Internet of Things – a reality check

Udine-IoT April 8th, 2016

Roberto SiagriChairman & CEO Eurotech Spa

Eurotech: Committed to a Vision

"The Computer for the 21st Century", Scientific American,

Vol. 265 No.9, pp. 66-75, 1991

Mark Weiser

The most profound technologies are those that disappear. They weave themselves into the fabric of everyday life until they are indistinguishable from it

Pervasive and Ubiquitous Computing

DIGITAL TECHNOLOGIES FOR A BETTER WORLDwww.eurotech.com CONFIDENTIAL

Back in 2005: PERVASIVE Computing & GRID Scenario“Someday soon, more than one millionbusinesses will be connectedto more than one billionpeople by one trillion devices”

L.V. GerstnerFormer IBM

Chairman and CEO

Now: IoT & CloudIoT & Cloud = Pervasive Computing & Grid + Software Virtualization Technologies & APIs

Mobile & Web Apps

Pervasive Computers

CLOUD

Now: IoT the driver of Business Innovation

better products, new services and the outcome economy

Over time : the Technology for the “Uberization” of everything

The Pervasive ComputerMachine-2-Machine / Internet of Things applications everywhere…

7

The Innovation Imperative These forces

(together with the exponential growth of technology) create environments increasingly vulnerable

to disruption

Late majority: Laggards:

Market share

TimeInnovators: Early majority:Early adopters:

Innovator Dilemmas:

From G. Moore

Crossing the Chasm

Crossing the Chasm

Late majority: Laggards:

Market share

Time

Big Bang Market Adoption

Innovators: Early majority:Early adopters:

Innovator Dilemmas:

Trial users Everyone else

L.Downes P. Nunes Big Bang DisruptionFrom G. Moore Crossing the Chasm to

Innovator Dilemmas:

Brinkler, Scott (2013):

Technology changes exponentially,Organizations change logarithmically

Technology changeexponentially

Organization changelogaritmically

Rate of Change

Time

??

????

??

??

Companies in every industry need to assume that a software revolution is coming… Marc Andreessen

Innovator Dilemmas: Products Dematerialization & Value Chains Deconstruction

GE CEO Jeff Immelt told his troops last year:

“If you went to bed last night as an industrial company, you’re going to wake up this morning as a software and analytics company.”

Data and the 4^ Industrial Revolution

Data are the new raw material: new source of innovation &lever to achieve business sustainability.

Transition = Business Disruption

i.e. New value creation

• Improve operational efficiency

• New connected ecosystems

• Collaboration between humans and machines

• Emergence of an outcome economy

0 1 0 11 00 1 0 1 0 11 1 0 11

1 1 1 000 10 11 10 1 0 1 1 0 1 1 1 0 0 0 0 1

1 0 1 1 1 0 11 1 0 111 0 1 0 1 0 1 0

1 0 1 0 11 1 0000 1

1 0 1 1 0 11

0 1 0 11 00 1 0 11 0

Adoption and impact path of the Industrial IoT

19

1. OperationalEfficiency

2. New Products & Services

3. Outcome Economy

4. Autonomous, Pull Economy

Near-term

Long-term

World Economic Forum:Industrial Internet of Things:Unleashing the Potential ofConnected Products andServices Jan.2015Time

Cha

nge

Fundamental Business Model Shift

products

evolve to

integrated «bundles»

of services

is happening in almost all industries on a global scale

Servitization

DATA

IOT

Sensors

SERVICES

platform

M2M

monitoring

management

REM

OTE

Preventive Maintenance

many-to-one

machines

actu

ator

s

HM

I

near

real

-tim

e

MQTT

PR

OTO

CO

LS

field bus

gateway

MULTI SERVICE

REST unattended

OT

IT/OT INTEGRATION

iPaaS

IaaS

BIGDATA

ANA

LYTI

CS

business intelligence

IT

CEP

CLO

UD

on-premise

database

ES

B

SaaS

MOBILEAPPL

ICAT

ION

INTE

RN

ET

virtualizationIa

aS IP

open source

CONTEXT

Bus

ines

s M

odel

s

AS

SE

T

cellular

wirelesssatellite

BUSINESSservices

servitization

CUSTOMER

PARTNER

OE

Ms

ORGANIZATIONS

PRODUCT

VALUE

supp

ort

INFRASTRUCTURE

outs

ourc

ing new

business models

everything as a service

DaaSiPaaS

TCO

FLEXIBILITY

Industry needs  to  combine IT and OT

IT OT

Internet ofThings

Information TechnologyBusiness Process Automation& Office Automation

Operational TechnologyIndustrial Process Automation& Factory Automation

i.e: Engagement

i.e.:Predictive Maintenance

+

IoT  enables the  fusion of IT  & OT

OT business opportunitiesbecause of IT integration

• Predictive maintenance• Remote Monitoring & Assets

Performance Management• Operational efficiency and

productivity gains• New more performing Products

IT business opportunitiesbecause of OT integration

• Increase Customersretention and fidelization

• new business models• products-as-a-service,• pay-per-use • monetization of data

The complexity trap in IoTIn need of a bridge between Distributed Things and Multiple Business Apps

Business Applications

Sensors, Actuators,Displays, …

@

24

How to tame complexity??

IT

OT

The complexity trap in IoTIn need of a bridge between Distributed Things and Multiple Business Apps

Business Applications

Sensors, Actuators,Displays, …

@

25

How to tame complexity??

IT

OT

Mobile & Web Apps

IoT platformPublic-Private

Cloud

The IT & OT Pyramids Internet of Things = Things to Cloud

TelecomInfrastructure

WAN Networks

SW Gateway(Software Frameworks & software)

Gateways

CLOUD

IT

OT

Mobile & Web Apps

IoT platformPublic-Private

Cloud

The IT & OT Pyramids Internet of Things = Things to Cloud

TelecomInfrastructure

WAN Networks

SW Gateway(Software Frameworks & software)

Gateways

IT

OT

Eurotech's approach to IoTBuilding a bridge between the field and business apps

Business Applications

PLCs, Sensors, Actuators, HMIs

@

Multi‐ServiceGateway

Everyware CloudIoTIntegrationPlatform

28

Eurotech's approach to IoTBuilding a bridge between the field and business apps

Business Applications

PLCs, Sensors, Actuators, HMIs

@

Multi‐ServiceGateway

Everyware CloudIoTIntegrationPlatform

29

??

Business Apps @

APIs  Interfaces

IoTIntegrationPlatform

ActIntegrateStoreControlConnect 

+

Field InterfacesField ‐Devices

The coupling trap in IoTIn need of a bridge between Distributed Things and Multiple Business Apps

Multi‐Service

IoT Gateway

CommunicateCompute  Collect 

30

Consumersof Data

Producersof Data

How to tame market and technology 

uncertainties?

? ?

Business AppsEcosystem

@

Enterprise interface  (IT interface)

IoTIntegrationPlatform

ActIntegrateStoreControlConnect 

+

Field Interfaces  (OT Interface)

Future proofField – Devices

Eurotech’s Approach: Divide and Conquer Ingredients for successful IoT recipes 

Multi‐Service

IoT Gateway

CommunicateCompute  Collect 

31

any JAVA hardware

OSGi

Mobile & Web Apps

APIsIT Platform

(IoT Platform)DataCenter

The IoT IT PyramidInternet of Things = Co-Innovate Platform

IT

Co-IdeateCo-FundCo-BuildCo-DistributeCo-MarketCo-SellCo-Revenue Share

SaaS

PaaS

IaaS

The IoT OT Pyramid Internet of Things = Scalability & HW agnostic

Iaas

WAN NetworksSoftware Defined Gateway(Frameworks ,Protocols)

HW GatewaysFieldbus, PAN, I/O

OTWired and Wireless Network

Infrastrutture

IoT Platform as a a new Enterprise toolEfficiency & Added Value

Assets Relationship Management

Transforming Bits of Data at the Edge of the Network

into Actionable Information & Knowledge

Go Innovate

with anIoTEcosystem

to Enable

YourInnovationEcosystem

www.eurotech.com

ThankYou!