Confidential & Proprietary - © Axillium Research 2014 – All Rights Reserved

Sophie Peachey

Director of Insight and Innovation

IoIT – Connecting Industry with the Internet of Things

– a UK Approach

Axillium.com

The Internet of Things: Top-level definition

Internet of Things (IoT): Technologies in consumer-based products used to define and characterise an analogue ‘thing’ in a digital way. For example: • Motion, light and temperature sensors can collect environmental

information about a room, creating a digital picture of what is otherwise an analogue space.

• Similar sensors within a car can be used to support its interaction with the hazards it encounters on its journey.

The Internet of Industrial Things: Top-level Definition

Internet of Industrial Things (IoIT): Uses similar types of technology to generate digital definitions of analogue or other digital ‘things’, but the impact is: • Process focused, improving industrial performance and efficiency. • Product focused, enabling new products to interact with their

environment

For example: • Using sensors in an industrial space to enhance and improve

manufacturing process by tracking the way tools work within certain conditions and optimising their use in relation to the conditions.

• Creating a way for a product to interact with its environment during its creation and on through its life when purchased.

The Internet of Industrial Things – Global Opportunities

The resulting global economic value add to industry as a result of increasing sales and

decreasing inputs and costs will be $1.9 trillion.

$1,900,000,000,000

Global Value Add

Gartner estimates that by 2020 there will be 26bn connected devices. Ericsson estimates

50 billion connected devices by 2020 (Ericsson White Paper, February 2011).

26bn Connected Devices

An explosion of connected devices over the next seven years will create huge opportunities.

By 2020 Gartner estimate over $300 billion incremental revenue for IoT suppliers with c.$250 billion derived from services.

As business models mature, the market will increasingly be driven by services to affect a set of business processes that exist today within the enterprise.

$300 billion Incremental Revenue

300bn IoT

Suppliers

IoT Services

250bn

Key service elements include:

• Configuration & customisation of IoT solutions

• Integration

• Data analytics

Source: Gartner, Forecast: The Internet of Things Worldwide, 2013

The Internet of Things: IoT Waves – Ericsson February 2011

Ericsson’s White Paper predicts Networked Industries as the 2nd phase of IoT adoption

Acknowledged source: http://www.ericsson.com/res/docs/whitepapers/wp-50-billions.pdf

Axillium’s Programme Delivery

Axillium Research is expert at Innovation Management of Grand Challenges for TSB, BIS, AMSCI, EPSRC and private clients.

5. TSB’s VE-DRIVE: using digital technology to connect Jaguar Land Rover’s supply chain in collaborative product design, manufacture and through-life management; 4 partners, £1.26m, 2 years

Axillium manages dissemination activities, prime stakeholder engagement, funding stakeholder engagement, and management of the project team and its deliverables.

For example: 1. TSB Internet of Things Interoperability Demonstrator

Phase 1: Developing EyeHub as a secure interoperable IoT platform hub for discovery and use of digitally enabled data; 11 organisations, 3 use cases, £799k, 1 year

2. TSB i-Composites Grand Challenge: 26 partners, 28 projects, £10m, 1 year…

3. AMSCI Composites Innovation Cluster: Making step-

changes in composites materials, design, process and use within aerospace and automotive sectors; 26 partners, 15 projects, £22m, 3 years

4. EPSRC Programme for Simulation Innovation (PSi): Jaguar Land Rover’s strategic research activity to engage 6 Universities across 8 themes; £10m, 5years

“In just one year, the Composites Grand

Challenge substantially progressed the UK’s

composites manufacturing capabilities across

26 projects that were focused on issues such

as energy reduction, automation, process time

reduction, materials and sustainability. A key

factor in this successful collaboration was

the independent programme management

and support provided by Axillium Research

who facilitated and encouraged the

intensive interaction and collaboration

among the project partners that was the

programme’s hallmark."

John Cornforth, VP Technology, GKN

Aerospace

A 2014 UK View of Leaders in the IoT Ecosystem

ARM, AlertMe, Neul, AcquaMW,

IntelliSense.io, Enlight, 1248, Red

Ninja, Neul and Badger Pass

SMART Facilities

OPEN IOT: Connecting Site Data

Science Scope, Intel, Xively,

Explorer HQ, Stakeholder Design, Uni of Birm’m

Urban Climate Laboratory, UCL Centre

for Adv’d Spatial Analysis, The OU Dept of

Computing.

Education DISTANCE: Connected Learning

Flexeye, Open Data Institute, University of

Surrey, Axillium, Manage Places, Eseye,

NPL, DesignSwarm and Guilford Borough

Council

Data &

Security

EYEHUB:

Secure

Big Data

Aimes Grid Services, BT,

Traak, Avanti, Placr and

Merseyside Transport

Transport

i-MOVE: Vehicle

Ecosystem

BT, Aimes, Ctrl-Shift, University of Cambridge, Dartt

and The Highways Agency.

Logistics

STRIDE: Smart

Transport & Logistics

LivingPlanIT, London City Airport, Milligan

Retail, IBM and Critical Software.

Airports

INTER-NATIONAL AIRPORT

Airport Services

SH&BA, EDF, IBM, BRE and

Westminster City Council

Environ-ment

IOT BAY:

Open Data Interop

InTouch Ltd, Lancaster University,

Redcar & Cleveland BC, University of

Birmingham, BCC, Carillion, Balfour Beaty

& Amey PLC.

Highways

SMART STREETS: Highway

Maintenance

IoT Interoperability: HyperCat

Solves the problem of resource Discovery:

Common, machine-readable API HTTPS, REST, JSON Can annotate existing APIs A simple foundation on which to build

A banner of openness, an ecosystem

Service

1

Apps

1

Devices 1

Service

2

Apps

2

Devices 2

Service

N

Apps

N

Devices N

HyperCat Horizontal x Verticals Reusable horizontal thinking

Real vertical test cases Solve interop problems we all have

Vert

ical

1

Vert

ical

2

Vert

ical

3

Vert

ical

4

Vert

ical

…

Vert

ical

N

Horizontal

Gartner forecast that the $1.9 Trillion global value add will be split across the following industry sectors:

15%

8%

11%

15%

11%

8%

4%

5%

8%

6%

4%

Manufacturing

Healthcare

Insurance

Banking & Securities

Retail & Wholesale

Computing Services

Government

Transportation

Utilities

Real Estate

Other

Industry Opportunities

Source: Gartner, Forecast: The Internet of Things Worldwide, 2013

The resulting global economic value-add to industry as a result of increasing sales and decreasing inputs and costs will be $1.9 trillion

Horizontal Impact on the Vertical Sectors

IoIT use cases are predominantly industry-vertical focused. Customisation for vertical markets will be critical for most of the horizontal elements.

Determine interoperability, standards and practices that allow data, systems and lessons to be shared across the verticals.

IoT Professional Services

IT Professional Services

Enterprise Software

Data Centre Services

Communications Services

Infrastructure / Gateway

Middleware / Security S/W

OS

Hardware

Hardware Services

Semiconductors

General Standards Manufa

ctu

ring

Healthcare

Insura

nce

Bankin

g &

Securities

Reta

il &

Whole

sale

Com

puting S

erv

ices

Govern

ment

Tra

nsport

ation

Utilit

ies

Real E

sta

te

Oth

er

Intent of the IoIT Cluster

The Cluster will offer businesses of all sizes the opportunity to work together to address the challenges of adopting, integrating and operating an IoIT product or business model. IoIT use cases will be predominantly focused on industry verticals where the critical success factors will address horizontal elements through: • Research and development from early stage research to maturing technologies • Training and development to build skills and capability • Innovation management and technology transfer • Technology showcasing and business mentoring The IoIT Cluster will be the UK’s Flagship Programme leading a supply chain of networked business and industries which deliver connected technology, products, jobs and growth.

Confidential & Proprietary - © Axillium Research 2014 – All Rights Reserved

© 2014 Copyright Statement

All rights reserved. This is a confidential & proprietary document. The strategy developed herein is the sole property of Axillium Research.

No intellectual property rights are granted by the delivery of this document or the disclosure of its content.

This document shall not be reproduced in full or in part, or disclosed to a third party without the express written consent of the contributors.

This document & its content shall not be used for any purpose other than that for which it is supplied.

The statements made herein do not constitute an offer. They are based on the mentioned assumptions & are expressed in good faith.

All images used in this presentation are © of the organisations . The logos and images of academic and industrial organisations used are openly credited and © of any other organisations.

© Axillium Research, 20 Cottesbrooke Park, Heartlands, Daventry, Northamptonshire NN11 8YL

Axillium Consulting Ltd trading as Axillium Research UK

Registered Company: 6370406 Registered Address: 28 Osprey Drive, Daventry, Northamptonshire, NN11 0XP