The Internet of Things

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1 The Internet of Things The Power of Actionable Insight An introduction to the Internet of Things Chris Vetor Business Unit Executive, WW Programs

2 More and more of the world s activity is being expressed digitally by billions of interconnected devices Smarter cities Smarter factories Smarter vehicles Smarter home Smarter health Smarter transportation providing businesses with the ability to learn more about their operating environment, and identify and act with the potential to create new value 2

3 IoT-based consumer devices such as wearables and smart appliances receive a high degree of media attention Real transformation is occurring now across Industrial Manufacturing. IoT is helping businesses better understand and manage very complex systems 07/15/15

4 IoT is ready for business today 61% IDC surveyed organizations that are actively pursuing IoT initiatives Source: IoT Quick Look: Buyer Behavior by Industry and Company Size IDC, August /15/15

5 IoT offers a transformative business opportunity Changing how business operates Unlock new revenue from existing products and services Inspire new working practices or processes Change or create new business models or strategies 5

6 Today 3 technology forces are converging that are accelerating IoT DATA Unlocked from billions of connected devices CLOUD Standards based connectivity from anywhere ENGAGEMENT New revenue opportunities created from insights

7 New sources of data for business Creating systems of insight by unlocking data from billions of interconnected devices By 2020, Internet of Things spending will rise to $3 trillion and nearly 30 billion devices Source: IDC MaturityScape Benchmark: Enterprise Mobility in the United States, IDC, May 2015 Today In a few years

8 The ultimate app for cloud IoT takes computing power out of the data center Within the next five years, more than 90 percent of all Internet of Things data will be hosted on service provider platforms as cloud computing reduces the complexity of supporting the Internet of Things data blending. The cloud is critical for devices beyond the reach of the data center to connect and communicate from anywhere in the world through open standards. 07/15/15 Source: IDC, Dec 2014 https://www.idc.com/getdoc.jsp?containerid=prus

9 Insights that lead to new ways to engage Mobile and social technologies are changing expectations on engagement Personalized and instant are the new expectations for engagement. Internet of Things gives businesses access to product usage data they ve never had before. Personalized services designed from usage data creates opportunities for new sources of revenue. 07/15/15

10 To innovate, operate, and engage at the next level Most data is never turned into insights 90% 60% Volume of data created at the edge of IoT that is never captured, analyzed or acted upon. Amount of that data that loses its value within milliseconds of being generated. Source: IBM 10

11 The potential of Internet of Things lies with intelligence Advanced analytics that consumes data, analyzes it and generates actionable insights in context What is happening? What could happen? What did I learn? How do I improve? Why did it happen? What action should I take? 11

12 IoT value is delivered in four foundational areas Industry Transformation Applications & Solutions Platforms Devices & Networks Evolve new business models Packaged offerings that include strategic consulting and business process change Mask complexity and reduce risks Software and service solutions targeted at specific domains Build and manage IoT solutions Engineering and programming platforms Connect devices into platforms Hardware, networking, and operating systems infrastructure 12

13 In 2008, IBM anticipated the emergence of a Smarter Planet And pioneered the infusion of intelligence into global management systems Traffic systems Healthcare Retail Supply chains Instrumented Interconnected Food systems Energy grids Water mgmt Cities Intelligent 13

14 The IBM Analytics & IoT Platform IBM IoT Platform Provide a foundation for building and managing secure IoT solutions with rapid time to value through powerful analytics. IoT Platform Optional Offerings IoT Industry Solutions IBM IoT Platform Extended Services Advanced Advanced Analytics Security Predictive Cognitive Contextual Advanced Protection Proactive IBM IoT Platform Foundation Advanced Collaboration In public cloud, private cloud, on prem, or hybrid! IoT Platform Core Offering Device Management Connectivity Registry User Data Parsing Unstructured Storage & Archiving Metadata Management Development Full Application Lifecycle Open Environment Deployment Flexibility Integrated Services Security Streaming Analytics, Visualization Reporting

15 Ecosystem and Partnership Strategy Drive IoT data to the Cloud through strong industry partnerships and open ecosystem Examples: : Wide variety of supported devices Self Service Open ecosystem Simple tutorials Connect in moments Leveraging the IBM IoT Platform to Enable SI s Hardware integrators (Flextronics, Avnet) adding value to smart, connected things through our Cloud services Telcos and Electronics companies providing services to their clients using the IBM IoT Platform 15

16 IBM is a leader in defining IoT Participating member in key open standards and industry initiatives July 15, 2015

17 Faster time to value SilverHook Powerboats develops app 40% faster, enhancing racer and fan experience 40% faster application development process Improves decision-making and safety during the race by providing critical data to drivers Enhances fan experience of races with real-time 3D data visualization Solution components Software IBM Bluemix Foundation The transformation: Powerboat racers and fans both needed real-time insight into what was happening during races. With IBM Bluemix and Foundation, the SilverHook Powerboat team developed an application 40% faster, streaming sensor data to the cloud and using analytics to deliver information and alerts to racers. Partner company Virtual Eye also used the data to create a rich 3-D visualization for fans. It changes the paradigm in a lot of different areas if we can develop this type of technology at this speed. It gives other projects a benchmark to live up to. Nigel Hook, president of SilverHook Powerboats MSP03109-USEN-00

18 Transformation using IoT strategy and technology Connected Appliances driving real business value Increase Sales Leverage connect relationship with consumer to increase share-of-wallet for consumable sales (e.g. water filters) Leverage Connected Relationship for increasing Service Contract Sales Increasing sales via Connected-enabled Partnerships (e.g. detergent mfgs) Results in lower warranty costs for Whirlpool and higher customer satisfaction for consumers Reduce Costs Warranty & Recall Reduction via Early Issue Identification Averting Unnecessary Warranty Claims (components) Averting Unnecessary Warranty Claims (entire appliances) Increasing 1st Call Complete via Smarter Service Connectivity-Enhanced Service Event Experience

19 What s next for the Internet of Things? Get started today Learn more about Internet of Things from IBM ibm.com/iot Try out Internet of Things on IBM Bluemix ibm.biz/try_iot Join us in our IoT 19

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