IoT the driver of Business Innovation

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1 IoT the driver of Business Innovation better products, new services and the outcome economy Roberto Siagri Chairman & CEO Eurotech Spa CEBIT 2016 March 15th, 2016

2 Eurotech: Commited to a Vision Pervasive and Ubiquitous Computing The most profound technologies are those that disappear. They weave themselves into the fabric of everyday life until they are indistinguishable from it Mark Weiser "The Computer for the 21st Century", Scientific American, Vol. 265 No.9, pp , 1991

3 The Pervasive Computer Machine-2-Machine / Internet of Things applications everywhere 4

4 The Innovation Imperative These forces (together with the exponential growth of technology) create environments increasingly vulnerable to disruption

5 Innovator Dilemmas: Big Bang Market Adoption Market share Trial users Everyone else Innovators: Early adopters: Early majority: Late majority: Laggards: Time From G. Moore Crossing the Chasm to L.Downes P. Nunes Big Bang Disruption

6 Innovator Dilemmas: Technology changes exponentially, Organizations change logarithmically Rate of Change Technology change exponentially????? Organization change logaritmically Brinkler, Scott (2013): Time

7 Innovator Dilemmas: Products Dematerialization & Value Chains Deconstruction Companies in every industry need to assume that a software revolution is coming Marc Andreessen

8 Data and the 4^ Industrial Revolution Data are the new raw material: new source of innovation & lever to achieve business sustainability. 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.

9 Transition = Business Disruption i.e. New value creation Improve operational efficiency New connected ecosystems Collaboration between humans and machines Emergence of an outcome economy

10 Change Adoption and impact path of the Industrial IoT Long-term 4. Autonomous, Pull Economy 3. Outcome Economy Near-term 2. New Products & Services 1. Operational Efficiency 11 World Economic Forum: Industrial Internet of Things: Unleashing the Potential of Connected Products and Time Services Jan.2015

11 IaaS APPLICATION IP REMOTE M2M ASSET ANALYTICS ESB INTERNET HMI PROTOCOLS Business Models CLOUD actuators support IaaS near real-time OEMs outsourcing Fundamental Business Model Shift Servitization is happening in almost all industries on a global scale products evolve to integrated «bundles» of services BUSINESS database BIG DATA IT ipaas IT/OT INTEGRATION ipaas gateway MULTI SERVICE IOT CEP machines CONTEXT Sensors business intelligence REST open source on-premise SERVICES SaaS FLEXIBILITY servitization INFRASTRUCTURE VALUE ORGANIZATIONS services DaaS virtualization MOBILE CUSTOMER PRODUCT DATA monitoring platform Preventive Maintenance many-to-one field bus new business models PARTNER everything as a service MQTT unattended management OT TCO cellular wireless satellite

12 Industry needs to combine IT and OT IoT enables the fusion of IT & OT Information Technology Business Process Automation & Office Automation IT + OT Operational Technology Industrial Process Automation & Factory Automation Internet of Things i.e: Engagement i.e.: Predictive Maintenance

13 OT business opportunities because of IT integration Predictive maintenance Remote Monitoring & Assets Performance Management Operational efficiency and productivity gains New more performing Products

14 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

15 The complexity trap in IoT In need of a bridge between Distributed Things and Multiple Business Apps Business Applications? How to tame complexity? OT Sensors, Actuators, Displays, 16

16 No more vertical M2M Applications IoT = Horizontal M2M

17 The IT & OT Pyramids Internet of Things = Things to Cloud IT Mobile & Web Apps IoT platform Public-Private Cloud CLOUD Telecom Infrastructure WAN Networks OT SW Gateway (Software Frameworks & software) Gateways

18 Eurotech's approach to IoT Building a bridge between the field and business Business Applications Everyware Cloud IoT Integration Platform Multi- Service Gateway PLCs, Sensors, Actuators, HMIs 19

19 Eurotech s Approach: Divide and Conquer Ingredients for successful IoT recipes Business Apps Ecosystem IoT Integration Enterprise interface (IT interface) Act Integrate Store Control Connect + Multi- Service IoT Gateway Communicate Compute Collect OSGi any JAVA hardware Field Interfaces (OT Interface) Future proof Field Devices 20

20 The coupling trap in IoT In need of a bridge between Distributed Things and Multiple Business Apps Consumers of Data Business APIs Interfaces IoT Integration Platform Multi- Service IoT Gateway Act Integrate Store Control Connect + Communicate Compute Collect How to tame market and technology uncertainties? Producers of Data Field - Devices? Field Interfaces? 21

21 The IoT IT Pyramid Internet of Things = Co-Innovate Platform Co-Ideate Co-Fund Co-Build Co-Distribute Co-Market Co-Sell Co-Revenue Share IT Mobile & Web Apps APIs IT Platform (IoT Platform) DataCenter SaaS PaaS IaaS

22 The IoT OT Pyramid Internet of Things = Scalability & HW agnostic Iaas OT WAN Networks Software Defined Gateway (Frameworks,Protocols) HW Gateways Fieldbus, PAN, I/O Wired and Wireless Network Infrastrutture

23 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

24 Go Innovate with an IoT Ecosystem to Enable Your Innovation Ecosystem

25 Thank You!