The fire of the Internet of Things field set off the next IT transformation

"Made in China" has become so popular in the world. A foreigner who once experimented and tried not to use Chinese manufacturing found it almost impossible. In the shopping malls around him, most of the tennis shoes and slippers are made in China. They can only be barefoot if they don’t wear them; on birthdays, they can’t buy candles if they don’t use Chinese-made candles; children’s toys are mostly made in China. His children complained about this experiment, and they did not feel like playing in Chinese toys was in jail time. In the end, this experimenter wrote the book. His conclusion is that the world will be made out of China and life will be very embarrassing.

As a major manufacturing country in the world, China has become a global manufacturing and manufacturing base. However, this model is obviously very basic and needs to be urgently upgraded. Most of the large quantities of goods manufactured in China are low value-added products. China urgently needs to upgrade from traditional manufacturing to manufacturing in the smart era. In short, it means that "Made in China" has been upgraded to "Made in China." At the same time, overseas markets do not want China to only transfer traditional and backward production capacity. They also need advanced technologies and products.

The Internet of Things (IoT) and artificial intelligence have become the next hot spots in the Internet and industry. Intimate contacts between offline and online often create many miracles that surprise people. According to statistics, China’s logistics industry annually delivers 300 billion parcels; in 2016, the amount of mobile payment in China has exceeded RMB 208 trillion. In addition, online shopping, shared bicycles, mobile payment and high-speed rail were selected as the four new inventions in China, three of which are related to the Internet and IoT. In Chinese manufacturing, the addition of intelligent functions such as artificial intelligence such as IoT is an opportunity for Chinese manufacturing upgrades.

Established only three years of graffiti intelligence, it has grown into a global IoT platform for only three years, and is also becoming the stage for “China-made” companies. In the past year, the products created based on the sci-fi intelligent platform have created 10 billion sales for customers. The 10 billion sales were jointly created by 3,000 products of more than 2,000 partners. These products are sold to 165 countries worldwide. country. The graffiti smart IoT platform contributed to the “intelligent” products of these 2000 companies.

Creating great value for the industry also often brings high valuations to the company and even becomes a favored target for venture capitalists. In the past two years, Graffiti has received investments from one of the 18 Arhats of Alibaba Group Wu Yiming and the US Silicon Valley Investment Agency NEA. In the first half of 2017, it completed another round of several hundred million yuan in Series B financing. The investors were CICC Silicon Valley Fund, Dongfang Fuhai, and NEA, Quadrille Capital and other top investment institutions. The case of graffiti business model has become a model in the IoT circle, and even become the standard reference for industry financing pricing.

On October 26th, the Global Intelligence Summit held in Shenzhen attracted thousands of guests from all over the world. Many participants were attracted by “Graffiti Intelligence”. Faced with the influx of guests in the venue, the vice president of graffiti intelligence Ningdan had to advance to the stage and shouted, hoping that the guests present could sit on the floor. She wrote in her own circle of friends: “The ToB market hasn’t seen this for a long time. The lively scene is like returning to the hottest capital in 2014."

The graffiti company did not think that he had been inattentive and became the "red man" and protagonist of the summit. This has also become the most vivid annotation of the popular IoT industry.

The IoT industry is a huge plate, and the industrial structure is very complicated. From an industry point of view, medical and automotive auto driving areas are currently hot areas. Baidu, Ali, and major auto companies have started to deploy unmanned vehicles; smart home appliances range from balanced cars to drones, from sweeping robots to Intelligent access control, millet's rice home can be described as "a dazzling array", the kind of comparable Jingdong digital channels.

IoT mode of battle: the spark is still sticking to one side?

The Internet of Things industry is huge and the division of labor is also very detailed. App developers who specialize in App development have similar mobile operators such as China Mobile and Unicom. IoT devices often require network equipment and computer systems, or mobile phone equipment, and require equipment suppliers. In addition, the Internet of Things is also inseparable from various types of devices. Terminal chips, acquisition equipment and sensors. And these so-called industry companies are not hesitating to invest heavily in investing in the Internet of Things.

In addition to benchmarking investment cases such as graffiti intelligence, there have been many projects for capital acquisitions and investments in the IoT field in 2017: Teamsun Tiancheng invested nearly 8% of Telink Microelectronics, an IoT chip company, through the IoT Fund. RMB 1.8 billion; Baidu’s Apollo claims to invest RMB 100 in the next three years to set up a special fund; Xiaomi’s ecological chain also claims to have invested in 55 entrepreneurial teams, which can be described as seeding. In many IoT projects, apart from their respective directions, the model differences are also distinct.

1. Self-operated model

This model is typical of domestic millet and overseas apples. Xiaomi's core is the use of mobile phones and home appliances to form a brand and cost-effective word of mouth, and then allow users to settle in their own smart home ecosystem. In addition, it also invested in 55 companies, through the way of capital holding, to turn ecological chain enterprises into a small circle and become a king, so as to possess its hundreds of intelligent products, which can be described as integration of software and hardware. Apple is different. Apple provides software for manufacturers as long as the manufacturers provide data, and the hardware design is made by the manufacturers themselves.

2. Customized mode

In the case of Teamsun’s acquisition, the essence is to acquire an IoT chip field, which is considered to be a city attack. Teamsun Technology itself is a toB IT integrated service provider, serving corporate customers in the vertical industry. The space for market expansion is based on existing corporate customers and has a customer base. However, the narrow product categories often limit the profitability and marginal revenue of customized companies, and even the speed of market expansion.

3. Traditional contracting model

At present, there are also some cloud companies in the project contracting system, that is, the software, hardware, and cloud tri-party need for the development of N times for different customers. Obviously, this model allows manufacturers to customize the required smart products more freely. However, taking software as an example, due to the nature of OEM trade, traditional OEM OEM software orders are very difficult to handle. After all, we all want to have our own brand of apps. However, software OEMs can't be directly affixed to hardware. It takes a long time. The code modification (the more customers, the more code), and then one by one to upload AppSrore, so this model under the development cycle and post-delivery upgrade flexibility should pay special attention.

4. Platform mode

The graffiti smart IoT model is, in short, the platform model of “I'm on the stage, you (traditional manufacturing company) to play”. The metaphor of the image is the spark. The platform provides the interface and the enterprise access platform interface can quickly launch its own APP through a simple operation. Thousands of enterprise access platforms allow AI smart products to be rapidly developed as a result of the blazing trails and to use the platform's channels to market. Different from customization and existing markets, the market prospects of the platform model have great imagination.

The IoT platform model is essentially a deeper industry division of labor. Graffiti focuses on AI and platforms, and companies focus on their fields. The platform allows AI to combine with the advantages of the enterprise, increase the value of the enterprise, and bring higher P/E to the platform. On the other hand, the customization model, although it has good returns on individual businesses, lacks the scale effect of the platform and the overall P/E ratio is not ideal.

Looking at the history of IT industry development, the openness and platform ideas have passed several major industrial changes in the IT and Internet industries. For example, the Wintel open platform constructed by Microsoft and Intel has achieved a number of hardware and software companies; Google's Android system and ARM, in the mobile Internet field, successfully replicated the glory of Wintel, allowing the development of smart phones in the past decade. . Believing that the platform model is more like a fire in the IoT field, detonating the next IT transformation.