Internet of Things a business view

Jesper Rhode | Marketing LATAM

Ericsson Internal | 2016-07-12 | Page 2

Ericsson Internal | 2016-07-12 | Page 3

Ericsson Internal | 2016-07-12 | Page 4

Ericsson Internal | 2016-07-12 | Page 5

Ericsson Internal | 2016-07-12 | Page 6

Ericsson Internal | 2016-07-12 | Page 7

Ericsson Internal | 2016-07-12 | Page 8

Ericsson Internal | 2016-07-12 | Page 9

Ericsson Internal | 2016-07-12 | Page 10

Ericsson Internal | 2016-07-12 | Page 11

Business reposition

Ericsson Internal | 2016-07-12 | Page 12

Platforms in the S&P 500

Ericsson Internal | 2016-07-12 | Page 13

Ericsson Internal | 2016-07-12 | Page 14

Ericsson Internal | 2016-07-12 | Page 15

Ericsson Internal | 2016-07-12 | Page 16

Ericsson Internal | 2016-07-12 | Page 17

Ericsson Internal | 2016-07-12 | Page 18

The value of data

Ericsson Internal | 2016-07-12 | Page 19

https://thedma.org/advocacy/data-driven-marketing-institute/value-of-data/

Ericsson Internal | 2016-07-12 | Page 20

Ericsson Internal | 2016-07-12 | Page 21

Ericsson Internal | 2016-07-12 | Page 22

Ericsson Internal | 2016-07-12 | Page 23

Ericsson Internal | 2016-07-12 | Page 24

Ericsson Internal | 2016-07-12 | Page 25

Ericsson Internal | 2016-07-12 | Page 26

Ericsson Internal | 2016-07-12 | Page 27

Ericsson Internal | 2016-07-12 | Page 28

Ericsson Internal | 2016-07-12 | Page 29

Ericsson Internal | 2016-07-12 | Page 30

Ericsson Internal | 2016-07-12 | Page 31

Ericsson Internal | 2016-07-12 | Page 32

Ericsson Internal | 2016-07-12 | Page 33

Ericsson Internal | 2016-07-12 | Page 34

Ericsson Internal | 2016-07-12 | Page 35

Ericsson Internal | 2016-07-12 | Page 36

Ericsson Internal | 2016-07-12 | Page 37

Ericsson Internal | 2016-07-12 | Page 38

Ericsson Internal | 2016-07-12 | Page 39

Ericsson Internal | 2016-07-12 | Page 40

Ericsson Internal | 2016-07-12 | Page 41

Ericsson Internal | 2016-07-12 | Page 42

Ericsson Internal | 2016-07-12 | Page 43

Ericsson Internal | 2016-07-12 | Page 44

Ericsson Internal | 2016-07-12 | Page 45

Exponential Organizations

Ericsson Internal | 2016-07-12 | Page 46

A System of Systems

Sensors / Data Services

Fuel Speed

Fuel consumption Tire pressure

Temperature

Moisture Soil data

Meteo data

Steering

Oil Distance

Traction

Crop condition

Harvest data

Operation efficiency

Preventive maintenance

Cost per performance

Autonomous

driving

Soil analysis

Fuel efficiency Harvesting

Field preparation

Ericsson Internal | 2016-07-12 | Page 47

A System of Systems Weather

Machinery Crops

Soil

- Yield per m2

- Profitability

- Climate fitting

- Optimization of consumables

- Crops vs Soil optimization

- Feed-back to crops development

- Total irrigation management

Total Result oriented services

Ericsson Internal | 2016-07-12 | Page 48

value

Constructing a business logic

Information

Model / APP

Analytics

Database External Data IoT Products Biz systems Sensors

Build

Ericsson Internal | 2016-07-12 | Page 49

Monetization

The business model evolution

Competitive basis

Sales

Maintenance

Partnerships

Product Product-Service

Service Service-Result

Result

Usage based

Pay and use

Transaction- based

Feature and Price

One and done

Break and fix

Single business

Result based

Business model

Share in results

Included

Network of businesses

Ericsson Internal | 2016-07-12 | Page 50

IoT evolving into different value systems

Massive MTC / IOT

CAPILLARY NETWORKS

LOGISTICS, TRACKING AND FLEET MANAGEMENT

SMART AGRICULTURE

SMART BUILDING

SMART METER

Critical MTC

TRAFFIC SAFETY & CONTROL

INDUSTRIAL APPLICATION & CONTROL

REMOTE MANUFACTURING,

TRAINING, SURGERY

REMOTE HEALTH CARE

Cellular M2M today

• Electricity meters

• Connected cars

• POS terminals

• ETC

• ~400 million cellular M2M connections today

• Majority over GPRS LOW COST, LOW ENERGY SMALL DATA VOLUMES MASSIVE NUMBERS

Low Power Wide Area ULTRA RELIABLE

VERY LOW LATENCY VERY HIGH AVAILABILITY

4G Evolution & 5G

Ericsson Internal | 2016-07-12 | Page 51

Operator product development for IOT

Massive MTC / IOT

CAPILLARY NETWORKS

LOGISTICS, TRACKING AND FLEET MANAGEMENT

SMART AGRICULTURE

SMART BUILDING

SMART METER

Critical MTC

TRAFFIC SAFETY & CONTROL

INDUSTRIAL APPLICATION & CONTROL

REMOTE MANUFACTURING,

TRAINING, SURGERY

REMOTE HEALTH CARE

Cellular M2M today

• Electricity meters

• Connected cars

• POS terminals

• ETC

• ~400 million cellular M2M connections today

• Majority over GPRS LOW COST, LOW ENERGY SMALL DATA VOLUMES MASSIVE NUMBERS

Low Power Wide Area ULTRA RELIABLE

VERY LOW LATENCY VERY HIGH AVAILABILITY

4G Evolution & 5G

Low level of integration

High level of integration

High Value per data instance

Low Value per data instance

Strip network resources Add network resources

Build, Partner, Acquire

Ericsson Internal | 2016-07-12 | Page 52

One network – multiple industries

@

A common network platform with dynamic and secure Network Slices

© Telefonaktiebolaget LM Ericsson 2015 | Ericsson June 2015

Ericsson Internal | 2016-07-12 | Page 53

5G

1000x Mobile Data

Volumes 10x-100x Connected Devices 5x

Lower Latency

10x-100x End-user Data Rates

10x Battery Life for Low

Power Devices

Source: METIS

Evolution Towards 2020

4G 3G 2G

© Telefonaktiebolaget LM Ericsson 2015 | Ericsson June 2015

Ericsson Internal | 2016-07-12 | Page 54