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

1. M2M & IoT
the 4th Industrial Revolution
and
the Service Economy Roberto Siagri,
Chairman & CEO,
Eurotech SpA

2. Manufacturing Industry is in Transformation
by the forces of:
‐ deregulation
‐ technology
‐ globalization
‐ competitive pressure

3. Steam Engine Assembly Line
Computer M2M
1⁰ 2⁰
3⁰ 4⁰

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. IoT/M2M
is not about
Products & Technologies
is about
Transition

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. a Services Economy
Thebill

8. Time
Innovation
Custom Products
Commodity
8
The most important technologies “disappear”
Standard Products
Utility/ as a Service
Diffusion‐Cost

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. The Data Economy
10
Value
Abbundace
Atoms
Data
A lighter GDP

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. Software is Eating The World *
Companies in
every industry
need to assume
that a software
revolution is
coming…
(*)Marc Andreessen

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. 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. The integration Platform as a Service

16. The Cloud reverse pyramid
Saas
PaaS
Iaas

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. 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. 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. 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. More data More services
Every business today is
producing a lot of Data
that can be turn into
very valuable
Information.
Data

22. Re‐Thinking
• Products
• Value Add
• Business Model
• Business Processes

23. Tomorrow
The evolution will most probably extinguish
the products that will not offer services

24. www.eurotech.com
Thank You!