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Mahbubul AlamCTO/CMO Movimento Groupwww.mahbubulalam.com
https://www.linkedin.com/in/maalam
@mahbubulalam
Background
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The world is moving towards trillions of connected devices that in afew years will be not smartphones, but virtually anything – most ofwhich have never been connected before. The authors evaluatethe opportunities that emerge as a result of the Internet of Thingsfocusing on the impact to individuals, industries and societiesalong with the challenges ahead to harvest the full value of thisongoing evolution. Volume 1 ‘The Rise of Internet of Things’ isthe debut of the ‘The Age of the Software Defined Vehicle’series and it showcases the vision towards connecteddevices paving the road towards the Internet of Things. Thevolume will also talk about five key areas – smarter spectrum,smarter workforce, smarter investments, smarter security andsmarter regulations. This Volume 1 of the series lays the foundationfor understanding today’s connected car and points in thedirection of the Software Defined Vehicle of the future.
Publication Date: 1st Jan 2017Format: eBook
Agenda• Paradigm Shift• Hype Cycle vs. Tech Trends• Identifying Opportunity• Value Proposition & ROI Impact• Business Model• Insights into LaaS and Automotive• Key Takeaways10/31/16 4www.mahbubulalam.com
Paradigm Shift
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• Product: Physical Digital Virtual Assets• Technology: Trend vs. Fashion• Regulatory: Constrains Freedom• Monetization: Direct Indirect• Business Model: OEM CO-X
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Tech Trends
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Disruptive Logarithmic
Bleeding Edge
EarlyAdopters
SmartIoTservices VirtualReality
Flexible DisplayUniversalDigital ID
StemCells
CognitiveTechnologies
BlockchainTech
BioBatteries
AutonomousVehicle
CollaborativeMonetization
PredictiveAnalytics
RoboticsAugmentedReality
3DPrinting AutonomousDrone
MLbasedCyberSecurity
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Value Proposition
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ExistingBusiness as usual
HR Dept.Employer Based
EvolutionEnhance the role and value chain
Online HREmployer Based
DisruptionReverse the role and
new value chain
TBDEmployee Based
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Impact on ROI
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OperationalEfficiency
Time
New ValueCreation
Business Impact
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KeyResources
CostStructure
Company Business Model
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Customer Relationships
SalesChannels
KeyPartnership
CompanyCulture
Customer Segments
ValuePropositions
RevenueStreams
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Business Model: Building Blocks• Customer Relationship: Establish and maintain customer relationship
for focus customer segment – it is about customer acquisition, retention, upsell & cross-sell
• Sales Channels: Delivery to customer through go-to-market and sales channel - rising awareness among customers
• Customers Segments: Several customer segments or focus• Key Partnership: Strategic alliances and partnership, co-operation,
joint venture and buyer-supplier relationship• Company Culture: Set of collective beliefs, value & attitudes -
corporate culture influences management, decisions and all business functions from accounting to production
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Business Model: Building Blocks• Value Propositions: Solve customer problems which satisfy needs• Revenue Streams: Business models for different types of revenue
streams, transactions vs returning revenues• Key resources: Most important assets “physical, financial, intellectual
or human” required to make a business model work• Cost Structure: Influenced by key resources, key activities & key
partnership
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Financial: 150 Street LightingsCAPEX• 150StreetLightincl.Installation ($10K/Pole) $1,500,000
OPEX• UtilityBillfor10yrs ($10/mth)• BulbReplacement for10yrs ($250/bulb)• Maintenance VehicleService for10yrs• ProjectManagement for10yrs ($100K/yr)• TotalOPEX
$180,000$375,000$375,000
$1,000,000$1,930,000
TOTALINVESTMENT $3,430,000
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Financial: 150 LaaSCAPEX(10yrs contract)OPEX(LaaS per10yrs - $100/mth)
SLA(Avg.Downtime43minpermonth)
$0$1,800,000
99.9%------ OR-----
50%CAPEX(10yrs contract)50%OPEXSaving
Total
SLA
$750,000$965,000
$1,715,000
99.9%
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Economics: LaaS vs. XaaS
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$1,500,000
$130,000
CAPEXSaving
OPEXSaving
$1,630,000
TOTALBenefit
$1,800,000Lighting
LaaS Provider:RevenueOpportunitiesCity:SavingsfromLaaS
WiFi AP
CellTower
VideoSurv
GunshotDet
$900,000
$900,000
$900,000
$180,000
$4,680
,000
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Automotive Software
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F-22 Raptor Fighter Jet~1,500,000 lines of code
Boeing 787~13,000,000 lines of code
Facebook~61,000,000 lines of code
Modern High-End Vehicle100,000,000+ lines of code
Engine16%
Body & Structural
15
Electronics & Electrical
12%Transmission9%
Interior8%
Axles, Driveshafts & Components
5%
Climate Control & Engine Cooling
5%
Suspension 3%
Steering 2%
Other14%
Today
Software40%
Hardware40%
Content20%
The “Future”
Change in vehicle value from hardware to software
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Software-Related Vehicle Recalls
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0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
0
10
20
30
40
50
60
70
80
2011 2012 2013 2014 2015 2016NumberofRecalls NumberofAffectedVehicles
Num
ber o
f Rec
alls
Num
ber o
f Affe
cted
Veh
icle
s
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Automotive Over-The-Air Platform
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Select & Target Customers
Domain Expertise& Knowledge
Platform
OEM and Tier-1 supplier relationships and integration know-how
Future opportunity
AUTOMOTIVE
OTA PLATFORMRobust platform with FOTA / SOTA updates, security best practices, bidirectional dataflow and data analytics
Notes:FOTA: Firmware Over-the-Air SOTA: Software Over-the-Air
Transportation Energy Manufacturing Agriculture/ Construction
Trucks
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Key Takeaways1. Keep Focus – Be as Specific as Possible
– Understand ROI vs. Timeline2. Define Strategy – Structure – Resource3. Formulate Corporate Culture4. Keep an Open Mind Towards Business Model
– Focus on Frugal Innovation5. Timing is Key
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