A market segment, which contains the word 'things' is evidently going to become prone to a variety of interpretations and this is definitely the case with the Internet of Things (IoT.) Nevertheless, the market for IoT in healthcare has been forecasted to reach a very significant market size, for instance $117b by 2020 according to Mind Commerce. For such an influential trend, there is widespread confusion around what this term actually means and what it includes.
For this reason, this blog post will attempt to consolidate three basic definitions into one with an aim to encompass the majority of potential aspects of IoT. It's important to note that there are much deeper descriptions behind these but we're looking for the core sentence that summarize what the market actually is.
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Horses for Sources (HfS)
HfS defines IoT as: 'The association of data to a physical device and the delivery of this data from that device to a centralized repository for further processing.'
This description focuses on the data and how it is managed and processed with the physical devices simply being the enabler of the market. With this in mind, vendors who have strong capabilities in data management are likely to score highly in HfS's estimations.
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Gartner
Gartner defines IoT as: 'The network of physical objects that contain embedded technology to communicate and sense or interact with their internal states or the external environment.'
Gartner's definition focuses a lot more heavily on the devices and does not feature the word 'data' at all although it is definitely implied. Gartner also uses additional vocabulary in 'sense' and 'interact'. It's important to note that sensors, especially within the healthcare market are an integral part of IoT as they not only facilitate data transfer but in a lot of cases, they carry it out proactively.
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IDC
IDC defines IoT as: 'a network of networks of uniquely identifiable endpoints (or "things") that communicate without human interaction using IP connectivity — whether locally or globally.'
Following on from the point I made above about sensors carrying out data transfer proactively, IDC's definition highlights that IoT does not require human interaction. This aspect will provoke one of two reactions: 1) 'Fantastic, without human interaction means streamlined processes and the ability to focus our efforts on end users', or 2) 'Hmm, I'm not sure I trust endpoints communicating without human interaction.' Whilst IoT has a multitude of benefits, concerns over security must be addressed.
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Each of these definitions have their own merits and by no means are any of them wrong. At this point, I would like to propose an amalgamation of these definitions and include a nod to security, which I personally believe is critical to include for successful client interactions on an enterprise level.
My definition would be: 'The secure communication of data which occurs between a network of endpoints and centralized repositories via IP connectivity for further processing.'
This blog post may seem trivial in nature but it is this lack of standard definition that is leading to a lack of standards. This lack of standards then naturally leads onto security concerns, which is the number one barrier to IoT adoption across all vertical industries.
What do you think? Do you agree with these definitions? Do you see a light at the end of the tunnel as it pertains to global standards for IoT? Please feel free to comment below and share on social media.
Best Regards,
Jonathan Cordwell
Research Analyst, Healthcare Strategy
ResearchNetwork, CSC
- Aria Systems, Healthcare: A $117B opportunity for the Internet of Things, Healthcare: A $117B opportunity for the Internet of Things - See more at: https://www.ariasystems.com/blog/healthcare-a-117b-opportunity-for-the-internet-of-things/#sthash.YR2SaIEg.dpuf
- Horses for Sources, Harman, Tech Mahindra, IBM, Accenture and Atos leading the Internet of Things phenomenon, 3rd Oct, 2015, http://www.horsesforsources.com/hfs-iot-blueprint_100315
- Gartner, Internet of Things, http://www.gartner.com/it-glossary/internet-of-things/
- IDC, IDC Market in a Minute: Internet of Things, http://www.idc.com/downloads/idc_market_in_a_minute_iot_infographic.pdf
Following on from last week's blog post about how Blockchain is being used in healthcare, this week I wanted to focus on some of the vendors who have won competitions with their use cases which in turn, raise the profile of Blockchain in general. Despite the prize money being relatively insignificant, the real prize is exposure to potential partners who could bring these ideas to their established client bases. This blog post will look at two Blockchain startups who have won prizes for their ideas as well as startups to keep on the radar.
MedVault
MedVault very recently won a Blockchain Hackathon competition held in Ireland. MedVault's proof-of-concept centered on the use of Blockchain to store medical records whilst preserving anonymity. This would then leverage the technology of a fellow startup Colu to avoid bloating the Blockchain. As we saw from my last blog post, similar projects are being developed by the likes of Factom and BitHealth.
In my personal opinion, this is going to be the most widely marketed use case within the healthcare market as data security is a key concern within the industry. Another very important point to note is that this competition was sponsored by Fidelity Investments, Citi and Deloitte. Partnering a consulting giant such as Deloitte with a startup in this field could prove fruitful so this is definitely one to watch.
Tierion
In September, a team led by Tierion CEO Wayne Vaughan, won the Consensus 2015 Makeathon competition. Tierion's team consisted of members from Citi, New York University, Apttus and Coin Cafe. The brief as stated on CoinDesk was to come up with 'an application that envisioned how the Blockchain could be used to produce verifiable, immutable receipts for use during an insurance claims process'.
During the competition, the team created an app for financial giant USAA (once again providing great exposure.) This app was integrated with Tierion's blockchain receipt technology and Google Sheets so that claims could be both automatically checked against the Bitcoin Blockchain and organized in documents for end-users.
Although this was created for a financial services client, there are two important aspects I'd like to mention. Firstly, the potential for cross pollination of Blockchain applications from financial serves into the health insurance space is very real. Healthcare payers will undoubtedly keep an eye on how it is being adopted within the financial sector to see if there are elements that can be leveraged.
Secondly, Tierion recently announced a partnership with Philips Healthcare to look into potential applications of Blockchain technology within the vertical. Tierion will pull from these experiences in the hope of reaching a much wider market through its partner network. Exposure to new markets will enable Tierion to expand quickly whilst benefitting from the reputation of an established player such as Philips.
Although a lot will evidently be focused on the financial sector, expect to see more of these types of sponsored events as startups rally together to raise the profile of Blockchain and progressively move its way into the limelight.
Ones to watch
Although not a financial prize, VentureRadar produced the graphic below recognizing their top 25 Blockchain startups that are disrupting non-financial markets. Tierion (as mentioned above) is featured as well as BlockVerify who was featured in my last blog post. Obviously there is a much wider field in the financial services sector but it's encouraging to see that startups are starting to branch out. It will be interesting to see whether anymore of these venture into healthcare and who they partner with to accelerate their path to market.
Are there any other Blockchain startups that are making their way into the healthcare market? Who do you think will be making waves in the coming months and years? Leave your comments below and please share via Twitter.
Best Regards,
Jonathan Cordwell
Research Analyst, Healthcare Strategy
ResearchNetwork, CSC
- CoinDesk, Medical Records Project Wins Top Prize at Blockchain Hackathon, 10th Nov 2015, http://www.coindesk.com/medvault-wins-e5000-at-deloitte-sponsored-blockchain-hackathon/
- CoinDesk, Blockchain Insurance Solution Wins Consensus 2015 Makeathon, 10th Sep 2015, http://www.coindesk.com/blockchain-insurance-consensus-2015-makeathon/
- VentureRadar, Top 25 non-financial Blockchain startups, http://blog.ventureradar.com/2015/09/08/top-25-non-financial-blockchain-startups/
