Input sound file:
10-16 pm Session 1_1008.MP3
Session name: 10 Use Cases for IOT
Chris Albrecht 00:03
I’m pretty sure we’re serving Netbiscuits at the afternoon break which is coming up right after this. We have a special presentation from – no, it’s not a special presentation but a presentation from Alex Hawkinson – the CEO and Co-Founder of SmartThings – and he’s going to be talking about the 10 U – there are just ten, we’ve had all day of U-cases for the internet of things, but he’s going to be talking about 10 Uses Cases for Internet of Things. Please welcome Alex out to the stage.
Alex Hawkinson 00:33
Well everybody, I resent the implication that it’s not a special presentation so we’ll do our best to make it that way. I’m Alex Hawkinson. I’m a founder and CEO of the company called SmartThings. We’re building an open platform for the internet of things – it’s meant to sort of make it accessible to everyday consumers. We’re primarily focused on the cloud and app and user experience layers but we get a chance to interact with– has an open platform of lots of the companies that are in the room and lots of thousands of developers and device makers and so on, around the world. So we love seeing the innovation that’s happening both in this – commend GigaOM on the conference and what’s happening in everybody that’s in the room here but also in the open market place.
Alex Hawkinson 01:17
I was asked to talk about a number of different use cases. There’s literally impacts that all go across all of society around the internet of things and it’s easy just to focus on a few but I think it’s going to be the biggest technology opportunity in the world in the next ten years and we’re really [?] the outset, so I wanted to showcase some of the things that we see. I just inserted this at the last minute but I’d really miss if I didn’t point out that the internet of things is really just about cats as the rest of the internet is as well. This is an actual application. You can go check out the YouTube video that one of our users sent to me recently which was the cat would get into the computer drawer and other places in the house when the owner was away, and they wanted to prevent that and so we built a simple application using an off the shell sensor that when the owner is away from the house and the drawer opens up, they’d connect up a leaf blower and if that kick kicks on, you can see the live action and I guarantee that the cat has had some negative reinforcement about that behavior. So, the backdrop on this is that it’s also one of the area of disruption in this scenario in our everyday life and also to ways that we can’t predict and we see that across the board, so, lots of fun things to think about. The more serious note, some of the big buckets in industry disruptions that we see are in some of these different categories laid up out here. I sort of walked through them one by one. And show you what we’re seeing: a few real world examples, and then a few of my own thoughts on what I think the sort of level industry disruption will look like as well. We’ll start with home security.
Alex Hawkinson 03:01
Home security sort of the biggest category – the most used category of apps in our platform across our user based and it’s not just– it’s not the people refer to at as home security, in every case, it’s those individually used cases like Peter from Staples saw this morning, or Stacey has brought up, things like I am bothered that I forget to close my garage door when I drive away from the house, or, I’d love it if my front door would like automatically when I fall asleep at night, or of course you’d love to get a notification when something’s going in your home and maybe a picture when you’re away. So, we see lots of examples. There’s of course, devices that are being put to use sensors like drop can for security purposes by a lot of users. There’s also one more dedicated companies that we see popping up that are building special purpose security devices, so the Canary and PIPE are two examples, both finished in the Google campaigns in the past couple of months. Canary raised almost $2 million. Lot’s has sort of interest there. The disruption of this is really making security accessible to the market and I think it’s going to disrupt a number of existing companies but is really going to widened out as well. If you ask consumers, basically, the 85% of them will say they’d love some form of security system in their life but only a little less than 16% actually have anything in place. So it’s a dramatically under-served market. I kind of come to view the security market as similar to sort of dedicated GPS devices, navigation devices a few years ago, or they sort of road kill on the way of smartphones. Similarly, security is going to be just an offshoot of the internet of things and it’s going to be both new companies that make it really accessible to consumers but it’s also going to be that things will be much smarter. A good example there is there’s already apps and smart things that could recognize when it’s you waking up in the middle of the night and not set off the alarm based on pattern of your motion through the house, or drop can releasing a new feature called, I think it’s activity recognition which actually analyzes the video and look for patterns of what might actually be an incident that you’d care about as oppose to this random motion of family members in the house. So, this is a wide open space. Another example is the sort of the second biggest of apps that our users make use of this in – I call it safety and risk management, and actually the inception of the company came out of just a flood that happened at a family cabin. For me, out in the mountains, the power went out, the pipes froze and burst then the water started running in, and all in all, it was almost $100,000 repair bill and we didn’t have flood insurance in the house, unfortunately.
Alex Hawkinson 05:50
There’s tons of examples both instead of knowledge or just knowing that something was going on, you could have avoided ways, but also tons of safety issues as well from common household dangers. Just last week, you saw the [nest?] launch of the protect device. There’s going to be many other examples of sensors and applications that are basically for the purpose of putting knowledge of issues, risks into the palm of your hand wherever you are and in some [?] is taking action on those.
Alex Hawkinson 06:18
I think the disruption here is the sort of mission is zero preventable loss of life and property, such a giant one. It’s just basically saying we can make all of our lives much safer, more worry-free in all sort of different ways. And so if you look like it, take examples. There’s 29,000 drier fires in the US every year, right? Maybe more importantly for me, I have young kids. 300 kids in the US go to the emergency room everyday and two die because of consuming some household chemical that they inadvertently got into and a lot of those are really young kids, and all of that is really preventable through this awareness in the home. It’s going to also disrupt the industries like the insurance industry. Insurance is regulated, they have to pay out some amount of their revenue in the form of claims. A specific percentage where claim value can go down by tremendous amount if we have perfect information coming out of the environment. If I had detected that household flood right as it was happening, it would have been a very small issue instead of a $100,000 loss. So it’s another category.
Alex Hawkinson 07:26
In a breaking out of a home, in a retail, another space. What I love about this is it’s not just a sort of big retailers in a really small, hyper local retailers. So one of the things that we see happening is companies taking connected sensors, internet of things, sensors of different types connecting them up to the cloud and then writing applications that put it to use in the business context and that will come back to that in enterprise in a little while but, in retail environment, two good examples of this is a company placed a meter in a company called Motionloft, if you haven’t checked them out, they basically let you very inexpensively in a retailer deploy sensors and track foot traffic, when customers are showing up, how many people are in a given retailer occasion, where they’re spending their time inside the environment, where cars are parked in your parking lot, all sorts of different stuff, and puts that information to use for the business owners. What are some of the opportunities for disruption here? I think it’s so tongue and cheek to say can break and more or can small retailers beat Amazon, but it really is it’s about bringing the power of big data and a lot of the inefficiencies that can come from it to even the smallest of retailers. Imagine being able to sort of AB test placements of stuff inside of your retailer occasion based on where you know the foot traffic goes, be able to look at things like abandonment rates when somebody comes in to your store but doesn’t actually buy something and leaves, what would that do in a similar sort of to an e-commerce mode, or how would that change the physical retail environments. So I guess, this has the opportunity to unleash a lot of great inefficiencies, better personalization and also it’s a stuff there, and then of course the promise of local which is the face-to-face touch and other things like that. I think it’s pretty exciting for the local economy.
Alex Hawkinson 09:16
In another big example, and these are all giants, right. And they’re an impact in sort of health care and wellness. Within this, we see lots of applications and our platform as well. We see lots of examples of new companies creating, in many cases, new wearable technologies for personal health needs but also – you’re going to see lively later today – common sensor types that can be deployed with applications for a specific purposes like elder care. So, couple examples here when you might not have heard of – OMsignal – it looks like an under-armor t-shirt or something that you wear on your body, it’s not on the wrist, you wear it all the time and it’s literally amazing to see it’s in the fabric – the sensors. It measures all of your bio-metrics – your heart rate, your temperature, your breathing rate, your sort of over-all stress level, and a bunch of other things – in real time throughout the day. It’s collecting all that data and they can sort of to use and sort of predictive health monitoring and so on. Weaving scales, another commercially available example of sort of giving you data, sort of [inset?] the right behaviors at home, and then lively, you’ll see later today. But there’s so many impacts of this, it’s hard to sort of quantify them all but just examples, just the obesity preventable health issues sort of estimated 1% of the US GDP is wasted based on sort of obesity-related issues – that’s a $150 billion a year. It’s also a huge quality of life factor for many people.
Alex Hawkinson 10:45
Elder care is another just massive topic that I could easily have focused on in this slide too. We have tens and millions of baby-boomers retiring everyday, people sort of my age that are still thinking about their parents and wanting them to live longer independently, and the opportunity to create basic applications of these sensors to sort of help older folks stay in their homes longer and live independently is quality of live. Huge impact in terms of cost, huge impact piece of mind with the kids that are tracking this sort of evolution as well. It’s a lot of opportunities there. A couple more. So, government, it needs help in a lot of ways but a couple of good examples, I’m basing DC so I’m particularly sensitive to this right now. Great example in Boston using – not even with sensors – they’re using people on their SmartPhones as the sensors, it’s a great application called street bump that uses the accelorometer in the phone and the GPS tracking in the phone to report potholes and their severity as people drive around town. So this sort of [?] up at this collection of data but then is available to the city and to other drivers to sort of help them avoid potholes and for the city to kind of get those repaired efficiently. And then lots of bigger projects, IBM has been in the forefront of a lot of these [sentenders pen?], 12,000 sensors deployed in air quality and temperature and parking spaces and garbage collection, and so on, all around the city, all meant to sort of improve their operations and sort of improve the quality of life for the citizens. The disruption here is that – it’s a government that works and then we’ll say it’s also that one that can sort of make life better for its citizens. In areas like improved service efficiency of resource deployment, crime reduction we see in the safety and security arena, there’s already apps in our platform to turn on all the front porch lights in the neighborhood when there’s a crime incident on your [?] and things like that. So lots of potential impacts there.
Alex Hawkinson 12:49
Final example sort of dig into and I can keep going, but in the enterprise space, I think GE, Belrou is up here earlier today and I really enjoyed what he was talking about and you see them as proponents in the industrial internet basically saying, outside of consumers-based, just deployment of these basic sensors, collecting information from the real world using the super-computing in the cloud to monitor for patterns, look for predictive opportunities to sort of increase efficiency, decrease waste, and so on, that those will just have a tremendous impact in so many different areas in the economy. It’s sort of sick. I like this one example which is 1% improvement in sort of fuel efficiency as a five to six billion dollar impact economically around the world and it’s also greener living at the same time. And you see lots and lots of examples like this all over the place. So, this will unlock a lot of friction in the economy, enable better competitiveness and enterprises that adopt internet of things technologies and also, it’s different arenas. So, those are the simple examples. We see this in every [?] of life, this sort of basic technologies beginning to kick-off. I think Stacey said earlier that this is going to be a cultural revolution as much as it’s a technology revolution and we couldn’t believe that more. So I hope you’ll connect with me. I loved to see you at the conference year and join us in the movement to make this an open ecosystem. Thank you.