LG CNS CEO Kim Dae-hoon stressed the importance of services over devices in the Internet of Things (IoT) industry.
Kim said on April 14, “As the IoT industry will be more oriented to services than devices in the future, the industry should come up with new business models to prepare for it.”
Even though the true meaning of the IoT is to create new business models by connecting things, the nation’s IoT industry remains at the interest level of things.
Kim said, “Since the device-centered IoT focuses on 'what to connect,' it focuses on developing novel devices such as smart LEDs and smart forks. On the other hand, the service-centered IoT starts from 'why things should be connected,' and concentrates on devising convenient and useful services such as smart homes and smart health care.”
He said that the new business models in the IoT era include a change of profit structure from product to service; market expansion by online-offline channel integration; and new market advances through collaboration between industries.
“IoT technology will impact all industries by strengthening existing businesses in each industry, expanding business areas, and providing risks at the same time such as blurred boundaries between industries and the collapse of existing business models,” said Kim.
LG CNS has end-to-end support platforms from sensors to services, various standards support, maximum security support, and the IoT platform for smart businesses, including the provision of intellectualization services of processing and analyzing big data based on the cloud.
Meanwhile, LG CNS plans to hold the nation’s largest IT conference titled “Entrue World 2015” at the Grand InterContinental Seoul in the Gangnam district of Seoul on April 21.