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GERD KORTUEM | WWW.KORTUEM.COM | @KORTUEM | [email protected] | INTERNET OF THINGS 2010 TOKYO | SLIDE LANCASTER UNIVERSITY SCHOOL OF COMPUTING AND COMMUNICATIONS ` Internet of Things 2010, Tokyo Market-based User Innovation in the Internet of Things 1 Gerd Kortuem Lancaster University www.kortuem.com Fahim Kawsar Lancaster University & Bell Labs www.fahim-kawsar.com

Market based user innovation in the internet of things | Gerd Kortuem

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The importance of user innovation is widely accepted, but the development of the Internet of Things is primarily driven by large commercial players. Using an innovation perspective, this paper identifies how user innovation and market-based innovation can be combined in the Internet of Things (IoT). A survey of tools for user/developers in the IoT space uncovers a rich set of tools for creation of hardware, software and data but reveals poor support for distribution and sharing of such artifacts. To address this shortcoming we propose connected marketplaces as a way to provide users/developers with rich opportunities for sharing and trading of artifacts, and to enable effective user innovation in the IoT.

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Page 1: Market based user innovation in the internet of things | Gerd Kortuem

GERD KORTUEM | WWW.KORTUEM.COM | @KORTUEM | [email protected] | INTERNET OF THINGS 2010 TOKYO | SLIDE LANCASTER UNIVERSITY SCHOOL OF COMPUTING AND COMMUNICATIONS `

Internet of Things 2010, Tokyo

Market-based User Innovation in the Internet of Things

1

Gerd KortuemLancaster Universitywww.kortuem.com

Fahim KawsarLancaster University & Bell Labs

www.fahim-kawsar.com

Page 2: Market based user innovation in the internet of things | Gerd Kortuem

GERD KORTUEM | WWW.KORTUEM.COM | @KORTUEM | [email protected] | INTERNET OF THINGS 2010 TOKYO | SLIDE LANCASTER UNIVERSITY SCHOOL OF COMPUTING AND COMMUNICATIONS `

This presentation is available on my blog:

www.kortuem.com

The corresponding paper is available at:

www.kortuem.com/publications and

http://dx.doi.org/10.1109/IOT.2010.5678434

2

Page 3: Market based user innovation in the internet of things | Gerd Kortuem

LANCASTER UNIVERSITY SCHOOL OF COMPUTING AND COMMUNICATIONS `

GERD KORTUEM | WWW.KORTUEM.COM | @KORTUEM | [email protected] | INTERNET OF THINGS 2010 TOKYO | SLIDE

Innovation by users for users

3

Eric von Hippel. Democratizing Innovation. MIT Press 2005

Page 4: Market based user innovation in the internet of things | Gerd Kortuem

LANCASTER UNIVERSITY SCHOOL OF COMPUTING AND COMMUNICATIONS `

GERD KORTUEM | WWW.KORTUEM.COM | @KORTUEM | [email protected] | INTERNET OF THINGS 2010 TOKYO | SLIDE

Building the future home

Georgia Tech's Aware Home. Photo by Gary Meeks

4

Page 5: Market based user innovation in the internet of things | Gerd Kortuem

LANCASTER UNIVERSITY SCHOOL OF COMPUTING AND COMMUNICATIONS `

GERD KORTUEM | WWW.KORTUEM.COM | @KORTUEM | [email protected] | INTERNET OF THINGS 2010 TOKYO | SLIDE

Current innovation drivers

5

Image courtesy of http://101lab.net/blog/2007/01/rfid-1.html

Page 6: Market based user innovation in the internet of things | Gerd Kortuem

LANCASTER UNIVERSITY SCHOOL OF COMPUTING AND COMMUNICATIONS `

GERD KORTUEM | WWW.KORTUEM.COM | @KORTUEM | [email protected] | INTERNET OF THINGS 2010 TOKYO | SLIDE

R&D agenda ignores end users as source of innovation

Vision and Challenges for Realising the

Internet of Things March 2010

Edited by Harald Sundmaeker

Patrick Guillemin Peter Friess

Sylvie Woelfflé

The meaning of things lies not in the things themselves, but in our attitude towards them.

Antoine de Saint-Exupéry

6

Page 7: Market based user innovation in the internet of things | Gerd Kortuem

LANCASTER UNIVERSITY SCHOOL OF COMPUTING AND COMMUNICATIONS `

GERD KORTUEM | WWW.KORTUEM.COM | @KORTUEM | [email protected] | INTERNET OF THINGS 2010 TOKYO | SLIDE

The power of user-driven innovation:social activism

EcoSnoop.com - Sustainability through Activism. EcoSnoop for iPhone is an

activism tool that allows green-aware users to assist and encourage corporate green

initiatives.

7

Page 8: Market based user innovation in the internet of things | Gerd Kortuem

LANCASTER UNIVERSITY SCHOOL OF COMPUTING AND COMMUNICATIONS `

GERD KORTUEM | WWW.KORTUEM.COM | @KORTUEM | [email protected] | INTERNET OF THINGS 2010 TOKYO | SLIDE

The power of user-driven innovation: citizen science

AKStrandNet - Allows people to take and submit photos of dead and live stranded

marine mammals in Alaska.

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Page 9: Market based user innovation in the internet of things | Gerd Kortuem

LANCASTER UNIVERSITY SCHOOL OF COMPUTING AND COMMUNICATIONS `

GERD KORTUEM | WWW.KORTUEM.COM | @KORTUEM | [email protected] | INTERNET OF THINGS 2010 TOKYO | SLIDE

The power of user-driven innovation: citizen journalism

360News – Putting the power of full featured news reporting in the hands

of citizen journalists and news enthusiasts.

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Page 10: Market based user innovation in the internet of things | Gerd Kortuem

LANCASTER UNIVERSITY SCHOOL OF COMPUTING AND COMMUNICATIONS `

GERD KORTUEM | WWW.KORTUEM.COM | @KORTUEM | [email protected] | INTERNET OF THINGS 2010 TOKYO | SLIDE

The Internet of Things needs user innovation.

10

Page 11: Market based user innovation in the internet of things | Gerd Kortuem

LANCASTER UNIVERSITY SCHOOL OF COMPUTING AND COMMUNICATIONS `

GERD KORTUEM | WWW.KORTUEM.COM | @KORTUEM | [email protected] | INTERNET OF THINGS 2010 TOKYO | SLIDE

Shifting Innovation to users via toolkits

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Fahim Kawsar. A Document-Based Framework for User Centric Smart Object Systems, PhD dissertation, Dept. Computer Science, Waseda Univ., Feb. 2009.

Erich von Hippel, & R. Katz. Shifting Innovation to Users via Toolkits. Management Science, 48(7), 821-833.

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Page 12: Market based user innovation in the internet of things | Gerd Kortuem

LANCASTER UNIVERSITY SCHOOL OF COMPUTING AND COMMUNICATIONS `

GERD KORTUEM | WWW.KORTUEM.COM | @KORTUEM | [email protected] | INTERNET OF THINGS 2010 TOKYO | SLIDE

Providing tools is not enough

Invention ≠ Innovation. Innovation requires creation and

diffusion and adoption.

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Page 13: Market based user innovation in the internet of things | Gerd Kortuem

LANCASTER UNIVERSITY SCHOOL OF COMPUTING AND COMMUNICATIONS `

GERD KORTUEM | WWW.KORTUEM.COM | @KORTUEM | [email protected] | INTERNET OF THINGS 2010 TOKYO | SLIDE

Example: Arduino open hardware innovation community

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Page 14: Market based user innovation in the internet of things | Gerd Kortuem

LANCASTER UNIVERSITY SCHOOL OF COMPUTING AND COMMUNICATIONS `

GERD KORTUEM | WWW.KORTUEM.COM | @KORTUEM | [email protected] | INTERNET OF THINGS 2010 TOKYO | SLIDE

The IoT user innovation landscape

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Closed Hardware Platforms

Hardware Toolkits

Software Platforms

Software Toolkits

Data Platforms

Tools for Creation

Sharing of Creations

Markeplaces for Creations

Open Hardware Platforms

Data

SW

HW

Tinker

Pachube

Dust sensor node

iCap

Phidgets

Sourcemap

Page 15: Market based user innovation in the internet of things | Gerd Kortuem

LANCASTER UNIVERSITY SCHOOL OF COMPUTING AND COMMUNICATIONS `

GERD KORTUEM | WWW.KORTUEM.COM | @KORTUEM | [email protected] | INTERNET OF THINGS 2010 TOKYO | SLIDE

The challenge of IoT Marketplaces

multiple vendors

heterogeneous hardware platforms

heterogenous data sources and formats

hw, sw and data compatibility

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Page 16: Market based user innovation in the internet of things | Gerd Kortuem

LANCASTER UNIVERSITY SCHOOL OF COMPUTING AND COMMUNICATIONS `

GERD KORTUEM | WWW.KORTUEM.COM | @KORTUEM | [email protected] | INTERNET OF THINGS 2010 TOKYO | SLIDE

Def.: Connected marketplaces

Def.: Two marketplaces are connected if products of one marketplace can be used to enhance, control or

interact with products of the other marketplace.

Marketplace for products

of type A

Marketplace for products

of type B

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Page 17: Market based user innovation in the internet of things | Gerd Kortuem

LANCASTER UNIVERSITY SCHOOL OF COMPUTING AND COMMUNICATIONS `

GERD KORTUEM | WWW.KORTUEM.COM | @KORTUEM | [email protected] | INTERNET OF THINGS 2010 TOKYO | SLIDE

Connected marketplace example

17

Page 18: Market based user innovation in the internet of things | Gerd Kortuem

LANCASTER UNIVERSITY SCHOOL OF COMPUTING AND COMMUNICATIONS `

GERD KORTUEM | WWW.KORTUEM.COM | @KORTUEM | [email protected] | INTERNET OF THINGS 2010 TOKYO | SLIDE

Building the future home

Georgia Tech's Aware Home. Photo by Gary Meeks

18

Page 19: Market based user innovation in the internet of things | Gerd Kortuem

LANCASTER UNIVERSITY SCHOOL OF COMPUTING AND COMMUNICATIONS `

GERD KORTUEM | WWW.KORTUEM.COM | @KORTUEM | [email protected] | INTERNET OF THINGS 2010 TOKYO | SLIDE

Connected Smart Home Marketplaces

section we will provide a preliminary answer by investigating how a set of connected marketplace can be realized to enable a community of users/developers to create, share and distribute innovative IoT artifacts and products. To ground our discussion in a concrete example we focus our attention on smart homes [61], an important realm for the Internet of Things, especially with respect to the recent upswing in smart energy solutions.

IV. CONNECTED IOT MARKETPLACES

In the previous sections we discussed how application marketplaces spur user innovation and diffusion in the mobile space. Such marketplaces provide an interesting starting point for an attempt to democratize innovation in the IoT space. However unlike the iPhone ecosystem, the Internet of Things cannot be confined to a single device platform and a unified distribution channel. Instead, the IoT ecosystem will necessarily consist of a heterogeneous collection of hardware, software and data components. This greatly complicates user innovation as it introduces dependencies and compatibility issues, which make it harder to share and reuse artifacts. Thus in order to foster user led innovation in the IoT space we argue for a connected set of marketplaces, each one addressing a particular innovation touchpoint. We define marketplaces as connected if products of one marketplace can be used to enhance, control or interact with products of another marketplace. A simple example of this concept is www.liquidware.com, the aforementioned online shop for open-source DIY hardware. Liquidware not only sells hardware but also offers an App Store for software that runs on

this hardware. Following our definition, the Liquidware hardware store and the Liquidware App Store are connected. In order to be traded in connected marketplaces, products need to be compatible: in this example software in the one marketplace needs to be compatible to the hardware in the other. Another form of connection can be envisioned between a marketplace for sensor devices and a marketplace for sensor data produced by these devices. However, there is no example yet for such a link (even though simple forms of data marketplaces exist, for example as part of Pachube). Connection is a one-way relationship and connections between three or more marketplaces can be complex. For example, two sensor device marketplaces could be linked to the same data marketplace. Marketplaces may also be chained: a marketplace for electronics components may be connected with a marketplace for sensor devices built from these components, which in turn could be connected with a data marketplace.

Connected marketplaces create an open ecosystem that supports innovation and diffusion across multiple levels of complexity. An innovator can use lower-level marketplace to acquire devices and tools to build something more complex and use higher-level marketplace to share (or sell) his/her creations with others, who in turn can use them as a starting point their for their own innovations. This mechanism not only supports an innovation chain from low complexity to high complexity, it also allows for a distribution of ownership and control of marketplaces.

Figure 2. Connected Marketplaces Supporting User Innovation in the IoT Space

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19

Page 20: Market based user innovation in the internet of things | Gerd Kortuem

LANCASTER UNIVERSITY SCHOOL OF COMPUTING AND COMMUNICATIONS `

GERD KORTUEM | WWW.KORTUEM.COM | @KORTUEM | [email protected] | INTERNET OF THINGS 2010 TOKYO | SLIDE

These connected marketplaces provide inhabitants with rich opportunities for

exchanging their local experimentations, from hardware to software and data.

Connected marketplaces support user innovation across

multiple levels of complexity.

20

Page 21: Market based user innovation in the internet of things | Gerd Kortuem

LANCASTER UNIVERSITY SCHOOL OF COMPUTING AND COMMUNICATIONS `

GERD KORTUEM | WWW.KORTUEM.COM | @KORTUEM | [email protected] | INTERNET OF THINGS 2010 TOKYO | SLIDE

Challenges

1. Understanding and supporting user innovation touchpoints.

2. Understanding user incentives.

3. Understanding the characteristics of open innovation platforms.

4. Identifying IoT business models.

5. Identifying and mapping potential open IoT ecosystems

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Page 22: Market based user innovation in the internet of things | Gerd Kortuem

LANCASTER UNIVERSITY SCHOOL OF COMPUTING AND COMMUNICATIONS `

GERD KORTUEM | WWW.KORTUEM.COM | @KORTUEM | [email protected] | INTERNET OF THINGS 2010 TOKYO | SLIDE

Understanding user innovation touchpoints

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Page 23: Market based user innovation in the internet of things | Gerd Kortuem

LANCASTER UNIVERSITY SCHOOL OF COMPUTING AND COMMUNICATIONS `

GERD KORTUEM | WWW.KORTUEM.COM | @KORTUEM | [email protected] | INTERNET OF THINGS 2010 TOKYO | SLIDE

Challenges

1. Understanding and supporting user innovation touchpoints.

2. Understanding user incentives.

3. Understanding the characteristics of open innovation platforms.

4. Identifying IoT business models.

5. Identifying and mapping potential open IoT ecosystems

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Page 24: Market based user innovation in the internet of things | Gerd Kortuem

LANCASTER UNIVERSITY SCHOOL OF COMPUTING AND COMMUNICATIONS `

GERD KORTUEM | WWW.KORTUEM.COM | @KORTUEM | [email protected] | INTERNET OF THINGS 2010 TOKYO | SLIDE

Summary

The IoT needs user innovation

User innovation in IoT is complex

Connected marketplaces

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Page 25: Market based user innovation in the internet of things | Gerd Kortuem

LANCASTER UNIVERSITY SCHOOL OF COMPUTING AND COMMUNICATIONS `

GERD KORTUEM | WWW.KORTUEM.COM | @KORTUEM | [email protected] | INTERNET OF THINGS 2010 TOKYO | SLIDE

Thank you.

Gerd [email protected]@kortuemwww.kortuem.com

Fahim [email protected]

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