IoT Innovations of Thoughts. market, challenges & partnerships
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1 IoT Innovations of Thoughts market, challenges & partnerships 1
2 Agenda 1. Kontron world Billion devices 3. A green use case 4. The challenges & partnerships 5. Final thoughts 2
3 Kontron We Are Where You Are Our strength: Design, configuration & system integration worldwide Leader in the global ECT space San Diego Montreal Augsburg Toulon Beijing Tokyo» Kontron develops, produces and markets embedded computer technology (ECT) products and services for sectors such as industrial automation, medical technology, telecommunications, security & defense, transportation and infotainment worldwide. Brazil Bangalore Penang» Kontron is one of the world s leading companies in this space.» The company has a long tradition as a technology leader with proven innovative capacity through excellent research and development work. Region Revenue per GEO Mio» Selected key financials EMEA 218,3 North America 204,8 Revenue 2013 = EUR million Adj. EBIT 2013 = EUR 4.6 million Market Cap = ~ EUR 253 million Emerging Markets 22,2 Source: Kontron October
4 Vision for Kontron Powerful Technology Campus in Augsburg Kontron s Technology campus» m² in total» Space for up to 300 office-workers, plus cafeteria and lobby» Modern Assembly plant and logistic operations» Option for adding a 3 rd floor if necessary later (1 st building) - 4 4
5 IoT The Next Computing Inflection? Vol Nr Big Economic Impact IoT adds up to $15T to global GDP over the next 20 years (GE) Services Drive Revenues & Growth Value-added services are projected to be the largest and the fastest growning revenue sources in IoT. (Harbor Research, March 18, 2013) Fixed (you go to the device) Mobility (device goes with you) 200M IoT (age of devices) 10B IoE (people, process, data, things) 50B After Cisco IBSG Internet Inflection Points: Past & Future April 22, 2013 On The Verge The Smart Systems market is reaching its tipping point for dramatic growth. (Harbor Research, March 18, 2013) Since 2008, More Devices than People are Connected to the Internet (Cisco) 5
6 - 6
7 Internet of Things (IoT) segmentation Never thought about Ideas Deployments are primarily traditional M2M Deployed - 7 7
8 From M2M to IoT M2M Internet of Things data driven collaboration driven by full digital integration - 8
9 A green use case 9
10 Use Case Autonomous Decisions & Control Precision Farming / Fertilization Bauernschlau (street smart) now goes digital 10
11 Use Case Autonomous Decisions & Control Precision Farming / Fertilization Soil sensors report data Load fertilization map Auto Pilot controls vehicle Get data from sensors Build soil geo map / fertilization planning Report / Store / Compute - Progress/Fuel consumption, fertilizer consumption, operating hours 11
12 Use Case Precision Farming Why does this makes sense North America Pesticide Cost Decrease 1B $US / Year Yield Increase 5200 $US / 1000 Hectares / Year Fuel Reduction 30-50% CO2 Emission Reduction 15-25% Data is the new currency Source: US Government - Department of Ecology 12
13 The challenges & opportunities 13
14 Market trends How does IoT influence the traditional ECT market? Trend Connected devices enable IoT Reduction of SWaP 1 everything becomes smaller Decreased time-to-market by plug & play platform solutions comprising HW, SW, and services Software is more and more the bottleneck with regard to time-to-market Reduction of R&D spend in non-core development areas Enablement of new business models (e.g. services) Customers invest more and more in emerging markets Trust in HW/SW solutions becomes more and more a key concern for customers (and their customers) Trust in financial & operational stability of ECT suppliers Devices Solutions Business model Buying behavior/ brand recognition 1 Size, weight and power 14
15 The challenges & the opportunity Our Goal:» Apply end-to-end view for your customers» Leverage solutions into multiple verticals» Reduce complexity
16 IoT is about strategic partnerships
17 To build an End-to-End solution Edge solutions Cloud Management Data distribution services Connectivity Cloud OS Cloudera RTI Telekom Microsoft Protection & Security More than Silicon Wibu-Systems Intel Back-end solutions
18 Final thoughts 18
19 Final thoughts» Think big in the business model; start small with the implementation» Look at a partner with a partner ECO system in the early stages» Don t be scared for acronyms; understand the customer value» Don t engineer a 120% solution, improve as you go» Do have a (cost) scalability plan
20 Good luck Augsburg Deggendorf Toulon Copenhagen Chichester Solothurn Liberec Pilsen Warsaw San Diego/Poway Columbia Fremont Montreal Beijing Hong Kong Taipei Penang Bangalore Mumbai Sydney
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