Four major changes brought about by the Internet of Things era
The hottest issue in the technology industry this year is the Internet of Things. Gartner, an international research and advisory firm, predicts that the number of connected objects in global use will reach 8.4 billion in 2017, an increase of 31% from 2016, and will increase to 20.4 billion by 2020, in addition to the end-of-service and service-related expenditures in 2017. The amount will also reach the $2 trillion mark.
"Advantech began to do the Internet of Things 30 years ago. It has always been an unpopular industry. I didn't expect it to become a mainstream now, like a dream!" Liu Kezhen, chairman of Advantech, said with exaggeration. He observed that the industry had a mode shift every 15 years, the last time it was transferred from PC to Mobile, this time from Mobile to IoT (Internet of Things). In the process of transferring this model, there will be four major changes in the industry:
Change one, from B2C to B2B
In the past, whether the technology factory sells PCs, laptops or mobile phones, it is a B2C model that directly faces consumers. However, in the Internet of Things era, the B2B model of enterprises and enterprises will be the mainstream. “The Internet of Things is a complete system,†explains Liu Kezhen. The Internet of Things industry is divided into four major areas: chip, platform formation, system integration, and cloud services. The business models of these four industries are dominated by B2B. .
Change 2, from a small amount to a small amount
Another mode of transfer brought about by the Internet of Things era is the concept of “quantity†and “likenessâ€. "The first thing manufacturers must overcome is the "massive" mentality of the PC era," said Liu Kezhen. In the PC era, the chip is the world of Intel and ARM, and the former accounts for 90% of the market. However, in the era of the Internet of Things, different systems require completely different chips, and the industry will break the monopoly and move toward a hundred flowers.
Change 3, from horizontal integration to vertical integration
"In the Internet of Things era, having domain knowledge is the key to success!" Liu Kezhen said that in the past, PC companies were focusing on horizontal integration, but the Internet of Things required vertical integration from beginning to end. You must have a good understanding of the target area, focus on doing it, and have a competitive advantage in the market. "It is rare to do factories and medical treatment."
Change 4, from rapid change to slow change
Because the Internet of Things is a long-term system, the industry is also very different from the pace of rapid changes in consumer electronics in the past. "It's not fast, but the ability to combine soft and hard integration."
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