Vincent HurelABB EP Division – Global Head of Distribution Channel

The Internet of Things Services and PeopleNext level solutions

© ABB| Slide 126

The world of 2026Imagine how our world will change

By 2026 everyone will be able to generate and store power – an estimated population of 8.2 billion people

June 15, 2016

© ABB| Slide 127June 15, 2016

2006Do you remember?

It doesn’t seem that long ago…

Flip phones or a Blackberry Compact discs and iPods The launch of Twitter

© ABB| Slide 128June 15, 2016

Internet of ThingsA global trend connecting everything

1

6.4 billion connected “things” in 2016

More than 20 billion by 2020

5.5 million new things every day

In 2016, global Internet traffic will exceed the 1 zettabyte mark (1 trillion GB)

Traffic growing at 23% per year

By 2019, traffic will be 64x that of 2005

Majority of traffic will be from non-PC devices

Things and Connectivity

© ABB| Slide 129

The future of our businessesMegatrends are changing the world

The future of power

Better World

ConnectivityCreation of data

Intelligent solutionsConversion to Information

Ease of doing businessNew business model

June 15, 2016

© ABB| Slide 130June 15, 2016

The future of our businessesBusiness models that are changing. What does this mean?

Make it, sell it, service it: Instead of selling airlines first engines and then parts and service, Rolls-Royce has convinced its customers to pay a fee for every hour that an engine runs. Rolls-Royce in turn promises to maintain it and replace it if it breaks down. The idea is not unique to Rolls-Royce More than half of its engines in service are covered by such contracts, .

Optimized maintenance planning prevents equipment breakdownand increases productivity Monitoring equipment captures information

Health parametersRotor status / bearings / Cooling Air gap eccentricity /.vibrationsOperating parametersEnergy consumption / Loading

Competent data analysis available Service engineers provide advanced optimization and maintenance, saving operating costs and increasing productivity

Business models are changing. Business models are changing.

© ABB| Slide 131June 15, 2016

ConnectivityThe Internet of Things, Services and People

Driving Industry 4.=Industry 4.0 – today and tomorrow Internet of …

People Things

Services

© ABB| Slide 13215-Jun-16

Application example in Industry : RoboticsRemote service center

Clients can access actionable information from smartphones and tablets. The information is available at any place, any time

Intelligent and connected robotsSending data to cloud servers for back-up, reporting, diagnostics, and benchmarking

Central service unit remotely monitoring robots to support clients 24/7Provides analytics to optimize robot usage and predict maintenance needs

Services

Things

People

Internet of Things, Services and People in actionInternet of Things, Services and People in action

© ABB| Slide 133June 15, 2016

Application example: Intelligent solutionsEkip SmartVision – Connecting low-voltage electrical systems to the cloud

Transforming how industry monitors, manages energy costs and power loads

© ABB| Slide 134June 15, 2016

Intelligent productsABB free@home – new wireless solution

Breakthrough innovation to make smart homes easier than ever

ABB-free@home wirelessThe freedom to choose: wired or wireless…

© ABB| Slide 135June 15, 2016

Ease of doing businessJoining up all elements of working together

Implementation of the IoTSP will require common standards

Devices are equipped with sensors, computing power and software. For many years already they have been capable of communicating with one another. These devices are already used in ABB’s automation and network control systems serving customers worldwide

People will not be obsolete in a world of IoTSP as they remain in control of the entire production process. People will be the decision makers, and will program and control all activities performed by things.

Services will become more advanced through the use of data analytics. Analytics solutions in the IoTSP will provide new opportunities to optimize operations. ABB sees the evolution towards an IoTSP as an opportunity for new business models that implement the identified improvements in collaboration with partners and customers.

Things People Services

© ABB| Slide 136June 15, 2016

Ease of doing businessJoining up all elements of working together

Product excellence is only part of the story – expanded range of tools and services

Rapid response Predictive maintenance from ‘big data’ Operational efficiency Performance improvements

Engineering design software Configuration Applications Digital, personalized product/technology information

Digital integration of the supply chain Online ordering Joined up e-commerce

Services Tools Logistics

© ABB| Slide 137June 15, 2016

Teaming up together Economical impact deriving from IoT technologies implementation

Gauge impact from the perspective of the entire value chain viewing applications through the perspective of the physical settings where they are used Economic impact of IoTapplications Organizations that use IoT technology will need better tools and methods to extract insights and actionable information from IoT data,

We have the opportunity to continue to increase the professionalism of how we serve our customers We believe that together with you we can be part of driving the change.

Economical impact deriving from IoT technologies implementation

Source : McKinsey Report on Global Institute Disruptive technologies