Intelligent Networks UnifiedCommunication Business Mobility

Creating Value with IoTPh.D. (Econ.) Robert Wendelin, Sonera@WendelinRobert

Management Events 2.12.2015

IoT is Already Here!

But it’s Constantly Changing

McKinsey: USD 3.9-11.1 Trillion (2025)

2/3 of the Value created in B2B:1. Increasing productivity –Transforming

current business2. Enabling new business

Significant Transformation!

IoT Disruption & Business Potential

Own Services Customer Solutions The whole value chain Scalability, Cyber security

and digital infrastructure Healthcare, IIoT,

buildings B2B+B2C

• Business rules still apply – it’s all about €£$

• Business Process Optimization

• An important step in the transition from a reactive behavior into a predictive way of reacting before events occurs

IoT Possibilities

Sensors Information Knowledge Action

• Big versus relational data

• Using existing process and equipment infrastructure data and turn it into information

• Knowledge and actions generating an improved process flow and a win/win for OEM and customer

IoT Possibilities

From Reactive to Predictive Maintenance

Reactive Maintenance

PreventiveMaintenance

PredictiveMaintenance

Operations and Maintenance Best Practices 3.0 – A guide to acheiving Operational efficiency US department of Energy 2010

“IoT - Value Stack”

Services & Applications

Connectivity & Networks

Digital Data Storage &Analytics

Device Solutions

Cyb

er S

ecur

ity

Indu

stria

l In

tern

et

Hea

lthca

re

Insu

ranc

e

Ban

king

&

Fin

ance

Ret

ail &

Sal

es ICT

Publ

ic &

Gov

ernm

ent

Traf

fic &

Logi

stic

s

Util

ities

Rea

l est

ate

Oth

ers

Plat

form

s&

Sys

tem

s

Management direction and commitment

Integrated capabilities

Business Model Transformation

Constantly developing products

Clear Investment plan and

budgeting

Performance Management

Common or transparent DMS, CRM

Business Controlling and follow up Globally

Clear Strategy

Customer Need

Change management and training

Key SuccessFactors for IoT”Climbing the

Mountain”

Strategy

OperationsInnovationAnd

Development

Results

Supporting organization

e.g. Monitoring

and Logistics

Innovation and

decision forums

Increase Channel Control

Sales Process

and structure

Technical knowledge e.g. RUL

Connectivity

Cyber Security

Data Analytics

Data StoragePartner

Ecosystem development

Digitalization constantly createsnew possibilities, and new Modus Operandi

• Depending on e.g. size, maturity and presence Sales and service

based earnings Subscription based

earnings/Licenses Outcome based

earnings

• Machine control example Productivity +265% Fuel savings of up to

68% Surveyor 95% less on

site

Operators 98:08h vs. 47.20h 50% saving

Tolerance improvement from 45% to 98%

• Global OEM quality and uptime on US market Proactively found

problems and the best action before failure>70% hit rate

Saved 1MUSD in repair cost in under two weeks!

12-14 X ROI in just 4 months

How can you Earn Money and Develop Business with IoT

IoT – What is it all About?

Example: Volvo Trucks• Volvo New Gold Contract• Volvo Telematics Gateway• I-Shift – Volvo’s automatic shift• DYNAFLEET Telematics solution• Fuel Advice -service• Volvo Action Service

http://www.volvotrucks.com/trucks/finland-market/fi-fi/services/top-services/Pages/connected_truck.aspx

Technical product

knowledge needed

Data Ownership

IPR

Do Homework

Correct sensor feeds

Choose data to transmit

Big vs. Relational

Data

Data analysis

competence

Data Quality

Rule engine

importance

Mixed Equipment

Management

Summary

• Never underestimate the power of change

• Focus on Business

• Co-create