U.S. Department of Commerce Internet of Things Advisory Board (IoTAB) 

Tom Katsioulas 

IoT Advisory Board Member

tomkat@archon-ds.com

January 18th, 2023

Platform Based Business Ecosystems and Connected Value Chains to Scale 

Adoption of IoT and Ensure Economic Prosperity and National Security

Complex 

IoT Systems

Consumer

IoT Devices
2

Internet of Things Drivers for the Global Economy

Source: 2022 The semiconductor decade: A trillion-dollar industry

• IoT devices projected to grow to 125 Billion 

and data (the new gold) to 570 Zettabytes

• The semiconductor industry that enables IoT 

is projected to exceed $1 trillion in revenues

Semiconductor Enabled IoT Devices & Data by 2030 

Sources: Congress DIGIT Act, Sven Balnojan The Future of Good Data

1 Zettabyte = 1 trillion Gigabytes

U.S. and EU

CHIPS Acts

• 2022 projection* on IoT economy min-max 

ranges factor adoption rates, impact and scale

• Ranges factor opportunities & risks mainly 

related to cybersecurity and supply chain issues

IoT Economic Value range $5.5-12.6 Trillion by 2030 

*In 2014 WEF & McKinsey projected $9.6 to $21.6 trillion for the global economy

Sources: 2014 World Economic Forum*, 2021 McKinsey & Company

$Trillion
3

How IoT Connectivity is Changing Our Environment

Smart Manufacturing

Factories using sensor data 

are improving efficiency, 

automation and quality

Smart Transportation

Connected EVs becoming 

Autonomousintegrated 

with city infrastructure

Smart Buildings

Sensors monitor activity 

and manage power, or 

find doctors in hospitals

Smart Home

Smart consumer devices 

gather data to simplify and 

improve our lives

Smart Supply Chain

Tracking sensors on parcels, 

containers reduce costs and 

improve supply chain resilience

Smart Energy

Utility companies use smart 

meter analytics o balance 

energy supply & demand

Smart Cities

IoT systems collecting data 

on traffic, pollution, etc. to 

improve city lifestyle

Smart Retail

Beacons with mobile apps,

are used to monitor visitor

behavior and push ads

Smart Agriculture

Sensors and drones help 

increase crop yield and 

reduce spoilage in storage

Smart Hospitality

Connected door locks and 

room devices and beacons 

improve visitor experience 

Smart Food Services

IoT Devices in agricultural 

sites help manage global 

food supply and demand

Smart Healthcare

Wearables collect health

data, send analytics to 

prevent emergencies

Analyze IoT connectivity, complexity, and distributed nature that affect opportunities and risks
How IoT is Changing Products and Business Models

4

Product Smart Product Connected Product Product System System of Systems  Platforms  Markets

Farm Equipment

Planters Tillers

Farm 

Management 

System

Weather 

Data System

Seed Opt

System

Irrigation

System 

Farm 

Equipment

Humidity and

Temp Sensors

Weather Maps

and Forecasts

Farm Database

And Analytics

Field Sensors

Irrigation Nodes

Aircraft System

Navigation, Fuel

Flight 

Management 

System

Weather Maps

and Forecasts

Engine, Speed,

Temp Sensors

Weather 

Data System

Aircraft 

System

Flight Database

And Analytics

Route Opt

System

Navigation

System 

Air, Altitude

Engine Sensors 

Business Evolution  Customer, Benefits, Retention, Differentiation, Complexity, Partners, Costs 

Systems connect to other systems and fuel ecosystems* 

Source: HBR How Smart Connected Products Are Transforming Competition *Green Transportation and Supply Chain Logistics
5

Several Factors Influence IoT Adoption & Growth At-scale 

Cybersecurity and Supply Chain Risks 

End Application Drivers for Value Creation 

• For each sector consider how IoT 

technology changes our environment

• Analyze market barriers & drivers to 

evaluate opportunities and risks

• Assess how collaboration can enable 

innovation and scalable businesses

• Plan to protect innovation, talent IQ 

and value creation from adversaries

• Orchestrate trusted networks and 

platform-based business ecosystems

Perceived

Value 

Proposition

Value 

vs. Cost 

Achieved

Connectivity

and IoT

Service Levels

Technology

Performance 

and Power

IoT Services

Across Fleets

and Ecosystem

Cybersecurity

Prevention of

Intrusions

Interoperability

with other IT 

& IoT Systems

Data Privacy

Protection and

Confidentiality

Deployment 

Ease of Use

& Updates

Plethora

of Assorted 

Standards

Markets Drivers Barriers

Assorted Wired Wireless Consumer Agriculture

Supply 

Chain

Supply 

Stack
6

Supply Chain Risks and Critical Infrastructure Vulnerabilities

Lack of supply chain traceability threatens national security and economic prosperity

Chip Design Manufacturing Distribution Assembly System 

Trojans Gray Markets Counterfeits IP Theft Hacks/Malware

Hardware Bill of Materials Software

DDoS Attacks*

Environment 

Vulnerabilities Impact Reliability, Security, and Safety in the Field

Nation State Attacks

• Disaggregated electronics supply chain

• Over 65% of electronics assembled in Asia

• Ineffective sanctions and Customs controls

• Costly support, liabilities, loss of value 

• No policy* for IIoT Systems & Process Sensors 

• Silos and no visibility in IT/OT connectivity

• Limited real time visibility & control of security 

• Compromised equipment and human safety 

*Source: https://www.gao.gov/products/gao-23-105327

Edge Apps 

Source* https://cybersecuritynews.com/ddos-attacks-use-iot-devices/
7

Evolution of Connectivity Drives New Business Models

Scalable Growth & Value 

1990 2000 2010 2020

• Complete Product

• Sales Channels

• Customer Support

Vertically Integrated 

Suppliers of HW + SW

Disaggregation of the 

Electronics Value Chain

• Product from Parts

• Web Config Portal 

• Complex Support

Enterprise Automation

& Open Source Models

• Internet Commerce

• SaaS / PaaS / IaaS

• Platform Strategies

Virtual Re-aggregation & 

Digital Transformation

• IoT Value Chains

• Digital Data Thread

• Data Marketplaces

Transaction Platforms

Uber, Airbnb, Amazon Mkt

Innovation Platforms 

Apple, Google, AWS

Collaboration Platforms

Connecting IoT Value Chains

Platform-based Business Ecosystems

*Sources: The Evolution of Communications, MIT Sloan platform-strategy-and-the-internet-of-things/, MIT Sloan The-future-of-platforms/
8

Platform-based Business Ecosystem for IoT Value Chains

Semiconductor Ecosystem (Provenance) Electronic Device Ecosystem IoT Edge Applications Ecosystem

Trusted Digital Transformation Trusted Digital Thread

Trusted Digital Twins Trusted Data Analytics

Quality and Security Vulnerabilities 

IoT Advisory

Board DIGIT Act

Cybersecurity 

Labeling Prog.

Taxonomy of 

Standards

 Collaboration - Unified Operating Model

 Governance - Rules for Shared Success

 Interactions - Network Effects Broaden IQ

 Digital Thread - Enable Data Marketplaces

 Traceability - Establish market preference

 Acceleration - Align incentives with PPPs*

*Drive behaviors with Regulations & Standards 

Chip Design Manufacturing Assembly System Environment Edge Apps 

Source: GSA Trusted IoT Ecosystem Security (TIES)

U.S. and EU 

CHIPS Acts
Collaboration  Innovation  Transformation  Platformation  Ecosystem Scaling

9

Multi Platform Ecosystems Will Fuel Economic Growth 

Orchestration & Regulation of Massively Parallel PPPs Can Enable $21+ Trillion in value 

 Top-5 platform companies value declined to $6.7 trillion in 2022, still major portion GDP*

 Platformation of enterprises in the IoT value chain will multiply revenues and fuel ecosystems

 Supply chain traceability across connected marketplaces can fuel growth with measurable ROI 

 Metrics: growth in manufacturing supply and businesses offering IoT services and data-enabled ML/AI apps

*Source: https://www.pcmag.com/news/2022-is-battering-the-market-value-of-the-top-tech-companies (Apple, Microsoft, Google, Amazon, Tesla) 

Smart-Connected

Market Ecosystems

Provenance Traceability

Partners & Suppliers Knowledge Networks Platform Ecosystems

Chip Suppliers System OEM Suppliers Industrial Marketplace

Cloud + PLM Suppliers Massive PPP Consortia Automotive Marketplace

Other

Market

Places