Internet of Things and the Ongoing Revolution
Bernardo Campillo SotoHead of New IOT Business and Innovation27.10.2016
Telefónica SA7
Previous Industrial Revolutions removed force-associated barriers…
Source: “The Second Machine Age”, E. Brynjolfsson, A. McAfee
knowledge
…and current Digital Revolution removes information-associated barriers
As-a-Service Business Models
Platform Business Models
Marketplace Business Models
Data-Driven Business Models
Industry Retail Consumer Electronics
Smart Cities EnergyTransport
$3 TrillionRevenue Opportunity*
>2 BillionTerabytes of Data
>25 BillionIoT Connections
* Yearly revenues by 2024. Revenue 2016: $1 TrillionSource: Machina Research
Telefónica SA12
Photo by technovangelist - Creative Commons Attribution-NonCommercial-ShareAlike License https://www.flickr.com/photos/95745192@N00 Created with Haiku Deck
Telefónica SA13
Photo by tg | photographer - Creative Commons Attribution-NonCommercial-ShareAlike License https://www.flickr.com/photos/26202818@N08 Created with Haiku Deck
Telefónica SA14
Photo by JD Hancock - Creative Commons Attribution License https://www.flickr.com/photos/83346641@N00 Created with Haiku Deck
Telefónica SA15
Photo by Tim Geers - Creative Commons Attribution-ShareAlike License https://www.flickr.com/photos/47912915@N02 Created with Haiku Deck
But, what is IOT? So simple as…
Devices
ConnectivityService Platforms
Analytics
The IOT Path
Really that simple?
“We are in charge of creating and making it possible for people to connect with the things that matter to them,
enabling an infinite world of possibilities”
Home
Vehicles
Retail
Cities
Office
Worksite
Factories
Far Away
OnLife scenarios
Who I loveWhere I Live
How I move What I do Where I work
Personal
Interactions spheres closer to and around the person…
Personal
What I do
Who I love
Where I live
How Imove
My City My space
My Workplace
Every IOT vision is leveraged across 4 layers
IOT Analytics
Products and services
OSS/BSS/IT
Physical assets
3
2
1
4
IoT
Every IOT vision is leveraged across 4 layers
IOT Analytics
Products and services
OSS/BSS/IT
Physical assets
3
2
1
4
IoT
LPWA, Network evolution meant becoming simplerMimicking Nature
3GLTE
5GLTE-A
Data traffic per device
2G
Evolution by increasing Complexity
Cat 1
Data traffic per device
Battery Life of devices
Evolution by becoming simpler
Battery Life of devices
LTE-M
NB-IOT
mMTC (5G)
LPWA complement existing cellular networks and short range solutions for applications requiring limited data throughput
Traditional cellular networks were designed for human communications and have evolved into massive data transmission.
Machines may have other network needs.
Wide Range (i.e. 10 km) and low-throughput
Deep indoor coverage
Lower cost connectivity and devices
Reduced battery consumption
LPWA Value Proposition
LTE for IoT: Application SegmentationNB-IOT is focused on massive applications
29/17Kbps
1Mbps
10Mbps
100Mbps
NB-IOT
CAT-M
CAT 1
CAT 4
MASSIVE SENSORSGas/Water/Electric Metering, Street lighting, Parking control, Agriculture monitoring, Smoke detectors, Assets tracking, Environment monitoring, Industrial monitoring
WEARABLESPersonal/Pet trackers, Fitness bands, Patient monitors, Smart Watch, Kids Tracking
DATA DEVICESConnected healthcare, InCar hotspot, Video surveillance, Retail Kiosks, Digital signage, Alarm panels
ROUTERRouters, IoT Gateways, Network bridges
5$
6-9$
15$
40$
IOT vision is leveraged across 4 layers
IOT Analytics
Products and services
OSS/BSS/IT
Physical assets
3
2
1
4
IoT
AMAZON WEB SERVICES and IOTOne stop shop for application development, deployment and management.Flexible and scalable. Real-time infrastructure adaptation.Pay-As-You-Grow models.
FROM CONNECTION TO DATA ROUTING
Source: IOT MEGATRENDS 2016 – Vision Mobile
There is a great opportunity and key players are building and leveraging in open approaches for different sectors and IOT scenarios.
WHY an IoT OPEN ECOSYSTEM?
IoT developers evolution
Developers flood into IoT
fast
21% oriented to Smart Home
There is a huge developers’ talent market to capture….
Source: IOT MEGATRENDS 2016 – Vision Mobile
1 in 3 developers:
HOBBYISTS or EXPLORER
10M
5M
2016 2017 2018 2019 20202015
Already 4.5 million individuals active as IoT
developers in 2015
WHY an IoT OPEN ECOSYSTEM?
Industrial IoT Open Ecosystems at a glance
Developer Commmunity Business Model
2.350 Active developers2.760 Apps
PAY PER USE• Billing by Amazon: 20%
• Billing by Dev: Free
2,5 MM Developers3.000 Apps
3,8 MM DownloadsMONTHLY FEE
• No billing by Salesforce
2 MM Developers3.800 Apps
PAY PER USE• Billing by Azure
WHY an IoT OPEN ECOSYSTEM?
Telco Open Ecosystems at a glance
Developer Commmunity Marketplace Pricing &
Business Model Comments
10.000 developers(through Eclipse IDE
and Eclipse SmartHome Project)
Deutsche Telekom.Partner channels
Oriented to partners and cross-vendor
ecosystem.
Focus on SmartHome.Qivicon brand in Germany and licensed to other operators
(e.g. KPN, eww Austria).Partner network of compliant devices providers.
AT&T Developer Program
AT&T own channels (mainly online)
Free: Max 10 devicesPro: 99$ p/year plus a fee per device/month depending on volume and data point usage
M2X (development) and Flow (deployment) tools.Telco capabilities: SMS, PoC, call mngmt, webRTC,
landline messaging, identity, etc.IoT Starterkit including m2m SIM and hardware.
Seamless integration with MS Azure and IBM Bluemix. Partnership with OpenShift (RedHat PaaS).
Orange PartnerAPIs for IoT Orange App Shop
Free. Paid modes coming
soon.
M2M France (managed connectivity), LiveObjects API (MQTT-based) and connection with telco capabilities (SMS, Identity
management). HW starter kits (incl. LoRa offer).
http://www.pcworld.es/aplicaciones/orange-app-shop-nueva-tienda-de-aplicaciones-movileshttps://m2x.att.com/pricing
WHY an IoT OPEN ECOSYSTEM?
Understand developers by looking at their goals and motivations
Knowing the developers…IoT Developer `s Segments
Source: IOT MEGATRENDS 2016 – Vision Mobile
HobbyistsMoonlighters building their own IoT solutions to learn and have fun.
ExplorersIndependent developers gaining experience as a side Project to seize on future opportunities.
HuntersExperienced developers building an IoT business. Focused on making money from device sales, apps or services.
Gun for HireSeasoned professionals developing IoT solutions on commission.
Product ExtendersCompanies using IoT technology to promote or extended non-IoT products.
OptimizersEngineers and system integrators using IoT to increase organizational efficiency and reduce cost.
Data BrokersCompanies that monetize digital content or data.
Gold SeekersIoT startups aiming to hit VC gold.
HOW to build an IoT OPEN ECOSYSTEM?
Knowing the developers…Stages of ecosystem evolution and key developers segments
Source: “How to kick-star an ecosystem” – Vision Mobile
Seeding“give hope to early adopters”
Growth“give money to pros”
Maturity“reach brands, verticals & media”
Hobbyist
Explorers
Guns for Hire
Hunters
Gold Seekers
Product Extenders
Content Publishers
Corporate IT
Hobbyist
Explorers
Guns for Hire
Hunters
Gold Seekers
Product Extenders
Content Publishers
Corporate IT
Hobbyist
Explorers
Guns for Hire
Hunters
Gold Seekers
Product Extenders
Content Publishers
Corporate IT
HOW to build an IoT OPEN ECOSYSTEM?
Knowing the developers and the market: Developer segment mix is an indicator of market maturity
Source: IOT MEGATRENDS 2016 – Vision Mobile
Professional and SME approach. Closer to B2B proposal.
Recreational and exploration approach. Closer to B2C proposal approach.
Increased maturity
HOW to build an IoT OPEN ECOSYSTEM?
IOT vision is leveraged across 4 layers
IOT Analytics
Products and services
OSS/BSS/IT
Physical assets
3
2
1
4
IoT
IOT AnalyticsValue
added servicesConnectivity
All IOT P&S feed a powerful IoT Analytics layer
Hardware
How to build a Big Data / IOT Analytics strategy
2.Big Data usages
3.Focus on your own and customers’ needs
4.Our Big Data strategy formulation
1.Understanding our Data: The 4 V’s
BI Dashboards - ReportingData Analysis
(trends, patterns, alerts)
Predictive AnalysisPredictive Engines + Machine Learning
Prescriptive AnalysisPrescriptive Engines + Business
Knowledge + Cognitive Computing
Descriptive Analysis
B
A
C
2.- Big Data usagesVa
lue
Difficulty
Retrospective
Insight
Anticipation
What happened?
Why did it happen?
What will happen?
How to make it happen?
Descriptive
Diagnostic
Prescriptive
PredictiveA
B
C
3.- Focus on your own and customers’ needs
Can we monetize all available data?
How could we use data to enhance our processes?
How are we going to generate value from data for our proposal
to customers?
1
2 3
Starting point: 3 fundamental questions to focus on the Big Data opportunity
4.- Our Big Data strategy formulation
Category Description Monetization Target Customer
Big Data as Business Insight
Offers insights from our own business analyzing data from
devices, connectivity and other sources.
Operational efficiency enhancements that enables you
to offer new services to our customers.
Internal consumption(Operation, Business Units)
Big Data as Added Value
Adds value to our existing services, proving specific benefits for
customers on functionality, ROI, etc.
Widen and enhances our P&S’s value proposal with the
integration of data analysis.External customers and
Business Units
Big Data as a New Service
Offer access to data sets that can be correlated among them and with
other external data sources.Access to and usage of data sets
can be commercialized.External customers and
Partners
1
2
3
CCDO IOT126
Photo by anotherjesse - Creative Commons Attribution-NonCommercial-ShareAlike License https://www.flickr.com/photos/44124365282@N01 Created with Haiku Deck
Bernardo Campillo SotoHead of New IOT Business and Innovation
[email protected]@twitter
Top Related