Internet of Things (IoT)

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1 Internet of Things (IoT)

2 Aims of this session Define IoT Understanding the technology behind IoT Analysis of Operational aspects of IoT Understanding IoT business models Explore the policy and regulatory implications of IoT Examine a number of Examples of IoT

3 Outline of the session Introduction Overview of IoT What is IoT? Differences between IoT and traditional services Drivers and inhibitors of IoT Socio-economic benefits of IoT Technology Value chain and Technology of IoT networks Spectrum for IoT Business models Case studies

4 Overview of IoT What is IoT? Exercise: How does IoT differ from traditional services? Drivers and inhibitors of IoT Socio-economic benefits of IoT

5 Overview of IoT: what is IoT? Key messages Many vertical markets will adopt IoT solutions IoT is still at a very early stage, so definition is still evolving

6 What is IoT?

7 Transportation and logistic domain PASSENGER SECURITY In-station and onboard safety Visibility into key events ROUTE OPTIMIZATION Enhanced Customer Service Increased efficiency Collision avoidance Fuel savings CRITICAL SENSING Transform data to actionable intelligence Proactive maintenance Accident avoidance

8 Health Domain

9 Smart environments domain CONNECTED TRAFFIC SIGNALS Reduced congestion Improved emergency services response times Lower fuel usage PARKING AND LIGHTING Increased efficiency Power and cost savings New revenue opportunities CITY SERVICES Efficient service delivery Increased revenues Enhanced environmental monitoring capabilities Safety, financial, and environmental benefits

10 Activity Exercise : Identify common IoT elements Think about the examples just presented, what common patters/elements can you identify across the solutions? What would be your definition of IoT?

11 Common elements of IoT Network/connectivity Data Device Sensor/Actuator

12 Common elements of IoT Radio Frequency Identification (RFID) very small size and the very low cost. their lifetime is not limited by the battery duration; Wireless Sensor Networks (WSN) high radio coverage

13 Definitions of Internet of Things: The Internet of Things (IoT) refers to the use of intelligently connected devices and systems to leverage data gathered by embedded sensors and actuators in machines and other physical objects The IoT is the interconnection of multiple M2M applications, often enabling the exchange of data across multiple industry sectors. The interconnection via the internet of computing devices embedded in every objects, enabling them to send and receive data

14 Definitions of Internet of Things: The Internet of Things (IoT) refers to the use of intelligently connected devices and systems to leverage data gathered by embedded sensors and actuators in machines and other physical objects what all definitions of the IoT have in common is that they focus on how computers, sensors, and objects interact with one another and process data. The IoT is the interconnection of multiple M2M applications, often enabling the exchange of data across multiple industry sectors. The interconnection via the internet of computing devices embedded in every objects, enabling them to send and receive data

15 Summary : what is IoT? 1. There are four main elements common to an IoT solution A network used to provide connectivity Data is transmitted and often received by the end device The solution is integrated into a new or existing device Data is captured by sensors and can trigger a reaction by actuators 2. IoT is still evolving and as a result so its definition

16 Overview of IoT: How does IoT differ from traditional services? Key messages IoT services are different from traditional services Regulators should acknowledge these differences and the benefits that IoT can deliver

17 How does IoT differ from traditional services? Traditional services IoT Connected elements Connections Core service Connectivity ARPU Business model People Correlated to # of people Connectivity High B2C?????

18 There are many differences Traditional services IoT Connected elements Connections Core service Connectivity ARPU Business model People Correlated to # of people Connectivity High B2C Things Correlated to # Things Application and devices Low B2B2C

19 Summary : How does IoT differ from traditional services? 1. IoT services differ from traditional service on dimensions such as: What is being connected (things vs people) The core element of the service (application vs connectivity) The volume of connections The ARPU (low vs high) 2. Government can help drive IoT adoption in their country by focusing on six areas: Enabling global development, prompting investment, building trust, promoting interoperability, supporting traffic management, making sufficient spectrum available.

20 Overview of IoT: drivers and inhibitors of IoT Key messages IoT is being driven by technology advancements, decreasing costs and demand for efficiency Clarity on how data privacy laws applied to IoT can help develop this market

21 Some drivers of IoT

22 and some inhibitors of IoT

23 Summary : drivers and inhibitors of IoT IoT is driven by : Government policies promoting IoT growth Cost savings New revenue opportunities IoT growths can be hindered by: Technology limitations Privacy requirements Security requirements The business case Policies and legal barriers

24 Socio-economic benefits of IoT

25 Technology of IoT networks Value chain and connectivity technologies Exercise: which technology for which product? Spectrum and policy implications Summary

26 Technology :Value chain and connectivity technologies Key messages Connectivity is only one part of the IoT value chain Many different connectivity technologies support IoT solutions The characteristics of each technology define its suitability for a given IoT solution

27 The basic value chain

28 Key characteristics of IoT network

29 Technology group dimensions

30 Technology group dimensions

31 Technology group dimensions

32 Technology group dimensions

33 Technology specific dimensions

34 Technology specific dimensions

35 Technology specific dimensions

36 Technology specific dimensions

37 Summary:Value chain and connectivity technologies Connectivity is only one part of the IoT value chain Many different connectivity technologies can support IoT solutions The characteristics of each technology define its suitability for a given IoT solution

38 TECHNOLOGY: SPECTRUM

39 Spectrum used in IoT solutions can be dedicated (licensed) or shared (unlicensed); each option has benefits and disadvantages Spectrum for IoT Characteristics Dedicated shared QoS Supported Not supported Cost Higher Lower Time to market Slower Faster

40 Activity Matching applications to technologies In the next slides you will be presented with eight applications Describe the applications in terms of the six dimensions previously presented and then identify the connectivity solutions that you think could best suit the needs of the application

41 Activity

42 Activity

43 Exercise template [1/2]

44 Exercise template [2/2]

45 Smart washer Samsung WF457 washer

46 Smoker detector Telecom Design Smoky

47 Fleet tracking Cloud Your Car

48 Activity Exercise Solution

49 Business models of IoT Key messages 1. IoT can provide significant innovation in business models 2. Business model innovation will mostly impact where the IoT company interact with the customer

50 Business models of IoT: from suppliers to customers

51 Business models of IoT: from suppliers to customers

52 There are 5 main business models enabled by IoT between the IoT company and the customer Business models Revenue sharing Cost-savings sharing Product-sharing Product-as-a service Performance-as-aproduct transactional

53 and can be compared in term of revenue structure and device ownership Business models Revenue sharing Cost-savings sharing Product-as-a service Productsharing Performanceas-a-product Revenue of the IoT company Device ownership Upfront Recurring Usage User IoT company transactional The descriptions above are the most common variations are possible. For example, transactional may also include device ownership from the IoT company.

54 Revenue-sharing

55 Revenue-sharing

56 Cost savings sharing

57 Cost savings sharing

58 Product-sharing

59 Product-sharing

60 Product-as-a service

61 Product-as-a service

62 Performance-as-a-product

63 Performance-as-a-product

64 Performance-as-a-product

65 Summary: Business models Key messages IoT can provide significant innovation in business models Business model innovation will mostly impact where the IoT company interact with the end user

66 Guided case study IoT company wants to launch a service: What customers are you targeting? Which customer needs are you addressing? Which connectivity technology will you use? Which business models will you adopt? What legal and operational risk will you have to consider?

67 Exercise instructions

68 Guided case: Farm water monitoring Problem that need to be addressed: How do I know if my water tanks need to be refilled?

69 Farm water monitoring

70 Farm water monitoring

71 Farm water monitoring

72 Farm water monitoring- most likely business models

73 Farm water monitoring

74 Case studies exercises Elderly monitoring Smart public garbage bin Security alarm Industrial IoT

75 Activity Instructions Build a business case around the example given Put your self in the position of IoT company Follow the topic area structure in the handsouts IoT solution & benefits Technology Business model Risk and policies

76 Activity Problems that you will need to address How can I monitor an elderly family member? How can you improve the efficiency of waste collection in cites? How can I keep my home protected? How can I improve manufacturing efficiency?

77 Exercise instructions

78 Exercise template [1/4]

79 Exercise template [2/4]

80 Exercise template [3/4] Business models Revenue sharing Cost-savings sharing Product-as-a service Productsharing Performanceas-a-product Revenue of the IoT company Device ownership Upfront Recurring Usage User IoT company transactional

81 Exercise template [4/4]

82 Suggested solution CASE STUDY 1: ELDERLY CARE MONITORING

83 Elderly care monitoring

84 Elderly care monitoring

85 Elderly care monitoring

86 Elderly care monitoring- most likely businessmodels

87 Elderly care monitoring

88 Privacy and data protection

89 THANK YOU

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