Digi-Key: IoT has great potential and innovation will accelerate

As IoT technology takes root in various fields, we see more and more innovations coming from this technology. Recently, EEWORLD interviewed Robbie Paul, director of IoT business solutions at Digi-Key, about the innovation of IoT and asked him to talk about what the innovation of IoT is like now in the eyes of small-volume distributors.

Robbie Paul, Director of IoT Business Solutions, Digi-Key

Here are the details of the conversation:

EEWORLD: The Internet of Things has been proposed for some time. In your opinion, does the development of the Internet of Things match people’s original ideas?

Robbie Paul: Yes, the Internet of Things has been around for a while. The Internet of Things has developed greatly in the past 10 years, especially in the past 5 years, the growth rate has increased rapidly. There were many ideas in the early days, but many of them did not bring much value to the end customer. These ideas showed what this technology should do and what it can do. The Internet of Things is a collection of technologies, including hardware, software and services. The challenge is how to apply all these technologies to cost-effective and easy-to-use solutions, which is continuing to improve.

EEWORLD: With new concepts emerging one after another, can the Internet of Things continue to bring new things to everyone?

Robbie Paul: Yes, we believe that the Internet of Things has not yet reached the top of the acceleration curve and will continue to bring a variety of new products and services to consumers in the next few years. As sensor sizes shrink, microcontrollers increase in functionality, and connectivity protocols improve, the Internet of Things has become mainstream for a variety of applications and use cases. To this end, Digi-Key has been working hard to provide innovative products and solutions and listen to customers to better understand the best way to discover these products, while collecting all the information needed to implement these solutions.  

EEWORLD: Where do you see the main innovations in the Internet of Things coming from? Please elaborate on this.

Robbie Paul: IoT innovation is driven primarily by ideas that solve real-world problems. IoT innovation is driven primarily by innovators who understand the role of IoT and have specific knowledge of solving customer problems. For example, someone developing a solution in the agricultural sector needs to have a deep understanding of both IoT and the pain points that farmers face when running their farms. In consumer applications, the driving force is to improve convenience and safety. In commercial applications, the key is to improve performance and reliability and reduce costs. Successful solutions must demonstrate a good return on investment (ROI) in these areas. Digi-Key is backed by thousands of suppliers who fully launch their products and services to the IoT market. Digi-Key's customers include major OEMs, system integrators and solution providers. They are innovators in various fields who understand the requirements of specific applications and regions, and we have been working hard to listen and understand their needs to promote this innovation in a timely manner.  

EEWORLD: What stage has the Internet of Things reached now? Are there still opportunities for IoT startups?

Robbie Paul: Although we have come a long way since the early days of IoT, we are still in the early stages of technology and the market. As IoT-related technologies continue to grow and evolve, opportunities will grow proportionally. One of the key drivers is the continued decline in connectivity costs. As the cost of cellular technologies such as Cat-M and NB-IoT decreases, a variety of use cases emerge. It becomes feasible to deploy IoT solutions on a larger scale. The promotion of LoRaWAN is also advancing the development of IoT and enabling many new applications.

EEWORLD: What are the biggest obstacles to the development of the Internet of Things at present?

Robbie Paul: The biggest barrier to bringing new IoT solutions to market is not having a good business case. Technology is no longer the main challenge. Here’s an example: As subscription-based business cases grow, solution providers must not only deliver value, but also convince end customers that it makes business sense. In the consumer space, there is widespread “subscription fatigue.” Consumers are managing multiple subscription services, from music to movies to cloud data storage. This is even more challenging in the business space, as most companies don’t have the processes to manage subscription services.  

EEWORLD: What do you think the ideal IoT ecosystem looks like? What is the current ecosystem like? What efforts should the industry make?

Robbie Paul: The Internet of Things is a collection of technologies and products. There are few standards that dictate how products should work together. Therefore, interoperability is a big issue. While there is no one “right” connectivity technology for all use cases, winners are emerging. For example, cellular (Cat-M and NB-IoT) and LoRaWAN are becoming the dominant technologies for long-range connectivity. This makes it easier for sensor manufacturers to deploy using these technologies.

EEWORLD: You mentioned NB-IoT, Cat-M and LoRaWAN many times in the interview. Relatively speaking, do engineers have sufficient knowledge of these technologies? How does Digi-Key help customers quickly popularize and understand related fields?

Robbie Paul: Digi-Key technical support is very good. First of all, we publish a lot of technical content on the website. Since we focus on wireless technology, especially technology related to IoT connectivity, we have launched many articles, blogs and videos for mainstream protocols. In addition, we have many knowledgeable technical staff, including technicians, product managers and application engineers. They provide first-line support for customers who cannot find relevant information or answers to specific questions. These engineers are trained by our supplier partners and are experts in various fields. If our technicians cannot answer the question, they will be fed back to our supplier partners. In short, Digi-Key can answer the vast majority of technical questions (broad, general knowledge), and we rely on our supplier partners to assist in solving the remaining problems (specific, high-level knowledge).

EEWORLD: Why does Digi-Key focus on the Internet of Things?

Robbie Paul: The Internet of Things fits the heart and soul of Digi-Key's entrepreneurial ethos - Digi-Key was founded because the founders saw a need for a better way to sell components to everyday consumers. This is also true for the Internet of Things - whether someone wants to make something smarter in their home or a company wants to make their warehouse more automated, Digi-Key's IoT products and solutions can enable them to achieve their goals. We are proud to support everyday consumers and large companies with the IoT products and services we provide. 

EEWORLD: What role does Digi-Key play in the development of the Internet of Things industry? What efforts has it made?

Robbie Paul: Digi-Key provides a marketplace that brings buyers and sellers together. There are already many vendors on the platform, offering a wide variety of products and solutions. We offer a variety of discrete component-level products as well as modules and subsystems, all the way to fully integrated end-to-end solutions. Our customer base is also diverse, including hobbyists and makers, entrepreneurs and startups, OEMs and system integrators. Our goal is to provide useful solutions to all customers, regardless of size.

EEWORLD: What has Digi-Key gained from focusing on the development of the Internet of Things?

Robbie Paul: Digi-Key has gained knowledge and great connections with our customers. We now offer more system- and solution-based products in addition to the component products we are known for. By growing our IoT business, we can continue to expand our product offerings to help customers meet all their needs while also fueling future innovations that benefit everyone. We are impressed by how our supplier partners continue to deliver products and solutions to the IoT market. We are excited to be a part of this virtuous cycle.

EEWORLD: IoT is not a single technology but a system. How has Digi-Key been meeting this challenge?

Robbie Paul: Digi-Key is constantly working to deepen our understanding of the systems and solutions that will help advance the IoT and is exploring ways to better integrate the IoT into the many products and services we sell. We have expanded our connectivity portfolio by offering SIM cards and mobile data plans. We are also exploring the best ways to offer software and IoT services to integrate with our hardware products. We have accelerated negotiations with several suppliers and are always looking for ways to continue to bring the best products and services to our customers.  

EEWORLD: You mentioned exploring software and IoT services. As a small-volume component supplier, why does Digi-Key consider providing services such as software? Will this conflict with DigiKey's own business?

Robbie Paul: Digi-Key's primary customers are development engineers. IoT solutions typically include hardware, software and connectivity. We want to be able to provide solutions to as many customers as possible. We also find that new types of customers, such as system integrators, are discovering the value of Digi-Key. We are becoming a one-stop shop with a wide selection of IoT products that can be shipped immediately. At Digi-Key, we are laying the foundation for the component business model. We will continue to evolve as customer needs and preferences change, while working hard to attract new customer groups in the IoT market.