1 © Nokia 2016

An Internet of Thingsblueprint for smarter cities

Public

Marc Jadoul (marc.jadoul@nokia.com, @mjadoul )

Market Development Director, Internet of Things

München, June 2016

1 © Nokia 2016

2 © Nokia 2016

“Suppose every instrument could by command or anticipation of need, execute its function on its own; suppose that spindles could weave of their own accord and plectras strike the strings of zithers by themselves; then craftsmen would have no need of hand-work and masters have no need of slaves.”

Aristotle (384 - 322 BC)

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Some 2400 years later…

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+

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Connected things

Programmable things

Many things

2

3

1

• Improving people's lives through automation, enhanced connectivity and intelligence

• Helping industries to become more efficient, agile and real-time

Mobile internet with 5 bnpeople connected by 2020

Fixed internet with 1 bnplaces connected by 2005

Programmable World with 50 bn things connected by 2025

While the past has been about connecting people, the future is about connecting things

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New business models and use cases will expand the human possibilities of technology while transforming people's lives

Fatalities each year worldwide by not following doctor’s prescriptions

Additional economic benefits by leveraging Smart City applications

Of the 355 billion gallons of water used in the US daily are wasted due to leakages

Estimated energy waste in US buildings due to inefficient and outdated HVAC systems

20% 1 mio

50% 50 bio €

Of fatalities in car accidents are due to human error and slow reaction

Mobile glucose monitoring tools can cut diabetes management costs by

90%

50%

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Sensors and actuators everywhere

(*) Components of the Fitbit Flex: 3-axis accelerometer, vibration motor; (**) Sensors in the Samsung Galaxy S6: Accelerometer, Barometer, Compass, Fingerprint Reader, Gesture Sensor, GPS, A-GPS, GLONASS, Gyroscope, Heart Rate Monitor, Proximity Sensor; (***) Sensors in today’s cars: air–fuel ratio, blind spot monitor, crankshaft position, curb feeler, defect detector, engine coolant temperature, Hall effect sensor, manifold absolute pressure, mass flow, oxygen, parking sensors, radar gun detector, speed, throttle position, tire-pressure, torque, transmission fluid temperature, turbine speed, variable reluctance, water-in-fuel, water-on-windshield, wheel speed, etc.

*****

2 10+ 100+

*

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All things, great and small …

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6.4 billion connected ‘things’ in use in 2016, 20.8 billion by 2020

Gartner, November 2015

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The IoT provides an unprecedented opportunity for hardware, software and services players in telecoms, IT and electronics

a 400 billion Euro market by 2025

Source: Machina Research and Nokia Strategy, 2015

Modules

InfrastructureConnectivity management platforms

Application enablement platforms

Applications, analytics & end-user services

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Why now?

HW miniaturization& cost reduction

Growth of cloud storage and processingcapabilites & resources

Proliferation of (wireless) devices

& endpoints

Startup culture enables disruptive innovation

Business case for industrial automation

Social, economic, environmental, and lifestyle stimuli

IoT

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How can we leverage IoT technologies to create a

smarter world ?

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The IoT empowers a long tail of applications …A

sse

ts/A

pp

lica

tio

n

TBD, may come from the Apples or Googles of this world

Broad range of gadgets & apps, likely with few short-term monetization opportunities

Applications and services that provide monetizable value to people, verticals and enterprises.

Number of applications

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… and has a transformational impact on (almost) all sectors

Digital Health

ITPublic Safety

MobilitySmartHomes

Retail Services

Industries Smart Cities

Utilities

Patient careSmart stores

Sm

art

In

fra

stru

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re,

faci

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IoT adoption is driven by growth and experience, rather than by cost savings

Source: Machina Research, December 2015 (N = 1,700)

0% 5% 10% 15% 20% 25%

Competitive differentiation

Expand revenue

Reduce OpEx

Improve product performance

Monitor products

Improve support and SLA

Remotely update products

Improve uptime

Other

Adopters

Non-adopters

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21% of companies have an IoT project underway; 50% of all enterprises have already jumped in or are in planning phases

Source: Machina Research, December 2015

vs.Adopters Non-adopters

Which department is leading the IoT charge?

ProductManagement

InformationTechnology

€

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• Customer focused• Smarter products, always connected

• Disruptive models, players and ecosystems • ‘Servitization’ of devices, applications and data

• ‘Mechatronics’ and ‘devops’• Data-driven control and decision making

• Self-measurement and self-management• Data driven marketing and customer interaction

Because the IoT is fundamentally changing products, business models, operational processes, and customer/user interaction

Productinnovation

Businessmodels

Processautomation

Customer interaction

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The IoT is thriving on the 4 V’s of big data

Value(data enrichingour daily lives)

Volume(data at rest)

Velocity(data in motion)

Variety(data in

many forms)

• Global data volume grows 40% per year

• Urbanized land areas generate 4.1 TB data per day per km2

• 3.9 billion people worldwide connected to the Internet in 2017

• 70 billion ‘things’ in 2020

• Exaflop-scale computing by 2019

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Big data is the ‘new oil’, driving IoT innovation, business value and customer experience

Sensing

Monitoring

Analytics

Learning

Control

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The IoT value chain is still largely in flux with vertical players being at the top end of the hierarchy

B2B & B2C

Customers

Government

IoT modules

manufacturers

& vertical

players

Appli-

cation

develo-

pers

Operators

Chipset

manufac-

turers

Connectivity

& Device

management

IoT

Connectivity

Networks

System

Integrators

IoT Apps &

enabling

platforms

Verticals

Horizontals

Building Blocks

IoT Hierarchy

Infrastructure &

platform vendors

and integrators

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The IoT ecosystem landscape shows an even more complex mapS

ou

rce: M

att Tu

rck, Firsmark C

apital, Jan

uary 20

16

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Why should we care about the network ?

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The network can make or break the IoT

90%

40% 70%

19%

Within the next 5 years, more than 90% of all IoT data will be hosted on service provider cloud platforms.

By 2018, 40% of IoT-created data will be stored, processed, analyzed, and acted upon close to, or at the edge, of the network.

As many as 70 percent of IoT devices are vulnerable to attacks.

By 2020, there will be a 19% gap in unmet demand for mobile network capacity.

Sources: IDC, Nokia Bell labs, HP

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Some of today’s IoT communication network challenges

Radio & coreoptimization

Device management

Scalable &SLA-capable

Horizontal plaformswith vertical apps.

Energy efficiency Latency & MEC1

Privacy & securityStandardization

& interoperability

Domain knowledge & deep, vertical-specific insights

1M

EC

: Mo

bile

Ed

ge

Co

mp

utin

g

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IoT services are very diverse – not all IoT devices and applications have the same connectivity requirements

Uplink data

Latency

Activity

Density

Coverage

Mobility

Module cost

Battery life

Utilities

Smart metering

Smart Cities

Surveillancecameras

Automotive

Driverlesscontrol

Logistics

Assettracking

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IoT LPWA1 technologies increase battery life, widen network coverage, and simplify modems

NB IoT eMTC EC-GSM

RangeMCL2

<12km160 dB

< 10km157 dB

<15km164 dB

< 10km156 dB

< 15km164 dB

<12km160 dB

SpectrumBandwidth

Unlicensed900MHz100Hz

Unlicensed900MHz<500kHz

Licensed7-900MHz

200 kHz shared

Licensed7-900MHz

shared

Licensed8-900MHz

shared

Licensed7-900MHz

shared

Data rate <100bps <10 kbps <200 kbps < 1 Mbps 10kbps < 1 Mbps

Battery life 10+ years

NW impact Large LargeSmall to

ModerateSmall Moderate Requires 5G

1 LPWA: Low-power wide-area 2 MCL: Minimum Coupling Loss

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(Too) many different IoT standards development organizations and industry alliances are competing with each other

Source: AIOTI WG3, November 2015

Service & app

Connectivity

B2C B2B

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End-to-end security will be a key requirement

IoT security risks

Sources: Capgemini Consulting (2014), TechTarget Information Security Insider (2014), Beecham Research (2015)

• Rogue or vulnerable IoT devices• Device or application hijacking• No visibility on connected devices• Devices cannot be managed• Bluetooth or Wi-Fi hacks• Non-secured data transmission• DOS and DDOS attacks• API and interface vulnerabilities• Security breaches on big data systems• Malicious access/use of IoT data• Identity theft of users and devices• E2E complexity of IoT systems• No enterprise IoT security policy

% of respondents per segment who agree that security risks will impact purchase

decision for IoT products

Industrial manufacturing

Smart metering

Medical devices

Wearables

Automotive

Home automation

93%

86%

67%

65%

65%

59%

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The IoT is a key enablerfor smart cities

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Increasing pressure on cities is driving demand for optimizations

Sources: UN World Urbanization Prospects , IDC Government Insights, McKinsey Global Institute

By 2050, 7 out of 10 people will live in an urban area

7/10

Cities account for 76% of energy consumption and CO2 emissions

The 600 largest cities in theworld will generate 65% of GDP growth through 2025

76% 65%IoT applications in cities could have an economic impact of $930B to $1.6T per year in 2025 $1.6T

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What makes a city smart?

•Supply & demand side policy•Transparency & open data•ICT & e-government

Smartcity

Smart people

Smartmobility

Smarteconomy

Smartliving

Smartenviron-

ment

SmartGovern-

ment

•Green buildings•Green energy•Green urban planning

•Entrepreneurship & innovation•Productivity•Local & global interconnectedness

•21st century education•Inclusive society•Embrace creativity

•Healthy•Safe•Vibrant & happy

•Mixed-modal access•Prioritized & non-motorized options•Integrated ICT

Source: Boyd Cohen on FastCompany

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A smart city is a city that is capable of reinventing itself.

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(1) http://www.telekom.com/media/company/240264; (2) http://www.ubmfuturecities.com/author.asp?section_id=391&doc_id=526672; (3) http://amsterdamsmartcity.com/projects/detail/id/93/slug/smart-light; (4) http://www.bbc.com/news/technology-22984876; (5) http://www.telecomstechnews.com/news/2014/mar/26/real-sim-city-how-over-15000-sensors-made-santander-smart2/

An intelligent guidance system lets drivers find a free parking space, and pay for it via their smart phone (Pisa, Italy) (1)

Real-time tracking of air quality, noise levels and traffic movements (Dublin, Ireland) (2)

Street lighting can be adjusted for to improve security and save energy (Amsterdam, the Netherlands) (3)

A device worn around the neck lets family and carers keep track of people with dementia (Sussex, UK) (4)

Waste is only collected when garbage bins are at full capacity (Santander, Spain)(5)

A few examples…

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Four steps towards smarter cities

Citizen applicationsOpen innovation through PPPs, API exposure, app development contests and startup ecosystems

Network infrastructure One single broadband IP network,with wireline and wireless access

Big data & open data Data-centers and government cloud;open data policies and governance

Smart public services Wireless sensors control traffic, pollution, lighting, waste, …

1

2

3

4

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Connected things within smart cities (in Millions)

Source: Gartner (2015), http://www.gartner.com/newsroom/id/3008917

2015 2016 2017

Healthcare 9.7 15.0 23.4

Public Services 97.8 126.4 159.5

Smart Commercial Buildings 206.2 354.6 648.1

Smart Homes 294.2 586.1 1,067.0

Transport 237.2 298.9 371.0

Utilities 252.0 304.9 371.1

Others 10.2 18.4 33.9

Total 1,107.3 1,704.2 2,674.0

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Getting rid of device, data and application ‘stovepipes’

Public Safety

Smart BuildingsEnergyMobility

PPublic Safety

Smart BuildingsEnergyMobility

P

Application development & execution

Management, security& analytics platforms

Network infrastructure

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Big data vs. Open data

http://www.opendatanow.com/2013/11/new-big-data-vs-open-data-mapping-it-out

BigData

OpenGov’t

OpenData

Citizen engagement programs not based on data (e.g. petition websites)

Non-public data for marketing, business analysis, (nat’l) security

Large datasets from scientific research, social media or non-government sources

Public data from state, local, federal government (e.g. budget data)

Large public government datasets (e.g. weather, GPS, Census, SEC, healthcare)

(*) ESG = Environmental, Social & Governance

Business reporting (e.g. ESG* data) and other business data (e.g. consumer complaints, transportation schedules)

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10 recommendations for creating smarter cities

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1. Start with a realistic vision on where and how you want to go

Dubai has declared its intentions as a city to not only grow exponentially in size but to become smarter in the way that it handles this growth.From a project manager’s perspective, Smart Dubai is a single megaproject.

The initiative surpasses all of Dubai’s previous headline-making projects – which are mainly from construction, such as the luxury hotel Burj Al Arab, the tallest tower in the world Burj Khalifa – in terms of size, duration, amount of stakeholders to be aligned with and budget.

http://bit.ly/21D7V39

Amsterdam Smart City is a unique partnership between the people of Amsterdam, businesses, knowledge institutions and local authorities.

More than 70 projects are currently under way ranging from smart parking using an app and sharing models for electric cars to storing power you have generated yourself using a smart grid.

Amsterdam Smart City connects and gives impetus to all of these projects.

http://bit.ly/1Jf31UF

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2. Implement your (network) infrastructure first time right

http://chattanoogagig.com/

The Internet of Things could drive network capacity to the point that only fiber-optic broadband can provide capacity.

Colin Neagle,http://bit.ly/1PJZOyb

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3. Embrace open data and open government policies

http://bit.ly/1MwU1c4 (June 2015)

# Country Score

1. United Kingdom 90

2. Canada 80

3. United States 80

4. France 65

5. Italy 35

6. Japan 30

7. Germany 25

8. Russia 5

http://bit.ly/1Ewa33p

“Der G7 Gipfel und Open Government Data: Deutschland bremst die G8 Open Data Charta aus”

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4. Incorporate smart requirements into (publicly funded) infrastructure programs

Source: Birmingham City Council, 2014

10 principles for the sustainable development of a smart city

1. Any development should be provided with wired and wireless connectivity throughout, to the highest standards of current bandwidth, with the capacity to expand to foreseeable growth and using open approaches to enable competition in provision.

2. New or renovated buildings should be built to contain sufficient space for current and anticipated future needs for technology infrastructure such as broadband cables; and of materials that do not impede wireless connectivity. Spaces for the support of fixed cabling and other infrastructures should be easily accessible. And the overall physical fabric - especially the interior structure - should be as flexible as possible in order to facilitate future changes in use.

3. Any new development should install open access ducting infrastructure when laying other utilities. It should run from each unit to a concentration point and its location published in an acceptable GIS format. Ownership should be transferred to the City Council unless it has been installed by an open access service provider.

4. Any new development should demonstrate it has given due consideration to the sustainability, scalability and resilience of technology infrastructure as a key asset over an extended timeframe.

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5. Launch and support cross domain initiatives

http://bit.ly/1LARh2t

Our vision: “A prosperous urban center in which people can easily choose to live a car free or car light lifestyle, using smart and integrated transportation options, to travel where and when they want to go, conveniently and safely.”

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6. Stimulate ecosystems and cultivate a collaborative culture

Agile prototyping Concept showcase Market trials

Automotive &transportation

Hospitality

Health & wellness

Media &entertainment

Service providers

Tech industry

Consumer elect(ronics

Education

Public sector

Retail &e-commerce

Ideate

Prototype

Test

Businessmodels

PrototypesExecutionpartners

Refine

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7. Think big, but start small

Interactive Touch screen• Bus/Transport finder• Weather feed• Auckland Event information• Journey Planner, Game)

HD Security Camera (CCTV)

Rasberry Pi used as a Wi-Fi sensor

Vodafone LTE Metrocell

All provisioned over Chorus’ wholesale fibrehttp://bit.ly/1MzPBRM

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8. Identify appropriate milestones and metrics to measure performance and monitor progress

http://www.smart-city-survey.com/

http://www.smart-city-survey.com

The big picture

Infrastructure

Vibrancy

Diversity

Reinvention

Home

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9. Build a city for the people

Participatory• Citizen surveys & feedback loop• Communality participation in trials• Crowd sourcing & crowd funding

Inclusive• Digital equality initiatives• End-user education

Social• Social media platforms• Community portals

Beneficiary• Win-win-win for government,

local business, and citizens

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10. Connect, communicate, and celebrate

http://bit.ly/1pvrG0k

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Nokia IoT and smart citysolutions from a helicopter view

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Nokia is investing in the IoT, 5G and security

Nokia raises USD 350 mln investment fund for IoT companies

Nokia buys Withings for $191 mln Nokia acquires security software vendor NakinaSystems

Nokia joins the Z-Wave Alliance, integrates Z-Wave IoT standard into smart home offerings

Nokia showcases 5G-powered IoT at Brooklyn 5G Summit

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Nokia brings the Internet of Things to life

IoT platform• Manage millions of IoT

connections and devices• Build customized IoT

applications to tap into new revenue opportunities

Nokia helps network operators and enterprises develop new IoT revenue streams

IoT applications• IoT Community for open

collaboration with application developers and device vendors.

• 15 different IoT use cases demonstrated at MWC’16

• Award-winning connected car project with DT, Continental, and Fraunhofer on the A9 motorway

IoT networks• Fixed and mobile BB,

IP networks and cloud• LPWA radio: NB-IoT, EC-

GSM, eMTC, LoRa, Wi-Fi, …

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Our IoT portfolio from a helicopter view

CPE anddevices

Infrastructure

Platform

Applications

IMPACT platform• Application enablement (AEP)• Device management (CDP)• Connectivity management (CMP)• Data collection & analytics

Cellular radio: NB-IoT, eMTC, EC-GSMUnlicensed spectrum: LoRa, Wi-Fi, BTLEOptimized IoT core, leveraging SDN/NFVMobile Edge Computing, Backhaul & FTTx

Home & enterprise gatewayWithings digital health products

IoT Community ecosystem (ng Connect) Applications for selected use cases

Se

curity

Se

rvices

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Nokia helps making cities smart

Start with a realistic visionon where and how you want to go

Implement your (network) infrastructurefirst time right

Incorporate smart requirements into publicly funded infrastructure programs

Identify milestones and metrics to measure performance and monitor progress

Embrace open data and govern-ment policies

Stimulate ecosystems and cultivate a collaborative culture

Launch and support cross domain initiatives

Connect, communicate, and celebrate

Think big, but start small

Build a city for the people

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Our smart cities solution from a helicopter view

SoftwareDefinedNetwork

DCInter-connect

IP/MPLSEdge & Core

IoT Optimized Core

IPcomms

Mobile & Fixed AccessIP Backhaul

Small Cells/WLAN/LPWAN

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One more thing…

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