50 Billion Connected Devices by 2020
Internet of Things or in simpler terms IoT has passed that age when it is no longer the buzz word of startup ecosystem. IoT has already entered our daily lives and as consumers we don’t even recognise it because the IoT products are so well embedded in our existing systems.
The next generation of machines are designed with all the basic requirements of IoT systems. IoT systems are more like system of systems which controls and harnesses its power and effectiveness based on how the other systems are connected.
Before deep diving in the topic of IoT, let me just introduce my readers with some of the prominent predictions done by the largest player/corporations in industrial IoT or what we call Enterprise IoT:
- Peter Middleton, Gartner predict by 2020 component costs for parts which provide connectivity features will become less that $1. Making connectivity features as standard features in all possible machines
- Bosch SI will have 14Bn connected devices of their own
- Cisco has predicted of 50Bn devices by 2020
- 7.1Tn IoT solutions revenues are predicted by IDC
Product economies are going to start adopting Product-as-a-service economies
Manufacturers are moving down in the value chains to come closer to the consumers. Value added services are becoming standards where the parent colorations takes charge of repairing, updating and even replacing with newer products.
Manufacturers are moving towards Connected asset lifecycle management with which they can continuously improve their product offerings by learning about the customers & consumers needs through real data.
Servicitization can be next big step for many manufacturers
Servitization has been around since 80s, basics of servitization have been simple, the manufacturers moving from selling assets model to selling services which depends on particular assets. This can decrease on the total costs of developing the new products drastically. But this adds lot of work for the designers, sitting in both machine camps as well as internet camps.
The two professionals
- People developing products and designing them for consumers need to come closer to the crowd which is creating services for these consumers.
- The people developing disruptive solutions using data networks and internet have to start including the product designers who are the core of the offering to create a much more wholistic service.
Along with the merging of these two very different sides of the industry various different aspects are going to be crucial parts to this IoT growth. Security, data management and governance are going to play significant role in the success of IoT.
Based on current set of events, Facebook, Google and Twitter are the biggest forces which control the consumers, how the machine camp use this access to create products which serve these consumers better to create a faster, better & more connected world is to be seen in next 3 years.