Internet of Things. Miguel Dias Fernandes. September PwC Partner.

Transcription

1 Internet of Things Miguel Dias Fernandes Partner September

2 Part I New digital technologies s Digital Services

3 The Essential Artificial intelligence Virtual reality Internet of Things Blockchain 8 Emerging technologies every organization should consider right now All attentions are on the eight that are having the biggest business impact right now. 3D printing Robotics Augmented reality Drones Internet of Things

4 Disruptive technologies Investment made by organisations Internet of things 36% 42% 73% 63% Artificial intelligence 30% 22% 54% 63% IoT is on top of CEOs priorities Robotics 3-D printing 11% 13% 7% 5% 15% 12% 17% 31% This technology is considered to be the most disruptive for industries and business models, and is the one having the higher investment Augmented reality Virtual reality 5% 6% 2% 3% 10% 24% 7% 15% Drones 4% 4% 5% 14% Blockchain 3% 3% 3% 11% Source: Global Digital IQ, Industry Business models today In three years Internet s Digital of Things Services 4

5 IoT assumes different forms Implementation of new technologies, by digital maturity level Predictive maintenance o assets and products 39% 84% 95% 96% Manufacturing execution systems 30% 78% 91% 94% Integrated end-to-end supply chain planning 32% 75% 91% 100% Connectivity/Industrial Internet of Things (IIoT) 29% 73% 90% 97% Digital twin of products and manufacturing line 23% 60% 79% 94% Collaborative robots, smart robots, robotic process automation (RPA) 23% 40% 70% 90% Digital novice Artificial Intelligence 10% 20% 45% 69% Digital follower Virtual reality/augmented reality solutions 7% 21% 40% 73% Digital innovator Digital champion Q: To what extend have you implemented, piloted, or planned to implement the following technologies within your company? Source: Global Digital Operations Study 2018, Internet s Digital of Things Services 5

6 Part II The Internet of Things s Digital Services

7 What is IoT and its benefits The Internet of Things (IoT) is a network of physical objects devices, vehicles, appliances embedded with sensors, software, and network connectivity, so they can collect, exchange, and act on data, often without human intervention. Key benefits Real time analytics lower costs better informed decisions H2M & M2M Communications more efficiency and productivity Best customer service New offer of products & services prompt and accurate answers to individual needs new revenue streams Source: Next in Tech, Internet s Digital of Things Services 7

8 Key forces accelerating the IoT globally Decreasing costs of sensors and hardware Increasing device proliferation Convergence of IT, OT & AI IoT Decreasing cost of megabit/sec. Advent of Big Data, Cloud and Edge Computing Increase in VC spend and investment Internet s Digital of Things Services 8

9 IoT application changes across sectors Experience-Led Consumer IoT Grey area Business-Outcome-Led Industrial IoT Health & Body Buildings & Offices Industrial manufacturing Home & Hospitality Retail & Wholesale Smart cities & Public sector Consumer goods manufacturing Natural resources Logistics & Transportation Utilities Software & Communications are the enablers for all industries IoT use cases Internet s Digital of Things Services 9

10 The IoT can make possible a multitude of potential enhancements Companies know that what promises to create the most value for industries taking advantage of the IoT is the human and machine intelligence built into the technology Source: Next in Tech, Internet s Digital of Things Services 10

11 IIoT will change industries and markets The industrial Internet of Things (IIoT) refers to its non-consumer use in manufacturing and other industrial sectors, such as oil and gas, mining, energy and utilities, and transportation. Economic Value IoT Wearables, consumer electronics, cars, smartphone, home appliances, etc. Internet of Things IcS Oil refining, offshore drilling and production, pipeline management, power grid operations, mining, chemicals production, robotized manufacturing, water treatment Industrial Control Systems Industrial Internet of Things IIoT transportation, manufacturing automation, healthcare, financial services, public safety The IIoT adds sensors to people, places, processes, and products across a value chain to capture and analyse information that can advance an organization s goals. Propensity to Change Industries Internet s Digital of Things Services 11

12 Internet of Things (IoT) connected devices installed base worldwide from 2015 to 2025 (billions) 75.4 Connected devices are increasing By 2020 the forecasted number of connected devices will reach the 31 billion Source: IHS Statista Internet s Digital of Things Services 12

13 Market size and spending in IoT are growing exponentially Worldwide IoT spending share by region, (billion USD) IoT global market size, (billion USD) 45.7% 20.1% 42.0% 23.4% % 34.6% * 2016* 2017* 2018* 2019* EMEA Americas Asia-Pacific * forecast Source: IDC Statista HKExnews Internet s Digital of Things Services 13

14 Investment in IoT by industry 81% 80% 78% 76% 76% 74% 73% 72% 67% 65% What s driving investment by industry Investment levels for IoT technology varies greatly by sector and business model depending on the needs of different industries Automotive TMT Public Sector Power & utilities Hospitality & Leisure Retail & Consumer Energy & Mining Industrial products Healthcare Financial Services Sectors where is expected the major financial investment by 2020 Source: The essential eight technologies. Board byte: the internet of things, Internet s Digital of Things Services 14

15 As IoT moves forward there are game-changing security hazards To realize the full potential advantages of the IoT, companies must overcome some challenges. Security, collection, storage and use of data flows of information acquired through the use of these devices are some of the hot topics. Security hazards Industries with more implementation of IoT security strategies Secure devices and networks against data theft and service interruption Improve analytics modelling to accommodate exponential data increases 78% 73% 69% Establish standards for data sharing and interconnectivity Telecommunications Technology Automotive Source: Next in Tech Uncovering the potential of the Internet of Things, Implement organizational change Integrate with legacy systems and platforms Internet s Digital of Things Services 15

16 Part III Real cases of IoT application s Digital Services

17 Rio Tinto Australia runs driverless trucks reducing operating costs, and can operate 24/7, 365 days a year controlling the trucks from an operations center in Perth, 1,200 km away. Internet of Things 17

18 GE Aviation analyzed 340TB of data from 3.4 million flights on 25 airlines to improve asset performance and minimize disruptions. The results speak for themselves. Performance Boosted 287x Costs Lowered 7x Lead to Innovation Fast-Tracked 7 days Internet of Things 18

19 Part IV Business approach to IoT s Digital Services

20 Lack of overall IoT and data strategy Security hazards Common challenges while dealing with IoT Understanding role in IoT ecosystem Interoperability. What platforms and standards? open source vs. proprietary Companies are facing several challenges in order to understand what they need to know to implement and get the most out of IoT How to monetize and sell IoT build one, have a partner or buy a strategy? Scaling moving out of pilot phase Organisational issues lack of skills, innovation, governance, operating model Internet s Digital of Things Services 20

21 A company s IoT strategy and vision serves as the foundation upon which to build a capability roadmap and an operational support model IoT Strategy Business Outcomes Capabilities Operations and Support What is the business problem /use case I am trying to solve? What parts of the IoT ecosystem should I build, partner or buy? How do I operationalize and support IoT? Internet s Digital of Things Services 21

22 IoT opportunities are anchored by four key business objectives Innovation Engagement Productivity Trust IoT powered business models Transforming business through innovative business, organization & product/service models that doesn t exist today. IoT enabled customer experiences Enabling interactions between clients and customers in a more engaging, seamless way IoT digital efficiencies Digitizing our clients operating model and processes to improve productivity. IoT secure environment Ensuring secure information in a digital age to inspire trust in our clients by their customers New revenue streams Increased revenue per user (ARPU) Higher margin services business Disruptive product + service offerings New business models Higher customer satisfaction scores Reduced customer churn Greater customer insights Lower Opex Improved worker productivity Lower defect rates Higher uptime Reduced risk Greater brand value Stronger customer satisfaction Internet s Digital of Things Services 20

23 IIoT value chain and detail on IIoT ecosystem structure Solutions Analytics & BI Service Assurance Device Management Billing Security Professional Services Platform Connectivity Internet Things Strategy Infrastructure Wire/ Cellular Industrial Manufacturing Management Consulting WiFi/ Radio Natural Resources Data Technology Satellite Logistics & Transportation Managed Services Software Proprietary/ Fog Utilities Ecosystem integrator (emerging) Components Sensors/ Actuators Processors/ Computing Connectivity Components Operating System Hypothesis for Focus High Value, but not focus Lower Value / Commoditised part of value chain Internet s Digital of Things Services 21

24 IoT operational reference architecture Rules Engine Data Analytics Interaction layer Reporting Mobile apps Business apps API management Complex event processing Fault management Platform layer Configuration management Inventory management Firmware management Orchestration & Provisioning Billing Service catalogues Security Policy management Compliance & Standardisation Single Sign-on Data Cache Performance management Predictive Analytics Data messaging & interaction layer Process automation Security management Cyber security Data Lake Integration service ESB/ Broker BPM Monitoring Connection layer IoT Gateway 1 IoT Gateway IoT Gateway IoT Gateway IoT Gateway N AAA Zigbee RF RFID Wi-fi LAN HTTPS MQTT IoT Data Source layer Internet s Digital of Things Services 24

25 Getting started in the IoT adoption Investment required I. Pilot Build local, prioritized inventory of IoT opportunities Understand information and analytic needs Frame the IoT capability conceptual design across dimensions Conduct 1-2 IoT pilots to prove value and develop foundation Secure business endorsement to proceed II. Deliver and scale Deep dive and deliver value from initial 1-2 IoT pilots Expand organisational coverage across functions/geographies Update prioritised inventory of IoT opportunities Deploy future state blueprint and roadmap of capability delivery Deploy foundational components across process, organisation and technological components Begin working next wave of IoT opportunities Secure business endorsement to scale III. Enterprise adoption Deep dive and deliver value from next wave IoT pilots Expand organisational coverage further across functions/geographies Cultivate prioritised inventory of IoT opportunities Deploy enterprise standard components across process, organisation and technological components Begin working additional IoT opportunities Maintain business endorsement to operate Internet s Digital of Things Services 25

26 Map out your IoT strategy Blueprint for digital success Actively plan an ecosystem approach Blueprint for digital success Create initial pilot projects Six steps to build out IoT capabilities Transform into a digital enterprise Define the capabilities you need Internet s Digital of Things Services Become proficient in data analytics 26

27 Thank you! Computers are incredibly fast, accurate and stupid; humans are incredibly slow, inaccurate and brilliant; together they are powerful beyond imagination Albert Einstein 2018 PricewaterhouseCoopers /AG - Assessoria de Gestão, Lda. All rights reserved. refers to Portugal which is a member firm or one of its subsidiaries or affiliates, and may sometimes refer to the network. Each member firm is a separate legal entity. Please see for further details. Internet s Digital of Things Services