Internet of Things & Logistics ECO 270416 Final
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Transcript of Internet of Things & Logistics ECO 270416 Final
Internet of Things & Logistics, hype or business transforming?Technologies ,Applications and approach
www.pwc.com
PwC Strategy & OperationsManagement consulting BelgiumApril 2016
PwC 3
Agenda
IoT Let's Get Real
Connected Devices
IoT Platforms Opportunities
1 3 42
• What is IoT?
• Facts & figures
IoT Overview
• Connectivity
• M2M
• Sensors
• Smart Systems
• Interoperability
• Applications in logistics
• Benefits
• Where to Start
3
IoT Let's Get RealPwC 4
What is the Internet of Things?Definition & Facts
The “Internet of Things” (IoT) describes an ecosystem of sensors, embedded computers, and “smart” devices that communicate among themselves and with private/public cloud services in order to collect, analyze and present data about the physical world.
About IoT• While IoT is widely hailed as the next big thing, the key
ingredients — network connectivity, cloud, security, and infrastructure —have existed for decades.*
• ATMs are considered some of the first IoT objects, and went online as far back as 1974.
• This year, we will have close to 5 billion connected things.• And some predict that by 2020, the number of Internet-connected
things will reach or even exceed 50 billion.***Source: Verizon: State of the Market, The Internet of Things 2015 report**Source: http://www.forbes.com/sites/bernardmarr/2015/10/27/17-mind-blowing-internet-of-things-facts-everyone-should-read/
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IoT market & areas of applicationIoT verticals in the Picture
IoT Let's Get Real
• Maintenance• Utilities• Lighting• Policing & surveillance• Emergency services• Signage• Traffic control• Waste management
Smart Cities
• Lighting• Security• Heating• Smoke alarm• Pet feeding• Irrigation controller• Infotainment• Cooking & groceries• Energy monitoring
Smart Homes
• Patient care• Elderly monitoring• Remote diagnostic• Bio-wearables• Equipment monitoring
Smart Health• Telematics• Infotainment• Smart parking• Public transport• Airlines/Trains• Shipping
Smart Transport
• Production control• Supply chain• Robotics• Energy monitoring
Smart Industry• Thermostat• Security• Lighting• Electrical• Transit• Occupancy• Energy monitoring• Emergency alerts
Smart Buildings
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Where is the opportunity?
New IoT capabilities are creating opportunities in the development of new consumer facing applications as well as in improving the operational efficiencies of traditional businesses
Industries with the Greatest Potential
Healthcare and Fitness
Asset Tracking, Logistics, Supply
Chain
Manufacturing and Industrial
Utilities
Policing and Security
Emergency and Disaster Response
Consumer Products
IT and NetworkingAutomotive,
Fleet, and Telematics
Home and Building Automation
Smart Cities
80% of IoT-based economic benefit expected by 2020- Machina Research
Consumer Engagement and Product Enrichment
Operational Efficiency and Asset Utilization
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Is this a lucrative marketplace?
• According to estimations by the McKinsey Global Institute, the IoT will have a total economic impact of up to $11 trillion by 2025.
• GE believes that the “Industrial Internet” (their term for IoT) will add $10 to $15 trillion to global GDP in the next 20 years.
• CISCO believes the IoT could generate $4.6 trillion over the next ten years for the public sector, and $14.4 trillion for the private sector.Source: http://www.forbes.com/sites/bernardmarr/2015/10/27/
17-mind-blowing-internet-of-things-facts-everyone-should-read
$1T
xx
$10T
$5T
2020
2013
2016
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Is IoT M2M?M2M Technologies enable IoT Solutions
IoT solutions use M2M technologies to monitor and transfer the status of physical assets to improve business processes and cost efficiencies in specific industries, such as utilities, healthcare, and logistics so why calling IoT?
The difference is Smart versus Remote Monitoring
Source: Verizon, State of the Market, The Internet of Things 2015 report
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Connectivity
Connectivity allows the device to transmit and receive data with other devices and with a private/public cloud service. There are four factors to consider when choosing a connectivity method
RangeThe distance that a
transmitter can reliably send and receive a signal
PowerThe average power
usage during normal working
conditions
ScalabilityThe amount of
device connections that can be added to
a single hub
ReliabilityThe environment or
setup that may hinder or block the signal
Connectivity Topographies
MeshZigbee, Z-Wave
Direct ConnectCellular, LPWAN, Satellite
Hub/SpokeWifi, BLE, RFID (UHF
EPC2,NFC)
IoT Let's Get RealPwC 10
New radio technologies are emerging.Options for all applications
Source: Peter R. Egli, 2015
5G
LPWAN
Luxembourg Becomes Eighth Country to
Receive Nationwide SIGFOX Internet of
Things Network Coverage
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Connected Devices: Sensors
The price of sensors has dropped dramatically through economies of scale driven by the significant increase in smartphone sales in the global market
Acoustic, sound,
vibration
Electric current, electric
potential, magnetic, radio
Ionizing radiation, subatomic particles
Optical, light, imaging, photon
Thermal, heat, temperature
Position, angle, displacement,
distance, speed, acceleration
Force, density, level
Automotive, transportation
Environment, weather, moisture, humidity
Navigation instruments
Pressure Proximity, presence
Chemical Flow, fluid velocity
11
Primary Sensor Types
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Smart Devices
Many “smart” products may include a bundle of various sensors that work together as well as local data storage, local analytics and event triggering or a user interface to present the data.
As IoT becomes more prevalent and information becomes available to intelligent systems, a trend will emerge for systems to act on the environment independently of human involvement. Smart thermostats and self driving cars are two prominent examples
PositionAlters or redirects physical
objects
SoundProduces or adjusts the
sounds of an environment
LightProduces or adjusts the light of an environment
TemperatureProduces or adjusts the
amount of heat in an environment
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Interconnected Intelligent Systems
Smart network
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Interoperability is Key !Most data are not used today
Interoperability is critical to maximizing the value of IoTEven though consumer applications garner the most attention, B2B applications offer far more impact.
Source: Expert interviews, McKinsey Global Institute analysis
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Applications in Logistics
visibility providing identity, location, and other tracking information using:• Cloud-based GPS, RFID and
WSN technologies.• Location – Smart routing ( Traffic,
opening hours)• Access control – Security & tamper
evidence• Real-time Inventory management• Temperature – Smart Cold chain
The IoT revolution will allow us to enhance Supply Chain Management ( SCM) solutions by providing Actionable data. From automation of the manufacturing process to improved visibility within the warehouse
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‘Food’ for thought
Each year, perishables suppliers ship over five billion pallets valued at €2.5 trillion of chilled meats, seafood, cheese, produce, temperature sensitive pharmaceutical and biomed products. (EPCglobal)The GDP of France is €2.5T
30°
12°
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Visual Quality and Actual Quality
Qua
lity
Inde
x
Visual Quality Indicators
Actual Quality
Ripening not visually apparent until late in
process
Field Packing Transit DC Transit RetailerTransit
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Fashion from factory to the customer
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RFID , Beacons and Mobile .. IoT in Fashion
Picking performance1
Auto-replenishment2
Real-time visibility3
Business/customer Intelligence4
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Benefits
Moving the supply chain process from a reactive mode to a proactive one, this Context-aware intelligence can enhance the supply chain visibility by implementing IoT. IoT can help supply chain professionals:•Reduce asset loss. Know about product issues in time to find a solution.•Ensure temperature stability. Monitor the cold chain – according to the Food and Agriculture Organization of the United Nations, about one third of food perishes in transit every year.•Manage warehouse stock. Monitor inventory to reduce out-of-stock situations.•Gain user insight. Embedded sensors provide visibility into customer behaviour and product usage.•Create fleet efficiencies.
• Reduce redundancies – deadhead miles account for up to 10 percent of truck miles, according to the EPA, and 28 percent for private fleet trucks, according to the National Private Truck Council.
• Save fuel costs. Optimize fleet routes by monitoring traffic conditions
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Create a compelling digital vision & Reshape your business strategy as fundamentally digital
Where to start?
Low Hanging fruit and quick Wins increase your appetite
21
Inventories your processes
IoTAdoption
Be prepared for an exiting future embrace the IoT and make your business Smart...
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