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FEI 2014 Venice
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Roberto Siagri, Chairman & CEO,
Eurotech SpAVenice 17-3-2014
Transitioning from a Product to a Service Economy:
the Power of Cloud Technology in Innovation
YOU MIGHT BE HERE
CLOUD computing
is not aboutProduct & Technology
is about
Transition
The Cloud reverse pyramid
SaasPaaS
Iaas
CLOUD technologythe birth of
Anything-As-A-ServiceNot just
Iaas, Paas, Saas, but
Device as a service…..
X as a service
Which is the driving Force?
both service companies and manufacturers
are moving more dramatically into services
6
Vandermerwe and Rada, 1988
Servitization
is happening in almost all industries on a global scale
a Services Economy
The
bill
Industries will experiencea type of
never seen in the last
two decades
Progressis expanding
Exnenop
lait
9
yl
Technologiescreate the
Exnenop
lait
10
11
in the 21st century,
we won't experience 100 years of progress
it will be more like 20,000 years of progress
Law of accelerating returns
Ray Kurzweil
Complexity and Saturation
Time
Perf
orm
ance
new way
12
old wayillusion of the old
reality of the old
difficult to imagine of the new
Each new TECHNOLOGICAL substrate is more efficient than the previous one
Time
Innovation
Custom Products
Commodity
13
The most important technologies “disappear”
Standard Products
Utility/ as a Service
Diffusion
SpaceTimeEnergyMatter
Information
Computation
STEM compression :the Engine of Innovation
15http://discovermagazine.com/galleries/zen-photo/a/age-of-abundance#.Uy0_1oV0BxI
16
Less
More
Meta‐Trends in Technological Acceleration
17IDEAS are the new “ultimate” raw material
Moore's Law Miniaturization ‘65 Transistors increase 2 times over 18 months
Metcalfe's Law Interconnection ‘93 Value of a network increases with the square of the
number of connections
Gilder's Law Quantization ’00 Bandwidth increases 3 times faster than computer power
IP Devices vs. Humans
A waterfall of Data
1.000 Exabyte= 1 Zettabyte
1 Zettabyte ~ to 36.000.000 years HD videoor250 billion DVDs
19
0
5000
10000
15000
20000
25000
30000
35000
40000
45000EXABYTE
The Data Economy
20
Value
Abundance
Atoms
Bits
A lighter GDP
The dawn of a New Smart World
Transforming Bits of Data at the Edge of the Network
into Actionable Information and Knowledge in the
Users’ hands will bring about the biggest change in
industry since the steam engine
Software is Eating The World
Companies in every industry need to assume that a software
revolution is coming…
Marc Andreessen
Reducing Software Complexity or CostValue follow simplicity
Cos
t--C
ompl
exity
Time
HW
SW
23
Wirth’s law: “Software gets slower faster than hardware gets faster”
The integration Platform as a Service
The Internet of Things
• Standard Computer HW components
• Open & Industry Standards
• Cloud computing
• Standard SW components
Commoditization of distributed systems
TimeCo
st‐Ubiqu
ity Z‐curve S‐curve
How to harness the complexity of IoT
Decoupling: Data-Producers from Data-Consumers
1- scale elastically
2- enable new services
3- reuse and combine
Integration / Decoupling
Platform
Multi-Service
Gateways
IoTInfrastructure Solution
Operational TechnologyBuilding Block
Data-Producers
Data-Consumers
How to harness the complexity of IoT
Decoupling: Data-Producers from Data-Consumers
1- scale elastically
2- enable new services
3- reuse and combine
Integration / Decoupling
Platform
Multi-Service
Gateways
Data-Producers
Data-Consumers
Simple interface for a complex system
Simplicity or Simplexity ?
Connecting the field at the Enterprise
Four Layers and Two Architectural Components
Business Apps
Multi-ServiceGateway
M2MIntegrationPlatform
ActIntegrate, Store
ControlConnect
+
CommunicateCompute Collect
@
Field Interfaces
Enterprise Service Bus
Field - Devices
1
2
3
4
More data More services
Every business today is
producing a lot of Data
that can become
very valuable
Information.Dati
iPass: Everyware Cloud
Customers Vertical APP
Business APP
Social
Accessible by multiple users at the same time, at the service of many applications
It allows remote maintenance and remote supervision
Manufacturing Industry is in Transformation
32
by the forces of: ‐ Deregulation, ‐ Digitization‐ Communication, ‐ Globalization ‐ Softwarization
Re-Thinking
• Products• Value Add• Business Model• Business Processes
Tomorrow = Servitization
The evolution will most probably extinguish the products that
do not offer services
www.eurotech.com
Thank You!