AI & BOSCH. Dr. Pavlin Dobrev Research and Development Manager, Bosch Software Innovations EOOD

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1 AI & BOSCH Dr. Pavlin Dobrev <Pavlin.Dobrev@bosch-si.com>, Research and Development Manager, Bosch Software Innovations EOOD

2 Dr. Volkmar Denner, CEO Bosch 2 More info:

3 AI & FOUNDATION Services Software Sensors 3

4 AI & DEEP DIVE 1: HUK INSURANCE SmartDriver program rewards safe driving Largest German car insurance 11 Mio. customers 6.6 bn revenue (2015) Innovative Solution Insurance rate based on driving behaviour Leverage telematics and Bosch IoT Cloud 4

5 AI & DEEP DIVE 1: HUK INSURANCE SmartDriver program rewards safe driving Sensors Software Services Acceleration and breaking data Insurance rate based on driving behavior plus ecall service 5

6 DEEP DIVE 2: COMMUNITY-BASED PARKING Finding a parking space becomes a shared endeavor 6 Bosch Software Innovations GmbH G1 I #BCW

7 AI & DEEP DIVE 2: COMMUNITY-BASED PARKING Finding a parking space becomes a shared endeavor Sensors Software Services Ultrasound Sensors Sensor Data Analytics (Parking Spot Identification) OEM Cloud Parking Services Anonymized Parking Map Generation 7

8 TECHNOLOGY DRIVES INNOVATION

9 AI & TAKING THE IOT TO THE NEXT LEVEL Emerging technologies enable new use cases Artificial Intelligence Services Cloud & Fog Computing Software Blockchain Sensors IoT Networks 9

10 AI & CLOUD AND FOG COMPUTING Intelligence and data distributed between asset and cloud Fog Computing Cloud Computing Flexibility! 10

11 AI & IOT NETWORKS Specialized networks support different IoT use cases Many IoT use cases not ideally supported by GSM networks Key Issues Connectivity Cost / Device GSM/ LTE LPWAN Network coverage Power consumption Latency / real-time capabilities Cost Dedicated IoT networks address these issues GSM/ LTE LPWAN Battery Efficiency Satellite Low-power WAN (LPWAN/LoRa) Narrow-band (NB-IoT) Latency GSM/ LTE LTE-V2X/ ITS.G5 11

12 AI & IOT NETWORKS USE CASES Bosch capabilities and partners Example 1: LPWAN Example 2: Mobile Edge Computing Example 3: LTE-V2X Connectivity Cost / Device Latency Throughput Latency Peer-to-Peer 12

13 AI & THE BLOCKCHAIN Establishing trust in heterogeneous partner ecosystems Blockchain Distributed database ( ledger ) Chained list of data blocks Resistant to modification of data Example: Delivery confirmation in Smart Contract via IoT event triggers payment Use Cases Finance: Bitcoins Industry: smart contracts, product identity, anti-counterfeit Blockchain & IoT Immutable sensor data, for instance product usage and location IoT Events Smart Contract Blockchain 13

14 AI & ARTIFICIAL INTELLIGENCE Bosch will use artificial intelligence to turn things into intelligent assistants AI Characteristics Self-learning systems Based on neural networks Application Areas Perception-action-loop Games (Go, Poker) Predictive maintenance Autonomous cars and robots Bosch Perspective Impact on many Bosch products Key focus area for Bosch Analytics: predictive and preventive Control: autonomous cars and robots 14

15 AI & BOSCH AND AI Bosch will use artificial intelligence to turn things into intelligent assistants Foundation of Bosch Center for Artificial Intelligence Bosch partners with Academia: Cyber Valley Tübingen/Stuttgart 15

16 BOSCH AND AI Car Computer Bosch AI Car Computer Leveraging latest NVIDIA chip set Foundation for autonomous driving Using advanced AI algorithms for complex traffic situations Major stepping stone towards fully autonomous vehicles 16

17 THE ESSENTIALS: &

18 The essentials: Intro: how Bosch sees the connected world Connected HEALTHCARE Connected BUILDINGS Connected MOBILITY Connected INDUSTRY Connected ENERGY & STORAGE Connected AGRICULTURE 18

19 The essentials: What is the Internet of Things? All over the world, billions of objects are already interacting and sharing information, such as cars and smartphones. Things are increasingly becoming an active part of the internet. How is this possible? Every thing in the world can transmit data to the web and communicate with every other thing in order to perform a variety of tasks for its owner. On the Internet of Things (IoT), the physical and virtual worlds are fused. 19

20 The essentials: Why is the IoT so significant for business? 6bn 20bn The IoT is growing rapidly worldwide. For business, this means momentous changes and huge opportunities. According to the Gartner research institute, some 6 billion objects worldwide are already connected. By 2020, this number is expected to exceed 20 billion. As early as 2020, the IoT market will be worth some 250 billion dollars. 20

21 The essentials: When it comes to the IoT, what are Bosch s business goals? To consecutively make its products web-enabled, also with the help of cloud computing To use connected products and solutions to take its traditional business forward To open up new business opportunities, especially in services Main aim: to be a globally leading IoT company 21

22 The essentials: What is the motivation behind Bosch s IoT activities? Mobility Industry Energy and building technology Homes Cities In various areas, Bosch is extending its acknowledged expertise as a manufacturer and provider of solutions in order to make everyday life easier. Invented for life 22

23 The essentials: How does Bosch intend to become a leading IoT player? Bosch plans to......make all its electronic products web-enabled by offer new, connected services with its web-enabled products...in this way expand its product and services business with connected solutions, and generate additional sales as a result 23

24 The essentials: Why are sensors so important? Sensors are indispensable for the IoT Bosch uses sensors to teach things how to feel. Bosch is the world s leading supplier of MEMS sensors (4 million a day). Sensors and software are the basis for a multitude of new services, such as connected parking in the mobility sector. This is why we at Bosch often speak about the 3 S s of the IoT. 24

25 The essentials: What role does the Bosch IoT Cloud play? Services Software Sensors 25

26 The essentials: Why does Bosch need artificial intelligence? Products and systems have to become capable of learning Mobility (e.g. automated driving) Industry (e.g. condition monitoring of machinery) Homes (e.g. controlling central heating systems, voice recognition in home assistants) Artificial intelligence will increasingly allow machines to become personal assistants 26

27 27 Source:

28 AI & Areas of Research AI-Based Dynamics Modeling battery management manufacturing processes Rich and Explainable Deep Learning video and radar signal processing Large-Scale AI and Deep Learning semantic search capabilities on large-scale video databases 28

29 AI & Areas of Research Environment Understanding and Decision Making probabilistic generative models learned from data Control Optimization Through Reinforcement Learning automatic adaptation of machines Dynamic Multi-Agent Planning scheduling of robotic fleets in an industrial environment 29

30 We connect every thing Bosch IoT Suite in practice Device management for connected filters Smart heating: intelligent networking of heating systems IoT Gateway: easy connection to Industry 4.0 environments Internet of Oysters : monitor the health of the water system TrackMyTools: a smart inventory management system Indego Connect: intelligent device management Connected asset intelligence system for rail freight Firmware and software updates over the air 30

31 PaaS Bosch IoT Permissions Integration Gateway The Bosch IoT Suite Open source basis Focus on device/user attach/control points. Drive forward cloud/docker capability. Observe and leverage momentum around Kapua. Custom IoT solutions... Hub Integration... Developer Console Bosch IoT Rollouts Bosch IoT Remote Manager Bosch IoT Things Bosch IoT Analytics Bosch IoT Integrations (Non-Bosch) enterprise systems Bosch IoT Hub Visual Rules 3 rd party cloud services ACS, UAA under Investigation Hub Integration Custom Connector Bosch IoT OMA-DM Connector Bosch IoT LWM2M Connector Bosch IoT MQTT Connector Bosch IoT TR-069 Connector ProSyst Gateway Connector 3 rd party IoT hub Custom gateway ProSyst Gateway Software IoT gateways IoT devices (IP ready)? IoT devices (IP/ non-ip ready) 31

32 Bosch IoT Gateway for Industry 4.0 Pilot Project Existing machines Hydraulic test bench Bosch IoT Remote Manager IoT Gateway ProSyst Gateway Software ROI < 1,5 years Technology: Linux with Java/OSGi Web-based configuration Open Connection of sensors via Bluetooth LowEnergy standards I/O Link Integrations-Interface for I4.0 Platform or Bosch IoT Cloud Security Reduction Maintenance costs about 25% OEE Increased by up to 5% The Outlay of manual testing reduced by 20% Maintenance notification/tickets Maintenance completion Connected MAE Production Performance Manager and Production Rules Configurator Maintenance Support System 32

33 The Internet of Oysters The Yield, an Australian AgTech business, uses the Bosch IoT Remote Manager to connect oyster farms. Their first IoT product was designed to help oyster farmers reduce the risk of unnecessary harvest closures caused by weather. Sensing: ProSyst Gateway Software connects with sensors to measure and transmit data (e.g. air pressure, wind speed, rainfall, oxygen, water temperature) Analyzing & predicting: Bosch IoT Remote Manager provides data to be used by predictive models and converted into 3 day harvest area forecast Informed decision: Farmers can avoid weather-related and costly harvest closures

34 Smart Oyster Harvesting Conventional oyster harvesting If harvested at the wrong time, oysters can be dangerous to eat Regulators conservatively control harvesting via coarse rainfall data BETTER DECISIONS BETTER HARVESTING BETTER YIELD The Yield & Bosch innovation project BENEFITS Improve scheduling of harvesting operations by predicting closures Extended harvest periods so more oysters make it to the market Measure Water Salinity ProSyst IoT Harvesting Regulator & Growers 34

35 The Internet of Things From physical products to digital services: smart heating Example Junkers gas boiler Physical product Gas boiler (100 years ago) Digital Physical Digital product HomeCom app Physical product Smart gas boiler Digital service Web-based control Physical service Hot water & warm air Hybrid product scheme: Prof. Elgar Fleisch, 2016 Product Service 35

36 CONCLUSIONS Artificial Intelligence, Blockchain, Fog Computing and IoT Networks are taking the IoT to the next level Bosch is shaping the IoT with Sensors, Software and Services Bosch IoT Suite and Cloud are the ideal foundation for innovative solutions Services Software Sensors

37 THANK YOU FOR YOUR ATTENTION! Dr. Pavlin Dobrev Research and Development Manager, Bosch Software Innovations EOOD Follow us on

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