1) The document discusses trends in IoT and digital innovation, including how connected physical and digital worlds are driving disruption across industries. 2) Four waves of digital disruption are outlined: the Internet, mobile Internet, IoT, and AI/robotics. IoT in particular enables the convergence of physical and digital through technologies like sensors. 3) Examples are provided of how IoT can transform industries like retail, agriculture, manufacturing and more through applications involving asset tracking, remote monitoring and support, and integrating physical events with business systems. This helps improve processes, worker safety, and situational awareness.

1. IoT Trends and Innovations
Glen Koskela
Fujitsu Fellow and CTO Nordic
Head of New Business Development
Quuppa Partner Event 2017

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Digital Waves
Online consumer business Hyperconnected World
A huge impact to every industry
1st Wave
The Internet
Connected, online
2nd Wave
The Mobile Internet
Real-time, anywhere
3rd Wave
The Internet of Things
Convergence of physical & digital
4th Wave
AI and Robotics
Knowledge & automation
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CC BY 2.0 photo credit: https://www.flickr.com/photos/quinnanya/7275666004/
Deal with digital or deal with disruption
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Your choices around digitalization dramatically impact your ability to compete in the market

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Past disruptions to industries and organizations
Specialization across physical value chain
Transaction processing
Management information systems
Components & products
Specialization across information value chain
Information & processes, Online information systems
Global functional organization and BPOs
Decision support and BI systems
Specialization across human value chain
Collaborative learning and problem solving
Knowledge work agents, communities, CoEs
Analytical systems & insight
Transaction cost of leveraging external capabilities
MRP, MRPII, SCM, PLM, ERP,…
Email, Internet, Extranet, eCommerce, UC, cloud,
EDI, Web1.0, process automation, SOA,…
Blogs, social networks, tweets, communities,
Web2.0, crowdsourcing, SaaS, gamification,…
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Today’s digital disruption – fundamentally different
Transaction cost of leveraging external capabilities
4
Specialization across digital value chain
Cyber-physical systems, marriage of digital and physical
Advanced automation, control, and/or brokering
Service enablement, un-linear business models, platform economy
Internet of Things, Services & People, APIs,
AI/ML/DL, AR, 5G, Robotics, Fog computing,…

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Connected products, processes and businesses
Picture: How Smart, Connected Products Are Transforming Competition, Harward Business Review, by Michael E. Porter and James E. Heppelmann, November 2014
… increasingly it has become a
network of products and services…
…in which material products are
combined with digital services.
A business is no longer just production
of goods and services…
Value is created in the service system,
what the system can do, not in the basic
cost of the individual elements.
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The problem more often lies in culture and politics than technology
Products, services, operations, business models
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Continuous improvement
- Staying where you are
- “Housekeeping”
Quantum leap
- Change of positions
- Innovation gets you here
Disruption
- Change of rules
- Transformation gets you here
Credit: Matti Sommarberg, TUT Industry Professor, Tampere University of Technology
Slow decision cycles
Complacency about existing models
Fear of cannibalizing
Lower margins in the transition
Key resources unaligned

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Successful digital transformation
is important to avoid waking up
one morning and having been
‘ubered’.
Positioninthevaluechain
What is at stake?
Share of the value chain
Increasing digital
value contribution
New digital
customer
interfaces
Your company
today
€
€ € €€
Missing out if ‘ubered’
= lost value added
CC BY 2.0 photo credit: https://www.flickr.com/photos/joakimformo/12183655143
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Ready, Set, Disrupted!

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Incumbents need every advantage available
Fast-fashion retail
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CC BY 2.0 photo credit: https://www.flickr.com/photos/franklinheijnen/15529012325
Improve customer experience and sharpen store operations, zone plan, and conversion rates
Understand customer paths
Measure conversion rates
Measure dwell & conversation time
Measure promotion effectiveness
Optimize store layout
Understand valuable real estate
Align staff location with traffic

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No industry is immune
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Reproductive performance of the cow and heifer is one of
the most important factors that influence farm profitability.
Detecting signs of cow’s estrus from its footsteps via pedometers attached to legs
Rugged pedometer
Measures footsteps
Cloud-based analysis
Determine insemination
Detect diseases
Understanding the biological
mechanisms associated with
getting a cow or heifer bred.
Livestock production

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Real-time situational awareness
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Location-related information is underutilized business-related resource:
locations, objects, people, events, conditions, modes, actions.
Technology development increases importance of location information even further
Nearly all data has a spatial component;
potentially 80% is meaningful to explore.
Not all IoT implementations are big,
sweeping and transformative;
‘small’ IoT projects pave the way for
future transformation.

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Inspection and maintenance of equipment
Checking of equipment, repair,
changing parts and recording results.
Log and update results
on systems in real time.
Authorize and log tasks, update results on systems in real time
CC BY 2.0 photo credit: https://www.flickr.com/photos/navalsurfaceforces/16256986827/; https://www.flickr.com/photos/savannahcorps/9272100226/; https://www.flickr.com/photos/greenmambagreenmamba/5234216674/
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Remote expert support
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On-site maintenance, repair, and inspections for waterworks and sewerage facilities
Replaced paper and manual processes which were
quickly outdated or required extensive training.
Using augmented reality.
Operators can work more quickly and accurately with
real-time onsite access to data and central support.
Location badges for
indoor personnel,
tags for assets.

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Field worker safety
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Collects vital signs of worker’s
physical well being.
Greater visibility to remote work locations by relaying data to supervisors
Heat stress
Fatigue
Health status
Fall detection
Accidents

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Plant security and visitor management
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Guidance, management and security system for factory guests tours
Automatic information of points-of-interest to hosts’ tablet.
Warnings of moving forklifts.
Visitors’ real-time locations, geofence-based warnings.
Security system, evacuation paths and guest locations.
Analysis of forklift utilization and paths.
Guidance, management and security
system for factory guests tours.

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Pallet tracking
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Automatic real-time locationing of pallets.
Maintaining systems of record information in ERP system.
Pallet tracking application to search for suitable pallets.
Automatic maintenance of pallet locations in ERP system
Increasing production efficiency and
avoiding extra costs caused by
production manners and working habits.

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Connecting physical world events from “people and assets” to business processes
Monitor and report on environmental
conditions: temperature, humidity,
noise, lightning,…
Adding “smart” to space & querying the space
When subcontractors enter a restricted area,
the security staff gets a message.
Remote equipment management:
monitors and records actions,
remotely authorizes and controls usage.
Customers and visiting employees receive useful
information when they enter ‘points-of-interest’.Automated recording of associated
location-based and time-stamped events.
People and mobile asset
tracking/monitoring & management.
Geofencing zones and proximity zones.
Real-time spatial-scalar events.

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Applications adapt to situation and context in their environment
Enables a broad range of digital business services
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Healthcare: patient logistics and navigation,
equipment tracking, nurse safety.
Manufacturing: WIP management, employee safety, factory visitor management,
point-of-interest content management, evacuation navigation and audit.
Construction: contractor tracking, project
machinery usage control, asset audits.
Make existing business applications location, status and context aware!

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Next: Artificial Intelligence
Opens up new potential for the exploitation of unused capacity of location information
A core technology that accelerates
move to digital, and pushes
transformations even further
Machine learning
Deep learning
Neural networks
Event detection
Image recognition
Motion-based analysis

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