Are IoT & Big Data Game Changers?

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1 Are IoT & Big Data Game Changers? REMARKABLE TECHNOLOGY, EASY TO USE Fraunhofer Portugal Research Center for Assistive Information and Communication Solutions Applied Science by Fraunhofer Made in Portugal Fraunhofer FEANI Conference 8 October 2015, Lisbon

2 1. Fraunhofer Portugal Fraunhofer-Gesellschaft (worldwide) 66 Institutes > 80 Research Units ~ employees > 2 billion R&D budget ( 1,7 billion from contract research) 7 Groups Information and Communication Technology Life Sciences Light & Surfaces Microelectronics Production Materials & Components Defense & Security Fraunhofer Portugal

3 1. Fraunhofer Portugal Institutional Background Fraunhofer Portugal is a Non-Profit Research Institution of Public Common Interest Fraunhofer Portugal

4 1. Fraunhofer Portugal AICOS Strategic Research Agenda Focus Areas AAL (Ambient Assisted Living) ICT4D (ICT for Development) Key Target Groups: Ageing & Elderly (including relatives, caregivers and communities) Populations in Rural & Developing Areas Subfields: Fall and activity monitoring Chronic diseases & Well-Being Management Assistive environments mgovernment mhealth magriculture ICT for Very Small Enterprises Fraunhofer Portugal

5 1. Fraunhofer Portugal AICOS Hot Topics Eyes of Internet of Things Competence Center EIT-CC Focuses on the development of an infrastructure to physically observe multiple data sources, act accordingly in the environment and provide a holistic understanding of the user. Companion Competence Center C 3 Companions are specialized frontends of big machines (IoT/Big Data solutions) that serve human users. Focuses on the creation of real working prototypes built on top of processed data provided by the technology developed in the EIT-CC. Fraunhofer Portugal

6 1. Fraunhofer Portugal AICOS Hot Topics Relation between EIT-CC and C 3 Goal: Efficiency Gains Fraunhofer Portugal

7 2. Game Changers The Top Game Changer MORE EFFICIENCY FROM LESS GAINS! FOR MORE! To keep and increase our standard of living also in the Future From Demand based Production and Over Supply to Supply based Consumption and Efficient Use Reference: more from less for more, R.A. Mashelkar. Fraunhofer Portugal

8 2. Game Changers Game Changer Levels Efficiency Gains Society??? Fraunhofer Portugal

9 2. Game Changers Technology Level Efficiency Gains?? IoT with Big Data & Cloud Technology Fraunhofer Portugal

10 2. Game Changers Business Level The IoT & Big Data connect currently isolated industrial islands. This leads to disruptive and rapid changes in old economies' business models. From branch internal competition to cross-sector collaborations. Slow companies might not survive because they didn t recognize the train that was hitting them. Fraunhofer Portugal

11 2.1 Example: Flat Rate Food What is this supposed to be? It is a new IoT & Big data enabled business model It is attractive for all stakeholders due to cost reduction / margin increase effects It is even more attractive for consumers (Health nutrition is the best prevention!) It is addressing a demographic problem (seniors often lack money and have increased deficits related to cooking and meal planning) It is addressing a societal problem (food waste) It is ecological (food waste, regional, seasonal, CO2 ) IT IS MORE FROM LESS FOR MORE! Fraunhofer Portugal

12 2.1 Example: Flat Rate Food Background Retail of food products: High Turnover, Low Margin, Strong Competition Food Waste Worldwide: 33% of all food produced (source: Food Wastage Footprint, FAO, 2013) Production & Harvest: 32% Handling & Storage: 23% Processing: 11% Distribution: 13% Consumption: 21% Low income, less educated and elderly people suffer more often from malnutrition Malnutrition often leads to chronic diseases Chronic diseases cause significant costs to health care systems Good nutrition is an important factor in preventive health Fraunhofer Portugal

13 2.1 Example: Flat Rate Food Matching Consumers & Producers How to Match? Freedom & Life Style Financial capability Activity & age Dietary / health requirements Compliance & convenience Cooking capabilities VS. Supply based consumption Pretty complicated Fraunhofer Portugal

14 2.1 Example: Flat Rate Food Challenge EVEN MORE COMPLICATED! Environmental protection (protect production resources: water, CO2, pesticides, etc.) Individual dietary requirements Compliance/ convenience & individual taste Increase margins in food production Financial capability Seasonal & regional availability of products F L A T R A T E F O O D Activity and health monitoring Increase margins in retail Decrease food waste (societal goal) Simplify logistics (transport CO2 foot print) MISSION IMPOSSIBLE? Fraunhofer Portugal

15 2.1 Example: Flat Rate Food Concept Flat Rate Food Requires the combination of Precision Agriculture Industry 4.0 Quantified Self It is the integrated chain from the field to the table of an individual consumer It needs to lead to more from less for more Fraunhofer Portugal

16 2.1 Example: Flat Rate Food 4 Perspectives of the same Consumer contracts a service! (e.g. 1 Month healthy unbeatable price!) No fixed quantities and products! (supply based!) Individual and triple feedback loop (supply, health, gusto) based Menu Planning Supply spins planning and consumption Planned and supply based consumption reduces food waste and allows for optimized supply chain A win for everybody (remember FAO numbers!) Step-by-Step introduction possible P R O D U C E R D I S T R I B U T O R R E T A I L E R C O N S U M E R Fraunhofer Portugal

17 2.1 Example: Flat Rate Food 4 Perspectives of the Home INDIVIDUAL DEMANDS & NEEDS QUANTIFIED SELF RETAILER Personal info Health status (external) Medicaments Personal preferences Activity Simple health parameters IoT Priority products Promotions Prices Package size Nutritional info Big Data MENU PLAN Big Data CLOUD CHEF e.g. IBM COOKING WITH WATSON REGIONAL / SEASONAL DISHES INDIVIDUAL PLANNER & RECOMMENDER & CHEF@HOME Like / Dislike SMART WHITE GOODS RETAILER Food processors Fridge Etc. IoT Product lists for longer periods Big Data Fraunhofer Portugal

18 2.1 Example: Flat Rate Food 4 Perspectives of the Retail DISTRIBUTOR STOCK / SHOP FLAT RATE FOOD CLIENT Priority products Availabilities / Validities Predictions / Promotions Brand placements Prices RETAIL INTELLIGENCE IoT Quantities Validities Quality Individual Clients IoT Products lists (quantities, timing) Extras Big Data Demands / Prices Brands vs. White Labels Shop planning In-shop planning Individual vs. Bulk Client knowledge RETAIL MANAGEMENT ENGINE PRICES PROMOTIONS LOGISTICS DECISIONS LONG TERM DEMANDS SHORT TERMS DEMANDS DISTRIBUTOR STOCK / SHOP FLAT RATE FOOD CLIENTS Orders Predictions Price offers PRODUCTS IoT In shop stock Planograms Individual deliveries center PRODUCTS IoT Individual deliveries Pick-ups Extras Guaranteed freshness Fraunhofer Portugal

19 2.1 Example: Flat Rate Food 4 Perspectives of the Distribution/Transport NATIONAL PRODUCER Quantities Availability Qualities Predictions Priority products RETAILER Orders Predictions Offers White label demands JUST IN TIME STOCK Minimum stock Transport capacities IoT BRAND / PACKAGED FOOD / PROCESSED FOOD Brand placements Validities / quantities (products) Capacities (processing of e.g. white label) Demands (for processing of brand products) INTERNATIONAL PRODUCERS Quantities Availabilities Qualities Predictions Lead times Big Data DISTRIBUTOR MANAGEMENT ENGINE LOGISTICS NO LOSS STOCK PREDICTIONS & LONG TERM DEMANDS JUST IN TIME TRANSPORT Logistics plans IoT RETAILER NATIONAL PRODUCERS Orders Predictions Long term demands FOOD PROCESSORS & BRANDS Orders Long term demands (capacity reservations) Products Prices Validities Availabilities Promotions Placement offers Fraunhofer Portugal

20 2.1 Example: Flat Rate Food 4 Perspectives of the Producer FIELD / STABLE EXTERNAL FACTORS DISTRIBUTOR IoT Field data (humidity, plant moisture, ph, EC, etc.) Weather Market developments (prices, international demand) Energy / utility prices & availabilities Pesticide & fertilizer prices Big Data orders Predictions Long term demands FARMING KNOWLEDGE FARM ENGINE FARM EQUIPMENT SUPPLIER Fruit sequences Diseases PRECISION AGRICULTURE Fertilizers Pesticides Tools Maintenance FIELD / STABLE HR & MACHINES DISTRIBUTION / TRANSPORT IoT Irrigation Fertilizer / food Medicaments Pesticides IoT Work plans Maintenance plans Products & Prices predictions / future availabilities Long term capacities Fraunhofer Portugal

21 2. Game Changers User Level Efficiency Gains Smart Companions Users Cross-sector Product Developments & New Business Models IoT with Big Data & Cloud Fraunhofer Portugal

22 2. Game Changers Smart Companions Fraunhofer Portugal

23 3. Conclusion Are IoT & Big Data Game Changers? IoT & Big Data are no Technological Game Changers! Networked sensors and actuators Mobile devices and wearables Cloud services Data Analytics The large scale integration of all will become a reality New IoT & Big Data driven Business Models and inherent Efficiency Gains are Game Changers! Mind Ray Kurzweil! Fraunhofer Portugal

24 4. Remark Mind and Ensure the Difference! Deus ex Machina (Greek origin) (24/7, Global, Real Time) The Ghost in the Machine (Gilbert Ryle; Arthur Koestler) (self destruction by Technology being misused) References: Star Trek ( ) from director Gene Roddenberry; Metropolis (1927) from Director Fritz Lang. Fraunhofer Portugal