Claro Partners 2014 FIRST EDITION A guide to succeeding in the Internet of Things
Despite the hype, we believe that the Internet of Things doesn t exist yet. Instead of one integrated ecosystem, we have many separate intranets of things. A GUIDE TO SUCCEEDING IN THE INTERNET OF THINGS CLARO PARTNERS 2
Today, connected devices are often solutions looking for a problem. There is a race to put a sensor on everything, before asking what real benefit it provides. A GUIDE TO SUCCEEDING IN THE INTERNET OF THINGS CLARO PARTNERS 3
The vision for the Internet of Things still lacks clear user experience and business models. The IoT won t be fully realised until it better fits into the ways we work, play and live our lives. A GUIDE TO SUCCEEDING IN THE INTERNET OF THINGS CLARO PARTNERS 4
The Internet of Things presents an enormous opportunity for business, but currently few companies know how to find their role in it. We have developed this guide to help you break through the hype of the IoT, by addressing real user needs and creating viable business models. A GUIDE TO SUCCEEDING IN THE INTERNET OF THINGS CLARO PARTNERS 5
This guide is divided into four exercises. Follow them in sequence - even if you already have a concept in mind - as the exercises will help you to refine, develop or rethink it. Do the exercises on your own or in teams; just print out the materials and follow the instructions. 1 2 3 4 Define the challenge Identify a user-centric challenge to solve Ideate the solution Create a solution that provides new value to the user Develop the offer Map out the ecosystem and interactions of your product and service Plan for production Identify resources needed and conduct gap analysis A GUIDE TO SUCCEEDING IN THE INTERNET OF THINGS CLARO PARTNERS 6
1 Define the challenge Identify a user-centric challenge to solve A GUIDE TO SUCCEEDING IN THE INTERNET OF THINGS CLARO PARTNERS 7
KEEP IN MIND Don t create an offer that makes the technology its focus. Do create an offer that meets real human needs. A GUIDE TO SUCCEEDING IN THE INTERNET OF THINGS CLARO PARTNERS 8
INSTRUCTIONS With this exercise, you will explore real user needs and then define a challenge to solve with an IoT product or service. 1 2 3 4 5 Choose a context to explore from the list provided, or one of your own. Print the Human Needs Framework sheet and write your chosen context in the middle. Use the questions as prompts to brainstorm different challenges people face when meeting their needs in this context. Write each challenge on a post-it and stick it onto the sheet. Choose a challenge to design for and circle it. Print the Challenge Definition sheet and write the challenge you ve chosen to tackle on it. List of possible contexts: Ageing population Work-life balance Urban life Health & wellbeing Local communities Education Sustainability Shopping Tourism Family Estimated time for this step: 30 mins A GUIDE TO SUCCEEDING IN THE INTERNET OF THINGS CLARO PARTNERS 9
HUMAN NEEDS FRAMEWORK Need: BELONGING In this context, how do people feel like they belong? What challenges do they face in trying to do this? Need: DISCOVERY In this context, what do people want to discover? What challenges do they face in trying to do this? Chosen context: Example contexts: Ageing population, work-life balance, urban life, health and wellbeing, local communities, education, sustainability, shopping, tourism Need: CONTROL In this context, what do people want to control? What challenges do they face in trying to do this? Need: ACHIEVEMENT In this context, what do people want to achieve? What challenges do they face in trying to do this? A GUIDE TO SUCCEEDING IN THE INTERNET OF THINGS CLARO PARTNERS 10
CHALLENGE DEFINITION Challenge to solve with an IoT-enabled concept: A GUIDE TO SUCCEEDING IN THE INTERNET OF THINGS CLARO PARTNERS 11
2 Ideate the solution Create a solution that provides new value to the user A GUIDE TO SUCCEEDING IN THE INTERNET OF THINGS CLARO PARTNERS 12
KEEP IN MIND Don t simply use new technology to enhance or improve existing solutions. Do reimagine entirely new capabilities and value that an IoT service can deliver. A GUIDE TO SUCCEEDING IN THE INTERNET OF THINGS CLARO PARTNERS 13
INSTRUCTIONS With this exercise, you will ideate innovative ways to solve the challenge, taking into account new value that IoT technologies can bring to the user. 1 2 3 4 5 6 Write the challenge you defined in the middle of the Ideas Brainstorm sheet. Define the person facing the challenge and think about what their life looks like. Next, with that person in mind, brainstorm solutions that would meet their real needs. Write the solutions on post-it notes of the same colour and stick them on the sheet. Using a different colour, write down ways in which IoT technology could be used to enable each solution. Choose one solution to develop further and circle it. Fill in the Idea Description sheet. Estimated time for this step: 40 mins A GUIDE TO SUCCEEDING IN THE INTERNET OF THINGS CLARO PARTNERS 14
IDEAS BRAINSTORM Challenge to solve: 1. Define the person facing the challenge and think about what their life looks like. 2. Next, with that person in mind, brainstorm solutions that would meet their real needs. Write the solutions on post-it notes of the same colour and stick them on the sheet. 3. Using a different colour, write down ways in which IoT technology could be used to enable each solution. A GUIDE TO SUCCEEDING IN THE INTERNET OF THINGS CLARO PARTNERS 15
IDEA DESCRIPTION Value proposition to the user: Briefly describe your idea - explain how it solves the challenge and meets the chosen user need: Idea name: A GUIDE TO SUCCEEDING IN THE INTERNET OF THINGS CLARO PARTNERS 16
3 Develop the offer Map out the ecosystem and interactions of your product and service A GUIDE TO SUCCEEDING IN THE INTERNET OF THINGS CLARO PARTNERS 17
KEEP IN MIND Don t create an intranet of things by designing a product and service that lives in isolation. Do take advantage of the ecosystem enabled by the IoT to create interconnected services, experiences and business models. A GUIDE TO SUCCEEDING IN THE INTERNET OF THINGS CLARO PARTNERS 18
INSTRUCTIONS With this exercise, you will map out your idea and define the interactions, actors, devices and value involved. EXERCISE 4 Example 1 2 3 4 Print both the IoT Service Diagram and the IoT Service Diagram Cards. Cut out the cards. On the IoT Service Diagram sheet (or a larger sheet of paper if you need), map out your idea using the cards. Draw the flow of different types of data and value between them. Use the questions on the sheet to explore the full potential of the idea. Estimated time for this step: 40 mins A GUIDE TO SUCCEEDING IN THE INTERNET OF THINGS CLARO PARTNERS 19
EXAMPLE EXERCISE 4 Example This is an example of how a Service Diagram could look. We ve imagined what the interactions and value exchanges might look like for the Nike Fuelband. A GUIDE TO SUCCEEDING IN THE INTERNET OF THINGS CLARO PARTNERS 20
IOT SERVICE DIAGRAM Consider: Will the device just provide information to the user or will it act on that information? What are the specific inputs/outputs of the service? (eg. sight, sounds, touch, taste, smell, temperature) Could the device learn through its use over time and adapt its behaviour accordingly? Could the service use existing devices, data streams or interfaces? A GUIDE TO SUCCEEDING IN THE INTERNET OF THINGS CLARO PARTNERS 21
IOT SERVICE DIAGRAM CARDS A GUIDE TO SUCCEEDING IN THE INTERNET OF THINGS CLARO PARTNERS 22
4 Plan for production Identify resources needed and conduct gap analysis A GUIDE TO SUCCEEDING IN THE INTERNET OF THINGS CLARO PARTNERS 23
KEEP IN MIND Don t underestimate the complexity of bringing to life an offer that spans both the physical and digital. Do map out all the elements you ll need to successfully develop and deliver your IoT offer. A GUIDE TO SUCCEEDING IN THE INTERNET OF THINGS CLARO PARTNERS 24
INSTRUCTIONS With this exercise, you will identify the processes and resources needed (in your company or from outside) to bring your product and service to life. 1 2 3 4 * Print the IoT Canvas on a large piece of paper. Write the offer s value proposition to the end user in the box at the top. Using the questions in each box as prompts, fill out the rest of the canvas with details of your product and service idea. In the same boxes, also write down which resources, capabilities and processes you have, and which you d need to acquire (gap analysis). Note: this is an iterative process; move from one area to another and revisit the document over time to develop an integrated plan with as much detail as you need. Estimated time for this step: 30 mins A GUIDE TO SUCCEEDING IN THE INTERNET OF THINGS CLARO PARTNERS 25
IOT CANVAS A GUIDE TO SUCCEEDING IN THE INTERNET OF THINGS CLARO PARTNERS 26
If you d like to know how we can help your company to define its role and thrive in the Internet of Things, please get in touch. Claro Partners works with global companies to help them develop their strategy within diverse market opportunities emerging from disruptive shifts in society and technology. The Internet of Things is one of these market opportunities. Contact us: hello@claropartners.com +34 931 786 332 Carrer de Provença, 290, 3-1A, Barcelona, Spain Download a copy of this guide from our website: www.claropartners.com/project/internet-of-things Find us online:
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