M2M & IoT: the 4th Industrial Revolution and Service Economy

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M2M & IoT - The 4th Industrial Revolution and Service Economy
Presentation given at M2M+ Industry Summit 2014 in Milan
Roberto Siagri, Chairman & CEO

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M2M & IoT: the 4th Industrial Revolution and Service Economy

  1. 1. M2M & IoT the 4th Industrial Revolution and the Service Economy Roberto Siagri, Chairman & CEO, Eurotech SpA
  2. 2. Manufacturing Industry is in Transformation by the forces of: ‐ deregulation ‐ technology ‐ globalization  ‐ competitive pressure
  3. 3. Steam Engine Assembly Line Computer M2M 1⁰ 2⁰ 3⁰ 4⁰
  4. 4. 4 in the 21st century, we won't experience 100 years of progress it will be more like 20,000 years of progress The Law of Accelerating Returns Ray Kurzweil The pace of change is accelerating : be prepared! 1⁰ 2⁰ 3⁰ 4⁰
  5. 5. IoT/M2M is not about Products & Technologies is about Transition
  6. 6. Which Transition ? both service companies and manufacturers  are moving more dramatically into services 6 Vandermerwe and Rada, 1988  is happening in almost all industries on a global scale Servitization
  7. 7. a Services Economy Thebill
  8. 8. Time Innovation Custom Products Commodity 8 The most important technologies “disappear” Standard Products Utility/ as a Service Diffusion‐Cost
  9. 9. • Open & Industry Standards • Standard  Computer HW components • Cloud computing • Standard   SW components Time Cost‐Ubiquity Z‐curve S‐curve M2M/IoT :  Commoditization of  distributed systems 
  10. 10. The Data Economy 10 Value Abbundace Atoms Data A lighter GDP
  11. 11. The dawn of a New Smart World Transforming Bits of Data at the Edge of the Network into Actionable Information & Knowledge in the Users’ hands will bring about the biggest change in industry since the steam engine
  12. 12. Software is Eating The World * Companies in every industry need to assume that a software revolution is coming… (*)Marc Andreessen
  13. 13. Software Complexity (or Cost)  is “naturally” growing Cost--Complexity Time HW SW 13 Wirth’s law: “Software gets slower faster than hardware gets faster”
  14. 14. With the Cloud  Technology Software Complexity (and Cost)  is going down (…for a while)  Cost--Complexity Time HW SW 14 Wirth’s law: “Software gets slower faster than hardware gets faster”
  15. 15. The integration Platform as a Service
  16. 16. The  Cloud reverse pyramid Saas PaaS Iaas
  17. 17. How to harness the complexity of IoT Decoupling Data-Producers from Data-Consumers 1- scale elastically 2- enable new services 3- reuse and combine IoT Infrastructure Solution Operational Technology Building Block Data-Producers Data-Consumers
  18. 18. How to harness the complexity of IoT Decoupling Data-Producers from Data-Consumers 1- scale elastically 2- enable new services 3- reuse and combine Data-Producers Data-Consumers
  19. 19. Connecting the field at the Enterprise Four Layers and Two Architectural Components Business Apps Multi- Service Gateway M2M Integration Platform Act Integrate, Store Control Connect + Communicate Compute Collect @ Field Interfaces Enterprise Service Bus Field - Devices 1 2 3 4 ESF (Everyware Software Framework) ESF (Everyware Software Framework) EC (Everyware Cloud) EC (Everyware Cloud)
  20. 20. iPaaS: Everyware Cloud Customers  Vertical  APP Business APP Social  Accessible by multiple users at the same time remote maintenance and remote supervision data management and device management
  21. 21. More data More services Every business today is  producing a lot of Data  that can be turn into  very valuable Information. Data
  22. 22. Re‐Thinking • Products • Value Add • Business Model • Business Processes
  23. 23. Tomorrow The evolution  will  most probably extinguish   the products that will not offer services
  24. 24. www.eurotech.com Thank You!

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