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Posts from the ‘IoT’ Category

Top 10 IoT Startups Of 2019 According To IoT Analytics

  • IoT startups have received $3.6B in funding this year alone, according to IoT Analytics’ estimates.
  • Manufacturing is attracting the highest percentage of vertically-focused IoT startups at 30%.
  • 43% of all IoT startups are founded in North America, the leading region globally of startup activity.
  • 7 of the top 10 IoT startups primarily focus on AI, Analytics, and Data Science.
  • 46% of all IoT startups tracked by IoT Analytics primarily focus on AI, Analytics, and Data Science.

These and many other fascinating insights are from IoT Analytics’ recently published IoT Startups Report & Database 2019.  IoT Analytics found that there approximately 1,018 startups creating Internet of Things (IoT) products or services today. They have defined one of the most thorough methodologies in IoT research to identify the top 10 IoT analytics startups worldwide. To qualify, startups have to be older than 6 years and fit the definition of the Internet of Things, and methodology and criterion explained at the end of this post.

“The hot IoT startups today have a strong focus on data analytics and AI and are increasingly targeting industrial and manufacturing clients. It remains to be seen how much of the analytics technology that today’s startups are building will be scalable across IoT use cases and industries. For now, most of the IoT startups are adding value in specific industries or for specific use cases,” said Knud Lasse Lueth, Managing Director of IoT Analytics.

The following are the top 10 IoT Startups Of 2019 from IoT Analytics:

  1. Arundo Analytics (IoT Middleware & Software Infrastructure)

Arundo Analytics is a hot IoT Startup that provides analytics software for industrial and energy companies. The company has formed several strategic alliances, e.g., with Dell Technologies and WorleyParsons. Arundo has also formed a joint venture with DNV GL to provide stream data analytics for maritime companies. The board of directors includes Tore Myrholt, Senior Partner at McKinsey and Thomas Malone, the founding director of the MIT Center for Collective Intelligence. Recently, Arundo launched several applications incl. machine monitoring and fuel efficiency.

  1. Bright Machines (IoT Middleware & Software Infrastructure)

Bright Machines is currently the fastest growing IoT Startup, has grown from virtually zero at the beginning of 2018 to almost 200 employees a year later (April 2019). The firm focuses on “micro-factories” made up of its software and robot cells as well as new software tools that make manufacturing more efficient. The leadership team is filled with former executives from Autodesk, Flextronics, and Amazon including Amar Hanspal (CEO), Brian Mathews (CTO), Tzahi Rodrig (COO) and Nick Ciubotariu (SVP, Software Engineering). The company recently entered into a strategic partnership with BMW i Ventures.

  1. Dragos (IoT Middleware & Software Infrastructure)

Dragos is a cybersecurity startup that offers a software-defined security platform for manufacturers. The company has seen a 300%+ growth in headcount the last two years and collaborates with GE, Deloitte, OSIsoft, ThreatConnect, Crowdstrike, and several other companies. The company recently acquired Atlanta-based NexDefense and collaborates with Waterfall Solution for a joint solution.

  1. Element (IoT Middleware & Software Infrastructure)

Element (also known as Element Analytics) is a fascinating IoT Startup that focuses on industrial analytics software such as Digital Twins, particularly in heavy industries. The company counts an impressive list of investors, including Kleiner Perkins, GE, Honeywell, and ABB. Element partners with Microsoft, Uptake, OSIsoft, and Radix (consulting).

  1. FogHorn (IoT Middleware & Software Infrastructure)

In recent years, US-based startup FogHorn has gained an excellent reputation with leading manufacturers and oil and gas organizations around the world for its real-time edge computing and analytics software. The company has seen an 89% employee growth in the past two years and has secured partnerships with 50+ industrial solution providers, OEMs, gateway providers, and consultants/SIs, including AWS, Google Cloud, Microsoft, Cisco, HP, NTT Data, and more. FogHorn is also a member of LF Edge, an umbrella organization to drive an open, interoperable framework for edge computing to accelerate deployment among the growing number of edge devices. Investors in FogHorn include The Hive, Bosch, Dell, GE, Honeywell, Intel, Saudi Aramco, and Yokogawa.

  1. Iguazio (IoT Middleware & Software Infrastructure)

Iguazio is a hot startup that provides a state-of-the-art data science platform for various verticals, including Industrial IoT, Smart Mobility, and Telecommunications. The company recently entered into collaborations with NVIDIA, Microsoft, and Google. Iguazio markets its Nuclio platform product as a “serverless” framework for multi-cloud environments and is thus well-positioned for the next wave of cloud computing.

  1. IoTium (IoT Connectivity)

IoTium is a quickly upcoming IoT startup from the Silicon Valley area that focuses on software-defined network infrastructure in manufacturing and related verticals. The company has seen a 100%+ growth in headcount over the last two years and now counts John Chambers, former Cisco CEO, as an investor along with other well-known corporate investors incl. Juniper, Qualcomm, SafeNet, and Wind River. The company is also very active in the EdgeX Foundry and recently joined the Siemens’ MindSphere partner program as a gold member.

  1. Preferred Networks (IoT Middleware & Software Infrastructure)

Preferred Networks is one of Japan’s IoT hotshots, focused on applying real-time machine-learning technologies to new Internet of Things applications. The company has seen a 100%+ employee growth in the last two years and now collaborates with world-leading organizations incl. Toyota Motor Corporation, Fanuc, and the National Cancer Center. The company is also very active in developing the deep-learning framework Chainer™ together with IBM, Intel, Microsoft, Nvidia.

  1. READY Robotics (IoT Hardware)

READY Robotics is a rare robotics startup that is looking to benefit from the increasing automation and flexibility of manufacturing processes around the world. The company emerged from the cutting-edge robotics research at Johns Hopkins University to develop its industrial robotic software called Forge.  The company has seen a 150%+ growth in headcount in the last two years and is now producing roughly 15 robot systems per month.

  1. SparkCognition (IoT Middleware & Software Infrastructure)

SparkCognition excels in AI-powered analytics, particularly in manufacturing and related verticals. SparkCognition has seen a 100%+ growth in headcount over the last two years. The company has launched Skygrid, a joint venture with Boeing and it has partnered with Siemens as part of its Mindsphere program. The company is also a Google Cloud Technology Partner and works with IBM as a trusted partner.

The full 62-page report (+ 1,018 line-item database) titled “IoT Startups Report & Database 2019” is available for purchase here.

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Smart Machines Are The Future Of Manufacturing

Smart Machines Are The Future Of Manufacturing

  • Industrial Internet of Things (IIoT) presents integration architecture challenges that once solved can enable use cases that deliver fast-growing revenue opportunities.
  • ISA-95 addressed the rise of global production and distributed supply chains yet are still deficient on the issue of data and security, specifically the proliferation of IIoT sensors, which are the real security perimeter of any manufacturing business.
  • Finding new ways to excel at predictive maintenance, and cross-vendor shop floor integration are the most promising applications.
  • IIoT manufacturing systems are quickly becoming digital manufacturing platforms that integrate ERP, MES, PLM and CRM systems to provide a single unified view of product configurations.

These and many other fascinating insights are from an article McKinsey published titled IIoT platforms: The technology stack as value driver in industrial equipment and machinery which explores how the Industrial Internet of things (IIoT) is redefining industrial equipment and machinery manufacturing. It’s based on a thorough study also published this month, Leveraging Industrial Software Stack Advancement For Digital TransformationA copy of the study is downloadable here (PDF, 50 pp., no opt-in). The study shows how smart machines are the future of manufacturing, exploring how IIoT platforms are enabling greater machine-level autonomy and intelligence.

The following are the key takeaways from the study:

  • Capturing IIoT’s full value potential will require more sophisticated integrated approaches than current automation protocols provide. IIoT manufacturing systems are quickly becoming digital manufacturing platforms that integrate ERP, MES, PLM and CRM systems to provide a single unified view of product configurations and support the design-to-manufacturing process. Digital manufacturing platforms are already enabling real-time monitoring to the machine and shop floor level. The data streams real-time monitoring is delivering today is the catalyst leading to greater real-time analytics accuracy, machine learning adoption and precision and a broader integration strategy to the PLC level on legacy machinery. Please click on the graphic to expand for easier reading.

  • Inconsistent data structures at the machine, line, factory and company levels are slowing down data flows and making full transparency difficult to attain today in many manufacturers. Smart machines with their own operating systems that orchestrate IIoT data and ensure data structure accuracy are being developed and sold now, making this growth constraint less of an issue. The millions of legacy industrial manufacturing systems will continue to impede IIoT realizing its full potential, however. The following graphic reflects the complexities of making an IIoT platform consistent across a manufacturing operation. Please click on the graphic to expand for easier reading.

  • Driven by price wars and commoditized products, manufacturers have no choice but to pursue smart, connected machinery that enables IIoT technology stacks across shop floors. The era of the smart, connected machines is here, bringing with it the need to grow services and software revenue faster than transaction-based machinery sales. Machinery manufacturers are having to rethink their business models and redefine product strategies to concentrate on operating system-like functionality at the machine level that can scale and provide a greater level of autonomy, real-time data streams that power more accurate predictive maintenance, and cross-vendor shop floor integration. Please click on the graphic for easier reading.

  • Machines are being re-engineered starting with software and services as the primary design goals to support new business models. Machinery manufacturers are redefining existing product lines to be more software- and services-centric. A few are attempting to launch subscription-based business models that enable them to sell advanced analytics of machinery performance to customers. The resulting IIoT revenue growth will be driven by platforms as well as software and application development and is expected to be in the range of 20 to 35%. Please click on the graphic to expand for easier reading.

Industry 4.0’s Potential Needs To Be Proven On The Shop Floor

  • 99% of mid-market manufacturing executives are familiar with Industry 4.0, yet only 5% are currently implementing or have implemented an Industry 4.0 strategy.
  • Investing in upgrading existing machinery, replacing fully depreciated machines with next-generation smart, connected production equipment, and adopting real-time monitoring including Manufacturing Execution Systems (MES) are manufacturers’ top three priorities based on interviews with them.
  • Mid-market manufacturers getting the most value out of Industry 4.0 excel at orchestrating a variety of technologies to find new ways to excel at product quality, improve shop floor productivity, meet delivery dates, and control costs.
  • Real-time monitoring is gaining momentum to improve order cycle times, troubleshoot quality problems, improve schedule accuracy, and support track-and-trace.

These and many other fascinating insights are from Industry 4.0: Defining How Mid-Market Manufacturers Derive and Deliver ValueBDO is a leading provider of assurance, tax, and financial advisory services and is providing the report available for download here (PDF, 36 pp., no opt-in). The survey was conducted by Market Measurement, Inc., an independent market research consulting firm. The survey included 230 executives at U.S. manufacturing companies with annual revenues between $200M and $3B and was conducted in November and December of 2018. Please see page 2 of the study for additional details regarding the methodology. One of the most valuable findings of the study is that mid-market manufacturers need more evidence of Industry 4.0, delivering improved supply chain performance, quality, and shop floor productivity.

Insights from the Shop Floor: Machine Upgrades, Smart Machines, Real-Time Monitoring & MES Lead Investment Plans

In the many conversations I’ve had with mid-tier manufacturers located in North America this year, I’ve learned the following:

  • Their top investment priorities are upgrading existing machinery, replacing fully depreciated machines with next-generation smart, connected production equipment, and adopting real-time monitoring including Manufacturing Execution Systems (MES).
  • Manufacturers growing 10% or more this year over 2018 excel at integrating technologies that improve scheduling to enable more short-notice production runs, reduce order cycle times, and improve supplier quality.

Key Takeaways from BDO’s Industry 4.0 Study

  • Manufacturers are most motivated to evaluate Industry 4.0 technologies based on the potential for growth and business model diversification they offer. Building a business case for any new system or technology that delivers revenue, even during a pilot, is getting the highest priority by manufacturers today. Based on my interviews with manufacturers, I found they were 1.7 times more likely to invest in machine upgrades and smart machines versus spending more on marketing. Manufacturers are very interested in any new technology that enables them to accept short-notice production runs from customers, excel at higher quality standards, improve time-to-market, all the while having better cost visibility and control. All those factors are inherent in the top three goals of business model diversification, improved operational efficiencies, and increased market penetration.

  • For Industry 4.0 technologies to gain more adoption, more use cases are needed to explain how traditional product sales, aftermarket sales, and product-as-a-service benefit from these new technologies. Manufacturers know the ROI of investing in a machinery upgrade, buying a smart, connected machine, or integrating real-time monitoring across their shop floors. What they’re struggling with is how Industry 4.0 makes traditional product sales improve. 84% of upper mid-market manufacturers are generating revenue using Information-as-a-Service today compared to 67% of middle market manufacturers overall.

  • Manufacturers who get the most value out of their Industry 4.0 investments begin with a customer-centric blueprint first, integrating diverse technologies to deliver excellent customer experiences. Manufacturers growing 10% a year or more are relying on roadmaps to guide their technology buying decisions. These roadmaps are focused on how to reduce scrap, improve order cycle times, streamline supplier integration while improving inbound quality levels, and provide real-time order updates to customers. BDOs’ survey results reflect what I’m hearing from manufacturers. They’re more focused than ever before on having an integrated engagement strategy combined with greater flexibility in responding to unique and often urgent production runs.

  • Industry 4.0’s potential to improve supply chains needs greater focus if mid-tier manufacturers are going to adopt the framework fully. Manufacturing executives most often equate Industry 4.0 with shop floor productivity improvements while the greatest gains are waiting in their supply chains. The BDO study found that manufacturers are divided on the metrics they rely on to evaluate their supply chains. Upper middle market manufacturers are aiming to speed up customer order cycle times and are less focused on getting their total delivered costs down. Lower mid-market manufacturers say reducing inventory turnover is their biggest priority. Overall, strengthening customer service increases in importance with the size of the organization.

  • By enabling integration between engineering, supply chain management, Manufacturing Execution Systems (MES) and CRM systems, more manufacturers are achieving product configuration strategies at scale. A key growth strategy for many manufacturers is to scale beyond the limitations of their longstanding Make-to-Stock production strategies. By integrating engineering, supply chains, MES, and CRM, manufacturers can offer more flexibility to their customers while expanding their product strategies to include Configure-to-Order, Make-to-Order, and for highly customized products, Engineer-to-Order. The more Industry 4.0 can be shown to enable design-to-manufacturing at scale, the more it will resonate with senior executives in mid-tier manufacturing.

  • Manufacturers are more likely than ever before to accept cloud-based platforms and systems that help them achieve their business strategies faster and more completely, with analytics being in the early stages of adoption. Manufacturing CEOs and their teams are most concerned about how quickly new applications and platforms can position their businesses for more growth. Whether a given application or platform is cloud-based often becomes secondary to the speed and time-to-market constraints every manufacturing business faces. The fastest-growing mid-tier manufacturers are putting greater effort and intensity into mastering analytics across every area of their business too. BDO found that Artificial Intelligence (AI) leads all other technologies in planned use.

Vodafone’s 2019 IoT Barometer Reflects Robust Growth In The Enterprise

  • 85% of enterprises who develop deep expertise with IoT succeed at driving revenue faster than competitors.
  • 81% of enterprises say Artificial Intelligence streamlines interpreting and taking action on data insights gained from IoT systems and sensors.
  • 68% of enterprises are using IoT to track the security of physical assets, making this use case the most common across enterprises today.
  • Transport & Logistics and Manufacturing & Industrials saw the most significant increase in adoption between 2018 and 2019.

These and many other fascinating insights are from the 6th annual Vodafone IoT Barometer, 2019.  The entire report can be downloaded here (PDF, 32 pp., e-mail opt-in). The methodology is based on 1,758 interviews distributed across the Americas (22%), EMEA (49%) and Asia-Pacific (29%). Eight vertical markets were included with manufacturing (22%), healthcare and wellness (14%) and retail, leisure, and hospitality (14%) being the three most represented markets.  Vodaphone is making an interactive tool available here for exploring the results.

Key insights from Vodafone’s 2019 IoT Barometer include the following:

  • 34% of global businesses are now using IoT in daily operations, up from 29% in 2018, with 95% of IoT adopters are already seeing measurable benefits. 81% of IoT adopters say their reliance on IoT has grown, and 76% of adopters say IoT is mission-critical to them. 58% are using analytics platforms to get more insights from their IoT data to improve decision making. 71% of enterprises who have adopted IoT expect their company and others like them will start listing data resources on their balance sheets as assets within five years.

  • 95% of enterprises adopting IoT are achieving tangible benefits and positive ROI. 52% of enterprises report significant returns on their IoT investments. 79% say IoT is enabling positive outcomes that would have been impossible without it, further reflecting robust growth in the enterprise. Across all eight vertical markets reducing operating costs (53%) and gaining more accurate data and insights (48%) are the most common benefits. Transitioning an IoT pilot to production based on cost reduction and improved visibility creates a compelling ROI for many enterprises. The following graphic compares IoT’s benefits to enterprises. Please click on the graphic to expand for easier reading.

  • Transport & Logistics and Manufacturing & Industrials saw the greatest increase in adoption between 2018 and 2019. Transport and Logistics had the highest IoT adoption rate at 42% followed by Manufacturing and Industrials at 39%. Manufacturers are facing the challenges of improving production efficiency and product quality while accelerating time-to-market for next-generation smart, connected products. IoT contributes to productivity improvements and creates opportunities for services-based business models, two high priorities for manufacturers in 2019 and beyond.  The following graphic from the interactive tool compares IoT adoption by industry based on Vodaphone’s IoT barometer data over the last six years:

  • 89% of most sophisticated enterprises have multiple full-scale projects in production, orchestrating IoT with analytics, AI and cloud, creating a technology stack that delivers real-time insights. Enterprises who lead IoT adoption in their industries rely on integration to gain scale and speed advantages quickly over competitors. The greater the real-time integration, the greater the potential to digitally transform an enterprise and remove roadblocks that get in the way of growing. 95% of adopters where IoT is fully integrated say it’s enabling their digital transformation, compared with 55% that haven’t started integration. The following graphics reflect how integrated enterprises’ IoT projects are with existing business systems and processes and the extent to which enterprises agree that IoT is enabling digital transformation.

  • 68% of enterprises are using IoT to track the security of physical assets, making this use case the most common across enterprises today. 57% of all enterprises are using IoT to manage risk and compliance. 53% are using it to increase revenue and cut costs, with 82% of high performing enterprises rely on IoT to manage risk and compliance. The following graphic compares the types of variables enterprises are using IoT to track today and plan to in the future.

  • IoT adoption is soaring in Americas-based enterprises, jumping from 27% in 2018 to 40% in 2019. The Americas region leads the world in terms of IoT usage assessed by strategy, integration, and implementation of IoT deployments. 73% of Americas-based enterprises are the most likely to report significant returns from their IoT investments compared to 47% for Asia-Pacific (APAC) and 45% for Europe, Middle East and Africa (EMEA).
  • 52% of IoT-enabled enterprises plan to use 5G when it becomes available. Enterprises are looking forward to 5G’s many advantages including improved security via stronger encryption, more credentialing options, greater quality of service management, more specialized services and near-zero latency. Vodafone predicts 5G will be a strong catalyst of growth for emerging IoT applications including connected cars, smart cities, eHealth and industrial automation.

 

What IoT Leaders Do To Drive Greater Results

  • IoT Leaders are achieving cost and revenue gains of at least 15% or more, while laggards see less than 5%.
  • Pursuing 80% more IoT use cases compared to their peers, IoT Leaders are progressing faster down the learning curve of monetizing their application areas.
  • IoT Leaders anticipate that their IoT use cases will boost their gross profits by 13% over the next three years, three times as much as IoT laggards.

What IoT leaders do to excel and drive greater results compared to their peers is explored in the recent McKinsey report, What separates leaders from laggards in the Internet of Things. The study is based on interviews with 300 IoT executive-level practitioners from companies with more than $500M revenues which are implementing large-scale IoT strategies with projects that have progressed from pilot to production. Enterprises from 11 major industry segments from Canada, China, Germany, and the United States were included in the survey.

McKinsey found 16% of enterprises have IoT programs in production, delivering aggregate cost and revenue impacts of at least 15%. The study also found 16% of enterprises are lagging, attaining aggregate revenue and cost improvements of less than 5%. The following graphic compares companies by the level of financial impact from IoT initiatives:

Nine practices differentiate IoT Leaders from laggards, and the study provides a fascinating look into each based on the survey data. Key insights into IoT Leader’s practice areas is provided here:

  • Leaders are more aggressive about pursuing a greater number, scope, and variety of IoT applications and use cases than their less successful peers. What IoT Leaders learn quickly is how steep the IoT learning curve is, and how it’s essential to run as many IoT pilots as possible to learn more. Leaders discover the first 15 or so IoT use cases typically have a modest payback, with the average payback rising until approximately 30 use cases have been achieved. IoT Leaders anticipate that their IoT use cases will boost their gross profits by 13% over the next three years, three times as much as IoT laggards. The following graphic illustrates the financial impact per IoT use case by the cumulative number of IoT use cases enterprises initiate.

  • Leaders are more willing than their peers to change business processes to unlock IoT’s value. McKinsey found IoT Leaders are three times more likely than their peers to say that managing changes to business processes is one of the three most important capabilities for implementing IoT. CEOs who champion their company’s IoT initiatives make strong contributions in this area, removing barriers and roadblocks quickly to keep IoT programs moving forward.
  • Leaders design, pilot and move to production IoT use cases that rely on advanced endpoints far more than their peers. McKinsey finds that IoT Leaders are more visionary and aggressive than peers in developing applications with advanced endpoints.  Leaders are gaining expertise and mastery of how to creatively use advanced endpoints today, reporting higher levels of satisfaction and positive results.

  • Leaders clearly define how IoT will create value and excel in building effective business cases. McKinsey found that IoT Leaders are 75% more likely than their peers to cite the preparation of a strong business case as a critical success factor for their IoT programs. The study’s respondents who have an IoT vision that includes a strong value proposition, a proven delivery model, and a business model that drives revenue are getting results faster than their peers. 35% of Leaders rate the importance of “strong business case and vision for value creation” as one of the top three success factors versus 20% of laggards. Leaders leave nothing to chance when it comes to defining how IoT will deliver business value either in the form of greater revenue or reduced costs.

  • A CEO’s involvement and support are essential for any enterprise to succeed with  IoT. Based on personal experience with IoT pilots, C-level executives are indispensable in removing barriers and making process-level changes necessary for success. 72% of the surveyed executives agree. A vital catalyst of any enterprise succeeding with IoT is a clear, unequivocal time commitment on the part of the CEO. Enterprises in the Leaders quintile were 2.4 more likely than laggards to report that their CEO serves as the champion of IoT efforts as the following graphic illustrates:

  • Leaders credit strong alignment with IoT strategies and priorities enterprise-wide as a critical factor in their success. IoT initiatives and pilots on their way to production require executives, managers, and frontline workers to learn fresh skills and collaborate across business and functional boundaries in new ways. Enterprises need to have a strong unifying vision of where they’re going with IoT, with the CEO championing the change management required to make sure they succeed.
  • Leaders begin by adding IoT capability to existing products and services first. McKinsey found that Leaders are three times more likely than their peers to make their top priority adding IoT capabilities to existing products. They focus on how to turn the current scale they’ve achieved with suppliers, selling and service networks into a formidable competitive advantage. They’re also more adept at cross-selling and up-selling IoT-enabled products by capitalizing on current customer relationships. The following graphic compares enterprises’ single highest-priority IoT effort:

  • Leaders excel at tapping into, scaling and relying on an ecosystem of partners for innovation versus doing it all themselves. McKinsey finds that IoT Leaders excel at scaling their partner ecosystems faster and more strategically than their peers. IoT Leaders also rely more on partners for the latest technology innovations instead of attempting to create them entirely on their own. They’re also deliberately choosing IoT platforms that support third-party developers and the advanced endpoints as the graphic below shows:

  • Leaders prepare for cyber attacks, so they don’t slow things down. McKinsey found that 30% of enterprises from both IoT Leaders and their peers say that they’ve experienced cyber attacks that have resulted in high to severe damage. 57% of Leaders had been the target of cyber attacks compared to 44% of their peers. The higher number of cyber attacks happening for Leaders is due to the broader threat surface their many pilots, and production-level use cases create. The more distributed and varied IoT use cases are the greater the risk of privileged credential abuse as well. Thwarting privileged credential abuse needs to start with a least privilege access approach, minimizing each attack surface, improving audit and compliance visibility while reducing risk, complexity, and costs. Leaders in Zero Trust include CentrifyMobileIronPalo Alto Networks, and others.

Top 25 IoT Startups To Watch In 2019

 

  • 26,792 startups are relying on IoT as one of their main technologies to launch new products and services and support platform-based business models according to Crunchbase.
  • 78.4% of IoT startups Crunchbase tracks have had two funding rounds or less with seed, angel and early-stage rounds being the most common.
  • IoT startup funding reached $16.7B in Q4, 2018, with last years’ funding levels 94% over 2017 according to Venture Scanner.
  • By 2020, 50% of IoT spending will be driven by discrete manufacturing, transportation and logistics, and utilities according to the Boston Consulting Group.

The most successful IoT startups selling into enterprises excel at orchestrating analytics, Artificial Intelligence (AI), and real-time monitoring to deliver exceptional customer experiences. As a group, these top 25 IoT startups are showing early potential at enabling profitable new business models, revitalizing industries that have experienced single single-digit growth recently. Each of these startups is taking a unique approach to solving some of the enterprises’ most challenging problems, and in so doing creating valuable new patents that further fuel IoT adoption and growth.

The top 25 startups are concentrating on how to make IoT a growth catalyst for enterprises by designing in AI integration at the platform level. McKinsey found that 27% of AI early adopters are more likely to report using AI to grow their market than companies only experimenting with or partially adopting AI. 52% are more likely to report using it to increase their market share. These and many other survey results are from McKinsey Global Institute’s Artificial Intelligence: The Next Digital Frontier? (PDF, 80 pp., no opt-in).

Top 25 IoT Startups To Watch In 2019

The following list of 25 IoT startups are based on an analysis of their ability to attract new customers, current and projected revenue growth, patents’ current value and potential, and position in their chosen markets. Presented below are the top 25 IoT startups to watch this year:

  1. Armis Security – Armis takes a unique approach to provide visibility into IoT-enabled devices that are unmanaged across an IT network. The company’s solutions treat every IoT device as a threat surface, enabling enterprises to prohibit access to IoT devices and networks based on security guidelines. Another unique aspect of this company’s approach to deployment is the ability to use an enterprises’ existing infrastructure for rapid deployments. Founded in 2015 the company has active customers in finance, healthcare, manufacturing, and high technology industries. Armis Security has raised a total of $47M in funding over 3 Their latest funding was raised on Apr 9, 2018, from a Series B round of $30M from Bain Capital Ventures and Red Dot Capital Partners. Crunchbase reports Armis Security has $2.1M in revenue annually and competes with DigiCert, Skybox Security, and Aruba Networks most often in sales cycles.
  2. Crate.io – Crate.io’s open source SQL database features integrated search for storing and analyzing machine data in real time. The company was founded in 2013 with the purpose of providing SQL developers with an open source SQL database to capture, analyze and manage their machine learning and AI-based data. CrateDB is an open source distributed database offering the scalability and performance of NoSQL with the power and ease of standard SQL. The CrateDB Cloud for Azure IoT is a turnkey data layer, offered as a hosted cloud service on Azure, enabling faster development of IoT platforms and data-driven smart factories. Most CrateDB customers use it for operational analytics workloads, performing fast time series, geospatial, text search, machine learning queries against streams of data and data at rest in Industrial IoT, enterprise cybersecurity & systems monitoring in all industries, smart city and building infrastructure, Vehicle fleet tracking & management and marketing analytics. The company has raised $17.9M in funding over 4 rounds.
  3. Dragos – Dragos specializes in industrial (ICS/IIoT) cybersecurity. Their cloud-based Dragos Platform collects, detects, and automates asset inventorying and visualization, threat detection through threat behavior analytics, and security operations and incident response workflows. Dragos also has a Threat Operations Center that provides customers access to dedicated ICS incident response and threat hunting services as well as industrial specific intelligence reporting on vulnerabilities, threats, and community events. Dragos has raised a total of $48.2M in funding over 3 Their latest funding was raised on Nov 14, 2018, from a $37M Series B round with Canaan Partners.
  4. Drayson Technologies – Drayson Technologies provides an IoT platform startup that is combining wireless charging technology and machine learning software to create smart sensor networks that deliver greater energy and cost efficiencies to its customers. Drayson is known for its expertise in energy-efficient and cost-effective IoT data collection and analysis, which also contributes to their customers’ ability to reduce the cost of deploying, owning and running IoT networks.
  5. Element Analytics –Element Analytics is rapidly establishing itself as a startup to watch in the fields of chemicals & refining, manufacturing, metals & mining, pulp & paper, and upstream oil & gas. Their Element Platform helps industrial organizations easily and rapidly use industrial time-series data to improve production efficiency and product quality. Their platform prepares time-series data, enriches it with analytically relevant context, creating greater contextual insights. The Element Analytics platform also enables machine-learning modeling to surface reliability, productivity, and sustainability insights for operations. Element Analytics has raised a total of $22M in funding over 3 Their latest funding was raised on Jan 8, 2018, from a Series A round. Kleiner Perkins participated in the first two rounds, funding a total of $7M.
  6. FogHorn – FogHorn is a fascinating startup to watch because they excel at embedding real-time analytics and machine-learning support into size- and space- constrained commercial and industry IoT application areas. Realizing that industrial manufacturing and distribution sites often have unreliable Internet connections if they have any at all, Foghorn has designed a miniaturized, scalable complex-event processing (CEP) software engine that is capable of producing analytics in real-time. The FogHorn Lightning™ platform includes the CEP software engine, enabling high-performance edge computing, advanced analytics, Machine Learning, and AI to be implemented highly constrained environments of IIoT. The company has also created a new class of high-performance programming language called Vel ™ which transforms any gateway, programmable logic controller (PLC), industrial PC, or another edge device into an advanced edge computing system. FogHorn has raised a total of $47.5M in funding over 4 Their latest funding was raised on Oct 4, 2017, from a Series B round. The FogHorn Technology Platform is shown below:

  1. GEM – GEM specializes in providing IoT, analytics, and machine learning platforms and solutions for the manufacturing industry, with a specific focus on Overall Equipment Effectiveness (OEE) and predictive maintenance. The company has been able to gain customers in energy, retail, and GEM’s value proposition is based on their ability to increase manufacturers’ OEE levels through greater real-time insights. The GEM Precare platform captures operational data and KPIs in real-time including availability, OEE, performance, quality, MTBF, MTBA, machine statuses, status reasons, and alarms. The following is an example of the GENM technology platform:

  1. IoTium – This is a fascinating company to track due to their patented technology that enables secure connections between Network as a Service (NaaS), legacy onsite systems and cloud-based applications. Customers include CBRE, Emerson, Intelligent Buildings, Obernel, Rexnord, and Sunbelt Controls. IoTium is well positioned to gain new customers in building and industrial automation, oil & gas, manufacturing, transportation, and smart city industries. IoTium has raised a total of $22M in funding over 2 rounds with investors GE Ventures, March Capital, and Juniper Networks. Their latest funding was raised on Sep 19, 2018, from a Series B round.
  2. InfluxData – InfluxData created InfluxDB, their Open Source Platform specifically designed to analyze metrics and events (time series data) for DevOps and IoT applications. Whether the data comes from humans, sensors, or machines, InfluxData enables developers to build monitoring, analytics, and IoT applications at scale, delivering measurable business value quickly. The company reports having 400 customers including Cisco, eBay, IBM, and InfluxData has raised a total of $59.9M in funding over 4 rounds. Their latest funding was raised on Feb 13, 2018, from a Series C round.
  3. Karamba Security – Karamba Security is focused on solving the security challenges of connected vehicles. The company offers Electronic Control Unit (ECU) endpoint security to protect any vehicle with an IoT connection or IP address. What makes this startup so interesting is how they are using patented technologies to reduce IoT-based attacks on vehicles by blocking them autonomously. Internet connectivity or extensive developer work is not needed to implement Karamba across a vehicle fleet. Each device can be reset to its factory settings, eliminating the threat of a vehicle being hacked. Karamba Security has raised a total of $27M in funding over 4 Their latest funding was raised on Apr 10, 2018, from a Series B round.
  4. MachineMetrics – What makes MachineMetrics an interesting company to watch is their innovative approach to using Artificial Intelligence (AI) to discover new insights into manufacturer’s data that improve product quality and performance. It’s one of the first startups to combine Industrial Internet of Things (IIoT) and AI and provide a scalable platform for discrete manufacturers and heavy equipment builders. They’ve also developed an expertise at edge connectivity in manufacturing environments that have enabled greater real-time visibility and more meaningful manufacturing analytics than has been possible in the past. They’re using AI to drive their prescriptive and predictive alerts. MachineMetrics has raised a total of $13.4M in funding over 3 Their latest funding was raised on Dec 11, 2018, from a Series A round. The following is a Workstation View from the MachineMetrics Production platform:

  1. MagicCube – MagicCube is a device independent IoT security platform that protects against on-device, cloud, and network attacks. The MagicCube solution secures digital transactions on any device, in transit, and in the cloud with the same level of security as device hardware solutions without the complexity and cost associated with hardware deployments. MagicCube, Inc. has raised a total of $10.7M in funding over 2 Their latest funding was raised on Aug 8, 2017, from a Series A round.
  2. Myriota – What makes Myriota a fascinating company to watch is their innovative advances in ultra-low-cost satellite Internet of Things (IoT) connectivity and the alliances they are creating, including on with SpaceX. Myriota’s nano-satellite was launched into space aboard the SpaceX Falcon 9 rocket in December 2018. Myriota uses exactEarth’s Low Earth Orbit (LEO) satellite constellation for its connectivity solutions. Myriota is a global leader in low-cost satellite IoT connectivity, providing aggregated sensor reading, environmental sensing, and online tracking and condition monitoring of remote assets. The company has raised a total of $15M in funding over 1 round. This was a Series A round raised on Mar 26, 2018.
  3. Particle – Particle is an Internet of Things (IoT) device platform that enables organizations to develop and fine-tune connectivity across operations using scalable APIs and software development resources. Particle’s development platform is designed to provide organizations with the tools they need to prototype IoT solutions to scale quickly and securely. Over 150,000 product builders in more than 170 countries and half of the Fortune 500 have deployed connected IoT devices powered by Particle. Particle’s customers include NASA, SpaceX, consumer hot tub manufacturer Jacuzzi, and Venture-backed by Root Ventures, Spark Capital, Qualcomm Ventures, and Particle is based in San Francisco, CA and Shenzhen, China. Particle has raised a total of $35.8M in funding over 7 rounds. Their latest funding was raised on Jul 19, 2017, from a Series B round.
  4. Samsara – What makes Samsara noteworthy is their prioritizing how sensor data can increase the safety and efficiency of physical operations, contributing to productivity gains while reducing costs. Samsara is attracting customers from the transportation, logistics, construction, food production, energy, and manufacturing industries with their ability to improve the safety, efficiency, and quality of operations. Samsara builds sensor systems that combine wireless sensors with remote networking and cloud-based analytics. As of February 2019, the company has over 5,000 customers and has a run rate of 200,000 new devices being added every year. Samsara has raised a total of $230M in funding over 5 Their latest funding was raised on Dec 28, 2018, from a Series E round. An example of the company’s Fleet Summary is shown below:

  1. SCADAfence – SCADAfence provides cybersecurity solutions designed to ensure the operational continuity of industrial (ICS/SCADA) networks. The startup excels at integrating Industrial IoT, analytics, realtime monitoring and machine-to-machine connectivity to provide scalable cybersecurity solutions for production networks. As of February 2019 the company has customers in the pharmaceutical, chemical, food & beverage and automotive industries. SCADAFence offers a solution suite that includes continuous real-time monitoring of the industrial environment as well as lightweight tools designed to automate the process of security assessment. The suite provides visibility of day-to-day operations, detection of cyber-attacks and forensics tools designed to improve responsiveness. SCADAfence has raised a total of $10M in funding over 3 Their latest funding was raised on Nov 21, 2017, from a Series A round.
  2. SequoiaDB – SequoiaDB develops and provides commercial support for the open source database SequoiaDB, a document-oriented NewSQL database that supports JSON transaction processing and SQL query. Their database can either be a standalone product to interface with applications providing high performance and horizontally scalable data storage and processing functions or serve as the frontend of Hadoop and Spark for both real-time query and data analysis. It is designed to integrate with Spark, Hadoop/Cloudera. SequoiaDB has raised a total of $40M in funding over 3 Their latest funding was raised on Sep 19, 2018, from a Series C round.
  3. Sight Machine – This is a fascinating startup to watch, I’ve been tracking Sight Machine for several years. The company is succeeding at attracting Fortune 500-level manufacturers as clients by providing them with AI-driven insights into how they can improve operations. Sight Machine’s AI and analytics platform, purpose-built for discrete and process manufacturing, uses artificial intelligence, machine learning, and advanced analytics to help address critical challenges in quality and productivity throughout the enterprise. The platform is powered by the industry’s only Plant Digital Twin, which enables real-time visibility and actionable insights for every machine, line, and plant throughout an enterprise. Sight Machine is optimized to run on the major cloud platforms including AWS, Google Cloud Platform, and Microsoft Azure. The company has raised a total of $30.5M in funding over 5 Their latest funding was raised on Dec 23, 2017, from a Series B round. An example of a Sight Machine dashboard is shown below:

  1. Splice Machine –. Splice Machine provides an open-source dual-engine RDBMS for mixed operational and analytical workloads, powered by Apache Hadoop® and Apache Spark™. The Splice Machine RDBMS executes operational workloads on Apache HBase® and analytical workloads on Apache Spark. Splice Machine is known for its ease of development and use for IoT-based applications and is successfully offload operational and analytical workloads from Oracle, Teradata, and Netezza legacy systems. The company excels at ETL, operational reporting or real-time applications and use cases. Splice Machine has raised a total of $40M in funding over 4 Their latest funding was raised on Dec 20, 2017, from Salesforce Ventures.
  2. SWIM.AI – Swim provides edge-based software that executes real-time analytics and machine learning for enterprises, equipment manufacturers, smart-cities, and IoT and IIoT businesses. Its software locally processes and analyzes massive volumes of streaming data from devices/sensors/equipment where it is created, reducing network volumes, and generating real-time machine-learning business insights. Swim deploys its software at the edge to transform data into insights in real-time and delivers them to businesses, staff, operators, and customers. Swim has successfully been deployed and is in use in existing equipment and brownfield environments. In manufacturing customers’ operations Swim is improving real-time synchronization across multiple systems, reduce project implementation costs, optimizing efficiency using machine learning insights from full resolution edge data and making insights available via real-time APIs. Swim.ai has raised a total of $10M in funding over 2 rounds. Their latest funding was raised on Jul 17, 2018, from a Series B round. Swim’s model is shown below:

  1. Tulip – Tulip was started by a team of engineers out of the MIT Media Lab, and the company’s platform is based on over ten years of research in digital manufacturing. Their self-service technology fills the gap between rigid back-end manufacturing IT systems and the dynamic operations taking place on the shop floor. Tulip’s Manufacturing App Platform combines research in intelligent hardware sensors, computer vision, assistive user interfaces, and applied machine learning. Tulip was launched to bring these latest technological developments from the lab to the factory floor. Today, Tulip’s Manufacturing App Platform is deployed at dozens of global customers in six countries across multiple industries including Electronics, Aerospace & Defense, Medical Devices, Footwear, Pharmaceuticals, and Contract Manufacturing. Tulip Interfaces has raised a total of $13M in funding over 3
  2. Tuya Smart – Tuya Smart is an IoT solution provider for device manufacturers. Their platform enables fast, agile app development, allowing smart device manufacturers to bring their product to market quickly and at competitive prices. Tuya Smart is founded by Jerry Wang, a founding executive of AliYun, Alibaba’s cloud division, along with a group of veterans from Alibaba, Baidu and Haier Electronics. With extensive knowledge in cloud computing, software development, and hardware and supply chain management, Tuya Smart’s team is enabling manufacturers to produce next-generation smart, connected products. Tuya has raised a total of $200M in funding over 3 Their latest funding was raised on Jul 24, 2018, from a Series C round.
  3. Uptake – Uptake Technologies provides a predictive analytics and asset performance management (APM) platform gaining traction in key industrial IoT market segments today. The Uptake platform analyzes data from inside a company and from third party sources to predict and prevent failures, uncover hidden profits, and discover new opportunities to healthcare, insurance, locomotives, construction, manufacturing, and other industries. Uptake Technologies offers a platform for equipment monitoring, diagnostic troubleshooting, event, and condition prediction, and task management to improve uptime, streamline operations, and spot growth opportunities. Key customers include Caterpillar, Progress Rail, Berkshire Hathaway Energy, and the U.S. Army.
  4. VDOO– VDOO has developed a platform of automated solutions to help IoT makers put the right security in their devices before release and enable post-deployment security. The end-to-end platform takes the maker from security analysis to implementation guidance to certification and enables IoT makers to quickly add the right security to their devices with minimal resources. VDOO’s solution is built upon a comprehensive taxonomy of IoT devices and consists of five interrelated and integrated products including the Security Requirements Generator, Security Gap Analysis, Actionable Security Plan, Certification, and Post-Deployment Security Enablement. VDOO has raised a total of $13M in funding over 1 round. This was a Series A round raised on Jan 17, 2018.
  5. Xage Security – Xage provides decentralized security services for industrial manufacturing and distribution businesses including oil and gas, transportation, and utilities. The Xage architecture relies on blockchain to provide a distributed, scalable and highly reliable data store that prevents hackers from attacking and gaining access through any threat surface in an organization. Xage takes a unique approach to using blockchain to thwart hacking attempts at scale, by simultaneously protecting every active ledger in an organization. Xage Security has raised a total of $16M in funding over 2 Their latest funding was raised on Dec 28, 2018, from a Series A round.

Top 10 Ways Internet Of Things And Blockchain Strengthen Supply Chains

  • The majority of enterprises are prioritizing their blockchain pilots that concentrate on supply chains improvements (53%) and the Internet of Things (51%) according to Deloitte’s latest blockchain survey.
  • By 2023, blockchain will support the global movement and tracking of $2T of goods and services annually based on a recent Gartner
  • By 2020, Discrete Manufacturing, Transportation & Logistics and Utilities industries are projected to spend $40B each on IoT platforms, systems, and services.
  • The Supply Chain Management enterprise software market is growing from $12.2B in 2017 to $20.4B in 2022, achieving a 10.7% Compound Annual Growth Rate (CAGR) according to Gartner’s latest market forecast.
  • Of the many blockchain and IoT Proof of Concept (POC) pilots running today, track-and-trace shows the most significant potential of moving into production.

Combining blockchain’s distributed ledger framework with the Internet of Things’ (IoT) proven real-time monitoring and tracking capability is redefining supply chains. Blockchain shows potential for increasing the speed, scale, and visibility of supply chains, eliminating counterfeit-goods transactions while also improving batching, routing and inventory control. Blockchain’s shared, distributed ledger architecture is becoming a growth catalyst for IoT’s adoption and commercial use in organizations.

Blockchain and IoT are defining the future of supply chains based on the initial success of Proof of Concept (POC) pilots focused on the logistics, storage and track-and-trace areas of supply chains across manufacturing. Supply-chain centric pilots are the most popular today, with enterprises looking at how they can get more value out of IoT using blockchain. One CIO told me recently his company deliberately spins up several POCs at once, adding “they’re our proving grounds, we’re pushing blockchain and IoT’s limits to see if they can solve our most challenging supply chain problems and we’re learning a tremendous amount.” The senior management team at the manufacturer says the pilots are worth it if they can find a way to increase inventory turns just 10% using blockchain and IoT. They’re also running Proof of Concept pilots to optimize batching, routing and delivery of goods, reduce fraud costs, and increase track-and-trace accuracy and speed. Of the many pilots in progress, track-and-trace shows the greatest potential to move into production today.

The following are the top 10 ways IoT and blockchain are defining the future of supply chains:

  • Combining IoT’s real-time monitoring support with blockchain’s shared distributed ledger strengthens track-and-trace accuracy and scale, leading to improvements across supply chains. Improving track-and-trace reduces the need for buffer stock by providing real-time visibility of inventory levels and shipments. Urgent orders can also be expedited and rerouted, minimizing disruptions to production schedules and customer shipments.  The combination of blockchain and IoT sensors is showing potential to revolutionize food supply chains, where sensors are used to track freshness, quality, and safety of perishable foods.  The multiplicative effects of combining IoT and blockchain to improve track-and-traceability are shown in the context of the following table from the Boston Consulting Group. Please click on the graphic to expand for easier reading.

  • Improving inventory management and reducing bank fees for letters of credit by combining blockchain and IoT show potential to deliver cost savings. A recent study by Boston Consulting Group, Pairing Blockchain with IoT to Cut Supply Chain Costs, completed a hypothetical analysis of how much a $1B electronics equipment company implementing blockchain-as-a-service, a decentralized track-and-trace application, and 30 nodes that share among key supply chain stakeholders could save. The study found that the electronics equipment company could save up to $6M a year or .6% of annual sales. A summary of the business case is shown here:

  • Combining blockchain and IoT is providing the pharmaceutical and healthcare industry with stronger serialization techniques, reducing counterfeit drugs and medical products. Pharmaceutical serialization is the process of assigning a unique identity (e.g., a serial number) to each sealable unit, which is then linked to critical information about the product’s origin, batch number, and expiration date. According to the World Health Organization (WHO) approximately 1 million people each year die from counterfeit drugs, 50% of pharmaceutical products sold through rogue websites are considered fake, and up to 30% of pharmaceutical products sold in emerging markets are counterfeit according to a recent study by DHL Research. DHL and Accenture are finalizing a blockchain-based track-and-trace serialization prototype comprising a global network of nodes across six geographies. The system comprehensively documents each step that a pharmaceutical product takes on its way to the store shelf and eventually the consumer. The following graphic illustrates the workflow.

  • Improving distribution and logistics, tracking asset maintenance, improving product quality, preventing counterfeit products and enabling digital marketplaces are the use cases Capgemini predicts blockchain will have the greatest impact. IoT’s potential contribution in each of these five use case areas continues to accelerate as real-time monitoring dominates manufacturing. Tracking provenace, contracts management, digital threads, and trade financing also show potential for high adoption. The following graphic illustrates blockchain use cases in the supply chain.

  • Combining blockchain and IoT is enabling manufacturers to pursue and excel at digital twin initiatives across their value chains. A digital twin is a dynamic, digital representation of a physical asset which enables companies to track its past, current and future performance throughout the asset’s lifecycle. The asset, for example, a vehicle or spare part, sends performance data and events directly to its digital twin, even as it moves from the hands of the manufacturer to the dealer and ultimately the new owner. Blockchain can be used to securely document everything related to the asset and IoT provides the real-time monitoring and updates. Microsoft and VISEO are partnering to use blockchain to connect each new vehicle’s maintenance events to the vehicle’s digital twin. The graphic below illustrates how digital twins streamline additive manufacturing.

  • 54% of suppliers and 51% of customers are expecting the organizations they do business with to take a leadership position on blockchain and IoT. The majority of suppliers and customers expect the manufacturers, suppliers, and vendors they do business with to take a leadership position on these two emerging technologies and define a vision with them in it. Deloitte’s excellent study, Breaking Blockchain Open, Deloitte’s 2018 Global Blockchain Survey, provides insights into how supplier and customer expectations are a factor in driving blockchain and IoT adoption, further helping to shape the future of supply chains.

  • Consumer products and manufacturing lead adoption of blockchain today, followed by life sciences according to the latest Deloitte estimates. IoT adoption is flourishing in manufacturing, transportation & logistics and utilities. By 2020, each of these industries is projected to spend $40B each on IoT platforms, systems, and services. The following graphic compares blockchain adoption levels by industry. Given how dependent manufacturers are on supply chains, the high adoption rates for blockchain and IoT make sense. Please click on the graphic to expand for easier reading.

  • 32% of enterprises are adopting blockchain to gain greater speed compared to existing systems, and 28% believe blockchain will open up new business models and revenue sources. The majority of manufacturers, transportation & logistics and utilities companies have real-time monitoring running on their shop floors and across their production facilities today. Many are transitioning from Wi-Fi enabled monitoring to IoT, which creates a real-time data stream that blockchain ledgers categorize and track to provide greater track-and-trace speed and accuracy. A recent Capgemini survey found that 76% of manufacturers also plan to have a product-as-a-service strategy to drive revenue in less than two years.

  • Blockchain has the potential to deliver between $80B and $110B in value across seven strategic financial sectors when supported by IoT, redefining their supply chains in the process. McKinsey completed an extensive analysis of over 60 viable use case for blockchain in financial services where IoT would provide greater visibility across transactions. The combination of technologies has the potential to deliver over $100B in value.

  • Reducing product waste and perishable foods’ product margins while increasing traceability is attainable by combining blockchain and IoT. IBM’s Food Trust uses blockchain technology to create greater accountability, traceability, and visibility in supply chains. It’s the only consortium of its kind that connects growers, processors, distributors, and retailers through a permissioned, permanent and shared record of food system data. Partners include Carrefour, Dole, Driscoll’s, Golden State Foods, McCormick and Co., McLane Co., Nestlé, ShopRite parent Wakefern Food Corp.,  grocery group purchasing organization Topco Associates  The Kroger Co., Tyson Foods, Unilever and Walmart. An example of the Food Trust’s traceability application is shown below:

Additional Research:

Abdel-Basset, M., Manogaran, G., & Mohamed, M. (2018). Internet of Things (IoT) and its impact on supply chain: A framework for building smart, secure and efficient systems. Future Generation Computer Systems86, 614–628.

Boston Consulting Group, Pairing Blockchain with IoT to Cut Supply Chain Costs, By Zia Yusuf, Akash Bhatia, Usama Gill, Maciej Kranz, Michelle Fleury, and Anoop Nannra. December 18, 2018

Capgemini Research Institute, Does blockchain hold the key to a new age of supply chain transparency and trust?, 2018 (PDF, 32 pp., no opt-in)

DHL Trend Research, Blockchain In Research,  Perspectives on the upcoming impact of blockchain technology and use cases for the logistics industry (PDF, 28 pp., no opt-in)

Deloitte, Breaking Blockchain Open, Deloitte’s 2018 Global Blockchain Survey,48 pp., PDF, no opt-in. Summary available here.

Deloitte, Continuous Interconnected Supply Chain, Using Blockchain & Internet-of-Things in supply chain traceability (PDF, 24 pp., no opt-in)

Deloitte University Press,  3D opportunity for blockchain Additive manufacturing links the digital thread, 2018 (PDF, 20 pp, no opt-in)

EBN, How IoT, AI, & Blockchain Empower Tomorrow’s Autonomous Supply Chain, June 18, 2018

Forbes, How Blockchain Can Improve Manufacturing In 2019, October 28, 2018.

Forbes, 10 Charts That Will Challenge Your Perspective Of IoT’s Growth, June 6, 2018

Gettens, D., Jauffred, F., & Steeneck, D. W. (2016). IoT Can Drive Big Savings in the Post-Sales Supply Chain. MIT Sloan Management Review, 60(2), 19–21. Accessible on the MIT Sloan Management Review site here.

Jagtap, S., & Rahimifard, S. (2019). Unlocking the potential of the internet of things to improve resource efficiency in food supply chains. Springer International Publishing© Springer Nature Switzerland AG.

McKinsey & Company, Blockchain beyond the hype: What is the strategic business value?, June, 2018

McKinsey & Company, Blockchain Technology in the Insurance Sector, Quarterly meeting of the Federal Advisory Committee on Insurance (FACI) Jan 5, 2017

McKinsey & Company, The IoT as a growth driver, By Markus Berger-De Leon, Thomas Reinbacher, and Dominik Wee. March 2018

McKinsey & Company, How digital manufacturing can escape ‘pilot purgatory’,  by Andreas Behrendt, Richard Kelly, Raphael Rettig, and Sebastian Stoffregen. July 2018

Miller, D. (2018). Blockchain and the Internet of Things in the Industrial Sector. IT Professional20(3), 15-18.

PwC, Global Blockchain Survey, 2018.

Queiroz, M. M., & Wamba, S. F. (2019). Blockchain adoption challenges in supply chain: An empirical investigation of the main drivers in India and the USA. International Journal of Information Management46, 70-82.

Reyna, A., Martín, C., Chen, J., Soler, E., & Díaz, M. (2018). On blockchain and its integration with IoT. Challenges and opportunities. Future Generation Computer Systems88, 173–190

Smith, K. J., & Dhillon, G. (2019). Supply Chain Virtualization: Facilitating Agent Trust Utilizing Blockchain Technology. In Revisiting Supply Chain Risk (pp. 299-311). Springer, Cham.

Tu, M., Lim, M. K., & Yang, M.-F. (2018). IoT-based production logistics and supply chain system – Part 1. Industrial Management & Data Systems118(1), 65–95.

Tu, M., K. Lim, M., & Yang, M.-F. (2018). IoT-based production logistics and supply chain system – Part 2. Industrial Management & Data Systems118(1), 96–125.

Wall Street Journal, 5 Supply Chain Use Cases for IoT, Blockchain, November 8, 2018

The State Of IoT Intelligence, 2018

  • Sales, Marketing and Operations are most active early adopters of IoT today.
  • Early adopters most often initiate pilots to drive revenue and gain operational efficiencies faster than anticipated.
  • 32% of enterprises are investing in IoT, and 48% are planning to in 2019.
  • IoT early adopters lead their industries in advanced and predictive analytics adoption.

These and many other fascinating insights are from Dresner Advisory Services’ latest report,  2018 IoT Intelligence® Market Study, in its 4th year of publication. The study concentrates on end-user interest in and demand for business intelligence in IoT. The study also examines key related technologies such as location intelligence, end-user data preparation, cloud computing, advanced and predictive analytics, and big data analytics. “While the market is still in an early stage, we believe that IoT Intelligence, the means to understand and leverage IoT data, will continue to expand as organizations mature in their collection and leverage of sensor level data,” said Howard Dresner, founder, and chief research officer at Dresner Advisory Services. 70% of respondents work at North American organizations (including the United States, Canada, and Puerto Rico). EMEA accounts for about 20%, and the remainder is distributed across Asia-Pacific and Latin America. Please see pages 11, 15 through 18 of the study for specifics regarding the methodology and respondent demographics.

Key insights gained from the study include the following:

  • Sales, Marketing and Operations are most active early adopters of IoT today. Looking to capitalize on IoT’s potential to gain real-time customer feedback on products’ and services’ performance, Sales and Marketing lead all departments in their prioritizing IoT’s value in the enterprises. 12% of Operations leaders say that IoT is critical to attaining their goals. Executive Management and Finance have yet to see the value that Sales, Marketing and Operations do.

  • Manufacturers see IoT as the most critical to achieving their product quality, production scheduling and supply chain orchestration goals. Insurance industry leaders also view IoT as critical to operations as their business models are now concentrating on automating inventory and safety management. Insurance firms also track vehicles in shipping and logistics fleets to gain greater visibility into how route operations can be optimized at the lowest possible risk of accidents. Financial Services and Healthcare are the next most interested in IoT with Higher Education and Business Services assign the lowest levels of importance by industry.

  • Investment in IoT analytics, application development and defining accurate, reliable metrics to guide development is the most critical aspect of IoT adoption today. Investments in the data supply chain including data capture, movement, data prep, and management is the second-most critical area followed by investments in IoT infrastructure.  Analytics, application development, and accurate, reliable metrics guiding DevOps are consistent with the study’s finding that early adopters have an excellent track record adopting and applying advanced and predictive analytics to challenging logistical, operations, sales, and marketing problems.

  • IoT early adopters or advocates prioritize dashboards, reporting, IoT use cases that provide data streams integral to analytics, advanced visualization, and data mining. IoT early adopters and the broader respondent base differ most in the prioritization of IT analytics, location intelligence, integration with operational processes, in-memory analysis, open source software, and edge computing. The data reflects how IoT early adopters quickly become more conversant in emerging technologies with the goal of achieving exponential scale across analytics and IoT platforms.

  • The criticality of advanced and predictive analytics to all leaders surveyed is at an all-time high. Attaining a (weighted-mean) importance score of 3.6 on a 5.0 scale, advanced and predictive analytics is today considered “critical” or “very important” to a majority of respondents. Despite a mild decline in 2017, importance sentiment (the perceived criticality of advanced and predictive analytics) is on an uptrend across the five years of our study. Mastery of advanced and predictive analytics is a leading indicator of IoT adoption, indicating the potential for more analytics pilots and in-production IoT projects next year.

  • The most valuable features for advanced and predictive analytics apps include support for a range of regression models, hierarchical clustering, descriptive statistics, and recommendation engine support. Model management is important to more than 90% of respondents, further indicating IoT analytics scale is a goal many are pursuing. Geospatial analysis (highly associated with mapping, populations, demographics, and other web-generated data), Bayesian methods, and automatic feature selection is the next most required series of features.

  • Access to advanced analytics for predictive and temporal analysis is the most important usability benefit to IoT adopters today. Second is support for easy iteration, and third is a simple process for continuous modification of models. The study evaluated a detailed set of nine usability benefits that support advanced and predictive activities and processes. All nine benefits are important to respondents, with the last one of a specialist not being required important to a majority of them at 70%.

Tech Leaders Look To IoT, AI & Robotics To Fuel Growth Through 2021

  • 30% of tech leaders globally predict blockchain will disrupt their businesses by 2021.
  • IoT, Artificial Intelligence (AI) and Robotics have the greatest potential to digitally transform businesses, making them more customer-centered and efficient.
  • 26% of global tech leaders say e-Commerce apps and platforms will be the most disruptive new business model in their countries by 2021.
  • IDC predicts worldwide IoT spending will reach $1.1T by 2021.

These and many other insights are from KPMG’s recent research study Tech Disruptors Outpace The Competition. The study can be downloaded here (PDF, 42 pp., no opt-in.).  The methodology is based on interviews with 750 global technology industry leaders, 85% of whom are C-level executives. For additional details on the methodology, please see pages 32 and 33 of the study. The study found that the three main benefits of adopting IoT, AI, and robotics include improved management of personal information, increased personal productivity, and improved customer experience through personalized real-time information. Key insights gained from the study include the following:

  • IoT, Artificial Intelligence (AI) and Robotics have the greatest potential to digitally transform businesses, making them more customer-centered and efficient. Tech leaders also see these three core technologies enabling the next indispensable consumer technology and driving the greatest benefit to life, society, and the environment. KPMG’s research team found that tech companies are integrating these three technologies to create growth platforms for new business ventures while digitally transforming existing business processes. Tech leaders in the U.K. (21%), Japan (20%) and the U.S. (16%) lead all other nations in their plans for IoT digitally transforming their businesses by 2021. Please click on the graphic below to expand for easier reading.

  • 30% of tech leaders globally predict blockchain will disrupt their businesses by 2021. 50% of Japanese tech leaders predict that blockchain will digitally transform their industries and companies by 2021, leading all nations included in the survey.  IoT processes and the rich, real-time data stream sensors and systems are capable of delivering is predicted by tech leaders to be the primary catalyst that will enable blockchain to digitally transform their businesses. 27% of tech leaders globally expect IoT data and applications combined with blockchain to redefine their companies, supply chains and industries. Identity authentication (24%), automated trading (22%) and contracts (14%) are the 2nd through fourth-most disruptive aspects of blockchain by 2021 according to tech leaders. Please click on the graphic below to expand for easier reading.

  • 26% of global tech leaders say e-Commerce apps and platforms will be the most disruptive new business model in their countries by 2021. 19% see social media platforms creating the majority of new business models, followed autonomous vehicle platforms (14%) and entertainment platforms (11%).  KPMG’s analysis includes a ranking of top business models by country, with e-Commerce dominating four of the five regions included in the survey.

  • 50% of tech leaders expect media, transportation, healthcare, and transportation to experience the greatest digital transformation in the next three years.  Respondents most mentioned Amazon, Netflix, Alibaba, Uber, Google, and Facebook as examples of companies who will digitally transform their industries by 2021.  The following table provides insights into which industries by country will see the greatest digital transformations in the next three years. Entertainment platforms are predicted by tech leaders to have the greatest potential to digitally transform the media industry in the U.S. by 2021.

  • Tech leaders predict IoT’s greatest potential for adoption by 2021 is in consumer products, education, services, industrial manufacturing, and telecom. AI’s greatest potential to digitally transform business models is in healthcare and industrial manufacturing (both 11%), consumer products, financial, and services (10% each).  As would be expected, Robotics’ adoption and contribution to digitally transforming businesses will be most dominant in industrial manufacturing (15%), followed by healthcare (11%) and consumer, financial and services (10%). Please click on the graphic to expand for easier reading.

73% of Executives Are Researching & Launching IoT Projects In 2017

  • Manufacturing-based IoT connections grew 84% between 2016 and 2017, followed by energy & utilities (41%).
  • 73% of executives are either researching or currently launching IoT projects.
  • The IoT platform market is expected to grow 35% per year to $1.16B by 2020.
  • B2B uses can generate nearly 70% of the potential value enabled by IoT.

These and many other fascinating findings are from Verizon’s State of the Market: Internet of Things 2017, Making way for the enterprise (16 pp., PDF, free, opt-in). The Verizon study found that the Internet of Things (IoT) gained significant momentum in 2016, with 2017 IoT investments accelerating. The majority of investments today are in IoT projects that are still in the concept or pilot phase, concentrating on tracking data and sending alerts. While easier to initiate and manage, the majority of pilots aren’t providing the depth of analytics data and insights IoT has the potential to deliver.

Key takeaways from the study include the following:

  • Manufacturing-based IoT connections grew 84% between 2016 and 2017, followed by energy & utilities (41%). Transportation and distribution (40%), smart cities and communities (19%) and healthcare and pharma (11%) are the remaining three industries tracked in the study who had positive growth in the number of IoT connections. The following graphic compares year-over-year growth by industry for the 2016 to 2017 timeframe.

  • Manufacturing is predicted to lead IoT spending in 2017 with $183B invested this year. Verizon’s study predicts that transportation and utilities will have the second and third-largest capital expenses in IoT this year. Insurance, consumer and cross-industry IoT investments including connected vehicles and smart buildings will see the fastest overall growth in 2017.

  • The IoT platform market is expected to grow 35% per year to $1.16B by 2020. From well-established enterprise service providers to startups, the platform market is becoming one of the most competitive within the global IoT ecosystem. The design objective of all IoT platforms is to provide a single environment for enabling API, Web Services and custom integrations that securely support enterprise-wide applications. Please see the post What Makes An Internet Of Things (IoT) Platform Enterprise-Ready? for an overview of the Boston Consulting Group’s recent IoT study, Who Will Win The IoT Platform Wars?
  • Improving the customer experience and excel at customer service by gaining greater insights using IoT leaders enterprises’ investment priorities. 33% of enterprises interviewed prioritize using IoT technologies and the insights it’s capable of providing to excel at customer service. 26% intend to use IoT technologies to improve asset management and increase Return on Assets (ROA) and Return on Invested Capital (ROIC). Consistent with how dominant manufacturing’s investment plans are for IoT this year, production and delivery capabilities are the top deployment priority for 25% of all businesses interviewed.
  • IoT has the potential to revolutionize pharmaceutical supply chains by drastically reducing drug counterfeiting globally. It’s estimated that counterfeit drugs cost the industry between $75B to $200B annually. The human costs of treating those who have been sold counterfeit drugs back to health are incalculable. IoT platforms and systems have the potential to drastically reduce the costs of counterfeiting, both on a personal impact and market standpoint. Drug manufacturers operating in the United States have until November 2017 to mark packages with a product identifier, serial number, lot number and expiration date, plus electronically store and transfer all transaction histories, including shipment information, across their distribution supply chains. Pharmaceutical manufacturers have a high level of urgency to make this happen and stay in compliance with the US Drug Supply Chain Security Act. IoT solutions are flourishing in this industry as a result.
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