Reshaping Business Through IoT: Key Technology Factors to Consider
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The document discusses the transformative impact of the Internet of Things (IoT) on businesses, highlighting how it requires companies to adapt by integrating information technology (IT) and operational technology (OT) for improved efficiency and innovation. It outlines key trends, challenges, and opportunities associated with IoT, emphasizing the need for companies to navigate the complexity of technology while focusing on agility, openness, and security. Additionally, it provides insights into the potential for enhanced operational efficiency and the creation of new business models through predictive maintenance and real-time data utilization.
Reshaping Business Through IoT: Key Technology Factors to Consider
- 1. Reshaping Business Through IoT: Key Technology Factors to Consider 12-10-2016 Roberto Siagri Chairman & CEO Eurotech Spa
- 2. Eurotech's Global Footprint JAPAN ITALYFRANCEUSA USA UK Marketing and Sales Development & Engineering Production 2
- 3. Eurotech Overview • One of the world top players in the global Embedded Computers market • Behind the products & services of more than 20 Global 500 companies • 20+ Years of experience in “M2M” and distributed systems – 20+ Years experience in embedded / gateway hardware & software – 16 Years ago co-developed MQTT with IBM – 10+ Years experience with Java in embedded – 6+ Years history in M2M/IoT cloud platforms • Strong vertical market competencies: – Industrial & Logistics – Transportation – Defense & Security – Healthcare & Medical 3 Eurotech’s Essence
- 4. The Pervasive Computer Machine-2-Machine / Internet of Things applications everywhere… 5
- 6. The Innovation Imperative These forces (together with the exponential growth of technology) create environments increasingly vulnerable to disruption
- 7. Companies in every industry need to assume that a software revolution is coming… Marc Andreessen Products Dematerialization & Value Chains Deconstruction
- 8. GE CEO Jeff Immelt told his troops last year: “If you went to bed last night as an industrial company, you’re going to wake up this morning as a software and analytics company.” Data and the 4^ Industrial Revolution Data are the new raw material: new source of innovation & lever to achieve business sustainability.
- 9. Adoption and impact path of the Industrial IoT 10 1. Operational Efficiency 2. New Products & Services 3. Outcome Economy 4. Autonomous, Pull Economy Near-term Long-term World Economic Forum: Industrial Internet of Things: Unleashing the Potential of Connected Products and Services Jan.2015 Time Change
- 10. Transition = Business Disruption i.e.: New value creation 0 1 0 11 00 1 0 1 0 11 1 0 11 1 1 1 000 10 11 1 0 1 0 1 1 0 1 1 1 0 0 0 0 1 1 0 1 1 1 0 11 1 0 11 1 0 1 0 1 0 1 0 1 0 1 0 11 1 0000 1 1 0 1 1 0 11 0 1 0 11 00 1 0 11 0 0 1 0 11 00 1 0 1 0 11 1 0 11 1 1 1 000 10 11 1 0 1 0 1 1 0 1 1 1 0 0 0 0 1 1 0 1 1 1 0 11 1 0 11 1 0 1 0 1 0 1 0 1 0 1 0 11 1 0000 1 1 0 1 1 0 11 0 1 0 11 00 1 0 11 0
- 11. Key Findings • It will change the basis of competition, redraw industry boundaries and create a new wave of disruptive companies, just as the current Internet has given rise to Amazon, Google and Netflix. • However, the vast majority of organizations are still struggling to understand the implications of the Industrial Internet on their businesses and industries. • For these organizations, the risks of moving too slowly are real. 12 WEF-ACCENTURE
- 12. Industry needs to combine IT and OT IT OT Internet of Things Information Technology Business Process Automation & Office Automation Operational Technology Industrial & Factory Automation Supply Chain Assets Monitoring i.e: Engagement i.e.: Predictive Maintenance + IoT is the fusion of IT & OT
- 13. The complexity trap in IoT In need of a bridge between Distributed Things and Multiple Business Apps Business Applications Sensors, Actuators, Displays, … @ 14 How to tame complexity?? IT OT
- 14. No more vertical M2M Applications IoT = Horizontal M2M
- 15. IIoT Challenges Is it enough to select some pieces? HTTP Server HTTP C++ SQL DB Broker Open HW Linux More Code @ It might actually work, but is it: • Maintainable • Secure • High performance • Future proof • Cost effective • Reliable • Extensible • Agile
- 17. M2M / IIoT Challenges High Level Fragmentation Complexity Lock-in
- 18. Processor Architectures Mobile Carrier Offerings Proprietary Technology Business Models Programming Environment Monolithic Solutions M2M / IIoT Challenges Some Details Fragmentation Complexity Lock-in IT Vendors Worlds Carrier Certifications Monolithic OT Solutions Security Little Pieces – No Stacks IoT Platform Inflation Interfaces IoT Standardization Data Center Integration Public Cloud / Private Cloud IT/OT Integration SIM Management Embedded Application Management Scaling Field Protocols
- 19. Processor Architectures Mobile Carrier Offerings Proprietary Technology Business Models Programming Environment Monolithic Solutions M2M / IIoT Challenges Addressing the Challenges – High Level Fragmentation Complexity Lock-in IT Vendors Worlds Carrier Certifications Monolithic OT Solutions Security Little Pieces – No Stacks IoT Platform Inflation Interfaces IoT Standardization Data Center Integration Public Cloud / Private Cloud IT/OT Integration SIM Management Embedded Application Management Scaling Field Protocols ✔ ✔ ✔
- 20. Mobile & Web Apps IoT platform Public-Private Cloud The IT & OT Pyramids Internet of Things = Things to Cloud Telecom Infrastructure WAN Networks SW Gateway (Software Frameworks & software) Gateways CLOUD IT OT
- 21. Data Analytics, Predictive Tools Enterprise-Class IoT Architecture & Stack Core Competencies Combined Multi-service Gateway IoT Integration Platform
- 22. The Basic Formula for M2M / IIoT Implementing a full “M2M Stack” Business Applications Multi- Service Gateway M2M Integration Platform Application Software Framework Operating System Hardware Platform M2M Platform Client Communication / Broker Data Management Layer API`s & Integrations Data Store Layer Infrastructure / IaaS M2M Protocol Integrate Act Store Connect Attach
- 23. The Internet of Things IIoT Implementations / Architectures 10 Key Aspects • Agility (enabling real-time business decisions – real-time aggregated data for applications, historical data, fast write speeds, CEP front end) • Value-driven (preserving and extending value props – no “business normalization” but encapsulating complexity, allowing to focus on core …) • Openness (Open & Industry Standards based in technology, architecture, ecosystem and attitude, IT-centric by design, no-vendor lock-in by proprietary in approach and technology) • Flexibility (supporting diversity – down to the edge – HW, SW, type of applications, business models) • Versatility (“No-Silo-Approach” – readiness for current and future requirements – ESB for machines concept – integration of field and IT applications without creating dependencies – different from “classic telemetry” • TCO-focused (including development, deployment, management, infrastructure, communication, investment protection, future-proving, certifications) • Security (complete approach in architecture and elements) • Validation (continuous testing, validation, feedback and improvement ensured, strong ecosystem ) • Scalability (not just up but “out”, volume and diversity) • Completeness (End-to-End complete OT stack, IT/OT integration, security, flexibility and efficiency requires holistic approach, operating system for the IoT / IIoT)
- 25. Opportunities and benefits made possible by massive volumes of data from connected products, and the increased ability to make automated decisions and take actions in real time. The key business opportunities will be found in four major areas: • Vastly improved operational efficiency • The emergence of an outcome economy • New connected ecosystems • Collaboration between humans and machines 27
- 26. OT business opportunities because of IT integration • Predictive Maintenance • Remote Assets Monitoring Performance Management • Operational Efficiency and Productivity Gains • New More Performing Products
- 27. IT business opportunities because of OT integration • Increase Customers Retention and Fidelization • New Business Models • Products-as-a-Service, • Pay-per-Use • Monetization of Data
- 28. Re-Thinking • Products • Value Add • Business Model • Business Processes 30
- 30. With the Industrial Internet, using new software capabilities to improve operational efficiency through predictive maintenance, and achieving results such as : -savings on scheduled repairs (12%), -reduced maintenance costs (nearly 30%) -fewer breakdowns (almost 70%) manufacturers are already