The document discusses the challenges and experiences related to industrial digitalization, focusing on Ericsson's role in the digital transformation landscape. It highlights key technologies such as wireless connectivity, edge computing, and cybersecurity, while providing examples of successful implementations in various industries. Furthermore, it addresses the importance of data and new business models in fostering innovation and economic growth.

1. Björn Ekelund | Public | © Ericsson AB 2016 | 2016-02-26 | Page 1
Industrial digitalization:
Challenges and experiences
Björn Ekelund
Foto: Linus Iseborn, Södra

2. Björn Ekelund | Public | © Ericsson AB 2016 | 2016-02-26 | Page 2
OUTLINE
• Ericsson at a glance
• THE DIGITALIZATION DISRUPTION
• Key TECHNOLOGIES
• DOING IT

3. Björn Ekelund | Public | © Ericsson AB 2016 | 2016-02-26 | Page 3
Ericsson at a glance
37,000
25,700
65,000
2.5 billion
1 billion
180
118,000
Subscribers
managed by us
Subscribers
supported by us
Services professionals Employees
Countries with
customers
R&D Employees
Patents
In R&D
228 B. SEK Net Sales
36 B. SEK
NETWORKS
Create one network for
a million different needs
IT
Achieve business agility
with Transformative IT
MEDIA
Delight the TV
consumer every day
INDUSTRIES
Connecting industries for
business acceleration
2014 Annual Report numbers

4. Björn Ekelund | Public | © Ericsson AB 2016 | 2016-02-26 | Page 4
Global presence
21.7
12.6
15.5
11.1
2.4
13.4
3.9
20.0
4.1
13.5
x1,000 employees
employees worldwide
118,000
of our employees are
dedicated to R&D
25,000
of our employees are
active within Services
65,000

5. Björn Ekelund | Public | © Ericsson AB 2016 | 2016-02-26 | Page 5
A transforming business
COMPETITION BUSINESS MIX
73%
27%
SW &
SERVICES
34%
66%
HARDWARE
SW &
SERVICES
1999
80%
20%
TELECOM
ICT
27%
73%
TELECOM
ICT
2014
HARDWARE
1999 2014

6. Björn Ekelund | Public | © Ericsson AB 2016 | 2016-02-26 | Page 6
20201990’s 2000’s 20091980’s

7. Björn Ekelund | Public | © Ericsson AB 2016 | 2016-02-26 | Page 7
1.9MILLION
NEW SMARTPHONE
SUBSCRIPTIONS
$13MILLION
CROWDFUNDING
$ 2,7BILLION
E-COMMERCE
133MILLION
HOURS YOUTUBE
VIDEO WATCHED
500,000
AIRBNB STAYS
3X
UBER REVENUE OVER
SIZE OF TAXI MARKET,
IN SAN FRANCISCO
2,7BILLION
LIKES ON FACEBOOK
Today is as slow as It gets
24h

8. Björn Ekelund | Public | © Ericsson AB 2016 | 2016-02-26 | Page 8
• Ericsson Connected Vehicle Cloud
• Connects driver, passengers and the
car itself to cloud based services
• Openness to build an ecosystem
Change maker: Volvo cars

9. Björn Ekelund | Public | © Ericsson AB 2016 | 2016-02-26 | Page 9
• More than 3M containers globally
• 350 vessels connected
• Reduced costs for fuel and insurance
• Reduced carbon footprint
• Improved delivery precision, flexibility
and overall value of Maersk services
Change maker: Maersk

10. Björn Ekelund | Public | © Ericsson AB 2016 | 2016-02-26 | Page 10
Digital
disruption
Infrastructure model
Operating model
Business model

11. Björn Ekelund | Public | © Ericsson AB 2016 | 2016-02-26 | Page 11
Digital
disruption
The value
of data Customer
intimacy
Continuous
everything
& DevOps
Servitization
AutomationSecurity
Remote
operation

12. Björn Ekelund | Public | © Ericsson AB 2016 | 2016-02-26 | Page 12
Industry Transformation
HEALTH
WELLNESS
EDUCATION
LEARNING
MEDIA
CULTURE
TRANSPORT
MOBILITY
BANKING
TRANSACT
UTILITY
FUNCTION
RETAIL
EXCHANGE

13. Björn Ekelund | Public | © Ericsson AB 2016 | 2016-02-26 | Page 13
Key Technologies
• Wireless Connectivity
• Edge computing
• CYBERPHYSICAL systems
• Cybersecurity

14. Björn Ekelund | Public | © Ericsson AB 2016 | 2016-02-26 | Page 14
Wireless connectivity

15. Björn Ekelund | Public | © Ericsson AB 2016 | 2016-02-26 | Page 15
Wide range of technologies
Data rate
Range
~1Mbps
~1kbps
~1Gbps
~10bps

16. Björn Ekelund | Public | © Ericsson AB 2016 | 2016-02-26 | Page 16
Edge computing

17. Björn Ekelund | Public | © Ericsson AB 2016 | 2016-02-26 | Page 17
$20 or $30 buys you…

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Example: Occupancy Detection
CLOUD
CLIENT APP
3 of 12
People
on bus
3 of 12=5MPixel JPEG
every 5s
CLOUD
CLIENT APP
3 of 12
3 of 12
People
on bus
=
IP CAMERA
~$1000/day
For 20-bus fleet
JPG Size Source: forret.com. Server Pricing Source: aws.amazon.com. Cellular Data Pricing Source: verizonwireless.com
18 MB/min ~1 KB/min
~1 KB/min ~$1/day
For 20-bus fleet
INTELLIGENT EDGE
~1 KB/min

19. Björn Ekelund | Public | © Ericsson AB 2016 | 2016-02-26 | Page 19
CYBERPHYSICAL systems

20. Björn Ekelund | Public | © Ericsson AB 2016 | 2016-02-26 | Page 20
drone on a chip
Qualcomm
Snapdragon Flight
Main PCB
Flight Controller PCB
Wi-Fi PCB
Video Transmitter PCB
5.8GHz RF PCB
GPS Receiver PCB
Camera PCB
​189 cm2 ​23.2 cm2

21. Björn Ekelund | Public | © Ericsson AB 2016 | 2016-02-26 | Page 21
ABB YUMI

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CYBERSECURITY

23. Björn Ekelund | Public | © Ericsson AB 2016 | 2016-02-26 | Page 23
To do Big Data –
you must be able to
trust the little data

24. Björn Ekelund | Public | © Ericsson AB 2016 | 2016-02-26 | Page 24

25. Björn Ekelund | Public | © Ericsson AB 2016 | 2016-02-26 | Page 25
Most common Mistake:
Believe you have
the EXPERTISE

26. Björn Ekelund | Public | © Ericsson AB 2016 | 2016-02-26 | Page 26
Getting your feet wet

27. Björn Ekelund | Public | © Ericsson AB 2016 | 2016-02-26 | Page 27
The innovator’s dilemma
From “Innovator’s dilemma” by Clayton Christensen
Core business
New business

28. Björn Ekelund | Public | © Ericsson AB 2016 | 2016-02-26 | Page 28
The zone model

29. Björn Ekelund | Public | © Ericsson AB 2016 | 2016-02-26 | Page 29
pragmatic approach
Identify key
use cases
A low
hanging fruit
TryLearn
Restart Collect data
and experi-
ment

30. Björn Ekelund | Public | © Ericsson AB 2016 | 2016-02-26 | Page 30
5GFor
Sweden

31. Björn Ekelund | Public | © Ericsson AB 2016 | 2016-02-26 | Page 31
Photo:Boliden
PIMM
Pilot for Industrial Mobile
Communication in Mining
• Mobile communications networks in
industrial context
• Underground safety and robustness
• Improved safety
• Increased productivity
• New ecosystems and business
models

32. Björn Ekelund | Public | © Ericsson AB 2016 | 2016-02-26 | Page 32
5GEM
5G-Enabled world class
Manufacturing
• 5G in manufacturing industry
- Wireless factory communication
- Industrial Internet of Things
- Mission critical, distributed cloud
- Big data/analytics/AI
• Improved efficiency and flexibility
• Improved quality and traceability
• Employee satisfaction
Photo:SKF

33. Björn Ekelund | Public | © Ericsson AB 2016 | 2016-02-26 | Page 33
The most innovative person
may not be employed by you

34. Björn Ekelund | Public | © Ericsson AB 2016 | 2016-02-26 | Page 34
JOHN DEERE DIGITAL ECOSYSTEM

35. Björn Ekelund | Public | © Ericsson AB 2016 | 2016-02-26 | Page 35
The ecosystem model
CORE ASSETS
DATA
Partner
#1 Partner
#2
Partner
#3
OWN OPERATIONS

36. Digitalization
PAINFUL
COMPETITION
CHALLENGING
CHANGE

37. Björn Ekelund bjorn.ekelund@ericsson.com @bjornekelund
@ericssonlabs www.ericsson.com/research-blog