THE INTERNET OF THINGS
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1 THE INTERNET OF THINGS Mirko Vice President of the International IoT Forum Team Leader Aarhus Data Science and Engineering Lab Alexandra Instituttet A/S
2 All devices and objects whose state can be read or altered via the Internet, with or without the active involvement of individuals using the devices. - OECD
3 IoT will turn the world into data. - Kevin Ashton
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6 10 years ago 3 FTEs over 1 year Today 1 FTEs over 1 day!!!
7 Cost of components and services Programming Internet APIs Communities Mobile revolution Why Today? Availability of Technology
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11 Asset-centric transactional sales model Relationshiporiented service model
12 INTERNET THINKING COMPANIES You can run one of the biggest shops in the world without a physical shop! You can run one of the biggest Hotel businesses in the world without owning a hotel! You can run one of the biggest Taxi businesses in the world without owning a car!
13 FROM PRODUCT TO ECOSYSTEM Porter, M., & Heppelmann, J. (Nov 2014). How Smart, Connected Products Are Transforming Competition. Harvard Business Review, s
14 FROM PRODUCT TO ECOSYSTEM Smart Taxi Company X
15 Name Type Total Funding Last Funding Jawbone Smart Product $635.8M March 15 Genband Platform $394.5M Januray 13 Silver Spring Networks Platform $358.9M March 13 View Glass Smart Product $249.5M August 15 Jasper Platform $197.8M April 14 SIGFOX Platform $151.2M June 15 Gogoro Smart Product $150.0M October 14 ams AG Sensors $149.9M July 11 Zscaler Security $148.0M August 15 Trilliant Platform $146.0M December 10 Top 10 IoT startups 2015 ranked by total funding (Oct. 2015) Source: Forbes/Mattermark
16 TOP 5 IOT AQUISTIONS NXP>freescale NXP bought Freescale for $11.86 billion in December 2015 making NXP the #1 vendor for automotive chips and added significant market share of chip sales for wearables, payment and security assets. Intel>Altera Intel purchased semiconductor company Altera for $16.7 billion at the end of 2015 to add IoT data center market share to the company. Altera programmable chips are more suitable for cloud and IoT related processing tasks. Alphabet>Nest Labs Alphabet acquired Nest Labs in 2014 for $3.2 billion. CISCO>Jasper Cisco closed the Jasper deal in March 2016 for $1.4 billion. Jasper has over 3500 customers and provides services to 25 IoT service operators. Qualcomm>CSR In 2015 Qualcomm completed the acquisition of Cambridge Silicon Radio for $2.4 billion. Providing Bluetooth and audio processing assets to the core automotive business of Qualcomm.
17 MARKET POTENITAL BY 2020 Consumers 5B devices installed 1B spent 500M ROI Government 7.7B devices installed 2.5B spent 4.7B ROI Industry 11.2B devices installed 3.5B spent 7.6B ROI
18 IOT BUSINESS MODEL MATURITY Interconnection Effect Smart Product Adding a digital feature to a product Optimised Business Optimising a resource by X% Transformative Business Model Creating a new business model Big Data and Smart City
19 MARKET POTENITAL BY 2020 Consumers 5B devices installed 1B spent 500M ROI [ ] Government 7.7B devices installed 2.5B spent 4.7B ROI Optimisation driven ROI Industry 11.2B devices installed 3.5B spent 7.6B ROI
20 General Electric says that a 1% increase in efficiencies from the IoT will have huge savings Savings from Industrial Internet Efficiencies (in billions of dollars) Rail Aviation Healthcare Power Oil & Gas
21 MARKET SEGMENTS Manufacturing 35% of manufacturers already use smart snesors. 10% plan to implement them withing a year and 8% plan to implement them thins 3 years. (PwC) Transportation Connected cars are a top IoT device. It is estimated that there will be over 250M connected cars on the road by (Gartner) Healthcare Global IoT healthcare market is estimated to grow from $32.4B in 2015 to $163.2B by 2020, at a CAGR of 38.1 %. 646 million IoT devices will be used for healthcare by (Business Insider) Defense The estimated spending on drones will reach $8.7B in In addition, 126K military robots will be shipped in (Frost & Sullivan)
22 Sectors: alarm/vagt sikkerhedstjenester detailhandel forsyning og energi fødevarer, service-it sundhed/velfærd Transport logistik
23 SOME STATEMENTS Selected sectors = 35% of Danish Business 42% use IoT Technology Most use for internal processes and improvement of products and services Most (58%) still have not touched or only used a trial with respect to IoT technology
24 MAIN BARRIERS Technology maturity and lack of clear standardisation. Price of connectivity services. Lack of IT security mechanisms and uncertainty about use of personal or private data. Management does not see the business potential.
25 WHAT CAN WE DO HERE? Aarhus City Lab
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28 CLUE4DES Formålet med CLUE4DES (Cluster Based European Networking for Data Empowered Society) er at understøtte konsortiedannelser indenfor IKT området samt områder hvor IKT har en central rolle - med henblik på udvikling af EU Horizon 2020 ansøgninger indenfor søjlerne Industrielt Lederskab og Samfundsudfordringerne. Konsortierne vil bestå af en kombination af erfarne og nye aktører, og målsætningen er mindst 20 nye aktører, der gennem deltagelse i 10 ansøgninger deltagermæssigt tilsammen udspænder alle danske regioner. Dette vil ske ved at innovationsnetværket INFINIT tilfører sine landsdækkende matchmaking aktiviteter en ekstra dimension vedrørende internationalisering.
29 Mirko Vice President of the International IoT Forum Team Leader Data Science and Engineering Lab Alexandra Instituttet A/S
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