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Internet of Things in High Tech – Why you should care… NOW
November 12, 2014
@AlexBlanter
Let me start at the end and give you the “answer”
Internet of Things will materially change what we do as individuals and enterprises – and that will happen whether you do anything or not
High Tech companies – semiconductor, device, hardware, and systems –
will be key beneficiaries of the Internet of Things
Truly taking advantage of the Internet of Things will require different
strategic thinking and new execution capabilities
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2
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Now you can leave to have a drink… or explore Las Vegas… or stay to see and hear facts, figures, and opinions
You are here today because you are interested in the Internet of Things – and so is everybody else
iot internet of things
security 2020
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need m2m data mobile
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digital today
launches
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big data start gigaom
po
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potential
On track for nearly 26,000 publications
2X rate increase in less than 6 months
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What is the Internet of Things (IoT)?
Let’s make this a bit more tangible
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Ind
ustr
ies
Things
Value and Impact
Po
licie
s &
Sta
nd
ard
s
Identify
Sense
Connect
Collect
Analyze
Act
Enterprise
Consumer
Public Sector
IoT will be pervasive… are you ready?
2013 to 2020: From half as many to twice as many – growth of IoT devices relative to traditional connected devices
Over 7.7 billion people 20X+ as many conne-
cted devices/person Over 3.2M people
Nearly 30 billion
devices
By 2020 in the World…
Over 3.5
per every human on the planet
By 2020 in Silicon Valley…
For a family of four: 250+
For all in Silicon Valley:200M+
Internet of Things
Traditional connected devices
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 0
5
10
15
20
25
30
Co
nn
ecte
d
devic
es
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IoT will be materially disruptive – there will be winners and losers
By 2020 IoT will impact close to 6% of the global economy
$3.5T Revenue Redistributed
$1.9T Productivity Improvement
$177B Value to End Customer
$344B Additional IoT Revenues
Revenues directly attributable to sale of IoT hardware, software, and services
Direct reduction in costs driven by IoT and realized by end customers
Direct increase in output per unit of cost, enabled by IoT and reinvested in productive
assets and activities
Revenues realized within the world economy that will potentially move from one player to another with no net increase in total economy
Global Economy in
2020
$100T
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Additional IoT revenues will be split in a multitude of ways
Enterprise
Consumer
Public Sector
$217B
$97B
$30B
63%
28%
9%
$344B Additional IoT Revenues
Survey Results: Time to Value Rank
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2
3
1
$196B 57%
$41B 12% 18% $62B
13% $45B
Source: 2014 A.T. Kearney IoT Survey
2010 2015 2020 2025 2030
IoT journey is starting now
Value buzz
1 • $1.1B of . VC investment in IoT –
growing at 46% vs. 7% growth for all VC investment
• US government is investing $100M per year and UK just announced a £45m investment
• Cisco is investing $1B over 5 years;
Intel has created IoT BU • AT&T, Cisco, Intel, GE, IBM forming
Consortium
Survey Results
13% 22% 59% 2% 4%
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Source: 2014 A.T. Kearney IoT Survey
z z
In many cases IoT will radically transform our lives – Smart Clothing example
Mobile apps that provide the user interface and tethered cloud connectivity
User
Cloud platform & software stack for new use cases to be developed by multiple providers
Data storage and analytics platform
Oth
er
us
ers
Smart Clothing & Braces with embedded sensors, medical monitors, and actuators
Wearables with Bluetooth connectivity that transmit the sensed information to a Smartphone… or two other Wearables
Service providers
• Healthcare
• Wellness
• Fitness
• Athletics
• Insurance
• Remote care
• Health & wellness mgmt.
• Emergency services
• Visualization
• Services mgmt. • Direct feedback
• Therapeutic intervention
Source: Pictures from company websites sensoria, djoglobal, fitbit, nod, gowtrainer
Information flow Services
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Not all industries will adopt IoT at the same time – adoption forecasts favor High Tech
2.1
2.3
3.5
4.3
4.4
5.7
5.9
Manufacturing
Retail / Consumer Products
Transportation / Logistics
Healthcare
Financial Services
Natural Resources
Education
Rank ordered responses, with 1 – fastest time to value
High Tech semi and devices opportunity (revenue sizing, $B)
10
6
4
5
2
6
Faster Slower
Opportunities to stake additional ground within and across IoT solutions will grow and multiply
• Communication
• Control & automation
• Storage & retrieval
• Data analysis & decision
• Transactional
• Monitoring & control
• Content
• Optimization
• Mobility
• Sharing
• Interactive
• Marketplace
• Internet access and connectivity infrastructure
• Data aggregation and storage
• Computing
• App & service development enablers & APIs
• Deployment & management solutions
• Sensors & actuators
• Radios
• Embedded processors
• Smart modules
• Wearables
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Across most industries IoT will transform more products into High Tech products
Traditional Products
High Tech Products Traditional
products incorporating
electronics and software
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Across most industries IoT will transform more products into High Tech products
2
IoT will change customer behaviors and will require even Higher Tech solutions
Delivery urgency
Dominant product mode
Connected devices
Appetite for new products
Personalization
Hardware
1.8B
Fledgling
7 days
1 to 3 yrs
Software
30B
Mainstream
Same day
2x / year
Experience
500B+
Prevalent
Hours
Monthly
Demanding Fickle Intolerant
2010 2020 2030
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Key players are starting to get serious about IoT – happenings in just the last two months
Qualcomm Chief Executive Steve Mollenkopf said automakers are accelerating efforts to bring mobile technology into vehicles — outpacing health care, education and the connected-home industries
Windows 10 will help Microsoft integrate more tightly with the Internet of Things… Windows 10 will run on wireless sensors and integrate with more objects and machines even as the platform is being designed to support applications across PCs, tablets and smartphones.
Europe’s largest telecommunications providers are gearing up for a battle in the lucrative race to connect cars, homes, utilities and other everyday devices to smartphones and other wireless devices.
Intel Corp is using sensors to predict tool failure, a company Internet of Things expert told attendees at a San Francisco event Tuesday.
Deutsche Telekom and China Mobile on Friday formed a joint venture that will see them provide connected car services to China's growing automotive sector.
Dell Inc. has opened a Silicon Valley laboratory where customers can develop software to improve business operations. The facility, dubbed the Dell Internet of Things Lab, opened in the Dell Silicon Valley Solution Center in Santa Clara
With the rise of the Internet and its data-rich applications, America's railroad system has entered a new age -- one that is focused on improving the commuter experience, enhancing safety and minimizing costs… Cisco's Connected Rail…
Best Buy will add more than 100 new smart-home products online and at 400 stores before Thanksgiving.
Microsoft and LG Electronics agreed to cooperate on the Internet of Things (IoT) yesterday when Microsoft’s Chief Executive Officer Satya Nadella was in Korea to attend the TechDays 2014 forum
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GE forges Internet of Things alliances with Verizon, Cisco, Intel… will also open up its Predix software platform to developers and users in 2015 as it aims to add intelligence to industrial gear
AT&T certifies tiny 3G module for IoT applications …world's smallest 3G chip module for use on the carrier's cell networks. The 16-by-26-millimeter module is intended for applications in the Internet of Things, transmitting data between devices
Competition is also heating up in specific industry segments – semiconductor industry example
• Bought SmartThings, developing own wearable devices & software
• Investing $18bn in new manufacturing facility anticipating demand from IoT growth
• Intel and Qualcomm leading consortiums to define competing IoT standards
• Renesas collaborates with IS2T and Micrium to develop Microcontrollers for IoT applications
• ARM acquired Sensinode Oy a provider of S/W technology for IoT
• Maxim teams with Logic PD to develop wearable devices
• TI launches its own IoT cloud ecosystem
• Silicon Labs offers suite of products targeting IoT applications including Zigbee SoCs
• Marvell introduces a new platform targeting the internet of things
• STM MEMS Sensor products target Wearables and applications beyond the smartphone
• Bosch partners with Institute for Technology Management (ITEM) at the University of St. Gallen
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Logic Radio, Analog and Power Management
Sensors & Actuators Memory
Success in IoT requires… high level of business value clarity
Are you moving fast enough?
What industries will be the main focus?
Where your company fits into IoT ecosystem?
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Success in IoT requires… explicit strategic choices
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Semiconductor example
Continue in the core
Expand to adjacent upstream
Evolve into a platform player
Transition from products to solutions and services
E.g., manufacture Individual components that go into sensors &
devices
Integrate devices, memory, computing
into SoC edge modules
Provide components, modules, software to
enable edge modules and customer applications
Go into specific industry verticals with customer
ready offerings
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Success in IoT requires… alignment of innovation focus with selected strategic choices
Continue in the Core • Tune product characteristics to IoT-specific needs – e.g., low power,
low cost, increased variability
Expand to adjacent upstream
• Focus on system and sub-system design and strengthen integration capabilities, including software
Evolve into platform player
• Drive standardization and interoperability
Transition from products to solutions/services
• Deepen vertical industry expertise and corresponding ecosystem relationships
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Strategic Choice Innovation Focus
Success in IoT requires… operational capabilities built for flexibility and experimentation
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Focus on superior innovation
Proactively manage complexity
Implement agile product development
Enable distributed collaboration
Social Ideation & Creative Design Sharable 3D virtual prototyping to infuse innovation from customers, designers and engineers alike…3D virtual prototypes can be displayed on any browser, any time, anywhere in the world http://www.3ds.com/industries/high-tech/ht-body/social-ideation-creative-design
Ideation & Concept Design Combines automated social market listening, streamlined 3D-drawing to 3D-design integration, project-oriented social media, and one-source-of-truth product lifecycle management for extensive development capability. Available on-cloud and on premise. http://www.3ds.com/industries/high-tech/ideation-concept-design/
Requirement, Traceability & Test Automate capture of customer needs and associated product specifications... “voice of the customer” translation it into user requirements for new product definition. Single repository… http://www.3ds.com/industries/high-tech/smarter-faster-lighter/requirements-traceability-test/
Concurrent Hardware & Software Design Improves coordination between ME, EE and SW eng teams. Provides a single repository for all PD data including spec, 3D models, code, analysis results, and mfg requirements. http://www.3ds.com/industries/high-tech/smarter-faster-lighter/concurrent-hardware-software-design/
Semiconductor Collaborative Design Faster design integration through advanced element modularization. Efficiently manages design data for an entire design organization. Design data contributed by individual teams seamlessly integrated into higher level designs. http://www.3ds.com/industries/high-tech/silicon-thinking/semiconductor-collaborative-design/
Company-specific
