This initiative is part of the delivery programme of the Technology Strategy Board’s Digital team
This is where we are now.In the past 6 months the Digital team has consulted 1:1 with industry and academia and run an heavily oversubscribed consultation workshop “Kick-starting the Internet of Things Ecosystem” on January 28th 2011, in collaboration with a number of KTNs. Input related to the “physical internet” was also received in the ICT TIC consultation. The UK Future Internet Strategy Group is also about to publish a important inteview-led posision paper on the “Future of the Internet”, which features IoT prominently.Now the KTNs are running a series of sector’s event to debated challenges and opportunities.All this activity has already, and will continue to inform our best current thinking on how we can deliver impact with the investment.
Output of workshops – Interim paper…….. Including eHealth, looking for feedback.
These are broad recurring themes from the consultation so far ....
Back to innovation ...
This is very difficult to estimate and it will take time – but in some areas the case could be overwhelming.Of particular interest is the added value (or spill over) effects of USING these technologies in various sectors, the spillover effect.While the supply of technology may, and perhaps should, be global, the spillover effect tends to have a more regional or national footprint.This study by Harbour Research shows the added value by application of USING these technologies, per year.Whether this study is correct or not, the opportunity is great.
#tsbiotDriving Innovation IoT: UK Consultation & Governance implications Dr. Maurizio Pilu Technology Strategy Board IoT Forum, Berlin, 23-24 Nov 2011
Driving Innovation What is the Technology Strategy Board? • We are the UK’s Innovation Agency • A national body set up in 2007 to invest in business innovation • We work across business, universities and government • We mostly come from business – 130 people with over 1700 years of business experience • We have a budget of over £300m/year
Driving Innovation Context: The Digital programme • Mission: to help innovative businesses unlock the economic potential of digital technology, by identifying and addressing systemic challenges and resolving tensions between people, processes and technology.
Driving Innovation Overview of our IoT programme • A £5m managed investment • Focus on the enablers of and barriers to the ecosystem of applications and services of the Internet of Things • Special Interest Group – Started on August 1st – https://ktn.innovateuk.org/web/internet-of-things • Internet of Things Convergence – Now: £500k for preparatory studies – 2nd half 2012: £4m for a demonstrator activity
Driving Innovation Strategic pillars of our current investment DATA and INFORMATION VALUE CHAIN Increased access to data More harmonized access to data Enabling application & services
Driving Innovation Kick-starting the IoT UK Future Internet Meetings with businesses ecosystems workshop Strategy Group paper and other input KTN Sector Meetings Best Current Thinking Discussion on best current thinking on investment Investment IoT Convergence Special Interest Group plan Competition
Driving Innovation IoT – UK consultation in numbers • 6 events across various sectors – Energy, Transport, Built Environment, Health, Creative • >400 businesses and academics • All run with the same format • Output summarized in a report • Built community of >700 UK IoT stakeholders – https://connect.innovateuk.org/web/internet-of-things
Driving Innovation Consultation: interested in connecting....
Driving Innovation IoT paper published 21st Sep 11 • Cross sector opportunities • IoT architecture topologies • People centred design principles • Value chain recognition • Local and cloud based data • Data brokerage • Interoperability challenges • Security, privacy and trust • Liability • Join the IoT SIG for more info: https://ktn.innovateuk.org/web/internet- of-thingsDirect linkhttps://ktn.innovateuk.org/c/document_library/get_file?p_l_id=2140879&folderId=2543615&name=DLFE-48598.pdf
Driving Innovation Health warning!! • Not a presentation on governance • Taking a strategic perspective from the standpoint of a national innovation agency... • ....informed by 100s of discussions with business • We are currently running a programme – Will bring up many angles to the governance of IoT – We will share with the community
Slide courtesy of Jonathan Mitchener, TSBDriving Innovation What is the IoT ...
Driving Innovation The multiple perspectives of the IoT • It’s about sensors & devices • It’s about M2M • It’s about a big IT system that controls stuff • It’s all about data value chains • It’s about new services • It’s the Internet – no such thing as IoT How can • It’s about the user experience Governance take • It’s about growth-opportunities into account all these • It’s about new business models perspectives and let them flourish?
Driving Innovation Consultation: Broad recurring themes • Open data, data value chains, data markets • Open, end to end standards • Interoperability • Lower barriers to innovation and app/services development • Disintermediation between the infrastructures and apps/services • Enables secondary markets (app & services) • Apps and services that can scale, critical mass • Market creation for SMEs • Trust, privacy, resilience • Micropayments •Applications and services are key • Enables crossing organizational to prove value and sector boundaries •How to prove business models/demand
Driving Innovation Consultation: key technical topics • Data value chains from the “things” trough application/services to end user • Services, service design, including information flows • Disincentives (including liabilities), incentives, costs, and benefits analysis for organization to make more data available • Business models for data, services and applications • People-centred design and value cases for users • Legal, regulatory and ethical considerations, including liabilities • Privacy, security, trust • Monetization and billing mechanisms • Integration between data sets to generate more value • Service level agreements between parties in the data/service value chain • Incentives to invest further in infrastructure (nodes, networks) based on information flows • Interoperability at the data and services layer • Coping with large quantities of data • Data/Information brokerage solutions, local hubs, gateways, including cloud based • Data usage, rights, provenance • Disintermediation between the infrastructure and the application/services developers • ..........
Driving Innovation Lots to be proven .... How far can/should governance go if we don’t understand how the market and value creation will unfold
Driving Innovation ???? Innovation, new applications, services, growthOut window ofvisibility today ??? Core foundation of the IoT with industry support to drive design of architectures, platforms governance, strategies, national investments
Driving Innovation Innovation, new applications, services, growth Where would governance be most effective? Where is it needed? Where is it damaging? Core foundation of the IoT to drive design of governance, strategies, national investments
Driving Innovation IoT: It is still early!! • Businesses feel there is no dominant player in IoT – Opportunities to compete, grow, etc. • Natural textbook symptoms of early markets: fragmentation, lack of standards, bespoke solutions, etc. • Who is the audience for governance discussions? Governance activities should take into account that the market is not yet well developed, especially in apps and services.
Driving Innovation Benkler’s layers of governance Where does • Physical layer governance actions fit • Logical layer best? Can we learn lessons from the • Content layer evolution of Internet governance?
Slide courtesy of Stuart Revell, ICTKTN (UK)Driving InnovationTwo speed innovation cycles • Short development cycle • Fast moving applications 7 Application • Fast rate of adoption • Low CAPEX short design cycles 6 Presentation • Abstracted from underlying dependencies? infrastructure 5 Session Inter- 4 Transport 3 Network • Long development cycle • Slow moving standards 2 Data Link • CAPEX intensive • Global co-ordination and economies 1 Physical of scale – challenges & opportunities • Large investment / high stakes • Spectrum usage changes
Businesses feel the lackDriving Innovation of such layer to enable an Governance can stimulate IoT ecosystem innovation & competition .... Apps and services Competition, Innovation Incentive to invest, scale Fragmentation, ...a governance layer ... Lack of standards, silos, etc Competition, Innovation Incentive to invest, scale Infrastructure (nodes, etc.)
But where is the rightDriving Innovation balance for a modern governance approach? ... or stifle it ... Apps and services ...a governance layer ... ...a governance layer ... Infrastructure Fragmentation, Lack of standards, silos, etc ? ...a governance layer ... ...a governance layer ... ...a governance layer ... (nodes, etc.)
Driving Innovation What’s the best starting point? Users, Business Customers models, opportunities Technology
Driving Innovation Device-centric vs service centric: Beyond the RFID lens Much of the governance discussions have been heavily influenced by the RFID community – a relatively mature market The evolution of IoT governance should take a much broader perspective. What are the known unknowns?
Driving Innovation Services and apps pull the market Enabling an ecosystem of apps and services that can scale is key. What type of governance will stimulate that, and what could get in the way?
Driving Innovation Tales of two philosophies: Big IT systems vs bottom up, decentralized Two opposing views very visible. How does governance differ in these opposing scenarios? What should it be like to cater for both?
Driving Innovation Governance not same as architecture! • Taking about “IoT architecture” at the same time of governance might be confusing – How many “platforms” has the EU funded? – 10s of competing industry “architectures” • Should there be competition at the architecture/platform level? – You can have governance without specifying architectures • Anecdote from the consultation .....
Slide courtesy of Stuart Revell, ICTKTN (UK)Driving Innovation The connected consumer Tasks News Gaming Video Financial Location Entertainment Information Calendar Messaging Health Networking Security Transport Social Contacts Media Safety Music Photo Photo source: CSR plc and UKTI
Driving Innovation Governance that works for people • Scenario for the IoT are still immature • User centred design one of the key themes • Convergence means that IoT might be up-close- and personal (vs for Engineers in the past) • Governance has to be fit for purpose for customers and users
Driving Innovation Governance is key here. But BEWARE, it has It is fit for purpose? proven hard for the Internet too!! • Liability and accountabilities – Surprisingly strong element across sectors – Best effort vs SLAs? • Security, Trust, Resilience, authentication, provenance. – Seen as key for the markets to develop • IoT coming from industrial, scientific background, moving closer to people problem much bigger and critical.
Driving Innovation The path to standards & controls At several events we run people get fired up when mentioning words such as standards, governance, controls. Need to sell the benefit, see the upside, not the process or the fears.
Driving Innovation Governance for an IoT ecosystem .... • Open data, data value chains, data markets • Open, end to end standards • Interoperability • Lower barriers to innovation and app/services development • Disintermediation between the infrastructures and apps/services • Enables secondary markets (app & services) • Apps and services that can scale, critical mass • Market creation for SMEs • Trust, privacy, resilience • Micropayments • Enables crossing organizational and sector boundaries
#tsbiotDriving Innovation http://www.innovateuk.org Dr. Maurizio Pilu twitter: maurizio_tsb THANK YOU