IoT – commoditization of functions, differentiation by non-functionalities

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Presented at INTERSCT. 2020 by

Dr. Klauw

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For many years have digital innovations been equivalent to adding functionalities or extending functional performance to digital platforms. More pixels and more inches on displays, more channels on audio and video streaming devices, more bits per second connections, more (virtual) buttons on tablets and mobiles controlling ever more app’s. Those functions and features were the main competitive value drivers for companies but for many the result has been a rapid commoditization and shortening of lifetimes of those innovations, with decreasing added value, but strongly contributing to the value and power of the platforms they run on, generally owned by other (non-European) companies. Internet-of-Things is no exception to this. At the same time, non-functional aspects such as privacy, security, upgradeability, portability etc. were often compromised. With the increasing awareness and EU attention for those aspects, the new sustainable competitive value driver for companies may be in those non-functionalities and building trust with end-users. But it will require a shift to more consistent, longer term strategies than many companies are used to.