IoT the driver of Business Innovation

better products, new services and the outcome economy

CEBIT 2016

March 15th, 2016

Roberto Siagri Chairman & CEO Eurotech Spa

Eurotech: Commited to a Vision

"The Computer for the 21st Century", Scientific American,

Vol. 265 No.9, pp. 66-75, 1991

Mark Weiser

The most profound

technologies are those

that disappear.

They weave themselves

into the fabric of everyday

life until they are

indistinguishable from it

Pervasive and Ubiquitous Computing

The Pervasive Computer Machine-2-Machine / Internet of Things applications everywhere…

4

The Innovation Imperative

These forces

(together with the exponential growth of technology)

create environments increasingly vulnerable

to disruption

Late majority:

Laggards:

Market share

Time

Big Bang Market Adoption

Innovators: Early majority:

Early adopters:

Innovator Dilemmas:

Trial users Everyone else

L.Downes P. Nunes Big Bang Disruption From G. Moore Crossing the Chasm to

Innovator Dilemmas:

Brinkler, Scott (2013):

Technology changes exponentially,

Organizations change logarithmically

Technology change

exponentially

Organization change

logaritmically

Rate of

Change

Time

?

? ?

?

?

Companies in every industry need to assume that a software revolution is coming… Marc Andreessen

Innovator Dilemmas:

Products Dematerialization

& Value Chains Deconstruction

GE CEO Jeff Immelt told his troops last year:

“If you went to bed last night as an

industrial company, you’re going to

wake up this morning as a software

and analytics company.”

Data and the 4^ Industrial Revolution

Data are the new raw material:

new source of innovation &

lever to achieve business sustainability.

Transition = Business Disruption

i.e. New value creation

• Improve operational

efficiency

• New connected

ecosystems

• Collaboration between

humans and machines

• Emergence of an outcome

economy

0 1 0 11 00

1 0 1 0 11 1 0 11

1 1 1 000 10 11 1

0 1 0 1 1 0 1 1 1 0 0 0 0 1 1 0 1 1 1 0 11 1 0 11 1 0 1 0 1 0 1 0

1 0 1 0 11 1

0000 1

1 0 1 1 0

11

0 1 0 11 00 1 0

11 0

Adoption and impact path of the Industrial IoT

11

1. Operational

Efficiency

2. New Products &

Services

3. Outcome Economy

4. Autonomous,

Pull Economy

Near-term

Long-term

World Economic Forum:

Industrial Internet of Things:

Unleashing the Potential of

Connected Products and

Services Jan.2015 Time

Chang

e

Fundamental Business Model Shift

products

evolve to

integrated «bundles»

of services

is happening in almost all industries on a global scale

Servitization

DATA

IOT

Sensors

SERVICES

platform

M2M

monitoring

management

RE

MO

TE

Preventive Maintenance

many-to-one

machines

actu

ato

rs

HM

I

near

real-tim

e

MQTT

PR

OT

OC

OLS

field

bus

gateway

MULTI SERVICE

REST unattended

OT

IT/OT INTEGRATION

iPaaS

IaaS

BIG DATA

AN

AL

YT

ICS

business intelligence

IT

CEP

CL

OU

D

on-premise

database

ES

B

SaaS

MOBILE AP

PLIC

AT

ION

INT

ER

NE

T

virtualization

IaaS

IP

open source

CONTEXT

Busin

ess M

odels

AS

SE

T

cellular

wireless

satellite

BUSINESS services

servitization

CUSTOMER

PARTNER

OE

Ms

ORGANIZATIONS

PRODUCT

VALUE

su

pp

ort

INFRASTRUCTURE

ou

tso

urc

ing

new

business models

everything as a service

DaaS

iPaaS

TCO

FLEXIBILITY

Industry needs to combine IT and OT

IT OT

Internet of

Things

Information Technology Business Process Automation

& Office Automation

Operational Technology Industrial Process Automation

& Factory Automation

i.e:

Engagement i.e.:

Predictive Maintenance

+

IoT enables the fusion of IT & OT

OT business opportunities because of IT integration

• Predictive maintenance

• Remote Monitoring & Assets

Performance Management

• Operational efficiency and

productivity gains

• New more performing Products

IT business opportunities because of OT integration

• Increase Customers

retention and fidelization

• new business models

• products-as-a-service,

• pay-per-use

• monetization of data

The complexity trap in IoT In need of a bridge between Distributed Things and Multiple Business Apps

Business

Applications

Sensors,

Actuators,

Displays, …

@

16

How to tame

complexity? ?

IT

OT

No more vertical M2M Applications

IoT = Horizontal M2M

Mobile & Web Apps

IoT platform

Public-Private Cloud

The IT & OT Pyramids Internet of Things = Things to Cloud

Telecom Infrastructure

WAN Networks

SW Gateway

(Software Frameworks & software)

Gateways

CLOUD

IT

OT

Eurotech's approach to IoT

Building a bridge between the field and business apps

Business Applications

PLCs, Sensors, Actuators, HMIs

@

Multi- Service Gateway

Everyware Cloud IoT Integration Platform

19

Business Apps Ecosystem

@

Enterprise interface (IT interface)

IoT Integration

Platform

Act Integrate

Store Control Connect

+

Field Interfaces (OT Interface)

Future proof Field – Devices

Eurotech’s Approach: Divide and Conquer Ingredients for successful IoT recipes

Multi- Service

IoT Gateway

Communicate Compute

Collect

20

any JAVA hardware

OSGi

? ?

Business Apps @

APIs Interfaces

IoT Integration

Platform

Act Integrate

Store Control Connect

+

Field Interfaces Field - Devices

The coupling trap in IoT In need of a bridge between Distributed Things and Multiple Business Apps

Multi- Service

IoT Gateway

Communicate Compute

Collect

21

Consumersof Data

Producers of Data

How to tame market and technology

uncertainties?

? ?

Mobile & Web Apps

APIs

IT Platform

(IoT Platform)

DataCenter

The IoT IT Pyramid Internet of Things = Co-Innovate Platform

IT

Co-Ideate

Co-Fund

Co-Build

Co-Distribute

Co-Market

Co-Sell

Co-Revenue Share

SaaS

PaaS

IaaS

The IoT OT Pyramid

Internet of Things = Scalability & HW agnostic

Iaas

WAN Networks

Software Defined Gateway

(Frameworks ,Protocols)

HW Gateways

Fieldbus, PAN, I/O

OT Wired and Wireless Network

Infrastrutture

IoT Platform as a a new Enterprise tool Efficiency & Added Value

Assets

Relationship

Management

Transforming Bits of Data at the Edge of the Network

into Actionable Information & Knowledge

Go Innovate

with an

IoT

Ecosystem

to Enable

Your

Innovation

Ecosystem

www.eurotech.com

Thank

You!