LG CNS chief executive Kim Dae-hoon emphasized Tuesday that services, not devices, will lead the progress of the Internet of Things technology across industries.

“The IoT industry will be reshaped soon based on services, rather than devices. We should create a new business model for this change,” Kim told employees.

The message comes before the company’s annual Entrue World 2015, the nation’s largest technology conference, to be held on April 21.

Connectivity is the key to the IoT, under which all digital devices, from smartphones to sensors in homes, cars and machines of all kinds, communicate with each other via the Internet.

While current discussions have focused on how to connect all the different devices, the CEO pointed out that now is the time to put more emphasis on services like smart homes and smart care.

The IoT is a growing industry, with services playing a greater role. U.S.-based consulting firm Gartner predicted services will make up 85 percent of IoT-related sales in 2020.

“The IoT has grown based on device, network and service areas so far. The future growth will be driven by services,” he said.

“The new business model will create new revenue sources and distribution channels, while speeding up the convergence of different technologies and industries for new markets.”

LG CNS, an LG-affiliated information technology service provider, also aims to become a key player in the “smart world,” Kim added.

“LG CNS has already secured competitiveness to offer a total business platform as it offers IoT solutions ranging from sensors to devices and other support programs for security and big data analysis.”

The CEO will make a keynote speech during this year’s Entrue World event, themed “The Internet of smart things accelerating smart business.” Other key speakers will include Kevin Ashton, a British technology pioneer who is best known for inventing the term “the Internet of Things.”

By Lee Ji-yoon (jylee@heraldcorp.com)