Growth with IoT initiatives for Finland

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VTT TECHNICAL RESEARCH CENTRE OF FINLAND LTD Growth with IoT initiatives for Finland Tekes Industrial Internet Event 30.9.2015 Heikki Ailisto, VTT FIIF, FIMECC, Digile, and Tekes aknowledged as sources of certain slides.

Industrial Internet, IoT and digitalization - the big picture Smart objects Industrial internet Building automation (FM) Consumer IoT Smart connected objects Internet everywhere Data analytics Crowd X 2

We see great promises German industy expects additional 1.7% cumulatively to GDP 29/09/2015 3

Why is it happening now? Affordable technology is here Computing power grows Smart machines Intelligent analytics, decision support systems Big data Store everything paradigm (dirty cheap GB) Connectivity like newer before Internet IPv6, no limit to nodes IoT paradigm connected objects Low power communication Identify and track everything (QR, RFID, GPS) Sensing everything in real time Extremely low cost and small Connected Advanced sensing Bio-mimiking Competences People are ready for it Average person has good competences with digital services and products. Acceptance People in all age groups use web, smart phones, car computers at home and on free time. Digital natives, Y-generation, not only accept, they expect! 29/09/2015 4

IoT initiative landscape Tekes Digital Business - 2020 Industrial Internet Tekes Digital Business - 2020 5G Tekes Digital Business - 2020 Health from bits Tekes Ubicom 2007-13 PPP (SHOK) FIMECC S-Step -17 PPP (SHOK) FIMECC S4Fleet -17 PPP (SHOK) FIMECC Digile SIMP IoT -15-17 Finnish PPP (SHOK) Academy ICT2023 Digile CyberTrust, D2I VTT Program ProIoT -2016 Aalto Industrial Internet Campus Manufacturing Campus (TTY & VTT) Tampere HILLA Oulu European H2020 ECSEL (Artemis) FIIF Industry Association Technology Industry Association Prime minister s office projects Governrment IoT Spearhead work-in-progress Finpro CYK Events, seminars, match making Industry hack 29/09/2015 6

3 new programmes on digitalization launched Q4/2014 ECSEL Pilots Pilots Bits of Health Privacy SalWe Pilots 5 years Budget ~100 M each, Tekes funding ~50% Pilots FIIF Industrial Internet Big data FIMECC Pilots Cyber security DIGILE 5thGear Pilots WiFiUS Celtic Etc.

S-Step and S4Fleet programmes are FIMECC s key programmes for realizing the benefits of industrial internet CONCEPT OF INDUSTRIAL INTERNET COMPLEXITY OF INDUSTRY Network Level Optimization Fleet Level Optimization Installation Level Optimization Machine Level Optimization Intelligent devices Intelligent systems DIGITAL INTENSITY VALUE POTENTIAL OF INDUSTRIAL SERVICES Intelligent decisions S4Fleet S-Step Capabilities to manage complex, global fleet in order to create sustainable service business Industrial internet technologies that enable superior industrial service creation COMPLEXITY MANAGEMENT AND TRANSFORMATION STRATEGY How to utilize the benefits in full scale while ensuring that the increased complexity and organizational/cultural transformation needs does not risk the profitability? How to ensure the profitability of services over the fleet lifecycle? (new service concepts and earning logic based on increasing enriched data, etc.) OPERATIONS How to optimize fleet level operations for maximum efficiency and effectiveness? (resource, competence and service mix management, etc.) ICT TECHNOLOGY How to transform machine based remote monitoring systems to fleet level intelligence? (Information architecture, real-time big data analysis, etc.) EMPOWERED HUMAN How to increase human to machine interaction to a new level? (Haptics, actions documenting, augmented reality, automated unstructured knowledge, etc.) PREDICTION How to predict the most critical parameters accurately for reliable service business models? (failure development, remaining useful lifetime, future condition and performance, etc.) SIMULATION How to harness machines with embedded capabilities for independent accurate decision making? (tracking simulators, modification validation, etc.) SENSING AND ACTUATION How to enable accurate sensing of the critical parameters in 29/09/2015 9 the most challenging environments? (wireless, energy independent, soft-sensing, etc.)

Internet of Things research program Billions of heterogeneous things will be seamlessly and securely integrated into the Internet forming basis to IoT PROGRAM TARGETS: Formation of a sustainable IoT ecosystem in Finland and connecting it with the global ecosystem Producing IoT enablers and impact to standards Breakthrough in Finland s IoT research visibility on global level from blog.inresearch.com from infocux Technologies/Flickr BASIC FACTS: Program started in 2012 4 years program with estimated budget ~50M More than 350 experts involved from over 35 industry and research organizations (~50% SMEs) Leading Company: Ericsson WORK AREAS: Technologies for networking and communications IoT Management (security, control, configuration) Services and applications development Human Interactions Trials and Demos Ecosystem development Agile work method with 3 sprints per year

PARTNERS - 2014 Big companies SMEs Research Organizations Corenet Elektrobit Ericsson Falck F-Secure Intel Nokia (Networks) Pohjanmaan Verkkopalvelut Softera TeliaSonera 4G-Service Arch Red Bluegiga Cybercube Finwe FRUCT iprotoxi Jolla Laturi Mattersoft Mikkelin Puhelin Mobisoft Mohinet Nixu Probot Refecor Vediafi Aalto University Laurea University of Applied Sciences Tampere University of Technology University of Helsinki University of Jyväskylä University of Oulu University of Tampere VTT Technical Research Centre of Finland Vediafi

Productivity with IoT (ProIoT) 200+ PY in 2015 29/09/2015 12

ProIoT impact Project for the Prime Minister s office: Writing the industrial internet policy of the Cabinet National PPP projects are the largest, total more than 4 M /y and they are an important means to increase the capability of big firms for strategic change Finnish Industrial Internet Forum started well: 160 organizations, mainly companies: vehicle for promoting awareness and co-operation, benchmarking Contract work development for helping companies in specific needs EU and Ecsel/ARTEMIS proposals: building our competence and offering, European co-operation. First Finnish member of Industrial Internet Consortium: USA & global link IoT Pilot Network: piloting and test bed environment for Finland 29/09/2015 13

Finnish Industrial Internet Forum Company R&D / development EU activities SHOK activities 207registered organizations 587 persons in e-mail list Out of 207 registered organizations: 75 start-ups, 52 SMEs 37 Large companies 43 non-profit organisations (research, universities, ministries) New markets New products and services Business renewal New business Startup s Development projects Pilots Research and development projects Finnish Industrial Internet Forum activities Development programmes Training programmes Student innovation camps New products and services Business renewal New business Start-up s New markets Tekes funded activities Global networks & benchmarks Policy makers 14 16.6.2015 www.fiif.fi Training and education Education plans New capabilities 14

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