The Future of 'The Internet of Things' with Ron Rock from Microshare

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Welcome thank you enter now before we get into this topic. It's probably with hearing your own definition of the Internet of things. Are I think it means many things to many people. How do you describe it? Wow what a heavy question to start our conversation with today. You're right Iot means a lot of things to a lot of people bowl and I've actually learned in the last six months that some middle management in large corporations advise me to not mention Iot in the C. Suite because it's got this bad reputation IOT was first coined back in nineteen ninety nine at Mit. And the idea was that we had computers running browsers and they were all talking to one in another. It was the height of the DOT com and somebody came up with this great idea that wow what if machines could actually talk to each other directly. What if our refrigerator and our car our and our appliances at home what all these things could actually be interconnected what of cars and traffic lights and ambulances were all connected so this was a big? The guy idea what happened in the subsequent two decades a lot of money was spent on Iot and frankly a lot of failed projects and so so through that the buzz came through Iot. Everything's GonNa talk to everything to suddenly. It became a bad thing to talk about in the C suite. The were a few exceptions things. Like the GE jet engine we were able to put very expensive sensors in that engine. It generates over one hundred megabytes of data a second but the ROI. I Made Sense. We're going to keep planes in the air so no matter what the expense it made sense but we never really saw Iot in its Vision of two thousand. The George Jetson error. We never saw all of that automation. Come together so I agree that. It is going to bad rep. And I'm also also not using it to him because one it's confusing and also the other thing and we might talk about this. People say aw is not my Internet camera. That's being hacked. And unless things just has a really bad connotation so I know you now talk about Maka share as a sensor as a service company that's I think a much more compelling view but what does it actually mean well and and I can do a precursor to that I'd like to say we talk about Iot under this. Concept of digital twinning digital twin has a lot of definitions out in the marketplace as well at the highest level digital twinning is. We're going to create a virtual replica of everything in our physical lives. Why are we going to do this going to do it? To drive operational efficiencies. We're going to do it to extend the quality of life. We're GONNA do it to find new business opportunities in the marketplace. I say AH extend the quality of life because data in general has gotten a bad rap lately. And so just like. You're teeing up the question hacking. Our Cameras Time magazine Kazini Tries To scare the hell out of us every week with our baby monitor has been hacked in. Its watching. Little J. T. so it's bad and it's consid- exactly all all of that so what we don't talk about and the press doesn't talk a lot about is all the good things coming out of data so cars that don't get into accidents in the first place are are happening. Because of thousands of sensors talking to one another and proactively making our automobiles safer proactively driving our health care system to look look for cures to cancer improve cardiac care. All these types of things are benefits of data but we take those for granted and we try to scare everybody with the data must be bad so I think one of the first things we we tackle at Micra share is the idea that there's a lot of really good data out there and the more data we can collect elect the more efficient. We're going to be able to make operations the more. We're going to be able to create new business opportunities new insights and let's face it. The companies beneath that run in a data centric business model are the companies that are now the most valuable in the world and legacy companies that have been around a long time are struggling and you need to make that switch or risk going away so I agree with you. Data is so powerful. But there's so much out there. Let's let's make more personal for our listeners. What sort of data can you collect? If you've got these senses give a sense of what is the data we can collect and how that might be turned into insights sure so at at microbes shared. There's so many a different industries that we could have pursued as an early stage company. We decided to focus on commercial real estate and we picked commercial real estate for a few reasons. One it's not regulated to everybody has some commercial real estate. It's ubiquitous across the planet and it's typically been underserved from financial our our technology investment perspective. So why do people care about data in commercial real estate. Well if I'm the tenant I want to know how many people are in my room in in my building increasingly. We're now working with a group of investors here in the UK. They lend the money to build the skyscraper. And so I'm going to give you a one hundred million in dollars but I'm GonNa Build into the Covenant of the bonds that I get to see the data of the occupancy in that building whenever I want to now that has real monetary autry value absolute monetary value and. Why do I do that because I want to know that my tenant is potentially going to go away nine months before they typically would tell me because I'm watching real time how that building functions so the money people interested the landlord is interested? The tenant is interested interested and the real low hanging fruit that we have found. Is that the facilities management folks. The people that cleaned that building are really interested in that data. Why typically large companies like here in London Caribbean went out of business? These were big companies quote unquote too big to fail billions of pounds running on razor thin margins on a race to zero. What does a company like really do among other things they clean your office space? How do they typically clean it? They have the minimum wage employees pushing a cart from point A. TO POINT B. to point C.. Every day on a schedule regardless of utilization. So what if I could actually clean space. That's being used and not clean space. That isn't being used fun. Little fact the number one complaint North America America and Europe in the workplace is dirty bathrooms and so suddenly I start cleaning the bathrooms that are being utilized more frequently and I stopped cleaning the bathrooms that for whatever reason time of year Time of day or no longer being used so one of our large global facilities management companies a fortune one hundred company. We were in a meeting a few months ago and they said wait a minute. Ron I think I get it. Occupancy equals dust and that is a fundamental game changer. So now you're in a razor thin margin business huge big global footprint if I can suddenly suddenly shave a few points off of my cost whilst at the same time improving the level of service. That's a huge win. For these companies comes is back to a wellness thing. So we. He'd millennials warner come to work and being spied and and make their their passion but if they're working in a facility that I like ords duty then they're not gonna be happy and I know that if I go to a bathroom facility. There's a teddy piece of paper that someone signs of being there but you wrote that's program. Every hour ago they with it needs cleaning. Knock so just to break down the sense of basically says this spice this bathroom. This coffee area is arisen being used so that data goes back to someone who can take action on. WanNa that's right and typically those sensors in that data create insights. Those insights are integrated in with your dynamics three sixty five accounting system or your pegase systems business process management bpm system or sap and these insights then drive action so for example being in a bathroom and having push-button there that allows a consumer to say. Hey this bathroom needs to be cleaned. I now have a date time stamp of when they push I that button. It needs to be cleaned when the cleaning person shows up. They have a small magnet on their keychain. They tap the bottom of that sensor and I now have a date time stamp is to win. The response showed up as we look at some of these big global facilities management contracts. The margins are so thin that they've have begun crafting service level agreements. SLA's and so now the facilities management company can actually get an increase in revenue. If they meet certain service Chris Level Agreements. We now provide the data that shows real time feedback from the people using the building and the facilities management companies real time response as to how they are servicing the facilities that. They're engaged

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