Internet of Things, Business Models, Smart Cities

Transcription

1 Internet of Things, Business Models, Smart Cities unfiltered thoughts on how to make money with new technologies Alessandro Bassi A LESSANDRO B ASSI C ONSULTING alessandro@bassiconsulting.eu December 1, 2014

2 Outline 1 Who am I? 2 Social Perspective 3 Business Challenges 4 Shrinking Budgets and Increasing demands

3 Practical Infos - Who am I? Why am I here? Beyond RFID: The Internet of Things Joint EU-EPoSS Workshop (held in Feb 2008) more than 80 experts discussing for 2 days on 4 areas: People, Vision, Technology, Processes

4 Practical Infos - Who am I? Why am I here? Technical Coordinator of iot-a (lighthouse Project for Objective Internet of Things) 18.6 M EUR Budget Heavy industrial participation (Siemens, IBM, NEC, Alcatel-Lucent, Telefonica, SAP,...) Main Objective, to realise a Reference Architectural Model for the IoT (from INTRAnets of Things to INTERnet of Things)

5 Practical Infos - Who am I? Why am I here? Expert for the EU Commission on IoT Helping policymakers at EU Parliament First topics Privacy/Security and Governance of IoT

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7 In 1800, only 2% of the world s population was urbanised In 1950, only 30% of the world population In 2000, 47%. of the world population In 2010, 56% of the world population By 2030, it is expected that more 60% of the world population will live in urban areas Almost 180,000 people are added to the urban population each day

8 How the solution will look like?

9 Or maybe...

10 Outline 1 Who am I? 2 Social Perspective 3 Business Challenges 4 Shrinking Budgets and Increasing demands

11 Some major societal trends Green in Good! Environmental issues are fundamental in every debate... a long way from "niche" politics to major industry

12 Some major societal trends Social Networks Different way of communication and interaction Changing drastically the way we see and are seen by the rest of the world

13 Outline 1 Who am I? 2 Social Perspective 3 Business Challenges 4 Shrinking Budgets and Increasing demands

14 When Innovation and Business don t match Gutenberg s story Historically, revolutionary technologies needed some innovative business case to become successful. Gutenberg: his invention his considered the most important event of the modern era. In 1455 he published the bible Soon later he was bankrupt (he could not pay his debt)

15 IoT will bring novel business models: Device Level Product-as-a-Service and Product-Sharing are enabled by full traceability of devices. Moving away from the Ownership model will drastically change the industrial landscape.

16 IoT enabled biz model: Car co-ownership The average for an apartment building is to have 2 car-spaces per flat. 90% of the cars are in the building Co-owning the car pool brings several advantages (shared TCO, larger car pool, adoption of new technologies... ) IoT technologies allow easy traceability + billing.

17 PaaS has many advantages As the product is lent Data ownership stays with the owner (not the user... ) The value of data shouldn t be underestimated in the transaction.

18 Data is the 3rd Millennium coal

19 Outline 1 Who am I? 2 Social Perspective 3 Business Challenges 4 Shrinking Budgets and Increasing demands

20 Catch 22 situation City a accounts are... not so good Let s take Rome as an example Yearly Structural Deficit: 1.2 billion EUR Millions Mainly due to management of ACEA (energy, water), AMA (waste), ATAC (Transports) And, between 2010 and 2014 the fiscal pressure increased by 1.6 billions (yearly average) (study Ernst&Young)

21 And, a lot of waste... The example of water: Around 37% of water is lost between the "collection" and the tap. We are talking about 250 millions of cubic meters of water per year. While alone would not completely save Rome s budget, it would help a lot...

22 Any ideas, anyone? Solving the water issue Now let s imagine a solution where a company proposes a solution FOR FREE to the municipality. They claim to save 10% of the water (so to bring the losses down to 27%) They want 50% of the savings value. In other words, IF their claim is true, even considering a cost of Cubic meter of 20 cents, they will cash 5.75 M EUR (Maths: They save 57.5 Mil cubic meters at 0.2 EUR, and cash half of it, 0.1 EUR per cubic meter). The city spends nothing, and they gain 5.75 M EUR And this just the first year...

23 Profit Sharing Possible solutions to overcome current situation. City proposes areas, clearly measurable, where savings would bring huge benefits. Companies offer their services and solutions, getting a share of the savings. It s in the interest of companies to do a great job: truly win-win situation (*) (*) I mean, companies obviously will maximise ROI...

24 Not all gold what shines Profit Sharing helps (a lot) actors who are already well established and can afford risk. Startups and small companies could not afford large projects without seed funding. City MAY provide seed funding for selected startups, at a risk.

25 How can IoT enable this? Projects do not necessarily need to use IoT technologies (although, practically, we can say so). Full traceability means also full monitoring. Clear metrics and real-time measurements are a necessity for establishing the delta between current and future situation.

26 Thank you for your attention