Guide-to-succeeding-in-the-IoT_Claro Partners

Claro Partners | 2014FIRST EDITIONA guide tosucceeding in theInternet of Things

Despite the hype, we believethat the Internet of Thingsdoesn’t exist yet.Instead of one integratedecosystem, we have manyseparate “intranets of things”.A GUIDE TO SUCCEEDING IN THE INTERNET OF THINGS | CLARO PARTNERS2

The Internet of Things presents an enormousopportunity for business, but currently fewcompanies know how to find their role in it.We have developed this guide to help youbreak through the hype of the IoT, byaddressing real user needs and creatingviable business models.A GUIDE TO SUCCEEDING IN THE INTERNET OF THINGS | CLARO PARTNERS 5

This guide is divided into four exercises. Follow them insequence - even if you already have a concept in mind - as theexercises will help you to refine, develop or rethink it.Do the exercises on your own or in teams; just print out thematerials and follow the instructions.1234Define the challengeIdentify a user-centricchallenge to solveIdeate the solutionCreate a solution thatprovides new valueto the userDevelop the offerMap out the ecosystemand interactions of yourproduct and servicePlan for productionIdentify resourcesneeded and conductgap analysisA GUIDE TO SUCCEEDING IN THE INTERNET OF THINGS | CLARO PARTNERS 6

1Define the challengeIdentify a user-centricchallenge to solveA GUIDE TO SUCCEEDING IN THE INTERNET OF THINGS | CLARO PARTNERS 7

KEEP IN MINDDon’t create an offer that makesthe technology its focus.Do create an offer that meetsreal human needs.A GUIDE TO SUCCEEDING IN THE INTERNET OF THINGS | CLARO PARTNERS 8

INSTRUCTIONSWith this exercise, you will explore realuser needs and then define a challenge tosolve with an IoT product or service.12345Choose a context to explore – from the listprovided, or one of your own.Print the Human Needs Framework sheet andwrite your chosen context in the middle.Use the questions as prompts to brainstormdifferent challenges people face when meetingtheir needs in this context. Write each challengeon a post-it and stick it onto the sheet.Choose a challenge to design for and circle it.Print the Challenge Definition sheet and write thechallenge you’ve chosen to tackle on it.List of possible contexts:• Ageing population• Work-life balance• Urban life• Health & wellbeing• Local communities• Education• Sustainability• Shopping• Tourism• FamilyEstimated time for this step: 30 minsA GUIDE TO SUCCEEDING IN THE INTERNET OF THINGS | CLARO PARTNERS 9

HUMAN NEEDS FRAMEWORKNeed: BELONGINGIn this context, how do people feel like they belong?What challenges do they face in trying to do this?Need: DISCOVERYIn this context, what do people want to discover?What challenges do they face in trying to do this?Chosen context:Example contexts:Ageing population, work-lifebalance, urban life, health andwellbeing, local communities,education, sustainability,shopping, tourismNeed: CONTROLIn this context, what do people want to control?What challenges do they face in trying to do this?Need: ACHIEVEMENTIn this context, what do people want to achieve?What challenges do they face in trying to do this?A GUIDE TO SUCCEEDING IN THE INTERNET OF THINGS | CLARO PARTNERS 10

CHALLENGE DEFINITIONChallenge to solve with an IoT-enabled concept:A GUIDE TO SUCCEEDING IN THE INTERNET OF THINGS | CLARO PARTNERS 11

2Ideate the solutionCreate a solution that providesnew value to the userA GUIDE TO SUCCEEDING IN THE INTERNET OF THINGS | CLARO PARTNERS 12

KEEP IN MINDDon’t simply use new technology toenhance or improve existing solutions.Do reimagine entirelynew capabilities and value thatan IoT service can deliver.A GUIDE TO SUCCEEDING IN THE INTERNET OF THINGS | CLARO PARTNERS 13

IDEAS BRAINSTORMChallenge to solve:1. Define the person facing the challenge and think aboutwhat their life looks like.2. Next, with that person in mind, brainstorm solutions thatwould meet their real needs. Write the solutions on post-itnotes of the same colour and stick them on the sheet.3. Using a different colour, write down ways in which IoTtechnology could be used to enable each solution.A GUIDE TO SUCCEEDING IN THE INTERNET OF THINGS | CLARO PARTNERS 15

IDEA DESCRIPTIONValue proposition to the user:Briefly describe your idea - explain how it solves the challengeand meets the chosen user need:Idea name:A GUIDE TO SUCCEEDING IN THE INTERNET OF THINGS | CLARO PARTNERS 16

3Develop the offerMap out the ecosystem and interactionsof your product and serviceA GUIDE TO SUCCEEDING IN THE INTERNET OF THINGS | CLARO PARTNERS 17

KEEP IN MINDDon’t create an “intranet of things”by designing a product and servicethat lives in isolation.Do take advantage of theecosystem enabled by the IoT tocreate interconnected services,experiences and business models.A GUIDE TO SUCCEEDING IN THE INTERNET OF THINGS | CLARO PARTNERS 18

INSTRUCTIONSWith this exercise, you will map out youridea and define the interactions, actors,devices and value involved.EXERCISE 4Example1234Print both the IoT Service Diagram and theIoT Service Diagram Cards.Cut out the cards.On the IoT Service Diagram sheet (or a largersheet of paper if you need), map out your ideausing the cards. Draw the flow of different typesof data and value between them.Use the questions on the sheet to explore thefull potential of the idea.Estimated time for this step: 40 minsA GUIDE TO SUCCEEDING IN THE INTERNET OF THINGS | CLARO PARTNERS 19

EXAMPLEEXERCISE 4ExampleThis is an example of how a Service Diagramcould look. We’ve imagined what theinteractions and value exchanges might looklike for the Nike Fuelband.A GUIDE TO SUCCEEDING IN THE INTERNET OF THINGS | CLARO PARTNERS 20

IOT SERVICE DIAGRAMConsider:• Will the device just provide information to the useror will it act on that information?• What are the specific inputs/outputs of the service?(eg. sight, sounds, touch, taste, smell, temperature)• Could the device learn through its use over time andadapt its behaviour accordingly?• Could the service use existing devices,data streams or interfaces?A GUIDE TO SUCCEEDING IN THE INTERNET OF THINGS | CLARO PARTNERS 21

IOT SERVICE DIAGRAM CARDSA GUIDE TO SUCCEEDING IN THE INTERNET OF THINGS | CLARO PARTNERS 22

4Plan for productionIdentify resources needed andconduct gap analysisA GUIDE TO SUCCEEDING IN THE INTERNET OF THINGS | CLARO PARTNERS 23

KEEP IN MINDDon’t underestimate the complexityof bringing to life an offer thatspans both the physical and digital.Do map out all the elementsyou’ll need to successfully developand deliver your IoT offer.A GUIDE TO SUCCEEDING IN THE INTERNET OF THINGS | CLARO PARTNERS 24

INSTRUCTIONSWith this exercise, you will identify the processesand resources needed (in your company or fromoutside) to bring your product and service to life.1234*Print the IoT Canvas on a large piece of paper.Write the offer’s value proposition to the enduser in the box at the top.Using the questions in each box as prompts, fillout the rest of the canvas with details of yourproduct and service idea.In the same boxes, also write down whichresources, capabilities and processes you have,and which you’d need to acquire (gap analysis).Note: this is an iterative process; move from onearea to another and revisit the document overtime to develop an integrated plan with as muchdetail as you need.Estimated time for this step: 30 minsA GUIDE TO SUCCEEDING IN THE INTERNET OF THINGS | CLARO PARTNERS 25

IOT CANVASA GUIDE TO SUCCEEDING IN THE INTERNET OF THINGS | CLARO PARTNERS 26

If you’d like to know how we can help yourcompany to define its role and thrive in theInternet of Things, please get in touch.Claro Partners works with global companies to helpthem develop their strategy within diverse marketopportunities emerging from disruptive shifts insociety and technology. The Internet of Things isone of these market opportunities.Contact us:hello@claropartners.com+34 931 786 332Carrer de Provença, 290, 3-1A, Barcelona, SpainDownload a copy of this guide from our website:www.claropartners.com/project/internet-of-thingsFind us online:

A Guide to Succeeding in the IoT is licensed under theCreative Commons Attribution | Non Commercial | ShareAlike 3.0 Unported LicenseThe full text of this license is available here: http://creativecommons.org/licenses/by-nc-sa/3.0Under this license, you are free to:• Share — to copy, distribute and transmit the work• Remix — to adapt the workUnder the following conditions:• Attribution — You must attribute the work in the manner specified as attribution below. You cannot attributethe work in any manner that suggests that Claro Partners S.L. endorses you or your use of the work• Non-commercial — You may not use this work for commercial purposes• Share Alike — If you alter, transform, or build upon this work, you may distribute the resulting work onlyunder the same Creative Commons Attribution-Non Commercial-ShareAlike 3.0 Unported LicenseAttribution:Claro Partners S.L.www.claropartners.comTell us or tweet us a photo of how you’ve used the guide!@claropartnersiot@claropartners.com