Transitioning from a Product to a Service Economy: the Power of Cloud Technology in Innovation

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FEI 2014 Venice

Published in: Technology

Transitioning from a Product to a Service Economy: the Power of Cloud Technology in Innovation

  1. 1. Roberto Siagri, Chairman & CEO, Eurotech SpA Venice 17-3-2014 Transitioning from a Product to a Service Economy:  the Power of Cloud Technology in Innovation
  2. 2. YOU  MIGHT BE HERE
  3. 3. CLOUD computing is not about Product & Technology is about Transition
  4. 4. The Cloud reverse pyramid Saas PaaS Iaas
  5. 5. CLOUD technology the birth of Anything-As-A-Service Not just Iaas, Paas, Saas, but Device as a service ….. X as a service
  6. 6. Which is the driving Force? both service companies and manufacturers are moving more dramatically into services 6 Vandermerwe and Rada, 1988  Servitization is happening in almost all industries on a global scale
  7. 7. a Services Economy Thebill
  8. 8. Industries will experience a type of never seen in the last two decades
  9. 9. Progress is expanding Ex nenop lait 9 y l
  10. 10. Technologies create the Ex n enop l a it 10
  11. 11. 11 in the 21st century, we won't experience 100 years of progress it will be more like 20,000 years of progress Law of accelerating returns Ray Kurzweil
  12. 12. Complexity and Saturation Time Performance new way 12 old way illusion of the old reality of the old difficult to imagine of the new Each new TECHNOLOGICAL substrate is more efficient than the previous one
  13. 13. Time Innovation Custom Products Commodity 13 The most important technologies “disappear” Standard Products Utility/ as a Service Diffusion
  14. 14. Space Time Energy Matter Information Computation STEM compression : the Engine of Innovation
  15. 15. 15 http://discovermagazine.com/galleries/zen-photo/a/age-of-abundance#.Uy0_1oV0BxI
  16. 16. 16 Less More
  17. 17. Meta‐Trends in Technological Acceleration 17 IDEAS are the new “ultimate” raw material  Moore's Law Miniaturization ‘65  Transistors increase 2 times over 18 months  Metcalfe's Law Interconnection ‘93  Value of a network increases with the square of the number of connections  Gilder's Law Quantization ’00  Bandwidth increases 3 times faster than computer power
  18. 18. IP Devices vs. Humans
  19. 19. A waterfall of Data  1.000 Exabyte= 1 Zettabyte 1 Zettabyte ~ to 36.000.000 years HD video or 250 billion DVDs 19 0 5000 10000 15000 20000 25000 30000 35000 40000 45000 EXABYTE
  20. 20. The Data Economy 20 Value Abundance Atoms Bits A lighter GDP
  21. 21. The dawn of a New Smart World Transforming Bits of Data at the Edge of the Network into Actionable Information and Knowledge in the Users’ hands will bring about the biggest change in industry since the steam engine
  22. 22. Software is Eating The World Companies in every industry need to assume that a software revolution is coming… Marc Andreessen
  23. 23. Reducing Software Complexity or Cost Value follow simplicity Cost--Complexity Time HW SW 23 Wirth’s law: “Software gets slower faster than hardware gets faster”
  24. 24. The integration Platform as a Service
  25. 25. The Internet of Things • Standard  Computer HW components • Open & Industry Standards • Cloud computing • Standard   SW components Commoditization of distributed systems Time Cost‐Ubiquity Z‐curve S‐curve
  26. 26. How to harness the complexity of IoT Decoupling: Data-Producers from Data-Consumers 1- scale elastically 2- enable new services 3- reuse and combine Integration / Decoupling Platform Multi- Service Gateways IoT Infrastructure Solution Operational Technology Building Block Data-Producers Data-Consumers
  27. 27. How to harness the complexity of IoT Decoupling: Data-Producers from Data-Consumers 1- scale elastically 2- enable new services 3- reuse and combine Integration / Decoupling Platform Multi- Service Gateways Data-Producers Data-Consumers
  28. 28. Simple interface for a complex system Simplicity or Simplexity ?
  29. 29. 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
  30. 30. More data More services Every business today is  producing a lot of Data  that can become  very valuable Information. Dati
  31. 31. iPass: Everyware Cloud Customers  Vertical  APP Business  APP Social  Accessible by multiple users at the  same time, at the service of many  applications It allows remote maintenance and  remote supervision
  32. 32. Manufacturing Industry is in Transformation 32 by the forces of:   ‐ Deregulation,  ‐ Digitization ‐ Communication,  ‐ Globalization  ‐ Softwarization
  33. 33. Re-Thinking • Products • Value Add • Business Model • Business Processes
  34. 34. Tomorrow  =  Servitization The evolution  will  most probably  extinguish  the products that  do not offer services
  35. 35. www.eurotech.com Thank You!

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