1.1 introduction to the internet of things

Public© 2017 SAP SE or an SAP affiliate company. All rights reserved. 1

Touch IoT with SAP Leonardo1.1 Introduction to the Internet of Things


Introduction to the Internet of Things What’s new in this course?

Guest Speakers

Expert from IDC

Expert from TBR

Expert from Intel

Fun Exercise Touch IoT directly

Update

Internet of Things

SAP Leonardo

SAP IoT products

Winners Top 5 – IoT Hardware

Top 200 – Funding Entrepreneurs

Prototype Challenge More focused

New templates


Go deeper into IoT with SAP

Introduction to the Internet of ThingsCourse structure (1)

Get to know the Internet of Things

Prototype your first IoT application

Peer review

Winners will be announced


Create Your

Own IoT

Prototype

Go Deeper

into IoT

with SAP

Get to Know

the Internet

of Things

No Final

Exam

More Time

for Innovation

Video lectures and assignments

Submit your work

Evaluate peers

View results

Announce

winnersDesign, iterate, and prototype IoT application

Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7

Introduction to the Internet of ThingsCourse structure (2)


What is IoT…and why should you care?


Introduction to the Internet of ThingsPopular definitions

“The Internet of Things (IoT) is the network of physical objects that contain embedded

technology to communicate and sense or interact with their internal states or the external

environment.” Source: Gartner

“The Internet of things (IoT) is the network of physical devices, vehicles, buildings, and other

items—embedded with electronics, software, sensors, actuators, and network connectivity that

enable these objects to collect and exchange data.” Source: Wikipedia

“Everyday devices equipped with sensors and connectivity to work together, understand what

we’re doing, and operate automatically to make our lives easier.” Source: Digital Trends


Introduction to the Internet of ThingsopenSAP definition

AnalyzeSense

Store Share

ControlAct

Connect

“The Internet of Things (IoT) is the

network of physical objects that contain embedded technology to sense and interact with

their environment and each other to collect and exchange data to make our lives better.”

IoT Definition by Gartner, Wikipedia, Digital Trends, and openSAP


Introduction to the Internet of ThingsIndustrial revolutions – from industry 1.0 to 4.0

First Mechanical Power

SecondMass Production

ThirdDigital Revolution

FourthInternet of Things

1800 1900 2000

Division of labor and mass

production with the help of

electrical energy

All devices are

connected

Electronic and IT

systems that further

automate production

Mechanical production

facilities with the

help of water and

steam power


Internet of Things vs. InternetWhat is the difference?


Introduction to the Internet of ThingsInternet of People


Introduction to the Internet of ThingsInternet of Things


IoT Facts6 things you should know about IoT


ATMs are considered

some of the first IoT objects, and

went online as far back

as 1974.

of people have not

heard of the term

Internet of Things.

87%

Only 10% of cars were

connected to the Internet

in 2012. By 2020, it’s

estimated that 90% will

be.

# of Connected Objects2016 6.4 billion

2020 50 billion

The term “Internet of Things”

was coined by Kevin Ashton

from MIT in 1999

For a device to be labelled as IoT, it

must have 7 design features:

• Sensors

• Internet connectivity

• Processors

• Energy efficiency

• Cost effectiveness

• Quality

• Reliability

• Security

Introduction to the Internet of ThingsIoT facts


IoT in 2016Why is the IoT boom happening now?


Introduction to the Internet of ThingsWhy IoT is booming now (1)

Availability

• IoT devices are already

common, cheap, and easy to

replace.

• Basic infrastructure to support

IoT is in place (Wi-Fi, LTE).

• By 2018, half

of the world

will be connected

to the Internet.

Affordability

• Average cost of sensors

used in IoT will drop

even more.

• By end of the decade,

the price for a sensor will

be down to almost $0.30.

Scalability

• Many devices offer simple

“plug & play” functionality.

• IoT devices are highly

flexible, offering short- or

long-term solutions for

companies, households,

countries.


Introduction to the Internet of ThingsWhy IoT is booming now (2)

Average Sensor Cost Forecast

Estimated Penetration of Global Population

Using the Internet

Source: Goldman Sachs, BI Intelligence Estimates, 2014

Source: BI Intelligence, ITU

100%

50%

0%2005 2007 2009 2011 2013 2015 2017E 2019E

$1.50

$0.75

$.0.002004 2006 2008 2010 2012 2014 2016E 2018E 2020E


Introduction to the Internet of ThingsTechnology convergence

Artificial

Intelligence

and many more…

Natural language

generation

Virtual and

Augmented Reality

Robotics and

Drones

Internet of

Things


The IoT world todayWhat is possible today?


Introduction to the Internet of ThingsOil and gas industry

Data-enabled

monitoringimproves employee

safety

Advanced sensors attach to pipelines

Track pressure, temperature, transfer

speeds in real time

Optimizeroutes to increase

shipment

efficiency

Forecastfuture volumes


Introduction to the Internet of ThingsDisaster relief

Electronic

displays raise

awareness for public

announcements

Remote control

functions that alert vending

machines to dispense

drinks during disasters

Storage

batteries allow

machines to operate

during power outagesCurrent location stickers are on all

vending machines

in Japan to track location

immediately


Introduction to the Internet of ThingsSmart pill bottles

Cost$10–$15 per month

Cap transmits

data to hub

Internet

connected

hub that plugs

into the wall

E-mails to a loved one or a

health provider

Refill buttonthat connects them to

their pharmacy via

phone

Reminder if medicine wasn’t

taken


Introduction to the Internet of ThingsSmart contact lens


In the

morning

Leaving the house At work

Back home

Introduction to the Internet of Things The IoT world today – let’s imagine a “normal” day


Think outside the boxHow IoT changes our lives


Evolve products that

are connected to the

Internet and equipped

with sensors.

New

products

New

servicesServices that can be

provided in addition

to a product.

Introduction to the Internet of Things Think outside the box – how IoT changes our lives


Introduction to the Internet of Things Unit summary and looking ahead

• What IoT is

• IoT history and context

• Why IoT is booming now

• IoT examples

Looking Ahead

• Internet of GOOD Things

Unit Summary

Thank you

Contact information:

[email protected]


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Touch IoT with SAP Leonardo1.2 Imagination, Innovation, and the Internet of GOOD Things


ImaginationWhat is it?


Imagination, Innovation, and the Internet of GOOD ThingsImagination


Imagination, Creativity, Innovation What is the difference?


Envision what doesn’t

exist yet

Imagination

Apply imagination to

address a challenge

Apply creativity to

develop unique ideas

Creativity Innovation

Imagination, Innovation, and the Internet of GOOD ThingsImagination vs. Creativity vs. Innovation


Leonardo da Vinciand his imagination...


Imagination, Innovation, and the Internet of GOOD ThingsLeonardo da Vinci’s imagination

Self-propelled cart Revolving bridge

Parachute HelicopterScuba gear


Mass innovationsHow do things go from imagination to innovation?


Imagination, Innovation, and the Internet of GOOD ThingsMass innovation

1973 2007

Today Future

Innovation

Infancy

Innovation

Democratization


The Internet of GOOD Things Can we make the world a better place by combining

imagination, innovation, and IoT?


Imagination, Innovation, and the Internet of GOOD ThingsAutonomous vehicles

With driverless and connected

vehicles directly communicating with

their environment, human error is

taken out of the equation and

accidents are eliminated.

Autonomous Vehicles


Imagination, Innovation, and the Internet of GOOD ThingsAgriculture

Sensors help reduce water usage by

analyzing important factors such as

topography and moisture levels.

Irrigation Sensors


Imagination, Innovation, and the Internet of GOOD ThingsWater quality

Sensors are placed in water streams

to monitor acidity, and also send

alerts when a water pump breaks.

Water Quality


Imagination, Innovation, and the Internet of GOOD ThingsHealthcare

Sensors detect patient’s data—from

temperature to oxygen saturation.

Over time, those sensors help predict

where an outbreak of a disease like

Ebola is going to spread.

Track Diseases


Imagination, Innovation, and the Internet of GOOD ThingsNatural disasters

With the help of sensors, natural

disasters such as earthquakes or

tsunamis could be detected earlier,

allowing more time for evacuation.

Warning Systems


Imagination, Innovation, and the Internet of GOOD ThingsInternet connectivity

Project Loon is a network of balloons

traveling on the edge of space,

designed to extend Internet

connectivity to people in rural and

remote areas.

Project Loon


Imagination, Innovation, and the Internet of GOOD ThingsUnit summary and looking ahead

Looking Ahead

Sensors, Connectivity, and Insights

Unit Summary

Imagination vs. innovation and Leonardo da Vinci examples

Innovation infancy vs. democratization

IoT and larger application examples

Thank you


[email protected]


Touch IoT with SAP Leonardo1.3 Sensors, Connectivity, and Insights


Sensors, Connectivity, and InsightsThe growing importance of sensors

Experts predict

there will be up

to 100 trillion

sensors by

2030.

Image, speech,

and voice

recognition will

advance to near

100% accuracy

by 2025.

The speed of

analytics will

grow thirtyfold

by 2030, with

95% of queries

answered in

milliseconds.

Sensors will be

commonplace in

the 111 million

new cars and

the 2 billion

smartphones

that will be

purchased in

2020.

The Internet of

Everything

market could

grow to $14.4

trillion by 2022.


Sensors, Connectivity, and InsightsBuilding blocks of IoT

Devices Gateway Application

Dire

ctly

Co

nn

ecte

d

Lo

ca

lly C

on

ne

cte

d

ERP

Business

On cloud

and/or

IoT Platform

Sensor Data

Back-End Systems

On premise


SensorsAn important element of IoT

Devices

Dire

ctly

Co

nn

ecte

d

Lo

ca

lly C

on

ne

cte

d


Sensors, Connectivity, and InsightsWhat is a sensor?

A sensor is a small device that identifies informationfrom its physical surrounding.

Technically, a sensor device is a transducer, which consists

of a sensor for measuring the actual value and a

signal conditioner to convert the measurement into

meaningful information.

If the sensor detects a change in the environment, it

records, indicates, or otherwise responds to it.


Sensors, Connectivity, and Insights Sensors in action – example: temperature sensor

Cooler with

temperature

sensor

Event:

temperature

rises

Sensor detects

temperature

increase

Sensor

generates signal

to transmit

information


Sensors, Connectivity, and Insights Sensor measurement examples

Temperature

Pressure

Position

Motion

Electricity

Vision

Chemicals

Sound

Humidity


ConnectivityConnection to back-end systems

Gateway Back-End Systems

ERP

Business

On cloud

and/or

IoT Platform

Sensor Data

On premise


Sensors, Connectivity, and InsightsExample of sensor technologies with different connectivity methods

Wi-Fi Bluetooth RFID


Sensors, Connectivity, and InsightsTypical sensor device

Sensors

Processors

ConfigurationSecurity

Signal

Signal

Signal

Signal

Message Receiving

System

Sensor Device

Emitter Protocol: HTTP or MQTT

Message:

JSON, XML, etc.

Connectivity:

BLE, Bluetooth, 4G, 2G, etc.

Local or Remote

Receiving System


Sensors, Connectivity, and InsightsConnectivity – cloud connected

A directly connected sensor can connect to back-end systems

and send data using high-speed Internet.

These types of sensors are based on Wi-Fi, 2G, 3G, 4G LTE, etc.

Back-End Systems

ERP

Business

On cloud

and/or

IoT Platform

Sensor Data

Devices

On premise


Sensors, Connectivity, and InsightsConnectivity – locally connected

A locally connected sensor depends on nearby gateways,

smartphones, or other means to deliver messages to

back-end systems.

These sensors are based on Bluetooth/BLE or ZigBee.

Back-End Systems

ERP

Business

On cloud

and/or

IoT Platform

Sensor Data

Devices

Gateway

On premise


InsightsIoT applications to help

business and consumers

ApplicationBack-End Systems

ERP

Business

On cloud

and/or

IoT Platform

Sensor Data

On premise


Sensors, Connectivity, and InsightsCombined data from different sources for deeper insights

Device Data

ApplicationBack-End Systems

Sensor Data

Master Data

Rules

Processes

Historical

Business Data

Monitoring

Notification

Analytics

Insight and Action

ERP

(CRM, HCM, SCM)

and IoT Platform

Systems


Sensors, Connectivity, and InsightsExample of insights: device insights


Sensors, Connectivity, and InsightsExample of insights: aggregate consumption insights – Top 5 Coffee Brands by Region

10%

20%

30%

Perc

enta

ge o

f C

off

ee C

onsum

ption

Coffee Brand

27%

18%

10%8%

5%

West

South

East

Mid-West


Sensors, Connectivity, and Insights Unit summary and looking ahead

Looking Ahead

New Interaction Paradigms

Unit Summary

Key components involved in IoT:

Device layer

Gateway

Backend systems

Application layer

Thank you


[email protected]


Touch IoT with SAP Leonardo1.5 New Technologies Impacting IoT: Blockchain and Drones


Blockchain What is it and how does it work?


New Technologies Impacting IoT: Blockchain and DronesExample: money transfer before blockchain

LISA

50 $

BOB

49 $

BANK

3 days +

$$

Bob’s

Account

Lisa’s

identification


New Technologies Impacting IoT: Blockchain and DronesExample: money transfer with blockchain

LISA

50 $

BOB

49 $

BANK

3 days +

Transfer money…

Decentralized, without trusted middle party

Cheaper

Faster


New Technologies Impacting IoT: Blockchain and DronesBitcoin – a money transfer application using blockchain technology

The world's first decentralized currency

2008

Unsure (Satoshi Nakamoto)

Uses blockchain technology

230,000+

BTC

Bitcoin

Year of Introduction

Inventor

Technology

Transactions per day

Acronym


000..45fLfS

Lisa

New Technologies Impacting IoT: Blockchain and DronesBlockchain – the Bitcoin example

BOB

LISA

Lfd4…8Sfe

A8T…22sL

Sf53…2Fs


New Technologies Impacting IoT: Blockchain and DronesBlockchain – definition

Decentralized

Open to the

whole network

Public

Everybody can look

into the blockchain

Time stamped

Records date and

time of each

transaction/change

Persistent

A blockchain

contains historic

transaction data


SecurityHow secure is a blockchain?


Block 1 Block 2 Block 3

New Technologies Impacting IoT: Blockchain and DronesBlockchain – security


New Technologies Impacting IoT: Blockchain and DronesBlockchain – why you can’t cheat at blockchain

27

19


Other industry use cases for blockchain technology


Medical Records

School Certifications

New Technologies Impacting IoT: Blockchain and DronesBlockchain – other industry use cases

Photos

Supply Chain

Real Estate

Testament

Licenses

Visas

https://thenounproject.com/term/edit-passport/611337


What about IoTand blockchain?


New Technologies Impacting IoT: Blockchain and DronesBlockchain and IoT

Farm

Warehouse

Retail Store


Drones


A drone is an unmanned aircraft

system or an aircraft without a pilot.

New Technologies Impacting IoT: Blockchain and DronesWhat is a drone?


Hobbyist

Drones

Combination

Commercial

Drones

Commercial

Drones

New Technologies Impacting IoT: Blockchain and DronesDifferent types of drones

https://thenounproject.com/term/baby-bottle/97932

https://thenounproject.com/term/helicopter/70158

https://thenounproject.com/term/pizza-delivery/97936


New Technologies Impacting IoT: Blockchain and DronesUse cases (1/2)

Agriculture

Planting

Crop spraying

Crop monitoring

Irrigation

Health assessment


New Technologies Impacting IoT: Blockchain and DronesUse cases (2/2)

Logistics and Delivery

Packages

Food

Emergence medicine and organs


Drones and IoTDo they go hand in hand?


AccelerometerStabilizes the drone

BarometerMeasures pressure to determine altitude

GPSTracks location

GyroscopeProvides angular motion

MagnetometerMeasures magnetic field

of the earth

New Technologies Impacting IoT: Blockchain and DronesSensors and drones

https://thenounproject.com/term/compass/924204

https://thenounproject.com/term/gyroscope/145002

https://thenounproject.com/term/accelerator/859714

https://thenounproject.com/term/gauge/8760


Can be

deployable in

any direction

Can be re-

programmed

in mission

Capable of

carrying flexible

payload

Can measure

anything

without

geographic

constrains

Drones as

connected

devices; data can

be accessible

through phone,

Internet, and

cloud

New Technologies Impacting IoT: Blockchain and DronesWhy drones are the future of IoT

https://thenounproject.com/term/deploy/869791

https://thenounproject.com/term/input/155887

https://thenounproject.com/term/satellite/656624

https://thenounproject.com/term/ruler/710085

https://thenounproject.com/term/phone/698429


New Technologies Impacting IoT: Blockchain and DronesUnit summary and looking ahead

Looking Ahead

IoT and the Future of Business

Unit Summary

A blockchain is a decentralized database that can keep records

of all kinds of digital transaction

A drone is an unmanned aircraft that can fly autonomously

Thank you


[email protected]


Touch IoT with SAP Leonardo1.6 IoT and the Future of Business – IDC


2IoT: It Starts With Connections and Content

80 Billon

160

ZBytes

30 Billon

44

ZBytes

Source: IDC IoT 2017

2020 2025


3

How Do You Know Who Is Ready for IoT?


4IoT Velocity: (Surveyed C-Suite, ICT and Lines Of Business Point Of View)

N= 4,152 Source: Global IoT Decision Maker Survey, IDC, August, 2016


5Industry IoT Velocity: (Surveyed Industries Point Of View)

N= 4,152

Source: Global IoT Decision Maker Survey, IDC, August, 2016

Financial Services

Retail

Manufacturing

Health Care

Utilities

Government


Evolving IoT Business ModelsTwo Paths to Increasing the Value of IoT Outcomes

Value Chain Value Agility

Value

Model Value Network

Product-

Centric

Services-

Centric

Ecosystem-

Centric

“Value chains are no longer relevant. Customers need to be at the center of strategy, rather than at

the end of a chain.” Amy Konary, program VP, IDC Directions 2017

“The Value of the IoT Solution is proportional to the speed and the number of times the original IoT

data is analyzed.” 11. Turner’s Law of IoT


The IoT Business Model 1.0

IoT

Devices

IoT

Gateways

Cloud

& Analytics

Machine Learning

Cognitive Computing

IoT Platform

“The Edge”


Sachin Gupta

Senior vice

president & group

CIO at Havells India

Ltd.

"To be a globally recognized corporation that provides

best electrical & lighting solutions, delivered by best-in-

class people."

++


IoT

Devices

IoT

Gateways

Cloud

& Analytics

Machine Learning

Cognitive Computing

IoT Platform“The Edge”

Characteristics of IoT Business Model 1.0

0 20 40 60 80

Separate

Somewhat intgrated

Fully Integrated

N=3,814 Source: Global IoT Decision Maker Survey, IDC, August, 2016

Implemented Beyond Proof of Concept

Customer in “Learning Mode”

Standalone Deployments

Few Services & Systems Integration Requirements

Small Use of Analytics/Cognitive Learning

Limited Benefits from IoT Platforms

Limited But Growing Digital Business Outcomes

Network & Hardware Vendors Perceived IoT

Leaders



IoT

Devices

IoT

Gateways

Cloud

& Analytics

Machine Learning

Cognitive Computing

IoT Platform

Back-Office Systems

“The Edge”

SaaS

APIs

Developers

Open Source

Open Data Platform

Intelligent ERP

“i-ERP”



IoT

Devices

IoT

Gateways

Cloud

IaaS, PaaS &

Analytics

Machine Learning

Cognitive Computing

IoT Platform

Back Office Systems

“The Edge”

SaaS

APIs

Developers

Open Source

Open Data Platform

Intelligent ERP

“i-ERP”


Mark Shearer

Executive vice

president and

president,

Global SMB Solutions


Generate Significant Digital Business Outcomes

Standardized and Integrated Diverse Work

Flows with i-ERP

Most IoT Apps Are Cloud Platform

Applications

Fully Operate as an “aaS” Model

Significant Increase in Services & Systems

Integration Needed

Constant Use of Analytics/Cognitive

Learning

Compute Speed & Scale Become Core

Requirements

“No Code/ Low Code” Developer Model

Software & Analytics Vendors Perceived IoT

Leaders

IDC IoT FutureScape Predictions November 2016:

By 2019, all effective IoT efforts will merge streaming analytics with machine learning trained

on data lakes, marts, and content stores, accelerated by discrete or integrated processors.

Characteristics of the IoT Business Model 2.0


Are There New Business Opportunities That

Emerge from These Business Models?

IoT Business Outcomes Gravity … the force of

attraction that moves or tends to move IoT

business outcomes created by fixed or mobile IoT

solutions, toward the center of an IoT system

(e.g., a connected car, train, human, etc.).

Source: Vernon Turner, IDC, 2017

New Businesses Created IoT Gravity

• IoT Data Broker (Sourced by IoT Gateways &

Platforms

• IoT Data Arbitrager (Sourced by IoT Platforms)

• IoT Derivatives Market (Sourced by IoT Analytics)


Essential Industry Guidance

IoT Velocity Indicates Where Future IoT Business

Solutions Start

IoT Gravity Indicates Where Future IoT Business Models

Generate Wealth

Treat IoT Business Outcomes As “Financial

Transactions” to Understand Future Ecosystem

Opportunities

Thank you


[email protected]

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