The Internet of Things RELEASING THE POTENTIAL OF A CONNECTED WORLD

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The Internet of

Things

RELEASING THE POTENTIAL OF A CONNECTED

WORLD

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 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

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What is the Internet

of Things?

AND WHY CAN’T WE JUST CALL IT

MACHINE TO MACHINE?

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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.”

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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 human or human-to-computer interaction. IoT has evolved from the convergence

of wireless technologies,

micro-electromechanical

systems (MEMS) and the Internet.”

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“

”

IoT could generate $4.6

trillion in value for the

global public sector by

2022

CISCOSYSTEMS

• 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

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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

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So what is stopping

this happening?

THERE ARE OBSTACLES HOLDING BACK

THE DEVELOPMENT OF THE IOT

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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

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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

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Global Innovation Index

0 20 40 60 80 100 120

Switzerland United Kingdom United States of America Germany Israel Estonia China Lithuania Russian Federation Brazil India Egypt Pakistan

Percentage Rank Score (out of 100)

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IoT Application Areas

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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

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IoT Communications

Technologies

Source: Machina Research, 2015

IoT Connections by

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There is a connectivity

gap

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Long Range

17

in urban areas

Long range connects the

dots

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Low power opens up

opportunities

less power

than mobile

100x

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The benefits are

compelling

1,500

Trillion litres are wasted in agriculture each year The US alone has

53

million acres of irrigated cropland Precision irrigation can reduce water use by

40%

30%

of urban driving time is spent looking for a parking space Cities can gain up to

40%

more parking revenue Urban CO2 levels can be reduced by

10%

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The opportunity is enormous

20

billion devices

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The opportunities in LPWA

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22

Full

hardware

stack

Hardware sales

for

device enablement

and network

deployment

The hardware is

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Advanced

backend systems

Recurring

revenue

from per

device subscription

SAAS

data aggregation,

device and

network

management

The software systems are

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Partner companies for reaching specific

industry verticals and end-users

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Systems integrators and telecom

operators for large-scale platform projects

We have clear routes to

market

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Truly scalable

for

networks serving

millions

of devices

Committed

to open

standards

We are positioned to win

Open and interoperable Proprietary “closed” technology Scalability

Supports 20,000

simultaneous transmissions

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26

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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?

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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

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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

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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

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Key Trends in the Internet of

Things

 Combining all forms of

connectivity technology in one solution

 Increasing interoperability with