Opening the Internet of Everything to Everyone

Industrial Internet of ThingsFrancisco Jariego @fjjariego

Chile, Nov 2014

The Internet of Things is speeding-up

January 2014

acquires

IoT will reach Everything

13,915,756,82018 November 2014

Source: Gartner, IDC, Strategy Analytics, Machina Research, company filings, BII estimates

≈14,000,000,000November 2014

IoT is going to be huge

Creating emphatic objects

Device

Connectivity

Application

1

2

3

How to Build a Smart Object

Data4

IoT changes our relationship with the physical world

“Software is eating the world…”

“Hardware, not software, will save the world”

“Most of the world's pressing problems are physical in nature and require physical solutions,“

Astro Teller, Solid, May 21 2014

“We are in the middle of a dramatic and broad technological and economic shift in which software companies are poised to take over large swathes of the economy.”

Marc Andreseen, “Why Software Is Eating The World”, WSJ August 2011

“We’re going to bring good manufacturing jobs back to our shores,” 1st White House Maker Faire

Made in “__________________”

1. SOURCE Mary Meeker, INTERNET TRENDS 2014, April 20142. SOURCE: The Channel, “Launching a hardware startup? The stars are aligned in your favor” http://goo.gl/AoCyxo, Mayo 2014

IoT’s the Industry

“Every industrial company will be a software company,” Jeff ImmeltCEO of General Electric

The power of just 1%...

1. SOURCE: “Industrial Internet: Pushing the Boundaries of Minds and Machines”, GE Reports, Nov. 20122. SOURCE: “Disruptive technologies: Advances that will transform life, business, and the global economy”, McKinsey Global Institute, May 2013

Potential economic impact of sized industrial applications in 2025 ($Trillion, annually)

Over the next 20 years the Industrial Internet could add

from $10 to $15 trillion to global GDP – the size of today’s

U.S. economy

…will impact every key sector in the economy

$1.2–1.3 trillion in agricultural production (wheat, maize, rice, soybeans, barley)

20–40% adoption of advanced irrigation systems and PRECISION FARMING

10–20% increase in yields from precision application of fertilizer and irrigation

200–300 hours COMMUTING TIME per urban worker per year; 10–20% reduction in

average travel time through TRAFFIC and congestion control

$200 billion spent on urban WATER, $375 billion cost of WASTE handling; 10–20%

reduction in water consumption and leaks with smart meters and demand control10–

20% reduction in cost of waste handling

$3.7 trillion in global mining operating costs in 2025

80–100% of all resource extraction

5–10% saving in operating costs from PRODUCTIVITY gains

1. SOURCE: “Disruptive technologies: Advances that will transform life, business, and the global economy”, McKinsey Global Institute, May 2013

CITIES are where PEOPLE live!

There is a near perfect

correlation between

urbanizationand

prosperityacross nations

1. Predicted Real Exchange RateSOURCE: McKinsey Global Institute Cityscope 1.0

Projected cumulative contribution to global GDP growth, 2007–251 (%)

A tale of two Cities

8 of the 10 largest US cities in 1950 have lost at

least 1/5 of their population since then

2,206

1950-2008

Companies founded

53,000+

$14.2B $18.1B

336IPOs & Acquisitions

Investment Exit Amount

Jobs

Endeavor, The power of Entrepreneur NetworksEconomic Impact of New York City’s tech Sector Edward Glaeser, “The Triumph of the City”

2003-2013

Machines dream of their own network

Telefónica’sEnhanced connectivity allows both devices and apps to talk in

a simple way

Open Platform Open Innovation ecosystem

Why Telefónica bets on FIWARE

Thinking Things Open

Thinking Things Open is a HW module designed to develop connected objects with any form factor using the cellular network

Click & Pizza, a new way to order your pizza

La nueva forma de pedir tu Telepizza en un solo

paso.

In Competitiveness in Latin AmericaWorld Economic Forum Raking 2012-13

For Business in Latin America#17 in the world. Forbes Ranking 2012.

Economy in Constant Growth5,5% average growth in the last 25 years

Entrepreneurship in Latin AmericaThe Global Entrepreneurship and Development Index 2012.

In 2013 Telefónica decided to create a New R&D center in Chile:

#1

5.5%

#1

#1

Based on the European

technology from FIWARE

initiative

We want to focus the new Chilean R&D center in the Internet of things, with a double sectorial focus:

Smart IndustrySmart Mining and Agriculture

Smart Citiesin cooperation with Chilean Municipalities

We are working to position Chile as a reference in the Internet of Things and an

innovation hub for all Latin America

Integrated in one of the most

dynamic entrepreneurial

ecosystems

44 researchers working on IoTby the end of

year 4

Thank-you ;-)

Join us: @fjjariego