The Internet of Things RELEASING THE POTENTIAL OF A CONNECTED WORLD
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1 The Internet of Things RELEASING THE POTENTIAL OF A CONNECTED WORLD
2 Introduction Definition of the Internet of Things The Size of the Internet of Things Opportunity Obstacles to the Development of the Internet of Things The Global Innovation Index and Lithuania Internet of Things Application Areas and Use Cases The different layers of the Internet of Things Stack Communications Technologies for the Internet of Things Regional adoption of the Internet of Things Low Power Wide Area Wireless Networks for the Internet of Things Defining and Funding an Internet of Things Strategy
3 What is the Internet of Things? AND WHY CAN T WE JUST CALL IT MACHINE TO MACHINE?
4 M2M Machine to Machine (M2M) refers to technologies that allow both wireless and wired systems to communicate wit h other devices of the same type.
5 IOT The Internet of Things is a scenario in which objects, animals or people are provided with the ability to transfer data over a network without requiring humanto-human or human-tocomputer interaction. IoT has evolved from the convergence of wireless technologies, microelectromechanical systems (MEMS) and the Internet.
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7 IoT could generate $4.6 trillion in value for the global public sector by 2022 CISCO SYSTEMS Cost savings, productivity gains, new revenues and improved citizen experiences $100 billion can be saved in smart buildings alone through reduced energy consumption Cities can claim up to 2/3 of non-defence public sector value from IoT
8 Who does the Internet of Things impact and who should care? Manufacturers and OEM s Solution Providers Third Party Service Providers Systems Integrators Users/End Customers
9 So what is stopping this happening? THERE ARE OBSTACLES HOLDING BACK THE DEVELOPMENT OF THE IOT
10 Obstacles to developing the IoT according to Accenture Poor information and telecommunications infrastructure Poor access to capital Lack of customer demand Lack of government support Insufficient science, technology, engineering and mathematics (STEM) skills in the workforce 44% of C-level executives cited poor information and telecommunications infrastructure as the chief obstacle to developing the Internet of Things Source: Accenture/Economist Intelligence Unit, 2015
11 Obstacles to developing the IoT in my humble opinion Lack of standards/harmonization at various levels of IoT stack Concerns over security Issues surrounding data ownership and privacy Lack of understanding of technology at C-level Lack of clear, established business cases Tendency of bureaucrats to want unrealistic ROI or to support sexy initiatives Source: Accenture/Economist Intelligence Unit, 2015
12 Global Innovation Index Pakistan Egypt India Brazil Russian Federation Lithuania China Estonia Israel Germany United States of America United Kingdom Switzerland Percentage Rank Score (out of 100) Source: The Global Innovation Index, Cornell University, 2015
13 IoT Application Areas Source: Beechams Research, 2009
14 Building an IoT platform Solutions more complex and mission critical Platforms need to evolve Extension of managed environment to the edge. Increasing tendency to outsourcing solution creation to experts Partnerships of best-in-class solution elements (ecosystem creation Increasing importance of data management, API management and security
15 IoT Communications Technologies IoT Connections by Technology Wide Area IoT Connections by Technology Source: Machina Research, 2015
16 There is a connectivity gap 16
17 Long range connects the dots Long Range 10km in urban areas 17
18 Low power opens up opportunities Low power 100x less power than mobile 18
19 The benefits are compelling 1,500 Trillion litres are wasted in agriculture each year Precision irrigation can reduce water use by 40% The US alone has 53 million acres of irrigated cropland 30% of urban driving time is spent looking for a parking space Cities can gain up to 40% more parking revenue Urban CO 2 levels can be reduced by 10% 19
20 The opportunity is enormous 4billion devices 20
21 The opportunities in LPWA Source: Machina Research
22 The hardware is marketready Full hardware stack Hardware sales for device enablement and network deployment 22
23 The software systems are in place Advanced backend systems Recurring revenue from per device subscription SAAS data aggregation, device and network management 23
24 We have clear routes to market Systems integrators and telecom operators for largescale platform projects Partner companies for reaching specific industry verticals and end-users 24
25 We are positioned to win Committed to open standards Open and interoperable Supports 20,000 simultaneous transmissions Truly scalable for networks serving millions of devices Proprietary closed technology Scalability 25
26 We are growing rapidly 26
27 Getting started with Connected Products Determine Use Cases Data - how can Connected Product and Connected Operations data transform business processes? Customer priority what is the value proposition of the use case to the business or customer? Risk and Complexity what are the inherent risks associated with this use case s success? Cost what are the associated costs with this use case? Define value and balance with risk and cost
28 Developing Business Models for the Internet of Things Gain executive-level support as all areas of the business will be impacted Create a vision for connected products and operations, and define how you will monetize the opportunities identified in the use cases Consider creating cross-functional teams to drive initiatives Build momentum from the bottom up empower functional areas Identify and evangelize new business models
29 Funding the Initial Investment Line of Business (LOB) is controlling more budget for IT Evangelize Go to every functional area and share the benefits If we collect X data, how can it be used by marketing, sales, design, service, etc. Distribute the expense of the IoT project across business units that will benefit Involve LOB and share funding across domains
30 Establish Metrics and Prove ROI Identify and define metrics for the specific use cases and goals: Reduce Service Cost Differentiate Product Offering Improve Operational Efficiency Focus on customer success management ensure customer and business stakeholders understand the value proposition and proactively manage the value they capture Establish baselines and calculate changes, either cost savings or revenue gains
31 Key Trends in the Internet of Things Combining all forms of connectivity technology in one solution Increasing interoperability with other solutions Closer integration of IoT solutions with enterprise IT systems. Creating new services rather than just the traditional operational cost savings IoT solutions becoming more mission critical Increasing need for holistic approaches to security Iot solutions are becoming a strategic necessity IoT is moving from monitoring to control, requiring much larger amounts of real time data Richer applications associated with connected devices require more data, more frequently Increasing intelligence at the network edge Increased use of data across sector boundaries
32 Jonathan Wiggin
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