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Business Strategy and System Development
Dr. June Sung Park, KAIST | SEMAT, Inc.
IoT
1| Copyright © 2016. Dr. June Sung Park. All rights reserved.
TABLE OF CONTENT
Copyright © 2016. Dr. June Sung Park. All rights reserved. 2|
IoT Global Trend
IoT Business Value Chain
IoT Architecture
IoT Use Case Patterns
IoT Business & System Development Process
IOT GLOBAL TREND
Copyright © 2016. Dr. June Sung Park. All rights reserved. 3|
Market Forecast
IOT GLOBAL TREND
Copyright © 2016. Dr. June Sung Park. All rights reserved. 4|
McKinsey estimates the total IoT market size in 2015 was $900M, growing to $3.7B in 2020 attaining a 32.6% CAGR. McKinsey estimates IoT global market an economic impact of $11.1 trillion per year in 2025 for IoT applications.
McKinsey, The Internet of Things: Mapping the Value beyond the Hype, June 2015. Forbes, Roundup Of Internet Of Things Forecasts And Market Estimates, Nov. 2016.
Industry Revolution
IOT GLOBAL TREND
Copyright © 2016. Dr. June Sung Park. All rights reserved. 5|
Smart, connected products substantially changes the work of virtually every function within the manufacturing firm. What is under way is perhaps the most substantial change in the manufacturing firm since the Second Industrial Revolution more than a century ago.
M. Porter & J. Heppelmann, How Smart, Connected Products are Transforming Competition, Harvard Business Review, Nov. 2014. M. Porter & J. Heppelmann, How Smart, Connected Products are Transforming Companies, Harvard Business Review, Oct. 2015.
Digital Business
IOT GLOBAL TREND
Copyright © 2016. Dr. June Sung Park. All rights reserved. 6|
Every industrial company must become a software company.
McKinsey, GE’s Jeff Immelt on Digitizing in the Industrial Space, 2015.
Platform Economy
IOT GLOBAL TREND
Copyright © 2016. Dr. June Sung Park. All rights reserved. 7|
Accenture, Platform Economy: Technology-Driven Business Model Innovation from the Outside In, 2016.
IOT ARCHITECTURE
Copyright © 2016. Dr. June Sung Park. All rights reserved. 8|
IOT ARCHITECTURE
Copyright © 2016. Dr. June Sung Park. All rights reserved. 9|
Smart Connected Device
Enterprise IT
IoT Analytics Platform
Internet
Sensor
Microprocessor
Data Storage
Software
OS
Digital UI
Data
Physical Device
Smart
Component
Wireless
Connectivity
Component
Business
Operation Business
Operation
IoT App Marketplace
Apps for IoT Device
IoT Application
Enablement
IoT Data
Analytics
IoT Application
Platform
Daimler Mobility Service
IOT ARCHITECTURE
Copyright © 2016. Dr. June Sung Park. All rights reserved. 10|
Daimler’s Car2Go is a free-floating car sharing system offering flexible mobility with Smart Fortwo cars. Cars can be located and booked spontaneously via smartphone app or the internet portal. Customers pay only for the rental time. Parking fees, fuel costs, taxes and insurance are already included.
Daimler also launched an intermodal service through its Moovel transit platform that helps customers optimize their route using different types of transport such as Car2Go, bike sharing, public transport and taxi using smart phone apps and a web portal.
With the Moovel transit platform, transit agencies get real-time access to a whole world of mobile ticketing, including mobile sales, Smart Card management, real-time analytics, trip planning and transaction data.
RideTap is a SDK available for developers who want to deep link to car, bike, and ride-sharing services in their apps.
Moovel-based applications integrate seamlessly into complex backend environments, simplifying operations for transit agencies.
Daimler IT
Internet
Data
Smart Fortwo Car
Business Operation Car Sharing Service
Remote Fleet Management
IoT App Marketplace
Apps for Car2Go and Intermodal Transport
Moovel Platform and RideTap Developer Portal
IoT Application
Platform
Transit Agencies IT
Mobile Ticketing
LED RFID
Car Controls
Gartner IoT Reference Architecture
IOT ARCHITECTURE
Copyright © 2016. Dr. June Sung Park. All rights reserved. 11|
Gartner, Delivering Digital Business Value with Integrated IoT Solutions, Aug. 2016.
IBM IoT Reference Architecture
IOT ARCHITECTURE
Copyright © 2016. Dr. June Sung Park. All rights reserved. 12|
IBM, SOA Design Principles and the Internet of Things, IBM SOA Architect Summit, 2014.
System of Systems
IOT ARCHITECTURE
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M. Porter & J. Heppelmann, How Smart, Connected Products are Transforming Competition, Harvard Business Review, Nov. 2014.
IOT USE CASE PATTERNS
Copyright © 2016. Dr. June Sung Park. All rights reserved. 14|
Connected Product Lifecycle Management
IOT USE CASE PATTERNS
Copyright © 2016. Dr. June Sung Park. All rights reserved. 15|
Monitoring Monitoring of the product’s condition, its environment, its operation and
usage, enabling notifications of changes, and improving product design,
market segmentation, after-sale service, new sales opportunities, etc.
Control Control of product functions through remote upgrades, reconfiguration and
maintenance
Optimization Optimization of product performance, personalization of the user
experience and predictive diagnostics, service and repair, applying
algorithms and analytics to in-use or historical data
Autonomy Autonomy of product operation, self-coordination of operation with other
products and systems, autonomous product enhancement and
personalization, self-diagnosis and service
Meditronic,
Medical Device,
Ireland
General Electric,
Brilliant Factories,
U.S.A.
Joy Global,
Mining Equipment,
U.S.A.
ABB Robotics,
Robotics,
Switzerland
Manufacturing Servitization
IOT USE CASE PATTERNS
Copyright © 2016. Dr. June Sung Park. All rights reserved. 16|
Service Bundling
Service bundling to provide connected value-added services directly to
customers, enabling new ongoing customer relationships and
disintermediation of channel partners or maintenance partners
Product as a Service
Product as a Service where customers pay the usage-based fee without
buying the product and the manufacturer assumes responsibility for and
associated cost of maintenance
Product Sharing
Product sharing service where service subscribers share the product
without buying it
Productless Service
Productless service providing IoT-based information services or owner-user
matching services without manufacturing or even owning the product
Schneider Electric,
Energy Management,
France
Smoove,
Bike Mfg & Sharing,
France
OnFarm,
Agri. Data Service,
U.S.A.
GE Aviation,
Tue Choice Flight Hour,
U.S.A.
API-Driven Economy
IOT USE CASE PATTERNS
Copyright © 2016. Dr. June Sung Park. All rights reserved. 17|
Product API Product APIs to allow the end customer to assemble the parts of the
solution—both the products involved and the platform that ties the system
together—from different companies
Open API Open APIs to enable 3rd party players including app developers to create
new applications and generate new revenues
API Gateway API gateways to simplify the integration of the IoT system with mobile apps,
social media or the customer’s and partners’ backend applications
API Portal API Portal with SDKs to allow developers register for, learn about and
leverage APIs to speed app development and maximize app quality
Nest Labs,
Home Automation,
U.S.A.
Netflix,
Streaming Media,
U.S.A.
GM,
Developer Network,
U.S.A.
Philips Lighting,
HUE API,
Netherlands
Bosch mySpin
IOT USE CASE PATTERNS
Copyright © 2016. Dr. June Sung Park. All rights reserved. 18|
Bosch’s mySpin integrates the smartphone with the car’s head unit. The driver can then use compatible smartphone apps directly from the car’s touchscreen.
mySpin is a middleware that creates a link between the dashboard system and a smartphone via the car manufacturer-provided API.
Bosch supports the developer community with a portal, SDK, templates and tutorials to expand the range of available apps.
mySpin competes with Apple’s CarPlay, Google’s Android Auto and car manufacturers’ proprietary solutions.
Land Rover InControl is a suite of services that connects the driver to the car and the outside world, even when the driver is away from the vehicle. It provides such services as infotainment, checking the fuel level, finding the car in a parking lot, locating a stolen car, viewing car diagnostic data, e-call service, etc.—all through a smartphone app.
Land Rover InControl Apps based on mySpin enables the use of vehicle-optimized smartphone apps on the car’s touchscreen by connecting the smartphone to the USB port.
Bosch mySpin
Platform
Smartphone
API
Car
Manufacturer
API
App Developer
Community
IOT BUSINESS VALUE CHAIN
Copyright © 2016. Dr. June Sung Park. All rights reserved. 19|
IOT BUSINESS VALUE CHAIN
Copyright © 2016. Dr. June Sung Park. All rights reserved. 20|
OT
IT
Business Info Design
Business Process Design
Device Design
Customer Support & Services
Marketing & Sales
System Development
Business Scenario Design
HW & Embedded SW Devt
Analytics Cloud Implementation
Enterprise Application Devt
Product Sales
Service Subscription
Service Cloud Implementation
Customer Support
Service Operation
Business Operation
Facility Management SaaS
IOT BUSINESS VALUE CHAIN
Equipment Manufacturer
SaaS Customer
Facility Management
SaaS ISV
Business Info Design
Device Design
Customer Support & Services
Marketing & Sales
System Development
Business Scenario Design
HW & Embedded SW Devt
Analytics Cloud Implementation
Enterprise Application Devt
Equipment Sales
Service Subscription
Service Cloud Implementation
Customer Support
Service Operation
Business Operation
Equipment Purchase & Installation
Equipment Operation & Management
API
Copyright © 2016. Dr. June Sung Park. All rights reserved. 21|
Business Process Design
IOT BUSINESS DEVELOPMENT
Copyright © 2016. Dr. June Sung Park. All rights reserved. 22|
IOT BUSINESS & SYSTEM DEVELOPMENT PROCESS
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System Implementation
System Analysis & Design
Business Scenario Design
Business Process (BPMN)
Business Data (UML Class)
Use Case (UML)
Customer Journey Map
Standard Vocabulary
UX
Service Messages (XSD)
Service Inventory Service Interface
(WSDL, REST)
Database Schema
Use Case Scenario CRC Object-Oriented Class
Component (Docker Image?)
Process Orchestration (BPEL)
UI
Ignite IoT Development Methodology
IOT BUSINESS & SYSTEM DEVELOPMENT PROCESS
Copyright © 2016. Dr. June Sung Park. All rights reserved. 24|
System Analysis & Design
Business Scenario Design
D. Slama, et al., Enterprise IoT: Strategies and Best Practices for Connected Products and Services, O’Reily, 2015. (http://enterprise-iot.org/)
IOT BUSINESS & SYSTEM DEVELOPMENT PROCESS
Copyright © 2016. Dr. June Sung Park. All rights reserved. 25|
Automating a mess generates an automated mess.
Michael Hammer, Professor at MIT Founder of BPR One of America’s 25 Most Influential Individuals Author of One of 3 Most Important Business Books
Lean Startup & Agile Development
IOT BUSINESS & SYSTEM DEVELOPMENT PROCESS
Copyright © 2016. Dr. June Sung Park. All rights reserved. 26|
Product Planning
Product Backlog
Sprint
System Implem.
with Model
Storming
Sprint Review & Retrospective using Essence
Sprint Planning
Release Planning
Business Scenario Design
System Analysis & Design (Spike )
Product Increment
Steve Blank, The Four Steps to the Epiphany, K&S Ranch, 2013. Eric Ries, The Lean Startup: How Today's Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses, Crown Business, 2011.
THANK YOU
[email protected] https://www.linkedin.com/in/june-sung-park-a66683/
https://twitter.com/junesungpark https://www.facebook.com/JP.Institute.of.Software/