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33977_IoT_in_HighTech_11_03_14
- 1. Internet of Thingsin High Tech – Why you should care… NOW November 12, 2014 alex.blanter@atkearney.com @AlexBlanter
- 2. Let me startat the end and give you the “answer” Internet of Things will materially change what we do as individuals and enterprises – and that will happen whether you do anything or not High Tech companies – semiconductor, device, hardware, and systems – will be key beneficiaries of the Internet of Things Truly taking advantage of the Internet of Things will require different strategic thinking and new execution capabilities 1 2 3 Now you can leave to have a drink… or explore Las Vegas… or stay to see and hear facts, figures, and opinions
- 3. You are heretoday because you are interested in the Internet of Things – and so is everybody else iot internet of things security2020 cloud trends cisco 2013mean blog ioe check companies great theiot ibm need m2m data mobile people time web 2014 tech google smart big join app world ITblogs technologyconnected business bluetooth digital today launches devices big data start gigaom post potential On track for nearly 26,000 publications 2X rate increase in less than 6 months 1
- 4. 1 What is theInternet of Things (IoT)?
- 5. Let’s make thisa bit more tangible 1 Industries Things Value and Impact Policies&Standards Identify Sense Connect Collect Analyze Act Enterprise Consumer Public Sector
- 6. IoT will bepervasive… are you ready? 2013 to 2020: From half as many to twice as many – growth of IoT devices relative to traditional connected devices Over 7.7 billion people 20X+ as many conne- cted devices/person Over 3.2M people Nearly 30 billion devices By 2020 in the World… Over 3.5 per every human on the planet By 2020 in Silicon Valley… For a family of four: 250+ For all in Silicon Valley:200M+ Internet of Things Traditional connected devices 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 0 5 10 15 20 25 30 Connected devices 1
- 7. IoT will bematerially disruptive – there will be winners and losers By 2020 IoT will impact close to 6% of the global economy $3.5T Revenue Redistributed $1.9T Productivity Improvement $177B Value to End Customer $344B Additional IoT Revenues Revenues directly attributable to sale of IoT hardware, software, and services Direct reduction in costs driven by IoT and realized by end customers Direct increase in output per unit of cost, enabled by IoT and reinvested in productive assets and activities Revenues realized within the world economy that will potentially move from one player to another with no net increase in total economy Global Economy in 2020 $100T 1
- 8. Additional IoT revenueswill be split in a multitude of ways Enterprise Consumer Public Sector $217B $97B $30B 63% 28% 9% $344B Additional IoT Revenues Survey Results: Time to Value Rank 1 2 3 1 $196B57% $41B12% 18%$62B 13%$45B Source: 2014 A.T. Kearney IoT Survey
- 9. 2010 2015 20202025 2030 IoT journey is starting now Value buzz 1 • $1.1B of . VC investment in IoT – growing at 46% vs. 7% growth for all VC investment • US government is investing $100M per year and UK just announced a £45m investment • Cisco is investing $1B over 5 years; Intel has created IoT BU • AT&T, Cisco, Intel, GE, IBM forming Consortium Survey Results 13% 22%59% 2% 4% 1 Source: 2014 A.T. Kearney IoT Survey
- 10. zz In many casesIoT will radically transform our lives – Smart Clothing example Mobile apps that provide the user interface and tethered cloud connectivity User Cloud platform & software stack for new use cases to be developed by multiple providers Data storage and analytics platform Other users Smart Clothing & Braces with embedded sensors, medical monitors, and actuators Wearables with Bluetooth connectivity that transmit the sensed information to a Smartphone… or two other Wearables Service providers • Healthcare • Wellness • Fitness • Athletics • Insurance • Remote care • Health & wellness mgmt. • Emergency services • Visualization • Services mgmt.• Direct feedback • Therapeutic intervention Source: Pictures from company websites sensoria, djoglobal, fitbit, nod, gowtrainer Information flow Services 1
- 11. Not all industrieswill adopt IoT at the same time – adoption forecasts favor High Tech 2.1 2.3 3.5 4.3 4.4 5.7 5.9 Manufacturing Retail / Consumer Products Transportation / Logistics Healthcare Financial Services Natural Resources Education Rank ordered responses, with 1 – fastest time to value High Tech semi and devices opportunity (revenue sizing, $B) 10 6 4 5 2 6 Faster Slower
- 12. Opportunities to stakeadditional ground within and across IoT solutions will grow and multiply • Communication • Control & automation • Storage & retrieval • Data analysis & decision • Transactional • Monitoring & control • Content • Optimization • Mobility • Sharing • Interactive • Marketplace • Internet access and connectivity infrastructure • Data aggregation and storage • Computing • App & service development enablers & APIs • Deployment & management solutions • Sensors & actuators • Radios • Embedded processors • Smart modules • Wearables 2
- 13. Across most industriesIoT will transform more products into High Tech products Traditional Products High Tech ProductsTraditional products incorporating electronics and software 2
- 14. Across most industriesIoT will transform more products into High Tech products 2
- 15. IoT will changecustomer behaviors and will require even Higher Tech solutions Delivery urgency Dominant product mode Connected devices Appetite for new products Personalization Hardware 1.8B Fledgling 7 days 1 to 3 yrs Software 30B Mainstream Same day 2x / year Experience 500B+ Prevalent Hours Monthly Demanding Fickle Intolerant 2010 2020 2030 2
- 16. Key players arestarting to get serious about IoT – happenings in just the last two months Qualcomm Chief Executive Steve Mollenkopf said automakers are accelerating efforts to bring mobile technology into vehicles — outpacing health care, education and the connected-home industries Windows 10 will help Microsoft integrate more tightly with the Internet of Things… Windows 10 will run on wireless sensors and integrate with more objects and machines even as the platform is being designed to support applications across PCs, tablets and smartphones. Europe’s largest telecommunications providers are gearing up for a battle in the lucrative race to connect cars, homes, utilities and other everyday devices to smartphones and other wireless devices. Intel Corp is using sensors to predict tool failure, a company Internet of Things expert told attendees at a San Francisco event Tuesday. Deutsche Telekom and China Mobile on Friday formed a joint venture that will see them provide connected car services to China's growing automotive sector. Dell Inc. has opened a Silicon Valley laboratory where customers can develop software to improve business operations. The facility, dubbed the Dell Internet of Things Lab, opened in the Dell Silicon Valley Solution Center in Santa Clara With the rise of the Internet and its data-rich applications, America's railroad system has entered a new age -- one that is focused on improving the commuter experience, enhancing safety and minimizing costs… Cisco's Connected Rail… Best Buy will add more than 100 new smart-home products online and at 400 stores before Thanksgiving. Microsoft and LG Electronics agreed to cooperate on the Internet of Things (IoT) yesterday when Microsoft’s Chief Executive Officer Satya Nadella was in Korea to attend the TechDays 2014 forum 3 GE forges Internet of Things alliances with Verizon, Cisco, Intel… will also open up its Predix software platform to developers and users in 2015 as it aims to add intelligence to industrial gear AT&T certifies tiny 3G module for IoT applications …world's smallest 3G chip module for use on the carrier's cell networks. The 16-by-26-millimeter module is intended for applications in the Internet of Things, transmitting data between devices
- 17. Competition is alsoheating up in specific industry segments – semiconductor industry example • Bought SmartThings, developing own wearable devices & software • Investing $18bn in new manufacturing facility anticipating demand from IoT growth • Intel and Qualcomm leading consortiums to define competing IoT standards • Renesas collaborates with IS2T and Micrium to develop Microcontrollers for IoT applications • ARM acquired Sensinode Oy a provider of S/W technology for IoT • Maxim teams with Logic PD to develop wearable devices • TI launches its own IoT cloud ecosystem • Silicon Labs offers suite of products targeting IoT applications including Zigbee SoCs • Marvell introduces a new platform targeting the internet of things • STM MEMS Sensor products target Wearables and applications beyond the smartphone • Bosch partners with Institute for Technology Management (ITEM) at the University of St. Gallen 3 Logic Radio, Analog and Power Management Sensors & ActuatorsMemory
- 18. Success in IoTrequires… high level of business value clarity Are you moving fast enough? What industries will be the main focus? Where your company fits into IoT ecosystem? 3
- 19. Success in IoTrequires… explicit strategic choices 1 2 3 4 Semiconductor example Continue in the core Expand to adjacent upstream Evolve into a platform player Transition from products to solutions and services E.g., manufacture Individual components that go into sensors & devices Integrate devices, memory, computing into SoC edge modules Provide components, modules, software to enable edge modules and customer applications Go into specific industry verticals with customer ready offerings 3
- 20. Success in IoTrequires… alignment of innovation focus with selected strategic choices Continue in the Core • Tune product characteristics to IoT-specific needs – e.g., low power, low cost, increased variability Expand to adjacent upstream • Focus on system and sub-system design and strengthen integration capabilities, including software Evolve into platform player • Drive standardization and interoperability Transition from products to solutions/services • Deepen vertical industry expertise and corresponding ecosystem relationships 3 Strategic Choice Innovation Focus
- 21. Success in IoTrequires… operational capabilities built for flexibility and experimentation 3 Focus on superior innovation Proactively manage complexity Implement agile product development Enable distributed collaboration Social Ideation & Creative Design Sharable 3D virtual prototyping to infuse innovation from customers, designers and engineers alike…3D virtual prototypes can be displayed on any browser, any time, anywhere in the world http://www.3ds.com/industries/high-tech/ht-body/social-ideation-creative-design Ideation & Concept Design Combines automated social market listening, streamlined 3D-drawing to 3D-design integration, project-oriented social media, and one-source-of-truth product lifecycle management for extensive development capability. Available on-cloud and on premise. http://www.3ds.com/industries/high-tech/ideation-concept-design/ Requirement, Traceability & Test Automate capture of customer needs and associated product specifications... “voice of the customer” translation it into user requirements for new product definition. Single repository… http://www.3ds.com/industries/high-tech/smarter-faster-lighter/requirements-traceability-test/ Concurrent Hardware & Software Design Improves coordination between ME, EE and SW eng teams. Provides a single repository for all PD data including spec, 3D models, code, analysis results, and mfg requirements. http://www.3ds.com/industries/high-tech/smarter-faster-lighter/concurrent-hardware-software- design/ Semiconductor Collaborative Design Faster design integration through advanced element modularization. Efficiently manages design data for an entire design organization. Design data contributed by individual teams seamlessly integrated into higher level designs. http://www.3ds.com/industries/high-tech/silicon-thinking/semiconductor-collaborative-design/ Company-specific