Technologien, Anwendungen und Geschäftsmodelle der nächsten Internet-basierten Innovation When the physical and digital world merge
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1 Technologien, Anwendungen und Geschäftsmodelle der nächsten Internet-basierten Innovation When the physical and digital world merge Prof. Dr. Elgar Fleisch ETH Zürich & University of St. Gallen (HSG) CommID - Bern, am 15. September 2010
2 Agenda Technology perspective: Towards an Internet of Things Machine-to-machine communication Re-introducing the human Emerging applications: When smart products change the value proposition Products as services Changing minds Slide 65
3 The single root cause for IT-driven benefits: the avoidance of media breaks Internal Integration ETHERNET Cross-company INTERNET? Slide 66
4 Agenda Towards an Internet of Things Machine-to-machine communication Slide 67
5 The megatrend miniaturization (4) Smart Things Miniaturization and cost reduction (1) Mainframe (2) PCs (3) Mobiles / Smart Cards Time Slide 68
6 Low cost minicomputers... Slide 69
7 ... with mobile communication capabilities... Slide 70
8 ... help linking real world objects automatically with the Internet Virtual world Real world Slide 71
9 The Internet of Things emerges. It expands the Internet to the real world Information systems & the Internet Cost of data entry Punch card Keyboard Barcode Manual measuring Physical world Slide 72
10 Today, the Internet is an isolated island of computers and mobile phones. It connects to the real world only via manual input, like in stone age of computing. Slide 73
11 The next level of business innovation is driven by the automatic integration of real world items into the Internet. Smart items become nerve endings and report to anywhere Slide 74
12 Standards reduce costs - eventually every real world object can become part of the Internet Cost & number of minicomputers Number Cost Time Slide 75
13 Impression from the Gerry Weber front store at Galleria Kaufhof - permanently more than articles tagged Slide 76
14 Allocation of personnel on the sales floor: tryons and corresponding suite sales Slide 77
15 How do drivers behave before and after they crash Slide 78
16 Agenda Towards an Internet of Things Re-introducing the human Slide 79
17 The mobile phone is the mass computer of the future Technology Impact High power, low power Sensors (accelerometer, camera, GPS, NFC, etc.) Interface (youth-proof) Open standards (Apple, Google etc.) 1985 Extend Ego Harry Potter-Effect Mind-Changer Slide 80
18 Mobile phones are game-changer Jenssen, R. THE DIGITAL PROVIDE: INFORMATION (TECHNOLOGY),MARKET PERFORMANCE, AND WELFARE IN THE SOUTH INDIAN FISHERIES SECTOR, The Quarterly Journal of Economics, 72(3), August 2007 Slide 81
19 Mobile phones help to merge physical with digital information Discovery Service PIM-System 3. Product information 2. ID, IP 1. ID Slide 82
20 The mobile phone explains / simplifies the complex real world Example SwissPeaks Slide 83
21 The mobile phone explains / simplifies the complex real world Example Google Goggles Slide 84
22 Technology improves dramatically Slide 85
23 When smart products change the value proposition Products as services Slide 86
24 From a smart box to an alliance platform Source: Courtesy of Intellion Slide 87
25 The change from the suppliers to a customers market results in diminishing margins for commodities Product margins Time Slide 88
26 One way out: start to professionally engineer the product-related service jungle into a palace garden - for marketing, strategic, and financial reasons Margin Service Product Time Slide 89
27 Why? Because of its profitability... Current EBIT and total sales in machinery industry EBIT as % of sales 20% 15% 10% Spare parts Repair of breakdowns Maintenance Inspections Technical advice Technical overhauling Financial services Training 5% 2nd hand Commissioning machinery business New machinery / Trade 0% 0% 25% 50% 75% 100% % of total sales Slide 90
28 ... and growth potential Price per cup of coffee 5 Lifestyle x80 4 Service x Product x2 Convenience x6 Offering Coffee beans Instant coffee Nespresso Coffee in a cafe Starbucks Slide 91
29 Price comparison at the POS, example ShopSavvy Slide 92
30 Sharing consumer comments, example my2cents 1. Take any product and scan its barcode 2. Read what others or your friends say about it 3. Share your opinion with others New ways to do marketing and market research? Slide 93
31 Sharing value added information such as carbon footprint... BitsToEnergy lab Project lead: A. Dada Slide 94
32 Games for checking & completing product data, example Product Empirce Slide 95
33 When smart products change the value proposition Changing minds Slide 96
34 Helps cleaning teeth ID Reader Shaves better with new blade Shows red, yellow, or green traffic light, or low energy display as impulse for changing / reordering blades, e.g. via Shaves Best With New Blade, or For New Blades Call New-Blade Slide 97
35 Helps saving drinking water Source: Amphiro Slide 98
36 Using twitter and facebook comments to boost retail sales Slide 99
37 Good products want to communicate Quality Manager Producer Usage Used functionality Operations data Production management Online services Leasing Process optimization Benchmarking Quality management Inventory Amortization Loss rating Risk rating Handling Downtime Damage event Productivity control Alert Localization Customer Insurer Slide 100
38 Summary Slide 101
39 Summary The IOT stands for the ongoing merge of the physical and digital world. It is a logical next step in computing. It follows the path of an evolution, not a revolution. The IOT allows products to add new functional layers that enable a new value proposition. It accelerates the ongoing shift from products to solutions. This shift has the potential to be disruptive, creating many chances and challenges. The big issue is not the technology itself, but the creation of applications and business models that leverage the technology. Technologies can be forecasted, applications not. Thus, grow by chunking Slide 102
40 Podiumsdiskussion: Welches sind die grössten Chancen und Herausforderungen bei MobileCom? Slide 103
41 Eingangsstatement: Mutige Prognose zu folgenden Fragen Technisch kann ein Mobiltelefon in 10 Jahren [...] In 10 Jahren wird [Anzahl] % der Schweizer Bevölkerung das Mobiltelefon verwenden, um [...] Der beliebteste Mobiltelefonservice, der sich auf Produkte bezieht, ist in 10 Jahren [...] Der Konsument schätzt in 10 Jahren sein Mobiltelefon vor allem wegen [...] Slide 104
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