Telaccount Forum 2014

Maritime Communications & Future Ship Technologies

E-Nautics Shipping’s Technology Enabled Future

Challenges for Ship Owners & Managers

o Oversupply of tonnage o Fuel costs o Regulation and compliance

• Environmental – Ballast water, MARPOL, SEEMP, ECA • HR – STCW Manila 2010, MLC 2006 • ECDIS – E-navigation

o Commentators and industry alike are agreed that cyclical nature of shipping is a handicap, but there seems to be a lack of focus on how to address this.

The assumptions are that things will remain static. But they won’t...

o What does shipping’s future look like?

Global Marine Trends 2030

o Global Marine Trends 2030 report – interesting but limited to the impact of external global drivers on the shipping and maritime industry.

o Assumptions of GMT2030 are that shipping and maritime are a passive reactor to global drivers and circumstances and that the industry sees no significant change or innovation.

o Technology is dismissed as disruptive but unforeseeable – however this is untrue. o Many technology trends and technologies are already in action and development - and they will have a profound effect upon shipping.

The e-nautics Agenda

o Collectively we call them e-nautics. o Driven within shipping by the e-navigation and environmental regulation agenda from

IMO and the advent of new HTS networks. Only technology can make compliance affordable.

o Driven from outside shipping by key new technologies including nanotechnology, the internet of all things (M2M), 3D Printing, cloud computing, big data, manufacturing 3.0, cyber-physical systems, increasing computing power and ‘learning’ algorithms.

o Influenced by technology-enabled trends and new business opportunities such as ‘big data’ and increasing customer and consumer expectations.

90% Of all data has been created in the last 2 years

May you live in interesting times...

would fill

billion

Data created in the last

12 months

57 iPads

VIDEO

Futurenautics - The Seven Spheres

The Sentient Ship

Nanotech coating permanently protects hull against fouling

Sensors and actuators provide “adaptive cruise control”

Lighter materials mean less fuel consumption, more energy efficient

Integrated ship (not bridge) systems include all navigation, engineering & communications

Ship monitors crew’s health, working hours & whereabouts

Made from smart materials allowing wireless data transfer

The Cyborg Crew

Wearable tech & monitoring - Transmits whereabouts data to ship - Enhances safety - Improves health outcomes – Blue Shield

Ingestible sensors – “Quantified Self” - Monitors health - Delivers medication - Monitors rest hours /sleep

Implanted chip - Identifies seafarer for wireless money transfer & payment - Confirms identity and maintains security

Implanted augmented reality chip integrates crew with ship

Shipistics

All business applications held in the cloud and accessed onboard ship and ashore. Terabytes of data streamed to shore by ships and collected from company wide operations will be mined and analysed enabling:

• Real-time monitoring and transparency • Experimentation to inform business decisions • Micro-segmentation and customisation • Closed loop decision making leading to • Automation of knowledge work

High throughput satellite connection enables data ‘heavy lifting’

Business e-volution

The internet of all things, the cloud, big data, knowledge automation and customer and consumer expectations will change shipping. Shipping leaders must be prepared as

-The cloud offers companies new creative ways to monetise physical assets as a service - value creation of $1m / vessel ~ approx. $20bn for world fleet

-Transparency and data availability erodes established market norms and threatens disintermediation as businesses seek closer integration with their customers

The Travel Industry

Parallels with the Shipping Industry

Shipping – Entering the transparency phase

More consolidation - More homogeneity - Separating technical and commercial data

Business e-volution The internet of all things, the cloud, big data, knowledge automation and customer and consumer expectations will change shipping. Shipping leaders must be prepared as

-The cloud offers companies new creative ways to monetise physical assets as a service - value creation of $1m / vessel ~ approx. $20bn for world fleet

-Transparency and data availability erodes established market norms and threatens disintermediation as businesses seek closer integration with their customers - 3D Printing leads to disintermediation of the logistics channel

Disintermediation of the Logistics Channel

Business e-volution The internet of all things, the cloud, big data, knowledge automation and customer and consumer expectations will change shipping. Shipping leaders must be prepared as

-The cloud offers companies new creative ways to monetise physical assets as a service - value creation of $1m / vessel ~ approx. $20bn for world fleet

-Transparency and data availability erodes established market norms and threatens disintermediation as businesses seek closer integration with their customers - 3D Printing leads to disintermediation of the logistics channel - Industry 4.0 – leads to ‘use cycle’ within an increasingly circular economy - New multi-sided business models are required - exhaust data may hold promise - Organisations require new skills – already a shortage of ‘Data Scientists’ - Old sources of competitive advantage will give way to new ones

And new, aggressive, techno-centric competitors

Future Finance o Crisis in shipping lending

– 50% of German & European lending capacity has permanently left the market

– Focus on asset-based lending continues to create risky environment for ship operators

o New sources of finance could facilitate technology-investments – JV’s & Bond offerings – Private equity – huge interest in the sector

• Not focussed on asset-based lending but 3-5 yr growth and investment horizon • Bring board level expertise in technology environments and logistics & supply chain

vital to ship operators • PE ‘big data’ focussed

Social Cyborg Integrity

Next-generation Human Resources, Training, Marketing & CSR Increasing convergence of social technologies and platforms bringing these disciplines together.

– The Millennial generation: harder to engage, train and retain (80% of PwC will be millennials by 2016) Skills gap already opening up.

– Ethics, and corporate core values are a significant factor in Millennial choice of both employer brands and generally in consumer terms.

– Shipping brands are not attracting these increasingly sought-after workers Shipping’s Social Cyborgs will use social technologies and low cost digital marketing and recruitment channels to connect with and retain this vital new generation. Technology is the tool, and it will find the talent.

Knowledge Gamification

Gartner: By 2014 70% of large organisations will have gamified at least one business process. Serious Games: Deliver better engagement and learning outcomes for Millennials who have grown up with the Internet.

– 14% higher procedural knowledge – 20% higher confidence that they had mastered the learning

Siemens Plantville, a serious game used as online marketing tool, recruitment tool, and as part of employee training (can be monitored) Other examples include ECB & Deloittes Leadership Academy Opportunities in shipping range from managerial/leadership training, to safety drills and operational/fleet management games.

Conclusions

o Rate of change in technology is increasing exponentially

o It’s not about the technology but the competitive advantage it enables o Transitioning of IT/technology from a cost-centre to an enabler of business

intelligence and innovation at the heart of the business

o Understanding the new skill-sets leaders, employees and stakeholders will require to remain competitive and how new consumer and customer expectations will threaten established industry structures

o Understanding the potential consequences of a failure to innovate laying the way open to aggressive new cross-industry competitors.

Welcome to the world of the Futurenaut...

E: roger.adamson@futurenautics.com T: +44 (0)207 125 0090 W: www.futurenautics.com/current-issue/