2014

2020

10.3 Billion

29.5 Billion

IoT WILL

For every person living on earth, there will be atleast 2, to as many as 6 connected “things”, by 2020.

The number of IoT endpoint devices such as cars, refrigerators and everything in

between will grow from 10.3 billion in 2014 to more than 29.5 billion in 2020.

INDIVIDUALS

A typical family home may contain more than 500

smart devices by 2022.

2022

60%40%

58%42%

33%66%

IoT WILL

60% of those enterprises with 1,000 + employees use or plan to use IoT-enabled applications

58% of organizations throughout the world understand that IoT is strategic to their business

According to IDC's 20154 IoT will disrupt up to 33% of the currently leading businesses

ENTREPRISES

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87%

Internet of Things, or the IoT, is an industry-specific buzzword: 87% of people actually have no idea of what it means or what it stands for.

$656 billion

$1.7 trillion

$10 trillion

to $ 15 trillion

Global spending on IoT devices and services will rise from $ 656 billion in 2014 to $ 1.7 trillion in 2020.

2040

2020

2014

In 2025 38% of the annual potential economic impact of IoT applications will be in developing economies.

and 62% will be in advanced

economies

General Electric believes that the “industrial Internet” (their term for IoT) will add $10 to $15 trillion market opportunities in the 20 years.

IoT IS A

IN 2025

AREA

DIGITALTRANSFORMATION

BENEFITS TO COMPANIES INVESTING IN BOTH IN TECHNOLOGY-ENABLEDINITIATIVES AND LEADERSHIP CAPABILITIES

BIGGEST DIGITAL THREATS: INTERNAL OR EXTERNAL

24% of organizations throughout the world recognize that IoT will transform their business

25% of companies surveyed are willing to disrupt themselves

in order to compete

Internal Issues : Lack of agility, complacency, inflexible culture 19% Market Disruptions : Product obsolescence, lower barriers to entry 17%Competitive Pressure : More intense competition, faster or new competitors 16%Security issues : 14%

24% 25%

12

3

Generate more revenue

+9%

Are more profitable

+26%

Have an overall higher market value

+12%

ESTIMATES OF CONNECTED DEVICES IN 2020 (in billions)

IOT MARKET DRIVERS AND BARRIERS

DRIVERS

EXPANDED INTERNET CONNECTIVITY

HIGH MOBILE ADOPTION

LOW-COST SENSORS

LARGE IOT INVESTMENTS

Connected

Devices

50

Connected

Autonomous

Things

30,1

Wirelessly

Connected

Devices

30

Allconnected

Devices

24

Mobile

Connected

Devices

12

CHANGING?

TECHNOLOGICAL FRAGMENTATION

IMPLEMENTATION PROBLEMS

PRIVACY CONCERNSSECURITY CONCERNS

BARRIER

S

According to our estimation of IoTs maximum potential, we have included the benefits of interoperability. Without these benefits, we estimate the maximum value of the applications would be only about $7 trillion per year in 2025, rather than $11.1 trillion.

INTEROPERABILITY IS A CRITICAL SOURCE OF VALUE IN IOT SYSTEMS

STAND ALONE INTEROPERABLE DEVICES

Interoperable devices

with interoperability

without interoperability

40%

We estimate that situations in which two or more IoT systems must work together accounts for approximately 40% of the total value which can be unlocked by the Internet of Things.

Stand alone device

1980

2016

2013

1GB OF HARD DISKMEMORY COSTPrice drop of over 99.999995 %

0.05 $ 0.019 $

437 500 $

1 GB OF RAMAVERAGE COST1 GB OF RAMAVERAGE COST

6 328 125 $

1980

2016

2013

5.5 $4.7 $

Price drop of over 99,999925 %

SENSORS SENSORS

Average sensor costis set to fall by 25% between 2016 and 2020.

Average sensor selling prices have fallen by 93% in 25 years.

25 years

20162020

DRONES COST PER UNITDRONES COST PER UNIT

2013

2007

100 000 $

700 $

300 $

2016

COST OF TECHNOLOGY IS

The cost of bandwidth is 40 times lower than it was 10 years ago.

Cost of processing hasdeclined 60 times comparedto 10 years ago.

SMARTPHONE COST PER UNITwith similar specifications

BANDWIDTH AND PROCESSING COST

2015

10 $

499 $

2007

10 years10 years

COST OFCONNECTIVITY & BANDWIDTH

Certified LoRaWAN modules are in the cost range of $ 7-10 and are expected to fall to the $ 4-5 cost range.

Low cost pico cell gateways are in the range of +/- $ 100.

Industrial gateways are less than $ 500.

Tower top gateways are

in the range of +/- $ 1000.

4 < 5 $

100 $

< 500 $

1000 $

Certified LoRaWAN modules

Cell gateways

Industrial gateways

Tower top gateways

ARE

The cost of bandwidth is 40 times lower than it was 10 years ago.

Cost of processing hasdeclined 60 times comparedto 10 years ago.

SMARTPHONE COST PER UNITwith similar specifications

BANDWIDTH AND PROCESSING COST

2015

10 $

499 $

2007

10 years10 years

COST OFCONNECTIVITY & BANDWIDTH

Certified LoRaWAN modules are in the cost range of $ 7-10 and are expected to fall to the $ 4-5 cost range.

Low cost pico cell gateways are in the range of +/- $ 100.

Industrial gateways are less than $ 500.

Tower top gateways are

in the range of +/- $ 1000.

4 < 5 $

100 $

< 500 $

1000 $

Certified LoRaWAN modules

Cell gateways

Industrial gateways

Tower top gateways

ARE

Proximity 0 to 10 cm

WP

AN

10 to

100

m

PO

TEN

TIAL M

AR

KE

T

WLA

N10

0 m

to 1

Km

WN

AN

1Km

to 1

0Km

WW

AN

up to

100

Km

Near Field Communication (NFC) ; Radio Frequency Identification(RFID).

Wireless Personal Area NetworkBluetooth Low Energy (BLE) ; Thread ; ZigBee ; EnOcean ; Z-Wave ; WirelessHART ;MiWi ; ISA100.11a.

Wireless Local Area NetworkWi-Fi 2.4 Ghz & 5 Ghz (802.11a/b/g/n/ac) ; White-Fi (802.11af) ; Wi-Fi Sub-1 Ghz (802.11ah) ; RFID (Dash7).

Wireless Neighborhood Area NetworkWi-SUN ; JupiterMesh.

Wireless Wide Area NetworkCellular (2G,3G, 4G; LTE-Cat M, LTE Nb-IoT) ; Low Power Wide Area (SigFox, LoRa, DASH7).

The “last 100 meters” (0->100 meters) presents > 90% of the potential market.

90%

10%

WIRELESS TECHNOLOGIES

WHERE THE WIRELESSTHINGS ARE AND WHY

7.7

8.3

30.3

%

40.2%100 %

40.2 % Business and Manufacturing Real-time analytics of supply chains and equipment, robotic machinery.

30.3 % Healthcare Portablehealth monitoring, electronic recordkeeping, pharmaceutical safeguards.

8.3 % Retail Inventory trackingsmartphone purchasing, anonymous analytics of consumer choices.

7.7 % Security Biometrics and facial recognition locks, remote sensors.

The overall wireless chipsets market revenue in consumer electronics & automation applications is expected to reach $20.4 billion in 2017.

Wireless chipsets market shipments are expected to reach 4.86 billion units in 2017.

MARKETWIRELESS

By 2018,

six billion things

will have the ability to request support.

The IoT will support total services spending of $ 235 billion in 2016 according to Gartner estimate.

$ 235 billion 10% of respondents said IoT accounts for more than of their annual revenue.

23% said IoT accounts for between11% & 30% of their revenue.

240 solution providers surveyed by CRN Intelligence

83%

83% of solution providers generate some revenue from IoT related products and services.

10%

23%

11%

30%

30%

Currenlty only 8% of businesses use more than 25 % of their IoT data.

In the next 2-3 years, 50% of businesses are expected to leverage their IoT use of data to more than 25%.

BUSINESS MODELS

2 - 3 years

THE IMPORTANCE

OF LEADERSHIP

& PEOPLE

KEY ATTRIBUTES OF DIGITAL LEADERS

22% TRANSFORMATIVE VISION

22% COLLABORATIVE SKILLS

20% FORWARD THINKING

18% CHANGE-ORIENTED MINDSET

THE IMPORTANCE OF DIGITAL SAVVY

ORGANIZATIONSDigitalization increases employee retention

Digitalization strategies should be embedded into the overall company strategy to leverage its benefits

Digitalization attracts New Talents

NON DIGITAL SAVY

EARLY STAGE

DIGITAL ORGANIZATION

DIGITAL SAVY

DIGITALLY MATURE

ORGANIZATION

4% of employees of digital savy organizations

Planning to leave within one year:

within 1 year

20%of employees of

non digital savy organizationsvs.

90% of digitally mature organizationstie both Digital strategy and

overall company strategyvs. 35% of early stage digital organization

71% of digitally mature organizationsvs. 10% of early stage digital organization

are able to attract new talents

IoT

Workplace Expectationsof Millennials

2015

2016

2017

2018

2019

2020

THE IMPORTANCE OF IoT DIGITAL SAVVY

ORGANIZATIONSMore Data requires More Developers

Career

advancement

Training/development

opportunities

Company Culture

48%

32%

38%

813 k

1,5 M

2.2 M

2.8 M

3.5 M

4.5 M¨