Huawei and Cybernaut point of view, outlining the IoT business model

The Internet of Things has entered Gartner's technology maturity cycle curve since 2011. From 2011 to 2015, Gartner's forecasts for the internet of Things have been shortened from "More than 10 years" to "5-10 years" in the 4 years. This means that in 2015, Gartner's view of the internet of Things was replaced by a 5-10-year period from concept speculation into a mature business model.

In the 2009, the concept of Internet of Things (IoT) has exploded, according to the statistics of China's Internet of things industry scale reached 240 billion yuan in 2015. In the April 8, 2016 Zhongguancun IoT Alliance Annual Meeting, Zhongguancun IoT alliance Secretary-General, Cybernaut partner Zhang Jianning said, although the domestic internet of things industry has achieved certain achievements, but the overall high fragmentation status, lack of clear business model and industrial path, is encountering development bottlenecks.

April 11, Huawei released the 2016 Global Connectivity Index (GCI) report, in which the view on the IoT business model complements Cybernaut's view, outlining a clear future for the internet of things.

　　The "strong centrality" of the Internet of Things

Zhang Jianning, who has been investing in the IoT business model since 2009, argues that there is a very big difference between the internet of things and the traditional internet, which is that the emphasis is on "de-centering" and that the IoT is "strongly centralized".

(For Zhongguancun IoT Industry Alliance Secretary-General, Cybernaut partner Zhang Jianning)

January 2015, the internet giant Google's executive chairman Eric Schmidt in Switzerland's Davos Economic Forum predicted the Internet is about to disappear, a highly personalized, interactive and interesting world-the Internet of things, is about to be born. In the hype of Google and other Internet companies, many experts and academics regard the Internet of things as the next.

If IoT is the next internet, then the internet of things will naturally inherit the core features of the web, especially the "go-to-center". Almost the current mainstream view of the internet of things "de-centralized" view. However, Zhang Jianning that the logic of the Internet of things is very different from that in nature, which lies in the "strong centrality" of the IoT.

In fact, the Internet is a mesh network, users can use smart devices at any time and place in a low-cost way to quickly access the Internet, the emergence of the internet led to the famous "runaway" phenomenon. And the Internet of Things is based on "things", which originates from the Internet and above the Internet. People do not have to perceive the outside world through the internet of things, but also reverse control devices through the internet of things.

The Internet emphasizes the sharing and sharing of information, while IoT emphasizes the reverse control of all kinds of intelligent devices based on information sharing and sharing, which is the essential difference between Internet of things and network. "There is a re-emergence of a Super control center in any segment of the solution. IoT will change the Internet model from ' runaway ' to ' smart control '. "Zhang Jianning the first public share of his important insights into the internet of things over the past 7 years.

The Internet of things "strong centrality" and "intelligent control" mode, has emerged in the smart home scene: On the one hand through the mobile phone collection and analysis from smart home and smart home appliances and other equipment data, on the other hand, based on the results of data analysis and reverse control of smart home and intelligent home appliances and other equipment, to optimize the family environment.

　　The business model of "extreme innovation"

So, what is Huawei's point of view? In Huawei's 2016 Global Connectivity Index (GCI) report, four national technological innovation models emerged, based on the level of development of the digital infrastructure: basic innovation, Internet innovation, data innovation and extreme innovation. Among them, the highest order of "extreme innovation" is actually the business model of the Internet of things.

(for GCI 2016 overview)

The GCI index assesses, analyzes and forecasts various countries and economies through the four key economic factors and the five ambassadors ' ability to technology a total of 40 indicators to quantify their digital economic transformation process. Among them, the four major economic factors for supply, demand, experience and potential, five ambassadors can technology for broadband, data centers, cloud computing, big data and the Internet of things.

In 2016, GCI's research covered about 50 countries around the world in 90%GDP. The report shows that GCI continues to have a proportional relationship with GDP. However, at different stages of development, GCI has a different effect on GDP. 35 points is the national digital economic development of an important inflection point, break through this inflection point means that the regional digital economy will enter the development of high-speed period. Based on GCI scores and GDP per capita, the 50 countries studied were divided into three groups: starters, accelerators and leaders.

The evolution of the technological innovation model from the beginning of the GCI, this phase of the national digital infrastructure in the initial stage to expand Broadband, data center and 4G coverage, in the country of the GCI Accelerator, the Internet innovation stage, to explore new markets and work model through digital technology, mainly E-commerce and cloud services are the main products of this phase; The GCI leader is in the data innovation phase, broadband, cloud computing and data center is very popular, mainly through data analysis to provide differentiated, customized and personalized services to create value, this phase of the Internet of things and big data solutions are still immature.

Huawei's envisioned "extreme innovation" means that big data analytics will be ubiquitous and embedded in IoT systems to drive machine-aided innovation with virtual assistance, advanced robotics or other means. Simply put, Huawei's vision of "extreme innovation" is actually a mature internet of things business model, and this "extreme innovation" is precisely in a "strong central" and "intelligent control" mode of the Internet of things will be the commercial road to go.

Think of the iphone's "extreme innovation" and closed-loop business model – in a personal life scenario where the iphone acts as a Super control center, people collect and analyze various kinds of information through the iphone and then reverse control their lives based on that information, and the iphone itself provides a closed-loop The "Extreme innovation" experience – in a way that already depicts the future business model for the Internet of things.

　　The Internet of Things crosses the "death gap"

So far, no country has entered the extreme innovation stage. Huawei expects the first of the most extreme innovation countries to emerge around 2020. This judgment is also in line with Gartner's expectation that the internet of things will move towards a mature commercial period over the next 5-10 years. Zhang Jianning that the technology maturity curve and the market acceptance curve contrast, that the internet of things has just passed the early market test, is experiencing the "death gap."

So the "death gap" refers to the early adopters of technology (Early adopter) may be in the process of using new technologies and new products, due to poor technology and experience, and so on, resulting in the abandonment of new technologies and new products, which led to new technologies and new products before entering the market mainstream "fetal death."

Now, the Internet of Things is in many local areas, in the form of industrial parks. And the concept of the Internet of things speculation, the first to stimulate the components and sensors for a large number of requirements. Under the influence of the Internet of things concept, smart factories and industrial IoT are the first to develop. But the biggest problem now is that the large amount of data from the sensor is not effectively analyzed and utilized, so the internet of things is still in the data analysis phase. As for the reverse control equipment, ultimately generate business value, to "extreme innovation", or a vision.

(for 2015 Global Digital Investment Overview and 2016 forecasts)

From the perspective of key technologies of Huawei GCI, the development and mutual promotion of broadband, data center, cloud computing, big data and Internet of things are all driving the process of national digital economy transformation. Now, countries of different GCI types are catching up to technology trends and expect to overtake them through the accumulation of ICT technology. At present, China is in the stage of Internet innovation, while the United States and other developed countries are in the stage of data innovation. In the Internet of things, developing and developed countries such as China and the United States are in fact on the same starting line.

Despite the differences in digital infrastructure, the gap is shrinking rapidly in terms of the digital infrastructure in China and the US. And because of China's demographic dividend, China is likely to overtake the US in some digital infrastructure. In the next 5-10 years, if the Chinese enterprises want to overtake in the corner, they must quickly think clearly about the business model and the industrial path of the Internet of things, and then reverse the business decision of today through the IoT business model, and leap across the "death gap" of the Internet of things as soon as possible to enter the technology and industrial maturity of Internet of things.

Zhongguancun IoT Industry Alliance and Cybernaut has launched its own action plan: key investment in smart home, Smart city emergency safety, intelligent traffic Vehicle networking, smart energy saving, smart environment security detection, intelligent manufacturing, health care, smart Agriculture, smart financial Services, defense and military, such as 10 major segments of the application area, To create 10 segments of the industry chain, the introduction of 10 market capitalisation of super-tens of leading enterprises, training 100 industrial chain core enterprises, by 2020 to achieve 200 billion scale market value.

At Huawei's 13th annual global analyst Meeting on April 11, Huawei's rotating CEO, Eric Xu, made a systematic exposition of Huawei's "All-cloud" strategy. He said: "The comprehensive cloud-based strategy will comprehensively transform the ICT infrastructure network from four aspects of equipment, network, business and operation, resulting in a pooling of hardware resources, a full distribution of software architectures, and a fully automated system advantage." "These will be the technological foundations for the leap-forward development of the Internet of things.

In fact, Huawei from the perspective of ICT infrastructure, cybernaut from the perspective of intelligent hardware and applications, respectively, to create and promote the formation and development of the great ecology of the Internet of things. The "Strong Center", "intelligent control", "extreme innovation" point of view, will be for the next 5 years the development of the Internet of things industry and ecology, pointed out clear direction and road. (Wen/Ningchuang)

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Huawei and Cybernaut point of view, outlining the IoT business model