The Internet of Things Services and People Next level solutions

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1 The Internet of Things Services and People Next level solutions Vincent Hurel ABB EP Division Global Head of Distribution Channel

2 The world of 2026 Imagine how our world will change By 2026 everyone will be able to generate and store power an estimated population of 8.2 billion people Slide 126

3 2006 Do you remember? Flip phones or a Blackberry Compact discs and ipods The launch of Twitter It doesn t seem that long ago Slide 127

4 Internet of Things A global trend connecting everything Things and Connectivity 6.4 billion connected things in 2016 More than 20 billion by million new things every day In 2016, global Internet traffic will exceed the 1 zettabyte mark (1 trillion GB) Traffic growing at 23% per year By 2019, traffic will be 64x that of 2005 Majority of traffic will be from non-pc devices 1 Slide 128

5 The future of our businesses Megatrends are changing the world Connectivity Creation of data The future of power Intelligent solutions Conversion to Information Better World Ease of doing business New business model Slide 129

6 The future of our businesses Business models that are changing. What does this mean? Business models are changing. Make it, sell it, service it: Instead of selling airlines first engines and then parts and service, Rolls-Royce has convinced its customers to pay a fee for every hour that an engine runs. Rolls-Royce in turn promises to maintain it and replace it if it breaks down. The idea is not unique to Rolls-Royce More than half of its engines in service are covered by such contracts,. Business models are changing. Optimized maintenance planning prevents equipment breakdown and increases productivity Monitoring equipment captures information Health parameters Rotor status / bearings / Cooling Air gap eccentricity /.vibrations Operating parameters Energy consumption / Loading Competent data analysis available Service engineers provide advanced optimization and maintenance, saving operating costs and increasing productivity Slide 130

7 Connectivity The Internet of Things, Services and People Driving Industry 4.= Industry 4.0 today and tomorrow Internet of People Things Services Slide 131

8 Application example in Industry : Robotics Remote service center People Clients can access actionable information from smartphones and tablets. The information is available at any place, any time Things Intelligent and connected robots Sending data to cloud servers for back-up, reporting, diagnostics, and benchmarking Services Central service unit remotely monitoring robots to support clients 24/7 Provides analytics to optimize robot usage and predict maintenance needs Internet of Things, Services and People in action 15-Jun-16 Slide 132

9 Application example: Intelligent solutions Ekip SmartVision Connecting low-voltage electrical systems to the cloud Transforming how industry monitors, manages energy costs and power loads Slide 133

10 Intelligent products ABB new wireless solution wireless The freedom to choose: wired or wireless Breakthrough innovation to make smart homes easier than ever Slide 134

11 Ease of doing business Joining up all elements of working together Things People Services Devices are equipped with sensors, computing power and software. For many years already they have been capable of communicating with one another. These devices are already used in ABB s automation and network control systems serving customers worldwide People will not be obsolete in a world of IoTSP as they remain in control of the entire production process. People will be the decision makers, and will program and control all activities performed by things. Services will become more advanced through the use of data analytics. Analytics solutions in the IoTSP will provide new opportunities to optimize operations. ABB sees the evolution towards an IoTSP as an opportunity for new business models that implement the identified improvements in collaboration with partners and customers. Implementation of the IoTSP will require common standards Slide 135

12 Ease of doing business Joining up all elements of working together Services Tools Logistics Rapid response Predictive maintenance from big data Operational efficiency Performance improvements Engineering design software Configuration Applications Digital, personalized product/technology information Digital integration of the supply chain Online ordering Joined up e-commerce Product excellence is only part of the story expanded range of tools and services Slide 136

13 Teaming up together Economical impact deriving from IoT technologies implementation Economical impact deriving from IoT technologies implementation Gauge impact from the perspective of the entire value chain viewing applications through the perspective of the physical settings where they are used Economic impact of IoT applications Organizations that use IoT technology will need better tools and methods to extract insights and actionable information from IoT data, We have the opportunity to continue to increase the professionalism of how we serve our customers We believe that together with you we can be part of driving the change. Source : McKinsey Report on Global Institute Disruptive technologies Slide 137

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