Creating New Service Revenue Opportunities Through Connected Devices

Transcription

1 Creating New Service Revenue Opportunities Through Connected Devices Joseph Zaloker,Director of Technical Marketing, Arrow Electronics Peter Semmelhack, Founder, CEO Bug Labs Class ID: 8C08B Renesas Electronics America Inc.

2 Joseph Zaloker Director of Technical Marketing and M2M Arrow Electronics, Inc. Director of Technical Marketing for Arrow Electronics M2M Business Director of Sales for a M2M wireless design services company 25+ years experience in system level product design and new product development. Create new and emerging business models for clients, and guided client's products into the M2M space. 2

3 Peter Semmelhack Founder, President and CEO Bug Labs, Inc. Founder and CEO/CTO of Antenna Software, currently the world s largest independent mobile enterprise software developer. Founding member of Open Hardware Summit, the world s first comprehensive conference on open source hardware. Graduate of Brown University with a Bachelor of Arts degree in Economics. 3

4 What Is The Internet of Things 4 4

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7 M2M = Smart Intelligent Systems The connection of sensors, embedded devices, and systems Machine with embedded intelligence Hardware to extract data from the machine Secure wired or wireless network Middleware to bridge the network to the IT system Enterprise software application to store and visualize the data Connecting and networking physical assets to solve Business Problems 7

8 M2M = Smart Intelligent Systems Temp Sensor Embedded Processor Bluetooth Network Bluetooth Stack iphone App 8

9 Internet of Things Market Opportunity Internet connected devices will reach an estimated 9.6B devices in 2012, growing to 47.1B by 2025 New shipments of IP addressable device will reach 4.2B by 2012 growing to 13.1B by 2025 IPV6 will help drive the adoption of connected devices Advanced technologies like LTE will drive adoption Advances in embedded and connection technologies Data collected from the billions of devices will create endless service revenue generating opportunities 9

10 It s All About the Services ~$550B services business ~$50B equipment business Internet of Things IOT is all about the services Equipment represents <10% of the market opportunity New opportunities in all value chains for Services Services require collaborative effort Creating sustainable value beyond ingredient capabilities 10

11 Social Machines As machines become smarter and more network-aware, entire new classes of applications become possible. The methods and approaches used to drive significant value from online human social networks can now be applied to machine-to-human and machine-to-machine interactions 11

12 RL 78 Demonstration 12

13 Demonstration 13

14 BUGswarm Management Portal Turn hardware into services, build apps Hardware Web Services Applications HTML 5 14 Works with any Renesas device with an Internet connection BUGswarm Management Portal Local Apps 14

15 BUGswarm Dashboard Organizes, administers, manages and visualizes all BUGswarms and associated devices

16 Case Study Example 16

17 Case Study Example 0 Mins 30 Mins BUGswarm 17

18 LAN OR WAN IP Network Other Database feeds Map data via Google Maps Interaction with customer via Salesforce Real-time data showing machine installations 18

19 Its All About The Data! What data is needed to support the business? System data and user data How will data be used? Who will use the data? Can it be extended to other stakeholders? Opportunity for analytical insight? Create data from data? 19

20 Its All About The Data! What data is needed to support the business? System data and user data How will data be used? Who will use the data? Can it be extended to other stakeholders? Opportunity for analytical insight? Create data from data? 20

21 New Revenue Streams It is all about new models for services Revenue opportunities: Device maintenance/management Content, apps, services Marriage of presence, location & context Mobile players can offer insights Experience in consumer touch retail channels, monthly billing, call centers Experience with application and content deployment - app stores, music & video portals, IPTV Insight into behaviour based on handset usage, billing and purchases etc. 21

22 Other Revenue Opportunities Efficiently, safely push automated software/firmware updates Remote activation / operation. Mobile/web application to interact with the device in a secure fashion Geofencing/time fencing travel. Providing restricted area or restricted hours for device use Operational limitation: Setting maximum thresholds for device-specific functions Personalization. Allow end customer to change certain device characteristics through OEM offered services/packages. Theft disabling. Ability to remote disable the device in case of theft. 22

23 Other Revenue Opportunities Usage-mode billing. Log device usage modes and offer mode-based business models Rent-an-app. Allow an application to be used for a specific period of time Geo-sensitive services. Applications that only work within country/state/province/regional boundaries, but are disabled outside. Patent compliance. Ability to remove/restrict application features if patent violations appear. Diagnostics. Pull diagnostic logs for real-time diagnoses of device and take pre-emptive action 23

24 Social Vending Opportunities While standing in front of vending machine, customer navigates to specific Facebook URL and Likes the page. In return, vending machine vends free goodie. BUG coordinates all 3G network activity and interfaces with vending machine. 24

25 Social Vending How It Works - #1 Benefits: - Consumer gets free product and coupon/special offers - Pepsi delivers sample, receives Like and gets usage data Coupon Navigates to special URL Data 25 25

26 Coupon Social Vending How It Works - #2 Benefits: - Distributors and operators get operational/diagnostic date Navigates to special URL Data 26 Distributors Operators 26

27 Ford Motor Co + Bug Labs 27 27

28 Ford Motor Co + BUGswarm 28 28

29 Arrow Electronics Update Major investment in Smart Connectivity 3 Business Development Managers BU created to support IOT Over 50 new franchises added Focus is on solving business issues M2M Website Offer a vast array of services Cellular data plans Paas/Saas Cloud Services Design Services Billing Solutions Compliance testing 29

30 Bug Labs Introduction Who are our customers? - Companies of all sizes - OEMs, ODMs and product developers - Three key verticals * Smart Retail * Health * Automotive What to we do for them? - Help them take advantage of the market opportunities emerging in the Internet of Things How do we do it? - The Bug System - A turnkey hardware + software platform that includes everything necessary to prototype, pilot, produce and deploy innovative new networked products and applications. 30

31 Customers 31 31

32 Questions?

33 Please Provide Your Feedback Please utilize the Guidebook application to leave feedback or Ask me for the paper feedback form for you to use 33

34 Renesas Electronics America Inc.