belonging Safety Biological and physiological Transcendence help others to achieve self-actualization. Realize personal potential, selffulfillment, Appreciate and search for beauty, balance, form, sensory stimulation Knowledge, curiosity, understanding, meaning, Self-respect, achievement, attention, recognition, reputation. Romantic, family, friends, study/work, fans/customers, pet, Security of environment, resources, financial situation, employment, Air, food, drink, shelter, warmth, sleep, sex, excretion, 11
12 4. IoT Market Analysis using a Need-Capability-Matrix 4.1. Construct a Need-Capability-Matrix, used as a comparison metrics. Capabil ity / Needs Biologi cal & physiol ogical Safety Love & belongi ng Esteem Cogniti ve Aesthe tic Selfactualiz ation Transce ndence Monito ring Control Optimi zation Autono my 12
13 4. IoT Market Analysis using a Need-Capability-Matrix 4.2. Choose IoT application (products and solutions) resources From publically known companies active on AllSeen Alliance, Open Interconnect Consortium, IoT Consortium Targeting end consumers or customers; Involving smart, connected hardware designs; Total 247 IoT applications for this analysis, covering from small startups products to large enterprises solutions Map IoT application resources into the Need-Capability-Matrix Map each IoT product / solution into one matrix space, depending on its major characteristics. Some mixed characteristic examples: Clothes / Shoes vs. Health / Wellbeing Hexoskin Biometric Shirt Resources Safety vs. Food & Drink GE Predictivity for Food Safety Assurance 13
14 4.3. Map IoT applications into the Need-Capability-Matrix Biological & Physiological Needs vs. Capabilities Capabilit y / Bio & phy Air / oxygen Food & Drink Clothes / shoes Shelter Warmth Sleep Sex Excretio n Monitori ng Control Optimiza tion Autono my 14
15 4.3. Map IoT applications into the Need-Capability-Matrix Biological & Physiological Needs vs. Capabilities Air/Oxyen Food & Drink Clothes & Shoes Shelter Warmth Sleep Sex Excretion 15
16 4.3. Map IoT applications into the Need-Capability-Matrix Safety Needs vs. Capabilities Capability / Safety needs Environm ent s security Resources security Financial security Employm ent security Health / wellbeing Emotional security Morality security Monitoring Control Optimizatio n Autonomy 16
17 4.3. Map IoT applications into the Need-Capability-Matrix Safety Needs vs. Capabilities Environment's Security Resources' Security Financial Security Employment's Security Health / wellbeing Emotional Security Morality Security 17
18 4.3. Map IoT applications into the Need-Capability-Matrix Love & Belonging Needs vs. Capabilities Capability / love & belonging Romantic attachme nt Family Friendshi p / social Study / work Fans / customers Religious communit y Pet Monitoring Control Optimizatio n Autonomy 18
19 4.3. Map IoT applications into the Need-Capability-Matrix Love & Belonging Needs vs. Capabilities Romantic Attachment Family Friendship / Social Study / Work Fans / Customers Religious Community Pet 19
20 4.3. Map IoT applications into the Need-Capability-Matrix Esteem Needs vs. Capabilities Capability / Esteem needs From others: status, fame, prestige From others: recognition, attention Self-respect: strength, competence, mastery Self-respect: selfconfidence Self-respect: freedom and independence Monitoring Control Optimization Autonomy 20
21 4.3. Map IoT applications into the Need-Capability-Matrix Esteem Needs vs. Capabilities From Others: fame, prestige From Others: recognition.. Self-respect: competence, mastery Self-respect: confidence Self-respect: freedom.. 21
22 4.3. Map IoT applications into the Need-Capability-Matrix Cognitive / Aesthetic / Self-Actualization / Transcendence Needs vs. Capabilities Capability / Needs Cognitive Needs Aesthetic Needs Selfactualization Needs Transcendence Needs Monitoring Control Optimization Autonomy 22
23 4.3. Map IoT applications into the Need-Capability-Matrix Cognitive / Aesthetic / Self-Actualization / Transcendence Needs vs. Capabilities Cognitive Needs Aesthetic Needs Self-Actualization Transcendence 23
24 4.3. Map IoT applications into the Need-Capability-Matrix Human Needs vs. Capabilities Autonomy Optimization Control Monitoring Biological Safety Love&Belong Esteem Cognitive Aesthetic Self-actual Transcendence Aerospace Water Process Energy Mining Manufacturing Transportation Healthcare Information Education Financial Services Retail Government Buildings Utilities Appliances Cars Wearables 24
25 4.4. Need-Capability-Matrix Mapping Outcomes Wearables Cars Wearables play well to satisfy human s all levels of needs, however, their capabilities only remain at the monitoring and control level. Cars mainly target on our safety needs, gradually consider the cognitive and aesthetic needs, and start to address the esteem needs with autonomous cars. Connected Homes Appliances biggest player in the biological needs, major player in the safety and aesthetic needs, some presence in the love & belonging and cognitive needs; also, the autonomy capability is reached to meet our biological and safety needs somehow. Utilities & Buildings some applications meet the biological and safety needs, and the aesthetic need is lightly touched on. 25
26 4.4. Need-Capability-Matrix Mapping Outcomes Connected Cities Government a few applications address the safety needs, and just reach the optimization level. Retail some applications target the safety, cognitive, and aesthetic needs, and just attain the optimization function. Financial Services fairly play in the safety and esteem needs, the optimization capability has been achieved. Education only play the monitoring role for the safety needs, and gain the optimization level for the esteem and cognitive needs. Information achieve the optimization level for the love & belong, and cognitive needs. 26
27 4.4. Need-Capability-Matrix Mapping Outcomes Industrial Internet Healthcare cover the safety, love & belonging, esteem, and cognitive needs; nearly all perform at the optimization level. Transportation big player in the safety needs, small role in the esteem needs with the optimization and cognitive needs with the autonomy. Manufacturing meet the safety needs; touch on the optimization level. Mining & Water Process address the esteem needs with the optimization functionality. Energy play in the safety needs at the optimization level, and in the esteem and cognitive needs with the autonomy capability. Connected Planet Aerospace start to meet the cognitive needs at the control level. 27
28 5. Future of the IoT Development Biological & Physiological Needs Put more thoughts into the food & drink, clothes & shoes, and sleep needs, especially focus on enhancing with the autonomy capabilities; Start to look into human sexual and excretion needs. Safety Needs Work on protecting the environment, resources and health, with the autonomy capability; Start to address the employment, emotional, and morality security. Love & Belonging Needs Enhance the romantic attachment, family, friendship / social, pet relationships with the optimization and autonomy capabilities; Realize the autonomy for the study / work, fan / customer relationships. Start to target the religious communities. 28
29 5. Future of the IoT Development Esteem Needs Start to develop applications to enhance the esteem, such as fame, prestige and recognition, and to improve self-respect confidence, freedom Cognitive and Aesthetic Needs Work on satisfying the cognitive needs, with the autonomy capability; Explore how to meet the aesthetic needs, with the optimization and autonomy capabilities. Self-Actualization & Transcendence Needs Start to think about how to satisfy these needs with IoT applications. 29
30 Questions?
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