Innovation enabled through combination of digital and physical capabilities conquers markets Presentation WEBSTER UNIVERSITY VIENNA , June 2015

1. INNOVATION, CREATIVITY and
the ENTREPRENEUR
Michael Klemen
11.06.2015
WEBSTER UNIVERSITY VIENNA

2. ….
…
…
KreislaufwirtschaftVerknappung
strategischer Ressourcen
…
….
Digital Natives
Durchdringung
& Vernetzung
des Alltags
…
…
…
…
Bionik in
Technologie & Design
Schwarm-
intelligenz
Vom Massen-
markt zum
Mikromarkt
BUSINESS
ECOSYSTEMS
Entstehen vernetzter,
intelligenter
Infrastrukturen
Durchbrüche bei
künstlicher Intelligenz
& Robotik
Miniaturisierung &
Nanotechnologie treiben
T.-Konvergenz
Neue Werkstoffe &
Konstruktionsprinzipien
Dynamisierung &
Flexibilisierung
der Arbeitsverhältnisse
Kollaborative
Arbeitsformen
Digitale Vernetzung
des Verkehrs
Global anwachsende
Mobilität
Neue Wertschöpfungs-
partnerschaften &
-netzwerke
Global fragmentierte & verteilte
Wertschöpfungskette
Volatile
Ökonomie
Daten- & Wissensbasierte
Wertschöpfung
(Big Data, Smart Data)
Aufstieg Chinas und
Indiens zu Weltmächten
Multipolare Welt /
Neue strategische
Allianzen
Individualismus
als Massenphänomen
Wachsender
Ressourcenverbrauch
NEW STAGES OF
INDIVIDUALISATION
DIGITAL CULTURE
CHANGE OF
WORK WORLD
KNLOWLEDGE BASED
ECONOMY
NEW MOBILITY
PATTERNS
CHANGE AT ENERGY &
RESSOURCES
NEW POLITICAL
WORLDORDER
LEARNING
FROM NATURE
GLOBALISATION
2.0 / 3.0 / 4.0
NEW DISRUPTIVE
TECHNOLOGIES /
TECHN.-CONVERGENCE
ALL PRESENT
INTELLIGENCE
Geschäftsmodell- und
Systeminnovationen
HOW TRENDS WILL SHAPE OUR FUTURE ….
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Source
IMP 2015

3. WHAT IS INNOVATION ?
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4. INNOVATION IS..
• CLASSICAL
• „DIGICAL“
• DISRUPTIVE
• Product Innovation
• Process Innovation
• Market Innovation
• Digital Technology as enabler
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5. CLASSICAL… not everything works…
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6. CLASSICAL… not everything works…
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7. CLASSICAL… some die…
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8. CLASSICAL… no more…
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9. CLASSICAL ?
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13. Print on Demand! - 3D Printing in Plastic & Metal
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14. Print on Demand! - 3D Printing in Plastic & Metal
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15. Print on Demand! - 3D Printing in Plastic & Metal
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16. Print on Demand! - 3D Printing in Plastic & Metal
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17. Print on Demand! - 3D Printing in Plastic & Metal
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18. Print on Demand! - 3D Printing in Plastic & Metal
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19. Print on Demand! - 3D Printing in Plastic & Metal
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20. “DIGICAL” (combined
digital and physical)
innovations will hit some
businesses much harder
and faster than others
Digital-Physical Mashups
Sept 2014
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21. Digital-Physical Mashups
Sept 2014
A digical lens will change
how people perceive and
manage nearly every
activity in life and
business.
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22. The 141 Companies, VCs, corporate investors,
angels, accelerators, and acquirers engaged in the
Internet of Things space
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23. DIGICAL & IoT Consists of
M2M, M2P, and P2P Connections
Machine-to-Machine (M2M/IoT)
• Data sent / received from one machine (thing)
to another
• Often called the “Internet of Things”
Machine-to-Person (M2P)
• Data sent / received from a machine (thing) to a
person
• Often called “data and analytics”
Person-to-Person (P2P)
• Data sent / received from one person to
another
• Often called “collaboration”
IoE Value
(2013-2022)
$7.4
Trillion
$4.6
Trillion
$7.0
Trillion
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24. Collaborative Research and Development
Provides manufacturing designers and engineers with real-time collaboration which accelerates time to market,
improves the quality of collaboration, gains efficiency through reduced travel, all in a secure environment.
Remote Design Center
Main Design Center TelePresense Supply Partner TelePresense
Data Center
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25. High-end 3D visualization early in the design and
engineering phases leveraging lifelike digital models

26. DESIGN VERIFICATION

27. ENGINEERING VERIFICATION – Testing

28. COMPUTER GENERATED CONFIGURATION

29. AUDI CITY LIVE London,Peking,Berlin…Moscow

30. INTEGRATION of HIGH RES VIDEO & 3D VISUALISATION

31. DESKTOP

32. NODIFFERENCETOPHYSICALPRESENCE

33. MONDAY FRIDAYTHURSDAYTUESDAY WEDNESDAY
ENERGYUSE
HIGH
LOW
INDUSTRY 4.0 – CYBER PHYSICAL SYSTEMS

34. MONDAY FRIDAYTHURSDAYTUESDAY WEDNESDAY
ENERGYUSE
HIGH
LOW
20-30% ENERGY COST SAVINGS
INDUSTRY 4.0 – CYBER PHYSICAL SYSTEMS

35. IoT INFRASTRUCTURE
Supply Chain
Mobile Control Rooms
Predictive Maintenance
Wireless Machines
Traceability
$1.95 TRILLION IN POTENTIAL PROFITS IN
MANUFACTURING FROM ALL IoT

36. Video: ARENA2036
http://www.youtube.com/watch?v=hIQ7FS4IxLc&list=PL1M-s3kFzGJsK8u5FwOcINo-MrMzNmOvG
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37. Audi Rethinks Production: Smart Faction
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38. Source Accenture 2015
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39. Source Accenture 2015
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40. THE DATA AGGREGATION CHALLENGE
1.1 Billion
Data points generated by sensors daily500 Gigabytes
Data generated by an offshore oil rig weekly
1000 Gigabytes
Data generated by an oil refinery daily
1,000 Gigabytes
Data generated by a jet engine every 60 minutes
2.5 Billion Gigabytes
Data generated worldwide daily
90% of the world’s data
Has been created in the last 2 years!

41. IoT REQUIRES NEW DISTRIBUTED COMPUTING
DEVICE
DATACENTER/CLOUD
IoT Computing Model
(Data Volume, Security, Resiliency, Latency)
FOG
CLOUD CLOUDEDGE
STORE ANALYZE ACT NOTIFY

42. DISRUPTIVE

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45. UBER FACTS…
In its home town of San Francisco, 71 percent of rides expensed through
Certify during the first quarter were for Uber; 29 percent used taxis. Uber
also beat out all other forms of ground transportation in Dallas, accounting
for 56 percent of the rides.
In Los Angeles and Washington D.C., Uber represented 49 percent of
business travel rides. Taxis, limousines and airport shuttles still reigned in
New York, Miami and Chicago where they took 79 percent, 77 percent and
75 percent of rides expensed, respectively
In London there are 12000 drivers currently
Source: 2015
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46. THERE IS AN UBER FOR EVERYTHING NOW…
Source: 2015

47. THERE ARE FOUR BUSINESS MODELS :
• Asset Builders: These companies build, develop, and lease physical assets to make, market,
distribute, and sell physical things. Examples include DAIMLER, REWE, and FedEx.
• Service Providers: These companies hire employees who provide services to customers or
produce billable hours for which they charge. Examples include ERSTE BANK, Accenture, and JP
Morgan.
• Technology Creators: These companies develop and sell intellectual property such as
software, analytics, pharmaceuticals, and biotechnology. Examples include SAP, Oracle, and
Amgen.
• Network Orchestrators. These companies create a network of peers in which the
participants interact and share in the value creation. They may sell products or services, build
relationships, share advice, give reviews, collaborate, co-create and more. Examples include eBay,
Red Hat, and Visa, Uber, Tripadvisor, and Alibaba.
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48. PERFORMANCE is …… ?
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49. FEWER THAN 5% ARE
NETWORK ORCHESTRATORS
• First, today’s network-based business models require new technologies and competencies.
Most corporate leaders are skilled at building, owning, and managing their own physical
assets or people. Network Orchestrators, however, rely on intangibles such as knowledge
(Gerson Lehrman Group) or relationships (Facebook), or other people’s assets (Uber) as well
as new “non-management” and “non-ownership” competencies related to facilitating a
network of individuals and their individual assets and relationships.
• Second, Generally Accepted Accounting Principles (GAAP) categorize some assets as “assets”
(plant property and equipment), others as expenses (people, training, and intellectual
property) and ignores others (customers, sentiment, and networks) altogether, frequently
resulting in the under-allocation of capital to intangible assets. This is especially problematic
given that, today, intangible assets make up approximately 80% of corporate market value.
• Third, standard industry designations result in siloed thinking, leaving empty space where
new business models can enter. For example, think back to the early 1990s. Most traditional
retailers were slow to move into the online space because they didn’t consider themselves
“technology companies.” The online market was left open, and in came a slew of new
players such as Amazon, eBay, and Zappos, who gobbled up market share and changed the
retail game. Today, the power of networks is creating a new cross-industry transformation.
Consider what Uber and Lyft are doing to the taxi industry or how Airbnb is affecting the
hotel industry.
• Finally, business models are tightly integrated into all parts of a company, and are therefore
daunting to change. Changing business model requires changing capital allocation, but
Research by McKinsey & Company shows that most companies follow the same allocation
patterns year after year, despite dramatic changes in the business environment.
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50. Viewed traditionally, Uber’s valuation might be confusing. And Uber’s
position certainly isn’t set in stone. As it scales and carves out share in
the transportation industry, it’s running into it’s fair share of problems.
With regulatory issues, public relations nightmares, and safety
questions, Uber has a long way to go before all is over.
But through the lens of disruption, it’s at least possible to grasp just
how Uber could be worth so much.
Source: 2015
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51. A FINAL WISH …
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STAY YOUNG STAY COURIOUS…

53. THANK YOU