By Michael E. Porter and James E. Heppelmann
In this extensive article, Michael and James offer a deep analysis on the Internet of things industry. They go over topics such as explaining what smart, connected products are and what can they do. They also suggest a five forces analysis where cracks in the current business model can be noted, especially in the threat of new entrants and the bargaining power of buyers’ areas which are the focus of this review. Titled as “Mistakes to Avoid” the pair break down a series of common misconceptions including functionalities that customers don’t want to pay for, the risk of security and privacy violation, timing, and overestimation. As companies such as Boeing and Caterpillar move profounder into this technology, it is critical for them to keep this ABC in mind that perhaps can save a several millions of dollars. Currently, both companies have increased their Machine-to-machine (M2M) capability by more than 50% in the past year only according to Core2 Groups analysts.