The Opportunity in Connections

Blog 3: Adventures with HotSpot:

Sorry for the delay on my blog to my 20 adoring fans. I love you guys!

I’ve been doing a little travelling and been trying to catch up with everything. I want to talk about the Internet of Things and why it’s actual a “thing” and why it’s really important.

It’s a really exciting time in the world:

  • innovation is skyrocketing,
  • valuations are extremely high
  • big companies are making massive changes.

Everything seems to by headed sky high and I hope the VC’s are right, I’m optimistic by nature.

A major force in what I think is driving innovation is the lack of connectivity. There are things that aren’t connected to the Internet, and thousand of people are working to do so.

Some obvious examples are successes like:

  • Nest Thermostat
  • Dropcam
  • the elusive Smart-Grid.

These are the obvious examples and relative successes thus far.

The neat thing is these are all relatively technical products that are now simply being connected to the web and actually enabling new business models. I actually brought up Nest on purpose this Article explains how nest is actually going to enable an interconnected smart grid on a grand scale and literally sell information and peak load insights to power companies. All without a major infrastructure overhaul (yet).

That’s crazy!

It's also a huge paradigm shift in how people thought is had to be done!

These are the kinds of insights that the internet of things is about.

On a really basic level there is a bunch of “stuff” in the world that’s not connected to the internet. Literally everything gets better if it’s connected to the internet. There is not a single thing that doesn’t.

The concept I took from: http://thehumanfaceofbigdata.com/

Something as simple as a drinking glass in a restaurant being connected to the internet could hypothetically tell the server when your out of water so they can come at exactly the right time.

Maybe the Restaurant pays the glass company monthly for the service?

A Sensor in your shoe could tell you exactly how many miles you have left at your current usage and plan accordingly. Maybe alerting Sportcheck to send you an email with a personalized offer on a brand your currently wearing.

Maybe, Sportcheck pays the brand monthly for the information?

The world’s exciting because it’s not connected right now and opportunity exists for anyone who can think past the current understanding of products and reimaging those same products as SaSS companies with services that feed not only into the product but into the ecosystem the product exists in.

I’m beginning to believe some day only SaaS products might exist, for anything we truly value.

The world is becoming connected, first the people, next the objects in it. That’s the area we’re entering where it’s less about the product and more about the data the product generates.

TLDR:

  • The world’s products are unconnected: Opportunity exists in connecting them.
  • Connecting things generates data: The Data may not be useful as a core function of the product
  • New Business models are created: They need to complement and complete the existing ecosystem of the product