The Internet of Things (IoT) is a hot phrase right now, and every vendor is talking about the huge potential of continual connectivity and interaction with smart devices to optimize the asset and transform the customer experience. The potential is undeniably huge and developers are right to be excited, but it’s not all "hugs and puppies."
As S&R professionals, we have to balance the excitement of innovation with pragmatism and caution, and the IoT is a turmoil of innovation right now. With so much change, it can be difficult to focus in on the key issues, so let's choose an area where there has been a lot of discussion and hype for years (or even decades) but not much in the way of actual consumer adoption; let's use the "connected car" as an example to crystalize a few of the risk scenarios.
Picture courtesy of Dave Gray on Flikr
Today’s cars operate on computers, and mechanical functionality breaks down when the computer is not there to manage it. It’s not quite an aerodynamically unstable plane, such as the B-2, or indeed most modern fighter jets, which are kept in the sky by instantaneous computer feedback and corrections, but it’s not dissimilar. As we move toward the connected car, think through these scenarios:
Google’s acquisition of Nest has stirred a lot of interest and reaction, some of it misguided. After talking to lots of reporters, here are ten quick thoughts on why Google bought Nest and what it means:
1. Google bought Nest for talent and strategic perspective, not products or data. Nest is too small and not scaling fast enough to justify the acquisition. This is about getting a great team that can teach Google about a new market realm, how the Internet of Things comes into the Connected Home.
2. The price is ridiculously high – unless Google gets a huge head start on Connected Home. Google’s acquisition of Waze for $1 billion and Nest for $3.2 billion look pricey – but they are strategic bets for the long run, and can’t easily be compared.
3. Building the next generation of Google Now is the goal, not snooping on our temps, room locations and smoke alarms. The Nest Labs team will help fuel development of the next generation of Google Now as it shifts more toward proactive assistance and advice.
4. Google’s aim is to get an early start on identifying and adding software interfaces (APIs) to Gmail/Google Drive that connect it to smart products. This is not about Android in the home or about a battle for the device OS – it’s a battle for whose cloud service platform will coordinate an individual’s smart products – and their digital self.
5. Identity, privacy, and security will also crucial in building out the Connected Home. Blanket privacy policies won’t be enough. Fatemeh Khatibloo’s research on contextual privacy shows the new way that privacy and identity will have to be managed.