IoT, the Internet of Things,
is actually a bigger phenomena
and will have a bigger impact on us
than the internet itself.
IoT today has become much more pervasive
than I think all of us realize.
The cost of sensors has gone down dramatically.
The cost of transmission of data
has improved 20x.
The cost of storing all this data
has gone down tremendously,
and what all of that does is it allows us
to collect all this data,
to connect all these devices,
and fundamentally change how we all work,
live, and play.
If you look at wearables,
the smartwatches that we wear, that's IoT.
If we look at cars and how cars are now connected
to the internet,
they're providing you data,
that's IoT.
There's almost no aspect of life
that is not going in the direction of us sensoring
that real world activity and connecting us
to that real world.
The foundational and more interesting changes
are on how we interact,
how we impact and engage with our environment,
how we look at ecosystems and value chains differently.
My favorite example is around the insurance industry.
If you allow them to track the usage of your car,
they'll send you a little dongle in the mail.
They will track how far you go above the speed limit,
how many left turns you make,
how many right turns you make.
Because of that,
they can give you a 20% to 30% discount.
That's the entire insurance company focusing
on what is the best price to target
and what value to provide to you?
So that micropayment of insurance
is a fundamentally different way
of that ecosystem between the insurance companies,
the car companies thinking differently.
You really need to think about
an integrated, holistic ecosystem of capabilities,
of stakeholders, above and beyond a supply chain,
above and beyond your service providers, and so on.
Your success will absolutely depend
on the quality and the engagement with your ecosystem
to deliver value to your customers.