Internet of Things: a reality check
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- The document discusses the evolution of the Internet of Things (IoT) from earlier concepts of pervasive and ubiquitous computing. It argues that IoT, combined with cloud computing, allows for pervasive computing applications and grids on a larger scale. - A key point is that IoT will drive business innovation through new products, services, and revenue models based on outcomes rather than simple transactions. Over time, IoT technologies may "Uberize" many different industries. - For companies, successfully adopting IoT requires navigating innovations dilemmas around exponential technology changes versus more gradual organizational changes. Both integrating IT and OT systems and building bridges between distributed devices and business applications are discussed as important challenges.
Internet of Things: a reality check
- 1. Internet of Things – a reality check Udine-IoT April 8th, 2016 Roberto Siagri Chairman & CEO Eurotech Spa
- 2. Eurotech: Committed to a Vision "The Computer for the 21st Century", Scientific American, Vol. 265 No.9, pp. 66-75, 1991 Mark Weiser The most profound technologies are those that disappear. They weave themselves into the fabric of everyday life until they are indistinguishable from it Pervasive and Ubiquitous Computing
- 3. DIGITAL TECHNOLOGIES FOR A BETTER WORLD www.eurotech.com CONFIDENTIAL Back in 2005: PERVASIVE Computing & GRID Scenario “Someday soon, more than one million businesses will be connected to more than one billion people by one trillion devices” L.V. Gerstner Former IBM Chairman and CEO
- 4. Now: IoT & Cloud IoT & Cloud = Pervasive Computing & Grid + Software Virtualization Technologies & APIs Mobile & Web Apps Pervasive Computers CLOUD
- 5. Now: IoT the driver of Business Innovation better products, new services and the outcome economy Over time : the Technology for the “Uberization” of everything
- 7. The Pervasive Computer Machine-2-Machine / Internet of Things applications everywhere… 7
- 12. The Innovation Imperative These forces (together with the exponential growth of technology) create environments increasingly vulnerable to disruption
- 13. Late majority: Laggards: Market share Time Innovators: Early majority:Early adopters: Innovator Dilemmas: From G. Moore Crossing the Chasm Crossing the Chasm
- 14. Late majority: Laggards: Market share Time Big Bang Market Adoption Innovators: Early majority:Early adopters: Innovator Dilemmas: Trial users Everyone else L.Downes P. Nunes Big Bang DisruptionFrom G. Moore Crossing the Chasm to
- 15. Innovator Dilemmas: Brinkler, Scott (2013): Technology changes exponentially, Organizations change logarithmically Technology change exponentially Organization change logaritmically Rate of Change Time ?? ???? ?? ??
- 16. Companies in every industry need to assume that a software revolution is coming… Marc Andreessen Innovator Dilemmas: Products Dematerialization & Value Chains Deconstruction
- 17. GE CEO Jeff Immelt told his troops last year: “If you went to bed last night as an industrial company, you’re going to wake up this morning as a software and analytics company.” Data and the 4^ Industrial Revolution Data are the new raw material: new source of innovation & lever to achieve business sustainability.
- 18. Transition = Business Disruption i.e. New value creation • Improve operational efficiency • New connected ecosystems • Collaboration between humans and machines • Emergence of an outcome economy 0 1 0 11 00 1 0 1 0 11 1 0 11 1 1 1 000 10 11 1 0 1 0 1 1 0 1 1 1 0 0 0 0 1 1 0 1 1 1 0 11 1 0 11 1 0 1 0 1 0 1 0 1 0 1 0 11 1 0000 1 1 0 1 1 0 11 0 1 0 11 00 1 0 11 0
- 19. Adoption and impact path of the Industrial IoT 19 1. Operational Efficiency 2. New Products & Services 3. Outcome Economy 4. Autonomous, Pull Economy Near-term Long-term World Economic Forum: Industrial Internet of Things: Unleashing the Potential of Connected Products and Services Jan.2015 Time Change
- 20. Fundamental Business Model Shift products evolve to integrated «bundles» of services is happening in almost all industries on a global scale Servitization DATA IOT Sensors SERVICES platform M2M monitoring management REMOTE Preventive Maintenance many-to-one machines actuators HMI nearreal-time MQTT PROTOCOLS field bus gateway MULTI SERVICE REST unattended OT IT/OT INTEGRATION iPaaS IaaS BIG DATA ANALYTICS business intelligence IT CEP CLOUD on-premise database ESB SaaS MOBILE APPLICATION INTERNET virtualization IaaS IP open source CONTEXT BusinessModels ASSET cellular wireless satellite BUSINESS services servitization CUSTOMER PARTNER OEMs ORGANIZATIONS PRODUCT VALUE support INFRASTRUCTURE outsourcing new business models everything as a service DaaS iPaaS TCO FLEXIBILITY
- 21. Industry needs to combine IT and OT IT OT Internet of Things Information Technology Business Process Automation & Office Automation Operational Technology Industrial Process Automation & Factory Automation i.e: Engagement i.e.: Predictive Maintenance + IoT enables the fusion of IT & OT
- 22. OT business opportunities because of IT integration • Predictive maintenance • Remote Monitoring & Assets Performance Management • Operational efficiency and productivity gains • New more performing Products
- 23. IT business opportunities because of OT integration • Increase Customers retention and fidelization • new business models • products-as-a-service, • pay-per-use • monetization of data
- 24. The complexity trap in IoT In need of a bridge between Distributed Things and Multiple Business Apps Business Applications Sensors, Actuators, Displays, … @ 24 How to tame complexity?? IT OT
- 25. The complexity trap in IoT In need of a bridge between Distributed Things and Multiple Business Apps Business Applications Sensors, Actuators, Displays, … @ 25 How to tame complexity?? IT OT
- 26. Mobile & Web Apps IoT platform Public-Private Cloud The IT & OT Pyramids Internet of Things = Things to Cloud Telecom Infrastructure WAN Networks SW Gateway (Software Frameworks & software) Gateways CLOUD IT OT
- 27. Mobile & Web Apps IoT platform Public-Private Cloud The IT & OT Pyramids Internet of Things = Things to Cloud Telecom Infrastructure WAN Networks SW Gateway (Software Frameworks & software) Gateways IT OT
- 30. ?? Business Apps @ APIs Interfaces IoT Integration Platform Act Integrate Store Control Connect + Field Interfaces Field ‐ Devices The coupling trap in IoT In need of a bridge between Distributed Things and Multiple Business Apps Multi‐ Service IoT Gateway Communicate Compute Collect 30 Consumers of Data Producers of Data How to tame market and technology uncertainties? ? ?
- 31. Business Apps Ecosystem @ Enterprise interface (IT interface) IoT Integration Platform Act Integrate Store Control Connect + Field Interfaces (OT Interface) Future proof Field – Devices Eurotech’s Approach: Divide and Conquer Ingredients for successful IoT recipes Multi‐ Service IoT Gateway Communicate Compute Collect 31 any JAVA hardware OSGi
- 32. Mobile & Web Apps APIs IT Platform (IoT Platform) DataCenter The IoT IT Pyramid Internet of Things = Co-Innovate Platform IT Co-Ideate Co-Fund Co-Build Co-Distribute Co-Market Co-Sell Co-Revenue Share SaaS PaaS IaaS
- 33. The IoT OT Pyramid Internet of Things = Scalability & HW agnostic Iaas WAN Networks Software Defined Gateway (Frameworks ,Protocols) HW Gateways Fieldbus, PAN, I/O OT Wired and Wireless Network Infrastrutture
- 34. IoT Platform as a a new Enterprise tool Efficiency & Added Value Assets Relationship Management Transforming Bits of Data at the Edge of the Network into Actionable Information & Knowledge
- 35. Go Innovate with an IoT Ecosystem to Enable Your Innovation Ecosystem