Exclusive Speaker Interview with Matt Hatton, Director, Machina Research

Matt HattonIn the lead up to the Digital Services World Congress we spoke to several industry experts, who will also speak at the event. Please read below the interview with Matt Hatton, Director, Machina Research.

Do you think ecosystem players have found the winning M2M business model yet?

They’ve certainly found some models that work but there is a phenomenal amount of change happening. Who sells what to whom is in a constant state of flux. The industry is trying to work out, for each of the wonderfully diverse applications that make up the IoT, what the most appropriate way is to deliver that service, and who is best to deliver it. And as technical, regulatory and commercial environments change, the answer will change.

At Machina Research we’re doing a lot of work unpicking this complexity and helping guide the constituent members of the value chain on where they should focus their efforts. This is what I’ll be focusing on at the event.

What challenges still stand in the value chain’s way when it comes to entering and profiting from new vertical sectors, such as wearables?

Personally I don’t see wearables as a sector. There are dozens of characteristics that define an M2M application. Technical and commercial, obviously. Geographical, legal, you name it. ‘Wearability’ is just another characteristic of a device associated with an M2M application. Some applications that have been characterised as ‘wearables’ relate to fashion, some to healthcare, others to security. They essentially have no common theme other than they can be attached to the human body.

However, the value chain challenges associated with IoT in general really centre on who does what and where. It’s almost indescribably diverse as a field and the correct answer over who does what in the value chain will vary by application. So as each new application emerges, so – gradually – does the correct business model to support that application.

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