Fujitsu Day 2015 - Fujitsu Global IT services and solutions · Individual mobility and car...

0 Copyright 2015 FUJITSU

Human CentricInnovation

Fujitsu Day 2015

Internet of ThingsGlen Koskela, CTO Nordic


A hyperconnected world

Every industry is being transformed, out of both opportunity and necessity

People, things, information, processes become increasingly connected.

Digital transformation affects everyday lives of people and business.


All things operational - focusing on accounting, finance, cost management, supply chain management, automation, key account management,…

Constant improvements in “the numbers” is necessary. But none of this matters when markets shift.

Operational excellence is insufficient

CC BY 2.0 photo credit: https://www.flickr.com/photos/davedugdale/5099605109

Digital economy shifts the entire market rather than merely optimizes existing

“It’s very hard to know when exactly the disruption will become so big that you actually don’t even survive without being part of that disruption.”- Pekka Lundmark, President & CEO, Konecranes Plc, Finland


New ways to compete

54%of CEOs have entered a new sector, or considered it, in the past three years.

56%of CEOs think competition will increasingly come from other sectors or sub-sectors.

It’s very hard to know when exactly the disruption will become so big

that you actually don’t even survive without being part of that disruption.- Pekka Lundmark, President & CEO,

Konecranes Plc, Finland

Source of statistics: 18th Annual Global CEO Survey, PwC 2015CC BY 2.0 photo credit: https://www.flickr.com/photos/ncngpao/6979820319/


Products = Delivery mechanisms for digital services

Source: How Smart, Connected Products Are Transforming Competition, Harward Business Review, by Michael E. Porter and James E. Heppelmann, November 2014

…it has increasingly become a network of products and services…

…in which material products are combined with digital services.

A business is no longer just producer of goods and services…

Value is created in the service system, what the system can do, not in the basic cost of the individual elements.


Safe and secure food value chain New agricultural production model

Modernizing food and agriculture


CC BY 2.0 photo credit: https://www.flickr.com/photos/joakimformo/12183655143

Posi

tion

in t

he

valu

e ch

ain

Digital transformation – What is at stake?

Share of the value chain

Your company if

‘ubered’

€ €€

Digitization modifies the economic space and its forms of competition. Successful digital transformation is important, missing out = lost value added.

Opportunity costs of failure to respond are high

Increase in the share of gross value added accounted for by ICT.

Controlling the interface to customers and applying digital expertise.

€


Car industry in the process of transformation

CC BY 2.0 photo credit: https://www.flickr.com/photos/ivyfield/3910052922

Control of the digital communications interface to the driver and vehicle owner

Ownership of the data generated in and in relation to the vehicle usage

Individual mobility and car purchasing behavior

IP of the software established in vehicles

Effective protection against cyber-attacks

Digitization of logistics across the industry

Fourth-party logistics providers control of the customer interface


Disruption to previously successful business model

Physical value chain Digital value chain Human value chain

Global suppliers & customers

Specialization of knowledge work

New corporate structures &

communities


People – Process – Things – Context

In the usual vision of IT systems, the physical world is observed and represented in the information world.

Both are strongly related to human agents.

What can a parking space tell you?

By merging physical world and information world, IoT changes the role and position of human agents

CC BY 2.0 photo credit: https://www.flickr.com/photos/infomatique/8048132858/


Digitization provides ways to increase value

CC BY 2.0 photo credit: https://www.flickr.com/photos/mrsj1/4441258960

Market players that only back incremental changes and fail to invest in digital platforms will come under pressure.

A chance to have a place in market in the future


How to leverage the digital world?

Initial value lies in improving customer relationships.

Combining services even more deeply with products.

Disrupting existing business models.

Monetization of data.

Converting the new service piece into a product and P&L in its own right.

More to do with business development than with technologyCC BY 2.0 photo credit: https://www.flickr.com/photos/gilgongo/10774211225


The logic of digitization

Changedrivers

Digital data

Automation

Customer experience

Network connectivity

Technology enablers

Internet of things

Big data analytics

Wearables

Robotics

3D printing

Social networks

Indoor positioning

Mobile apps

Cloud computing

Wireless

Sensors

Augmented reality

Crowdsourcing

Business innovations

Digital healthcare

Social clienteling

Predictive maintenance

Multichannel retail

4th party logistics

Nowcasting

Smart transportation

Fleet management

In-store analytics

Collaborative working

Field inspection

Smart city

Location based services


‘Things’ become participants in processes

Solar-powered trash compactor alerts sanitation crews when it is full.

The City of Viborg (Denmark) Station Square: from 1.038 FTE to 0.118 FTE.

Ready your organization for an era when 60 billion sensors dominate the Internet

CC BY 2.0 photo credit: https://www.flickr.com/photos/perspective/5679987267/


Industries transform into higher value entities

Digitization Innovation Optimization Transformation

Healthcare

Digitalhospital

Manufacturing

IndustrialInternet

Retail

Omni-channel

Services

Smart Working

Government

LeanMyCityservices

Defense

Real-time edgeware

Finance

Co-innovation


Opportunity to re-invent just about everything

The economic impact will be huge. The societal impact will be huge. The corporate impact will be huge.

New ways of working. New ways of living. New ways of producing.New ways of delivering social services. New ways of capturing value.New ways of measuring growth and progress.

CC BY 2.0 photo credit: https://www.flickr.com/photos/epsiplatform/8499827081/


Digitizing in-store retail customer journeys

Understand customer paths Measure conversion rates Measure dwell and conversation time Measure promotion effectiveness

Optimize store layout Understand valuable real estate Align staff location with customer traffic Support existing business growth

CC BY 2.0 photo credit: https://www.flickr.com/photos/orinrobertjohn/3593895075


Independent living in smart houses

Combining specialist physicians’ findings and data visualization and analysis technology to build solutions and develop systems that support health management and everyday living.

Collection of psychological, physical, physiological, and social data from sensors embedded in the surrounding environment and smart houses, as well as sensors worn by elderly people and patients undergoing medical treatment living in the smart houses.


Augmented reality based facility inspection and maintenance.

Production maintenance (shop floor)


Rules of the digital game

CC BY 2.0 photo credit: https://www.flickr.com/photos/124247024@N07/14089978785

Digital dataPutting other market players at a disadvantage.

AutomationOccupying checkpoints that allow to control key links in

the value chain.

Network connectivityBringing light into the black

box segments of value creation.

Customer experienceDeveloping new kinds of value-added services and dependencies.


Human Centric Intelligent Society

Installed technological potential guided towards sustainability worldwide

Social infrastructure innovation Life innovation

Fujitsu Day 2015 - Fujitsu Global IT services and solutions · Individual mobility and car...

Documents

Transcript of Fujitsu Day 2015 - Fujitsu Global IT services and solutions · Individual mobility and car...