The Business of Things
Designing business models to win in the cognitive IoT

IBM Institute for Business ValueExecutive ReportElectronics, Internet of Things

Transforming businesses as theInternet of Things expands
As a global electronics company, IBM understands
the issues facing the high-tech industry and the continuoustransformation required to thrive. Companies are turning
their attention to a new generation of connected devices
that will transform not just the electronics industry, butmany others. The IBM Global Electronics practice uniquely
combines IBM and partner services, hardware, softwareand research into integrated solutions that can help you
deliver innovation, create differentiated customer
experiences and optimize your global operations. Please
visit http://www-935.ibm.com/industries/electronics/
and http://www.ibm.com/internet-of-things/.

1Succeeding in the changing
Business of Things

Executive summary

As the Internet of Things (IoT) becomes ubiquitous

Few inventions have affected society as profoundly and universally as electricity. When Edison

and the cost of embedding connectivity and intelligenceinvented the electric light bulb, he saw electricity as a “field of fields,” giving the opportunity togets cheaper, companies are now focusing on how to“reorganize the life of the world.”1 Indeed, it was more than just electric lights replacing gas

successfully compete in the IoT. The new “Business oflights. As electricity gained economies of scale and became commercially available, “things”

Things” is moving beyond selling connected, intelligent

from streetlights to stovetops became plugged in. The commoditization of electricity

products and beyond selling new services. It is

spawned many countless industries and businesses that would otherwise be inconceivable

expanding to deliver compelling experiences overand electricity became fundamental to life in the 20th century.

the life of a product.

Still in its infancy, the IoT is similarly at the threshold of another tremendous, transformational

Throughout the electronics industry, executives need

opportunity. Connecting things with unique IP addresses has been possible for over a

to focus on IoT strategies and business models that:

decade, but the commoditization of sensors, processors and memory now make itenable “things as agents” to create more valuablecommercially viable to make everyday things significantly intelligent and not just connected.

experiences; co-operate through the complexity of
evolving ecosystems to deliver these experiences;and establish a new order of business that aligns theorganization with an IoT strategy.

Across industries, the IoT is making it possible for companies to move far beyond merely
selling connected, intelligent products and services. They are expanding their offerings todeliver compelling experiences over the life of their products: It’s what we refer to as the newBusiness of Things.
To explore how businesses can be successful in this new era, we conducted the 52-hour IBM
Business of Things Jam in mid-October 2015. The online event garnered over 38,000 pageviews. More than 1,900 registrants in 70 countries engaged in online polls and over 1,100
discussion threads. One hundred eighty-three C-level executives engaged in this explorationof the challenges related to monetizing the IoT (see “About our research” sidebar on page 17
for more details).

2

The Business of Things

The convergence of IoT maturity
and cognitive device intelligenceoffers unprecedented opportunity tocreate value and build stronger
customer relationships.
As the electronics industry
expands and new ecosystems
emerge, it will become more
important for devices toorchestrate seamlessly acrossopen, cross-industry platforms.
Organizational challenges rank
higher than technology challenges
in implementing IoT strategy ascompanies reinvent their identities
in the IoT.

Our analysis of Jam findings led to this executive report, which is the fourth in the IoT thought
leadership series from the IBM Institute for Business Value. This report qualitatively andquantitatively addresses how companies, especially those in the electronics industry, canbuild their business model strategies to create and deliver value in the fast-changing businessof smart devices. We highlight some of the challenges ahead, as well as explore three key
insights to guide executives in strengthening and adapting their organizations to best engage
in the Business of Things.
Arguably, some of the greatest inventions became invisible, like electricity and the Internet. If
the Business of Things becomes so pervasive that it is the normal course of business, the IoT
will have reorganized the world once again.

3

Challenges ahead
We are entering an era of billions of connected devices. Analysts estimate there will be over 30
billion connected devices by 2020.2 Yet many companies are very early in their IoT strategic

Figure 1
Four challenges of the evolving IoT landscapeplanning and a number of challenges must be addressed. These include:
Early stages. Seventy-five percent of Jam poll respondents indicated that their organizations’ IoT
solutions are not developed or only slightly developed. This suggests that most companies are
beginning to connect their devices and collect data, but are not using insights to generate value.
Growing investments. Our research shows that investments in the IoT are largely less than 1
percent of revenue now, but growing rapidly. Fifty-five percent of companies in the Jam expect to

%%
75
75

%%
65
65

are inareearly
in early
stagesstagesare uncertain
are uncertain
about
about
ROI ROI

%%
69
69

%%
55
55

increase such investments to more than 5 percent of revenue in the next five years. This outlook isvalidated by forecasts for a leading USD 20 billion home entertainment device manufacturer over a
five-year period.3
High expectations. Expectations are high, especially for new business models. Sixty-nine percent
of Jam poll respondents said that the IoT can help improve their line of business through new
business models and revenue streams. Across the electronics industry, new business models
continue to emerge. As an example, in the current evolution from broadcast TV to on-demand TV,
TP Vision offers a “pay as you go” platform-as-a-service priced at a fraction of a dollar per year per
connected device, thus growing its market to over 6 million connected TVs.4
Uncertain return on investment (ROI). Despite the growth in investment and the promise of value,
profits in the IoT remain elusive. Sixty-five percent of Jam participants indicated they are unsure
about how they can monetize the IoT. Industry sentiment suggests there is uncertainty inapproaches to achieving ROI and it is a “difficult and confusing” problem (see Figure 1).

havehave
highhigh
expectations
expectations

planplan
to invest
to invest> >5% of
5%revenueof revenue

4

The Business of Things

Key insights from the Business of Things Jam
Three key insights from Jam findings can help executives develop business models toimprove their competitiveness in the Business of Things:
Things as agents. Shifting trends in product ownership and management suggest thatcompanies must begin to focus on creating valuable experiences. As things become capableof learning and adapting to their users, they can begin to act like “agents” on behalf of theuser. Cognitive intelligence in devices can help enhance experiences by discovering new
insights and creating stronger relationships with users.
Co-operating through complexity. The IoT is reshaping the electronics industry, making it
more complex and heterogeneous than ever before. Industry boundaries are expanding andrequirements to support multiple ecosystems are increasing. Collectively, these forces are
driving the need for platforms that can manage this complexity by orchestrating devices andservices seamlessly.
A new order of business. As the IoT ecosystem continues to expand, companies are
reinventing their identities. When it comes to implementing IoT strategy, organizational
challenges are even more pressing than technology challenges. Aligning the organization
with the company’s IoT strategy will necessarily change the way companies lead, learn andprepare their workforces as the IoT permeates organizations through an expanded Chief
Technology Officer (CTO) mission.

5

Things as agents
Unlike mobile devices such as smartphones and tablets, things in the IoT have much greater
longevity and opportunity for sustained customer relationships. Our research suggests thatas more things become connected and intelligent, companies need to pay attention to shifting

Figure 2
The Business of Things will change the fundamental building blocks ofan organization’s business model
Value creation
Value creation
Value creation

trends in product ownership and management, and their impact on business models over thelife of these products (see Figure 2 ).These impacts include:
Value creation. Enabled with machine learned user models and natural language user

Active Active Active
agents agentsagents

PassivePassive
Passivethings things things

interfaces, the next generation of smart devices will enhance even the most complex user

RevenueRevenue
modelsRevenue
models models

experiences. As things in the IoT become capable of learning, adapting to end-user needs
Purchasing
Purchasing
Purchasing
and interacting via natural language, they will begin to behave like agents, significantly

Pay perPay
useperPay
useper use

simplifying the experience and increasing the core value of the product.
Acting as agents on behalf of the user, these devices can learn and become more intelligent

OperatingOperatingmodelsOperatingmodels models

over the life of the device, and communicate in natural language with a high degree ofCapital CapitalCapitalconfidence and context. They can also discover new insights based on user behavior that expenses
expenses
expenses

OperatingOperatingOperatingexpenses
expenses
expensescan be used to build a stronger relationship with the end user.
Revenue models. Ownership could soon become supplanted by alternate acquisition

Delivery channels
DeliveryDelivery
channelschannels

Discrete
Discrete
Discretemodels. Access based consumption and payment – where consumers want access to goods
manufacturing
manufacturing
manufacturing
and prefer to pay for the experience of temporarily accessing them rather than owning them– is becoming more popular.5 IoT-based digital tracking and contract reinforcement also
reduces risk in lending, making leasing of high-value assets possible while increasing theirutilization and economic value.6

Software-defined
Software-defined
Software-defined
updatesupdates
updates

6

The Business of Things“As the IoT accelerates, not only will
we have more data and more ‘access’
to data, we will need to detect new
patterns in order to unlock newvalue. Different from computer
programming, pattern recognition
becomes a skill that can enhance not
only product design but also new
methods of user interaction andexperience.”

Operating models. Analogous to cloud computing, IoT allows the opportunity to spread large

Sarah Miller Caldicott, CEO, Power Patterns(Great grand-niece of Thomas Edison)

capital investments to ongoing operating expenses and revenue-generating activities. As the
distribution of investment shifts, the economics of the IoT offer the potential to reduce overallrisk to companies. For manufacturers of new products in the IoT, heavy capex models withredundant infrastructure are giving way to more flexible continuous engineering approaches.
Delivery channels. Discrete manufacturing to enable new product features is being
complemented by software-defined methods. To future-proof products from fitness trackers
to cars, new features to improve product capabilities are becoming available via over-the-air
updates.7 Even sales and advertising models are transforming to simply advice the customer
on a replacement product when repairs are no longer cost-effective.
These shifts indicate that the strategic direction of companies in the Business of Things must
extend from just selling products and services to create compelling experiences over the lifeof a product.
Invisible or intuitive
Even as these shifts begin to take shape, the number of connected devices is rapidly
increasing. Our research indicates that in five years, the number of users with over 20
connected devices will increase 44 percent and 83 percent users will own at least 10 devices,and most physical products will be transformed into digital experiences.8
At this scale of transformation, many machine-to-machine interactions will need to become
invisible and machine-to-human interactions will need to become more simple and intuitive(see Figure 3).

7

Figure 3
IoT interactions will need to become either invisible or intuitive

Evolution of a cognitive
washing machine
Descriptive: Notifies user when wash cycle

Instrumented
Interconnected

is done.

Invisible

Predictive: Diagnoses impending failure of a part.
Prescriptive: Orders a required part and verifies
payment if not under warranty.

Intelligent

Cognitive: Recognizes usage patterns that

Intuitive

indicate excessive energy consumption and highprobability of future part failures. It could:

The future of IoT is cognitivea

Essential to achieving this simplicity and intuition will be the evolution of natural language

weather and calendar, and adapt settings toprocessing and cognitive systems. The market for natural language interfaces alone isload size and contents

expected to grow to USD 13.4 billion by 2020.9 Simultaneously, device intelligence is evolvingfrom basic descriptive and predictive capabilities to more sophisticated prescriptive andOptimize utilization based on color, fabric,b

Identify and download new features that
address these failures with software-definedcognitive interaction (see sidebar, “The evolution of a cognitive washing machine”).

updatesc

If options (a) and (b) are no longer feasible,
advise on a replacement model with low
probability of these failures.

8

The Business of Things

In the IBM CORE maturity model, leaders in the electronics industry extend the value of a productby enhancing the user experience.10 The convergence of IoT maturity and cognitive device
intelligence at the top of the CORE pyramid represents the future of how users will interact withand experience products and offers unprecedented opportunity for companies to gain
competitive advantage using insights to build stronger customer relationships (see Figure 4).
Figure 4
The top of the CORE pyramid represents the convergence of IoT maturity and cognitive device intelligence

Device intelligenceloT maturity
Enhance the experience

Cognitive

Revamp development
Optimize insights
Capture data

Prescriptive
Predictive
Descriptive• Capture data. Gain new insights through collecting and standardizing data.
• Optimize insights. Further deepen the insight by applying intelligence to collected customer
and business information.
• Revamp development. Increase credibility in the marketplace through the introduction of
more intuitive and relevant products and services.
• Enhance the experience. Extend the value of the product via introduction of new value
added services.

9

Co-operating through complexity
Things in the IoT are not discrete entities anymore. The electronics industry is witnessing its
experience. To successfully deliver this value, it is becoming increasingly important to recognize

The challenge of integrating multiple
ecosystems

how devices enabled by the electronics industry will interact, and which industries are likely to

Today, many applications focus just on a single

become logical extensions of electronics markets, ecosystems and end users.

device in a single ecosystem. However, devices inbiggest opportunity, as nearly every passive thing turns into an active device and point of

Expanding boundaries. Our analysis suggests that the automotive and healthcare industries willbe the first logical extensions to the electronics industry in the IoT transformation. Together, ourJam results show that they constitute 82 percent of industries impacting the IoT. Also, analysis of
Jam insights suggest that almost 50 percent of this transformation is expected to happen
outside North America. The expanding electronics industry will be challenged to address theneeds of countries and regions with multiple languages, diverse use-cases, and enable greater
customization and personalization.
Multiple ecosystems. Each industry is struggling with its own set of technology platforms,
protocols, operating systems and compliance standards. The electronics industry has the
additional challenge of supporting not just its own ecosystem, but also those of adjacentindustries (see sidebar, “The challenge of integrating multiple ecosystems”). This has resulted in
an explosion of requirements on the electronics industry.
Managing complexity
The various permutations in the “wheel of complexity” are making it harder for electronics
products to interact (see Figure 5). In the Business of Things Jam, interoperability stood out as
the biggest challenge to IoT adoption. It requires open, extensible cross-industry platforms that
can anticipate and accommodate high levels of complexity. Experience platforms that bridge
devices and services across vertical applications can greatly help manage the complexity of the
IoT and increase consumer adoption.

the expanding Business of Things will need tocollaborate across multiple ecosystems. For
instance, smart windows and doors will need tocollaborate with HVAC systems for comfort andenergy management, with garage doors andvideo cameras for the security system and withcars for complete mobility solutions.

10

The Business of Things“Innovation and expansion arehallmarks of the electronics industry
and as our industry changes, so must
we. The consumer sector has grown toengage almost every major industry
segment, touching almost every partof consumers’ lives.”

Figure 5
The permutations of ecosystems and industries that electronics devices have to support are making interoperability
the biggest challenge in the IoT

Auto
mo
tive

care
alth
He

Con
prodsume
uct rs

SafetyComfort

Health

tail
Re

nd n
el a tio
Trav por tastran

Energymanagement

MobilityEntertainmentEnerg
util y and
ities

nd
ia a nt
Med inme
ta
enter

e

Electronics

Ins
ura
nc

Gary Shapiro, President and CEO
Consumer Technology Association (formerly Consumer
Electronics Association)

Expanding industries

Multiple ecosystem
platforms and standards

11customer segments and create new revenue opportunities.

“The IEEE is working on standards.
My fear is that it is not fast enoughto meet the needs of this industry.”

Following interoperability, security emerged as the next biggest challenge to IoT adoption.

Lee Stogner, IEEE Internet of Things Initiative

Open platforms that can support virtually any device in any ecosystem from any industry havethe opportunity to extend current “sell and push-based” business models with “publish andpull” models that enable companies to participate in other industries’ markets, attract new

Security also emerged as the “most debatable” topic in the Business of Things Jam. As in theearly days of electricity when ensuring safety was necessary to connect objects to the grid andUnderwriters Laboratory (UL) emerged as an independent, global body for safety standards
and certifications, the opportunity exists now for UL-like security standards for IoT devices.11
Strategic industry alliances and associations are pushing the “state of the art” among member
companies and serving as an “aggregation point” for common requirements, government
regulation and driving local standards but we are still far from devices seamlessly co-operating
through this complexity.
Despite the complexity and chaos of an ecosystem early in its expansion, the industry is hopeful.
Sixty-eight percent of Jam poll respondents said a common IoT platform is possible and 81
percent said a global IoT service like the Internet, not controlled or owned by one company, will
emerge. Sixty-six percent even stated that the IoT will be more disruptive than the Internet.

12

The Business of Things

A new order of business
Figure 6
Organizational challenges in the IoT will drive a new order of business

As organizations evaluate their roles in the expanding IoT ecosystem, new identities are
emerging. Ninety-one percent of Jam poll respondents in the Business of Things Jam said the
IoT will reshape their organization’s brand identity. (see Figure 6) Even the most recognizable

91%

brands are reinventing themselves: Ford is no longer just about making vehicles; but is

expect a new organizational identity

focusing on innovative solutions for global mobility.12 Some apparel companies are taking on
the challenge of the next generation of wearables rather than waiting for technology
companies to invent them.13

63%

rank organizational challenges overtechnology challenges

As companies begin to embrace new identities in the IoT, aligning their organizations will bean even bigger challenge. Sixty-three percent of Jam poll respondents ranked organizational
challenges such as skills and executive support over technology challenges to be successful
in implementing an IoT strategy.

88%

said consumers and entrepreneurs will
be most influential in shaping the IoT

Evaluate your company’s role
The journey to build a successful IoT organization begins with identifying the company’s rolein the IoT including evaluating core competencies and opportunities for differentiation.
Building the right leadership and skills follows, while creating a culture that is continuously
improving and innovating. Successful IoT leaders will monitor success and drive changes

98% expect emergence of new KPIs

more rapidly than ever.

13

Create an IoT mission
Also critical to building a successful IoT organization is executive leadership. Akin to the earlydays of electricity when companies had Chief Electricity Officers responsible for transforming
their operations, there is now a plethora of C-suite roles around data, analytics and security.
Our research suggests that in this expanding digital C-suite, the CTO can play a critical andexpanded role in connecting various organizational functions, bringing technology andoperations closer together, and driving a new order of business.
This new order of business around an expanded CTO mission will require co-owning
development of a technology solution and getting it to market, connecting the back office
to the front office in real-time in unprecedented ways.
Prepare your workforce
Our research shows that it will become necessary to “future-skill” the workforce – to build
new skills to design, build, sell, deliver and support smart products over their lifetime. The IoT
will also change the way we learn, how skills are acquired and how the workforce is (re)trained.
A new generation of digital assistants is emerging that can provide real-time coaching toenhance employees’ decision-making, productivity and quality of service.
In addition to sensors that can perform remote diagnosis and automation to improve
productivity, bringing advanced cognitive capabilities to smart products can fundamentallychange what skills and jobs are required in the future. Sixty-eight percent of Jam poll
respondents said the IoT will impact employment by creating high-skilled jobs. The combined
power of machines assisting humans can create new roles and opportunities and a more
empowered workforce than would otherwise be possible.14“Shifting your strategy is hardenough. Aligning your organizationis yet more challenging. Most suchalignment efforts take multiple years
and many fail.”Kaihan Krippendorff, Author, Outthink the Competition

14

The Business of Things“Innovation requires resilience tofailure. In general, each company
balances two fears: the fear of the
new/untried, and the fear of being left
behind. Some cultures are not only
resilient to failure but crave (fast)
failure as a way to establish lessons.”

Define culture

Dr. Richard Soley, Executive Director,
Industrial Internet Consortium

As the IoT rapidly shrinks the gap between the front office and back office, companies must
begin to think like start-ups to be successful in the rapidly changing IoT environment. In theBusiness of Things Jam, participants said they expect 88 percent of the influence in shaping
the IoT to come from consumers and entrepreneurs, compared to just 9 percent from C-level
executives and 1 percent from policymakers. To successfully compete in the IoT, it will beessential to function with the speed and agility of a start-up, and engage end-users tocontinuously experiment and improve products.
Accelerate innovation
Various types of innovation are emerging in the industry as IoT companies begin todifferentiate themselves: corporate accelerators, strategic partnerships, acquisitions andcorporate reorganizations. Rethinking traditional risk models and embracing these outside-in
approaches with resilience to failure will be essential to accelerating innovation in the IoT.
Monitor successAs companies reinvent their identities and align their workforce and organizational culture,continuously monitoring success and re-evaluating the company’s position in the IoT will be
important to staying competitive. Ninety-eight percent of our Jam poll respondents said newmeasures of success will emerge in the IoT that will replace standard enterprise metrics.
Already, sensor-based KPIs provide prescriptive ways of measuring and improving businessperformance in real time.15

15

Winning in the new Business of Things
Based on our analysis of insights from the Business of Things Jam, we recommend thefollowing actions for organizations developing their business model strategies for the IoT.
Focus on the experience• Move from discrete, fixed engineering to continuous engineering• Future-proof your devices with software-driven feature updates• Consider higher value business models that can shift capital expenses to operating
expenses• Open the lens of product development teams to use design thinking to better understandend-user personas• Build stronger relationships with end users by applying cognitive learning technologies toimprove product services and experiences.
Orchestrate, not control• Embrace and experiment with new ecosystems of relationships• Evaluate common, open approaches versus proprietary solutions• Think and solve for security – not just at the device level, but all the way up the stack• Take action to manage cross-industry complexity via open experience platforms• Be active with industry alliances and participate in the dialog on interoperability and bestpractices.

16

The Business of Things

Align as you reinvent• Build an IoT strategy at the highest level of your company and verify that it permeates
the organization• Reshape your organization so an empowered business unit is responsible for implementing
IoT strategy• Identify and acquire skills that are needed from inside and outside the company• Unify technology and operations to enable more cognitive decision making• Look at new opportunities, including acquisitions, as a big part of how your company
evolves.

17

Are you ready to compete in the Business of Things?
Companies in the electronics industry must evaluate their roles in the new Business of Things

About the researchand prepare to compete in the new landscape. These questions identify useful steps thatPrimary research for the study included the Businessexecutives across the industry can take:of Things Jam – a global, online discussion on• What is your company offering that enhances the end-user experience?
• How can your products and services continuously learn about and adapt to the needs ofthe end user?
• What is your plan for products and services to interoperate well with other players in the IoT
ecosystem?
• How are you engaging with industry alliances on standards?
• What is your company’s role in the Business of Things?
• In what ways are your executive leadership and workforce aligned with your company’s
identity in the IoT?

challenges in monetizing the Internet of Things. Hosted
by the IBM Jam Program Office in partnership withleading industry associations and consortia, theBusiness of Things Jam brought together businessleaders and visionaries across industries and countries
to debate operational, organizational and industry
models for the IoT (see Figure 7).16 Contents of the Jam
were analyzed using STAT, SPSS Modeler and IBM
Watson Content Analytics for emerging themes,
concurrence and sentiment and validated with clientsin the electronics industry.
Figure 7
The Business of Things Jam featured almost 2000 business leaders,over half from the electronics and high tech industry from 70 countries
Electronics and high tech
Financial services
21%

Energy and utilities
Automotive
Government

Industries

1%
2%
2%

(% of respondents)

54%

Telco
Consumer products

3%3%

Retail4%
4%Transportation
6%

Other

18

The Business of Things

About the authors
Veena Pureswaran is the Global Electronics Industry Leader in the IBM Institute for Business
Value. In her current role, she is responsible for leading thought leadership research for theelectronics industry. She has managed global IBV research studies on technology strategy
and economic impact of 3D printing and the Internet of Things, and has presented IBV
research findings in major industry conferences in Asia, Europe and North America. Veena
can be reached at vpures@us.ibm.com.
Scott Burnett is Director, Global Consumer Electronics and Member of the IBM Industry
Academy. He is responsible for leading IBM strategy and business development, leveraging
Internet of Things and Cognitive capabilities for product and service innovation. Scott has
served in numerous executive roles in consulting, research and business development. Scottis a member of the Consumer Technology Association, Board of Industry Leaders and Boardof Trustees for the CTA Foundation. Scott can be reached at burnetts@us.ibm.com.
Bruce Anderson is IBM General Manager, Global Electronics Industry Leader and Member of
the IBM Industry Academy. He is responsible for the IBM electronics industry businessworldwide, including consumer electronics, medical devices, semiconductor, and office,industrial and network equipment segments. He has over 25 years of experience helping
companies gain competitive advantage through innovative strategies and transformation.
Bruce previously led the Industrial Sector supply chain practice as a Partner and Vice
President for IBM Global Business Services. Bruce can be reached at baanders@us.ibm.com.

19

Acknowledgments
Association, Industrial Internet Consortium, IEEE IoT Initiative, Internet2, Continental

Read the first three reports in our
IoT series

Automated Buildings Association and the Open Interconnect Consortium. We would like to

The Economy of Things: Extracting new value

thank the IBM Jam Program Office for their support in hosting a critical global, online dialog

from the Internet of Things ibm.com/business/on the IoT. We also thank the Business of Things Jam forum hosts, VIP guests, chat hosts,

value/economyofthings

The authors recognize the Business of Things Jam partners: Consumer Technology

facilitators and participants for engaging in the dialog and sharing their perspectives. And
finally we thank Tarun Mishra, Joni McDonald and April Harris of the IBM Institute for Business
Value for their support in producing this executive report.

Empowering the edge: Practical insights on adecentralized Internet of Things ibm.com/
business/value/empoweringedge
Device democracy: Saving the future of theInternet of Things ibm.com/business/value/internetofthings

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The Business of Things

For more information

Notes and sources

To learn more about this IBM Institute for Business1

Value study, please contact us at iibv@us.ibm.com.
Follow @IBMIBV on Twitter, and for a full catalog of

2

3

4

5

together business insight, advanced research andAccess-Based-Consumption.pdf
6Pureswaran, Veena and Dr. Robin Lougee. “The Economy of Things: Extracting new value from the Internetof Things.” IBM Institute for Business Value. June 2015. http://www-935.ibm.com/services/us/gbs/

technology to give them a distinct advantage intoday’s rapidly changing environment.

Bardhi, Fleura and Giana M. Eckhardt. “Access-based consumption: The case of car sharing.” Journal ofConsumer Research. December 2012. http://www.cass.city.ac.uk/__data/assets/pdf_file/0011/203789/

The right partner for a changing world
At IBM, we collaborate with our clients, bringing

IBM press release. “IBM Cloud to Deliver New Home Entertainment Services for Philips Smart TVs.” August
31, 2012. https://www-03.ibm.com/press/us/en/pressrelease/38651.wss

free “IBM IBV” apps for your phone or tablet from yourapp store.

Anderson, Bruce, Scott Burnett and Wendy Dao. “The road to customer intimacy: Leveraging investments
in customer insights to maximize returns.” June 2011. IBM Center for Applied Insights.

Access IBM Institute for Business Value executive
reports on your mobile device by downloading theGartner press release. “Gartner says personal worlds and the Internet of Everything are colliding to create
new markets.” November 11, 2013. http://www.gartner.com/newsroom/id/2621015

our research or to subscribe to our monthly newsletter,
visit: ibm.com/iibv.

“History of Electricity.” Institute for Energy Research. August 29, 2014. http://instituteforenergyresearch.org/
history-electricity/

thoughtleadership/economyofthings/
7

Bogard, Travis. “Introducing new heart rate features for UP.” The Jawbone Blog. September 8, 2015. https://

IBM Institute for Business Value

jawbone.com/blog/introducing-new-heart-rate-sleep-features/; Reed, Brad. “Tesla is consistently blowing

The IBM Institute for Business Value, part of IBM Global

my mind and changing the auto industry at the same time.“ October 20, 2015. BGR. http://bgr.
com/2015/10/20/tesla-software-updates-the-future-of-cars/

Business Services, develops fact-based strategic
insights for senior business executives around critical

8

Pureswaran, Veena and Paul Brody. “Device democracy: Saving the future of the Internet of Things.” IBM
Institute for Business Value. July 2015. http://www-935.ibm.com/services/us/gbs/thoughtleadership/

public and private sector issues.

internetofthings/
9

Peart, Andy. “The natural language revolution.” NLINews. October 20, 2015. http://www.nlinews.com/2015/
the-natural-language-revolution/

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10

Anderson, Bruce, Scott Burnett and Wendy Dao. “The road to customer intimacy.” IBM Center for Applied
Insights. https://www.ibm.com/smarterplanet/global/files/us__en_us__products__cai_electronics_b.pdf

1112“About UL: History.” Underwriters Laboratory. http://ul.com/aboutul/history/“Global Mobility Through Changing Times: Sustainability Report 2014/15. Ford. http://corporate.ford.com/
microsites/sustainability-report-2014-15/mobility.html

13

Germano, Sara. “Under Armour Turns Ambitions to Electronic Apparel, Monitoring Apps.” The Wall Street
Journal. February 27, 2015. http://www.wsj.com/articles/under-armour-looks-to-get-youwired-with-its-apparel-1425061081?alg=y&mg=id-wsj

14“Optimize agent effectiveness and customer engagement.” SpeechIQ. http://engagertc.com/speech-iq.
php.

15

“Quality Control System Performance Service: Improve control utilization, sensor stability and process
variability.” ABB Advanced Services. https://library.e.abb.com/public/4a6f5c46b0943ee985257
bec005f65d9/9AKK105875%20Rev%20C%20QCS%20Performance%20Service.pdf

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See video: “A decade of Jamming.” IBM Jam Events. https://www.collaborationjam.com© Copyright IBM Corporation 2015
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