Dr. Shoumen Datta's presentation in New Factory, Tampere on behalf of Tampere University of Technology (Novi Research Centre).

1. Where do I start?
Generally, I prefer to start with
history but experience tells me that
very few care and most roll their eyes

2. Making
Money

3. Projected Economic Impact of The Industrial Internet

4. Projected Economic Impact of The Industrial Internet
$14 trillion

5. How can we make
double that amount

6. How can we make
$28 trillion

7. http://bit.ly/GENDER-INEQUALITY

8. http://bit.ly/GENDER-INEQUALITY

9. Projected Economic Impact from Gender Parity
http://bit.ly/GENDER-INEQUALITY
$28 trillion
Equivalent to the GDP of US and China combined!

10. http://bit.ly/GENDER-INEQUALITY
25 September 2015
India
17%
GDP
from
women

11. Reality Check

12. How the cookie crumbles – Women on Street
A dog starv’d at his master's gate
Predicts the ruin of the state.
William Blake in Auguries of Innocence

13. Conscience and Common Sense
Far Reaching Changes in the Near Future

14. Raison d'être

15. Education of Women

16. August 4, 2015
Class of 2019
The education of a boy changes the fate of a man.
The education of a girl changes the destiny of a
nation.

17. Common Sense of the Connected
Future
Dr Shoumen Palit Austin Datta
Senior Vice President, Industrial Internet Consortium
Research Affiliate, School of Engineering, MIT

18. Internet of Things
IoT

19. Actually, it is
not about
things at all

20. It is about the outcome
It is about the sense from connectivity
It is about sense and response

21. It is service economy with a new name
The
Outcome
Economy

22. What is this?

23. How do you make this?

25. Store wants to sell you this

26. You want this ring to be exact per your specs

27. You are seeking an optimal outcome for the task

28. The best of this

29. May not give you the best of

30. It is no longer about the product
It is about
the service

31. The
Outcome
Economy

33. The Outcome Economy. Any questions ?

34. … filches from me my good name … makes me poor indeed

35. Internet of Things
IoT

36. 36
http://bit.ly/MIT-IOT ● http://bit.ly/RE-VIEW-MIT

37. Have we scratched the surface, yet?
37
NO
http://bit.ly/MIT-IOT ● http://bit.ly/RE-VIEW-MIT

38. What is an automobile ?

39. Is this an automobile ?

40. Things versus Systems
Parts Sum of the Parts
Data Business
Cost Value

41. The automobile is a system ?
Agree or Disagree ?

42. Does the automobile require energy?

43. Mobile ● Renewable ● On-Demand ● Grid-Free ● Energy

44. Emanuel Sachs, MIT
Reaching for the Sun – Not beyond our grasp

45. Is energy a system ?
Agree or Disagree ?

46. Do you need to know anything if
you wish to drive an automobile?

47. I need to know ….

48. I need to know ….
Are you talking about data ?

49. Is data equivalent to information?
What about knowledge?
What is wisdom?
What about consciousness?
What about context awareness?

50. What’s this? Data, information, knowledge?

51. Food Ingredients Store = Dinner (Correct ?)

52. Ingredients must be assembled or cooked

53. Data must be curated to extract information

54. Transportation is
Automobile + Energy + Data + Information + Analytics
Infrastructure? Insurance? Policy? Safety? Emergency?

55. Transportation
SYSTEM
of
SYSTEMS

56. Transportation
Internet of Things ??

57. Conceptually better
Internet of Systems

58. Industrial Internet connects
Internet of Systems

60. 60

61. Predictions are difficult … especially
about the future (Niels Bohr)

62. (1987)
thoughts
about
the computer
“you have to
make friends
with it, talk to
it”
1916-2001

63. 1999 - 2000
MIT Auto ID Center
RFID Technology Board

64. 2001
MIT Forum for Supply Chain Innovation

65. 2003-2004
MIT Auto ID Center
MIT Forum for Supply Chain Innovation

66. Dr Shoumen Datta, MIT
<shoumen@mit.edu>
66
Real Time Data
Streaming Data, Continuous Queries
D2B / RFID / UWB
Object Oriented Hardware
Service Supply Chain
Semantic Grid
Web Portal
dERP
GRID
Internet 0
Internet 1
Internet 2
A
G
E
N
T
S
S E C U R I T Y
Integrating Ubiquitous Analytics in Real-Time ● Data & Information from Systems
MEMS / NEMS
Intel Motes, Crossbow
BUSINESS SERVICES
From
an office
in Shinzen,
China, you log
on a SDR reader in
a warehouse in USA,
to check if your products
arrived on-time. They did.
You also get to know that
your distributor in Santiago,
Chile and retailer in Espoo,
Finland also checked the delivery
status, moments before you logged on.
Bits, Atoms, Decisions
Right-Time
Analytics
SDR Data Interrogators as Ubiquitous Internet Appliances in IoT (2003)
IPv6
Physical World Objects

67. www.goldmansachs.com/our-thinking/outlook/internet-of-things/iot-report.pdfWhat are we connecting?
Things?
Atoms?
Bits?
Concentric concentration of confusion.
IoT
CPS
Data of Things?
Big Data of Things?

68. Internet of Systems ● Transdisciplinarity
https://hbr.org/2014/11/setting-standards-for-the-internet-of-things
● Vision, Mission and Opportunities
● Systemic Grand Challenges
 Transportation (Logistics and Autonomy)
 Smart Cities / Resilient Communities
 Healthcare and Independent Living
 Manufacturing and Supply Chain

69. SYSTEMS● Manufacturing Systems
● Transportation Systems
● Cyberphysical Systems
● Health Care Systems
● Emergency Systems
● Financial Systems
● Supply Chains
● Security
Internet of Systems, therefore, is a convergence of system
of systems from a systems engineering perspective along
with CPS, IoT, WoT, IoE, industrial internet (IIoT) applications
Foundation of Information Arbitrage

70. • Chaos theory
• Complex systems
• Complex system
• Cybernetics
– Biocybernetics
– Engineering cybernetics
– Management cybernetics
– Medical cybernetics
– New Cybernetics
– Second-order cybernetics
• Control theory
– Affect control theory
– Control engineering
– Control systems
– Dynamical systems
– Perceptual control theory
• Operations research
• Systems biology
– Computational systems
biology
– Synthetic biology
– Systems immunology
– Systems neuroscience
• System dynamics
– Social dynamics
• Systems ecology
– Ecosystem ecology
• Systems engineering
– Biological systems
engineering
– Earth systems engineering
and management
– Enterprise systems
engineering
– Systems analysis
• Systems theory in
anthropology
• Systems psychology
– Ergonomics
– Family systems theory
– Systemic therapy
• Systems theory
– Biochemical systems theory
– Ecological systems theory
– Developmental systems
theory
– General systems theory
– Living systems theory
– LTI system theory
– Sociotechnical systems
theory
– Mathematical system theory
– World-systems theory
• Systems theory in sociology
– Talcott Parsons
– John N. Warfield
– Niklas Luhmann
• Etc
Systems Science

71. SYSTEMS
N
E
T
W
O
R
K
S

72. Dr Peter Closson Evans (GE Global Strategy and Analytics, 2013)
End-to-End systems within industrial ecosystems

73. Real Time Intelligence
Connect Systems
Edge 2 Core / End 2 End

74. Extract Intelligence
Connect Systems

75. Data from the Edge - Deliver Intelligence to the Edge
Edge Ambient Intelligence – Analytics in the Mist
Latency boundary may be unsuitable for fog or the conventional cloud computing
General Purpose In and Out – GPIO
CPU, Memory (16 GB), WiFi, Bluetooth

76. Neuro-Synaptic Chips & Multi-core platforms for parallel processing of noisy, multi-modal, unstructured data
Dr Dharmendra Modha
IBM • www.modha.org
Neuro-synpatic Chip

78. The Nature of the Firm
http://bit.ly/COASE-5-PAPERS
N
E
T
W
O
R
K
S

79. 79
Robert Melancton ‘Bob’ Metcalfe (Apr 7, 1946) co-invented the Ethernet, founded 3Com and formulated the Metcalfe's Law
http://bit.ly/BOB-METCALFE-LAW

80. 80
Robert Melancton ‘Bob’ Metcalfe (Apr 7, 1946) co-invented the Ethernet, founded 3Com and formulated the Metcalfe's Law
http://bit.ly/BOB-METCALFE-LAW
Right ?

81. 81
Robert Melancton ‘Bob’ Metcalfe (Apr 7, 1946) co-invented the Ethernet, founded 3Com and formulated the Metcalfe's Law
http://bit.ly/BOB-METCALFE-LAW
WRONG

82. 82
Robert Melancton ‘Bob’ Metcalfe (Apr 7, 1946) co-invented the Ethernet, founded 3Com and formulated the Metcalfe's Law
http://bit.ly/BOB-METCALFE-LAW
WHY?

83. 83
Robert Melancton ‘Bob’ Metcalfe (Apr 7, 1946) co-invented the Ethernet, founded 3Com and formulated the Metcalfe's Law
http://bit.ly/BOB-METCALFE-LAW
NETWORKS
Local Area Networks

84. 84
Robert Melancton ‘Bob’ Metcalfe (Apr 7, 1946) co-invented the Ethernet, founded 3Com and formulated the Metcalfe's Law
http://bit.ly/BOB-METCALFE-LAW
Local Area Networks
http://bit.ly/BOB-METCALFE-LAW
Bob MetcalfeShoumen Datta

85. Disruptive Quest
MONETIZATION

86. Buzz Word
Disruption

87. Fake Buzz Word by Design ?
Clayton Christensen’s “disruption” is a marketing
hype. The principles of disruption were distorted
to create the hype. But, true disruptions do exist.
They are few and far between (electricity, laser,
automobiles, internet). The thesis of disruption
applies to about less than 10% of the examples
provided in the book The Innovator’s Dilemma.

88. In engineering parlance, there is a phrase called 'energy under the curve.' This refers to the total energy output of a
device—light bulb, acoustic transducer —as measured on a graph across a range of frequencies. While every effort is
made to maximize the amount of energy output from that device, in the end it's still a finite amount. The key to best
performance is getting the device to deliver energy that is usable. A light bulb may produce x lumens of energy, but it
won't do much good if its output is predominately at ultraviolet frequencies that are invisible to the human eye. An
acoustic transducer (speaker) can be modified to produce more or less energy at different frequencies, but the total
acoustic energy produced by that specific speaker is finite. The engineers can move the energy output from one
frequency region to another, but the 'total energy under the curve' remains the same. The key to a speaker's useful
performance, of course, is for it to produce its energy at frequencies that are audible and useful to humans, not bats.
The concept of energy under the curve is directly analogous
to an economy's money supply at a given time. Both the energy
and the money supply are known amounts. The money is going
to be spent by someone (device is going to output its energy).
The key is for the money to be spent where it has the most benefit
(the light bulb must produce visible light).
www.americanthinker.com/2004/09/the_light_bulb_economy.html
Disrupt
Total energy under the curve

89. Combine Disrupt + IoT
Call it market disruption?
http://bit.ly/BRA-ZEN

90. Is this IoT ?
Or, the elusive quest for stupidity?

91. Monetizing the Coffee Catalyzed Office Culture

92. Sensors + Skype = Hype @ Starbucks

93. Is this disruption?

97. Transformative Disruptions

98. 5 MB hard drive being shipped out of IBM (1956)

99. 2 TB hard drive slightly larger than a credit card (2015)

100. 100
Diffusion of the Internet - NetDay 1996
President Bill Clinton installing computer cables with Vice President Al Gore on NetDay at Ygnacio Valley High School (Concord, CA - Mar 9, 1996)

101. 101
Paradox
to
Paradigm
●
Digital
Education
as the
engine for
global
economic
growth

102. Automobile Manufacturers in Silicon Valley
FT
Was it
President
Clinton
who
catalyzed
this
massive
change?

105. The Supply Chain Evolution in the Near Future?
APPLE
Rent-i-CAR

106. Driving on the road ahead – 3D Printed Car
It takes about 28-30 years for an idea to be socialized before it is accepted and adopted.
1999 was the birth year for IoT concept. We expect exponential growth of IoS by 2030.
In 1984, Carl Deckard started his PhD with
Professor Joseph Beaman at UT Austin. They
commercialized one of the first forms of 3D
printing, called Selective Laser Sintering (SLS).
In 1988, New York Times attempted to explain
SLS (http://bit.ly/3D-PRINTING-NYT-1988).
About 30 years later, at the 2015 Detroit Auto
Show the Shelby Cobra is 3D printed by ORNL
(Oak Ridge National Laboratory, DOE). The
Industrial Internet Consortium is exploring 3D
printing in an autonomous (self-assembly, self-
organizing) manufacturing test bed proposal.
http://energy.gov/eere/amo/3d-printed-shelby-cobra

107. Bits
Atoms
Network
Products Intelligent Autonomous Cars

108. http://bit.ly/3D-SUPERCAR-PLATFORM
http://3dprint.com/74810/3d-printed-supercar-blade/
Bits
Atoms
Network
Products SOFTWARE DEFINED VEHICLE

109. 3-D Printing of Spare Parts
http://bit.ly/3D-Print-A-Tooth
http://bit.ly/3D-Print-Medical-Devices
3D Printed Jet Engine

110. Paradigm Shift in Global Healthcare Economics
3D Printed Medical Devices + OS Hardware / Software

111. Can Butterflies Help Prevent Diabetic Coma?
Dual Acetone Sensors on a single chip may differentiate between acetone in the environment vs
acetone in the blood, breath or urine of diabetics. Subtractive analysis alerts to blood ketones.
Occurs when body uses fat instead of glucose. It signals insulin dysfunction. If undiagnosed, it
may lead to diabetic ketoacidosis (DKA) which may result in diabetic coma and may be fatal. The
acetone (ketone bodies) sensors may be able to detect trace levels (nano milli moles eq) and may
help preventive care to stem the clinical onset of type II diabetes mellitus (glucose >120 mg/dl).
This is only a suggestion by the author and not a fact or system which is under investigation or is available at present.

112. Weigh-scale, BMI, FOBT, urine analysis, sugar,
ketone body analysis, blood pressure monitor,
pulse oximeter, networked to phone via WiFi
and/or Bluetooth with biometrics and face
recognition for secure communication with
physician and hospital or clinic, globally.
Pay-Per-Pee Home Health - IoT Wireless Toilet Bowl Connected to Health Informatics
I pee on everything
Vint Cerf

114. http://inhabitat.com/new-artificial-leaf-technology-could-revolutionize-renewable-energy-production/
http://bit.ly/LEAF-CALTECH-HYDROGEN
The Energy Revolution – Artificial Photosynthesis & Graphene

115. Tokyo 9th Sep 2015

116. 116
2.5 million falls 2013
734,000 hospitalized
25,500 died from fall
$34 billion direct cost

117. Professor Dina Katabi (MIT) presenting RF Reflection
to President Obama (White House Demo, 4 Aug 2015)
http://newsoffice.mit.edu/2015/president-obama-meets-mit-entrepreneurs-white-house-demo-day-0806
http://bit.ly/President-Obama-with-Dina-Katabi

118. Transformation
http://bit.ly/AFRL-MAV

119. Second Chance at Life
http://bit.ly/Defibrillator-on-Demand

120. Drone-on-Demand
http://bit.ly/3D-PRINT-ON-SITE

121. CONVERGENCE

122. Multi-disciplinary convergence
SCM Data Collaboration (http://bit.ly/SCM-DATA-SHARING)
Economic History of GPT (http://bit.ly/PAUL-DAVID-GPT)
Information Asymmetry (Akerlof, Spence, Stiglitz)
The Nature of the Firm (Ronald Coase)
Role of Technology (Robert Solow)
(The Actual) Metcalfe’s Law
Trust in Social Networks
Systems Science
Graph Theory
Platforms
Analytics
Monetizing IoT

123. CURATE

126. MONEY

127. Predictive Analytics
Shipments
Inventory
Consumption
Decision Support
Logistics Schedule
Curated Data
Safety Stock
Replenishment
Forecast
All Data
Do you control and command all the nodes to drive convergence and fuel intelligence?

128. Intelligence

129. 129
www.wired.com/2015/09/toyota-enters-self-driving-car-race 4 SEP 2015
Guess who’s running the program at Toyota

130. 130
4 SEP 2015
Artificial Intelligence of Autonomous Driving
US $50
MILLION

131. PLATFORM
Intelligence
Why you need to collaborate, why you need ecosystems, why you need to be a part of a

132. PAY-PER-ANALYTICS
02/21/2014

133. PAY-PER-ANALYTICS
02/21/2014
US $50 MILLION

134. Food Society Infrastructure
Roads
Energy
Housing
Transport
Sanitation
BILLIONS OF PEOPLE
ONE TRANSACTION PLATFORM ?
Education Healthcare Entertainment
Retail
Travel
Services

135. http://time.com/3589909/internet-next-billion-mobile/
The Next MOB ● Mobile Only Billion

136. My mobile phone will
be my purchasing tool
www.pwc.com/gx/en/retail-consumer/retail-consumer-publications/global-multi-channel-consumer-survey/assets/pdf/total-retail-2015.pdf
Apply ABCDEF Principle
Analyses based on context,
demographics and economic future

137. World’s Top 10 Start-ups

138. SOFTWARE

139. Re-think Digital Re-Polarization

140. Software catalyzed polarized disruption
SOFT
http://graphics.wsj.com/billion-dollar-club/

141. Global VC Funding (2010-2014)
In past 5 years, $54 billion of the $82 billion (66%) is in the US
http://bit.ly/PETER-EVANS

142. Over 10,000 companies were able to raise over US$80 billion in 2014. In the
lead are Flipkart (India); Airbnb, Uber, Cloudera (US); Koudai, Meizu (China)

143. Google Ventures – Startup

144. GE Ventures – Startup
P. Evans, CGE

145. Hardware is becoming Soft
COMPLEMENTARITY
Software is becoming Hard

146. Hardly soft Softly hard

147. Can anybody stop you from printing a
car in your own garage in China?
Anybody can write software and
program from a tiny hut in India

148. • Google
• Amazon
• Facebook
• Paypal
• Purchased 8 robotics
companies in 6 months
• Kindle, Fire, Phone,
Echo, Drones, 2lemetry
• Oculus, Ascenta, Drones
• Registers, Dongle, card
readers
Software is becoming Hard
http://gizmodo.com/a-humans-guide-to-googles-many-robots-1509799897
http://www.cbsnews.com/news/google-buys-8-robotics-companies-in-6-months-why/
http://wearableworldnews.com/2014/11/07/amazon-moves-deeper-hardware-business-new-speaker-assistant/
http://www.reuters.com/article/2014/03/27/us-facebook-internet-idUSBREA2Q27420140327
http://www.ft.com/intl/cms/s/0/b8a6524a-b627-11e3-b40e-00144feabdc0.html#slide0
http://hothardware.com/news/PayPal-Here-A-New-Mobile-Payment-Dongle

149. Amazon Warehouse – Amazing Software Company?
Obsolescence imminent? http://bit.ly/BEAM-ME-UP-SCOTTY

150. • GE
• Monsanto
• John Deere
• Nokia
• Quirky, Pivotal, GE GRC
Software
• Climate Company,
Precision Planting
• Farm Manager App in
Apple’s App Store
• Is now Microsoft
http://www.economist.com/news/business/21605916-it-has-taken-ges-boss-jeffrey-immelt-13-years-escape-legacy-his-predecessor-jack
http://www.forbes.com/sites/bruceupbin/2013/10/02/monsanto-buys-climate-corp-for-930-million/
http://www.wsj.com/articles/SB10001424052702304707604577422162132896528
https://stellarsupport.deere.com/en_US/categories/downloads/apex-update/
http://www.zdnet.com/article/microsoft-the-hardware-company/
Hardware is becoming Soft

151. Tread softly

152. Market Cap of Software Services 2001-2011

153. Graphene will influence this supply chain
The next revolution is water …
Li-ion battery costs (in US$, 2014) down 60% from 2010. Solar PV costs have plunged.
MIT

154. Economic history and data related to Textile, Railway, Automobiles and Computers taken from work by Norman Poire
1771 1825 1886 1939 1977 1991
Industrial Revolution
1800
Knowledge Driven Economies of Scale
1853 1913 1969 2005 2020
Adoption
Technology Surfaces
1853 1913 1969 2020 2061 2081
Textile Railway Auto Computer Agents
ML
Nanotech
DLV, CPS
3DP / IoT
1959
AI
Atoms Bits
2010
2040
2100
IoT / IIoT
Cyberwar
Hydrogen
Autonomous
Cars, Fusion
Systems IoS
The Wealth of Nations ● Nature of the Firm (Transaction Cost Economics)
1995
Public
Internet
It takes about 28-30 years for an idea to be socialized before it is accepted and adopted.
1999 was the birth year for IoT concept. Expect exponential growth of IoS ~ 2025-2026.
2007
Autonomous
Vehicles
2035

155. To follow this trajectory we need
ECOSYSTEM

156. www.linkedin.com/pulse/internet-things-iot-show-me-money-petri-seppänen
The Global Penchant for Monetization – for example – Finland

157. Where is Finland with regard to the EU Economic Predictions?
http://europa.eu/espas/pdf/espas-report-2015.pdf
2015

158. FINLAND
#1 in innovation yet lags in outcome
http://bit.ly/GLOBAL-COMPETITIVENESS-2014-2015-WEF

160. Finland’s Quest for Silicon Valley
Heikki Ailisto et al “Suomi – Teollisen Internetin Piilaakso” VNK 4/2015 ● http://bit.ly/FINLAND

161. www.helsinkiventures.com/iot-accelerator.html
Funding – policies, adequate amounts, high risk taking and
committed support for projects which are expected to fail
Accelerators in Finland

162. DISRUPTED ?
www.dailyedge.ie/13-pieces-of-evidence-that-the-nokia-3310-is-indestructible-856293-Apr2013/

163. Countries stalled in the digital evolution

164. REAP
Regional
Entrepreneurship
Acceleration
Program
MIT Sloan School

165. Invest
Basic Science Research

166. HOW TO BOIL THE OCEAN – Invest in Basic Science Research
Trillion Dollar
Economy

168. Robert F Curl
1995

169. Bob Curl
Rebecca
2014

170. Harry &
Margaret
2013

171. www.siemens.com/content/dam/internet/siemens-com/innovation/pictures-of-the-future/pof-archive/pof-spring-2003.pdf
2015, FL

172. Neuromuscular Therapy
Dr Prashant Jain
Los Alamos National Lab (Santa Fe)
http://bit.ly/EMG-BioFeedback

174. If genius has any common denominator, I
would propose breadth of interest and the
ability to construct fruitful analogies
between fields.
in Darwin's Middle RoadSeptember 10, 1941 – May 20, 2002
CONNECT THE DOTS …

175. Think Horizontal – Think Solution – Think Different
Innovate ● Substantiate ● Replicate
Connect the dots
Educate
Standardize ● Socialize ● Monetize
GO
DEEP
GO
DEEP
GO
DEEP

176. This document is merely a collection of images which are neither original nor the outcome
of the author’s research or creativity. The synthesis of existing facts and weaving them to
suggest future action is one goal. The author has no claim or rights over the data, visuals
and graphics used in this document. The material is sourced from the world wide web and
expressly used for the sole purpose of explaining thoughts presented in this document. This
presentation may be shared with anyone and disseminated or used for non-commercial or
academic purposes. Please write to shoumen@mit.edu or explore http://bit.ly/S-DATTA
Disclaimer
The opinions and comments are solely due to the author. It does not represent the views of any
institution or organization with which the author may be affiliated at present or in the past.

177. Thank you
The contents presented here by the author should not be mistaken to reflect or represent the brilliance or
skills of the author. The author has neither created anything new nor invented any portion of this collective
thinking. The references to material from scientists at MIT and other institutions are borrowed and
aggregated by the author to suggest potential confluence of ideas. Many of these ideas are common and
should not be viewed as ideas due to the author, alone. The meteoric accomplishments and the august
institutional image of institutions are solely due to the scientists and their scientific genius. There is little
connectivity between these works and the author. The author neither represents the science nor the
scientists. The author is not a contributor (unless specifically mentioned here) but merely a collector. This is
not an attempt by the author to masquerade under any institutional banner of excellence. The author does
not claim to be a part of the rigorous standards of excellence exemplified by MIT or imply that the author is
a part of that intellectual fabric that one perceives about the elite institutions which may be mentioned in
this presentation. The author has merely borrowed the material to spin a yarn to depict a resplendent
future. The progress of civilization is due to science by the scientists. The author is an external observer of
that magnificent process of evolution which creates a sense of the future. Thank you. shoumen@mit.edu