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A Next Generation Approach to MonetizingA Next Generation Approach to Monetizing Device Connectivity – Why You Should Stop

Monitoring Your Devices

Wichita, Kansas 1994Wichita, Kansas 1994

• In 1994 the City of Wichita begins to implement• In 1994 the City of Wichita begins to implement community policing.

• Results after 20 weeksResults after 20 weeks– 11% decrease in overall crime– 41% decrease in drug law violationsg– 47% decrease in prostitution– 16% decrease in 911 calls

2

The Trend Has ContinuedThe Trend Has Continued

3

So What … ? So What … ? is Community Policing?is Community Policing?

The essential elements• We / They Partnerships• We / They Partnerships• Officer Expertise• Citizen is a Resource• Improved Police Community Relationship• Variety of Strategies / Tactics• Decentralized Service• Increased Officer Authority / Accountability

4

So What … So What … Does this haveDoes this have to do with usto do with us??

The essential elements/ h h• We / They Partnerships

• OEM Expertise• Customer is a Resource• Improved OEM Customer Relationship• Variety of Strategies / Tactics• Decentralized ServiceDecentralized Service• Increased Employee Authority / Accountability

5

Perhaps Our Problems are Not So UniquePerhaps Our Problems are Not So Unique

• The police field is preoccupied with management internal procedures and efficiencymanagement, internal procedures, and efficiency to the exclusion of appropriate concern for effectiveness in dealing with substantiveeffectiveness in dealing with substantive problems.

• The police devote most of their resources toThe police devote most of their resources to responding to calls from citizens, reserving too small a percentage of their time and energy for p g gyacting on their own initiative to prevent or reduce community problems.

6

Goldstein, H. (1990). Problem‐oriented policing. New York: McGraw‐Hill.

Perhaps Our Problems are Not So Unique Perhaps Our Problems are Not So Unique (cont’d)(cont’d)

• The community is a major resource with an l l l d fenormous potential, largely untapped, for

reducing the number and magnitude of bl h h b h b fproblems that otherwise become the business of

the police.

• Within their agencies, police have readily available to them another huge resource: their rank‐and‐file officers, whose time and talent have not been used effectively.

7

Goldstein, H. (1990). Problem‐oriented policing. New York: McGraw‐Hill.

A Modest Proposal…A Modest Proposal…

Isn’t it time we stop “policing” ourIsn’t it time we stop “policing” our devices, and start engaging our

community of customers and devices?

Aren’t people relationships as important as device relationships?

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The Connected The Connected RevolutionRevolution

BuildingsTransportation

Energy Cities

Critical Operational Processes involve People,Critical Operational Processes involve People, Systems, and the Physical World

Remote Service IoTService

GridManufacturing

The Connected The Connected Revolution Revolution –– A Social A Social Web of ThingsWeb of Thingsgg

BuildingsTransportation

Energy Cities

Remote Service IoTService

GridManufacturing

The Connected Revolution Extends The Connected Revolution Extends Across The Entire EcosystemAcross The Entire Ecosystemyy

Challenges of Today’s Connected WorldChallenges of Today’s Connected World

Critical Operational Processes requirePeople, Systems, and the Physical

ldWorld

Operational change faster than design deploy cycle of current toolsdesign‐deploy cycle of current tools

Number of Connected Things growingNumber of Connected Things growing 5B → 1T in 20 Years

Expectations of Users have changed: p gWeb 2.0, Mobile, Social, Searchable, Mashable

ThingWorx™ Confidential

Challenges of Today’s Connected Challenges of Today’s Connected World:World:We Live We Live in a Multiin a Multi--Data Type WorldData Type World

ERP, EAM, SCM, Web Services DatabasesERP, EAM, SCM, Web Services Databases

Collaboration, Social Networks Mobile

Collaboration, Social Networks Mobile

Industrial Equipment, M2M InfrastructureIndustrial Equipment, M2M InfrastructureServices, Databases Services, Databases Networks, MobileNetworks, Mobile M2M, InfrastructureM2M, Infrastructure

SystemsPeople Physical WorldThingWorx: A Platform for Building Apps that

Connect, Store, and Relate

www.thingworx.com

The 1st Platform for Connected Applications

A Simple Mathematical Model for A Simple Mathematical Model for Monetization of M2MMonetization of M2M (M(M55?)?)Monetization of M2M Monetization of M2M (M(M ?)?)

Modules = CostModules = Cost

Provisioning = Cost

Bandwidth = Cost

Cloud Hosting = Costg

Development = Cost

Applications = Value!

A Little More Complex M2M Monetization A Little More Complex M2M Monetization MathMathMathMath

f fThe captured lifetime value of an opportunity is dependent on the speed at which the opportunity can be identified and the speed at which an application can be developed to capture it.p pp p p

(This is Calculus Folks!)

Six Rules for Rapidly Creating Six Rules for Rapidly Creating P fi bl M2M S l iP fi bl M2M S l iProfitable M2M SolutionsProfitable M2M Solutions

To paraphrase James Carville

It’s the Application, Stupid

Rapid deployment without unique, value generating applications is just a way to

spend money faster.spend money faster.


Don’t Be Locked InDon t Be Locked In

If your M2M “platform” vendor forces your into y p ya SaaS model, beware. While SaaS can be

helpful it is not a panacea. It’s also a way to hold data hostage and can be an admissionhold data hostage and can be an admission that the solution is too complex or too fragile

to be let out in the wild.to be let out in the wild.


Beware Professional Services WolvesBeware Professional Services Wolves in Platform Vendor’s Clothing

If your M2M “platform” vendor is also selling professional services beware Speed ofprofessional services, beware. Speed of

development is not going to be their highest priority.priority.


Don’t Get EclipsedDon t Get Eclipsed

If your M2M “platform” vendor tells you how easy it is to develop applications and then tells you to start by downloading an Eclipse plugin, it’s NOT going to be rapid.Eclipse plugin, it s NOT going to be rapid.


Q: How many Java/Flash/ NET/C++Q: How many Java/Flash/.NET/C++ developers does it take to change

an M2M app?If your M2M “platform” vendor tells you howIf your M2M platform vendor tells you how

easy it is to develop applications using Java/Flash/ NET/C++ it’s NOT rapidJava/Flash/.NET/C++, it s NOT rapid.

Six Rules for Rapidly Creating Profitable Six Rules for Rapidly Creating Profitable M2M S l iM2M S l iM2M SolutionsM2M Solutions

If It’s More Complicated Than ThisIf It s More Complicated Than This, It’s NOT Rapid

If It’s More Complicated Than This, It’s If It’s More Complicated Than This, It’s NotNotRapidRapid

ProgrammingProgramming

The 1st Application Platform for the Connected World™

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