IOT / AI Value Chain

IOT / AI Value Chain

If you want to progress in the IOT, and eventually AI, sphere, you’d do well to understand the value chain – and how your offering fits into this eco-system.

The article that enlightened me recently is by Simon Greenman, and can be found here:

https://towardsdatascience.com/the-secrets-of-successful-ai-startups-whos-making-money-in-ai-part-ii-207fea92a8d5

At a high level, Simon identified the players as:

  • Chips and Hardware
  • Platform & Infrastructure
  • Frameworks & Algorithms
  • Enterprise Solutions
  • Vertical Industry Solutions
  • Corporates
  • Nations

‘Household’ brands like Microsoft, Google and Amazon seem to dominate. We see the large players operating on all or most of the layers in the stack. With other players (notably IBM and Facebook) all working hard to own more of the value chain.

Focusing narrowly on IOT, we see a slightly modified list to include:

  • Telecoms
  • Networking & Connectivity
  • Data Storage, Manipulation & Reporting
  • Command & Control platforms
  • Security & Audit

As noted by Warren Chaisatien, “You can almost look at telecom operators moving up the value chain as transforming into software companies“. I would expect this to be true of all the major players, as they buy up the niche operators to bolster their offerings.

References

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