ICT role in 21st century education and it's challenges.pdf
Moving Up or Down the IoT Value Chain
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Moving Up or Down the
IoT Value Chain
Dr. Mazlan Abbas
CEO
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International Conference on Electrical, Electronic, Communication and Control Engineering (ICEECC2017)
5-6 December 2017
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Agenda
• Understanding IoT – IoT Maturity & Benefits
• Market Potential
• The current era of IoT: how is it different from M2M?
• The challenges Telcos faced in embracing IoT
• IoT Value Chain – Where do Telcos Stand?
• Steps in Developing IoT Solutions
• IoT Business Challenges
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Business Survival in 21st Century
• Every 3 to 7 years, organizations need to reinvent
themselves
• According to The Boston Consulting Group - S&P 500
Companies from 50 years ago – only 19% are still in
existence
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Why IoT Is At An Inflection Point?
Hardware
is cheap
Connectivity
is pervasive
Moore’s Law
continues
Metcalfe’s Law
”Network
Effects”
Development
is easy
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Market Potential
Transportation
Connected cars are a top IoT device. We estimate
there will be over 220M connected cars on the road
by 2020.
[Source: http://www.cbronline.com/news/internet-of-things/m2m/smart-connected-always-on-10-huge-iot-impacts-on-10-huge-sectors-4709736v]
Insurance
A survey has found that 74% of insurance executives
believe the IoT will disrupt insurance within the next
five years. 74% also plan to invest in developing and
implementing IoT strategies by 2016, according to an
SMA Research survey.
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Market Potential
Manufacturing
35% of manufacturers already use smart sensors. 10%
plan to implement them within a year, and 8% plan
to implement them within 3 years, according to PwC
Oil, gas, and mining
In five years, it is predicted that 5.4 million IoT devices
will be used on oil extraction sites. BI Intelligence said
that these devices will primarily be internet-
connected sensors used to provide environmental
metrics about extraction sites.
[Source: http://www.cbronline.com/news/internet-of-things/m2m/smart-connected-always-on-10-huge-iot-impacts-on-10-huge-sectors-4709736v]
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Market Potential
Agriculture
We estimate 75M IoT devices will be shipped for
agricultural uses in 2020, at a 20% CAGR. These devices
are primary sensors placed in soil to track acidity levels,
temperature, and variables that help farmers increase
crop yields.
[Source: http://www.cbronline.com/news/internet-of-things/m2m/smart-connected-always-on-10-huge-iot-impacts-on-10-huge-sectors-4709736v]
Defense
We estimate spending on drones will reach $8.7B in
2020. In addition, 126K military robots will be shipped in
2020, according to Frost & Sullivan.
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Market Potential
Connected Home
Smart meters are already a reality, and from the 313
million installed in homes worldwide in 2013, Navigate
Research predicts that number to jump to 1.1 billion by
2022
[Source: http://www.cbronline.com/news/internet-of-things/m2m/smart-connected-always-on-10-huge-iot-impacts-on-10-huge-sectors-4709736v]
Food Services
With the world population on the rise, IoT will help to
keep food production levels at good pace. BI
Intelligence estimates 75 million IoT device installations
for agricultural uses by 2020, at a 20% CAGR.
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Market Potential
Utilities
Energy companies throughout the world are trying to
meet the rising demand in energy. To do this, they will
be installing nearly 1 B smart meters by 2020.
[Source: http://www.cbronline.com/news/internet-of-things/m2m/smart-connected-always-on-10-huge-iot-impacts-on-10-huge-sectors-4709736v]
Hospitality
31% of hotels use next-generation door locks, 33% have
room control devices, 16% have connected TVs, and
15% use beacons throughout the hotel, according to
Hospitality Technology’s 2015 Lodging Technology
survey.
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Market Potential
Infrastructure
We estimate municipalities worldwide will increase their
spending on IoT systems at a 30% CAGR, from $36B in
2014 to $133B in 2019. This investment will generate
$421B in economic value for cities worldwide in 2019.
Retail
Beacons, paired with mobile apps, are being used in
stores to monitor customer behavior and push
advertisements to customers. In the US, we estimate
$44.4B will be generated from beacon triggered
messages.
[Source: http://www.cbronline.com/news/internet-of-things/m2m/smart-connected-always-on-10-huge-iot-impacts-on-10-huge-sectors-4709736v]
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Market Potential
Logistics
Tracking sensors placed on parcels and shipping
containers will help reduce costs associated to lost or
damaged goods. In addition, robots such as Amazon
Kiva robot, help reduce labor costs in warehouses.
Banks
There are nearly 3M ATMs installed globally in 2015,
according the World Bank. Some teller-assist ATMs
provide live-stream video of a teller for added
customer support.
[Source: http://www.cbronline.com/news/internet-of-things/m2m/smart-connected-always-on-10-huge-iot-impacts-on-10-huge-sectors-4709736v]
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Market Potential
Healthcare
We estimate 646M IoT devices will be used for
healthcare by 2020. Connected healthcare devices
can collect data, automate processes, and more.
Smart Buildings
43% of building managers in the US believe the IoT will
affect how they run their building within the next 2 to 3
years, according to a survey from Daintree Networks.
[Source: http://www.cbronline.com/news/internet-of-things/m2m/smart-connected-always-on-10-huge-iot-impacts-on-10-huge-sectors-4709736v]
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10/90 rule
The Last 100 meter
connectivity
The “last 100 meters” represent > 90% potential number of connections
Today, the devices used in the “last 100 meters” are typically not connected. The wide-area network is
to a larger extent connected e.g. through smartphones, home routers (e.g. ADSL routers) and GSM /
3G / 4G Routers.
Still DisconnectedConnected World
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s m a r t c i t y
sm a rt tra nsp o rt
s m a r t
a u t o m o t i v e
End-to-End IoT Service Provider
Device
Provider
Network
Provider
Platform
Provider
Application
Provider
Customer
Network Platform
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s m a r t c i t y
s m a r t lo g is tic s
s m a r t
a u t o m o t i v e
Business Model
Device
Provider
Network
Provider
Platform
Provider
Application
Provider
Customer
Network
Platform
Platform
1
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s m a r t c i t y
s m a r t lo g is tic s
s m a r t
a u t o m o t i v e
Business Model
Device
Provider
Network
Provider
Platform
Provider
Application
Provider
Customer
Network Platform
2
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s m a r t c i t y
s m a r t lo g is tic s
s m a r t
a u t o m o t i v e
Business Model
Device
Provider
Network
Provider
Platform
Provider
Application
Provider
Customer
Network Platform
IOT
Subsidiary
3
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s m a r t c i t y
s m a r t lo g is tic s
s m a r t
a u t o m o t i v e
Business Model
Device
Provider
Network
Provider
Platform
Provider
Application
Provider
Customer
Network Platform
4
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s m a r t c i t y
s m a r t lo g is tic s
s m a r t
a u t o m o t i v e
Business Model
Device
Provider
Network
Provider
Platform
Provider
Application
Provider
Customer
Network Platform
5
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s m a r t c i t y
sm art logistics t
s m a r t
a u t o m o t i v e
Business Model - Hybrid
Device
Provider
Network
Provider
Platform
Provider
Application
Provider
Customer
Network Platform
6
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Opportunity To Differentiate
• This means you can focus on a specific customer other
businesses may have missed.
• Separating your business from the pack - Add purchase
value
• Find niche within fragmented industry
• Increase vertical integration to gain more control over its
production process
• Corner the market with scarce resources
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• Wearable device to monitor the elderly
people vital signs such as heart rate, steps,
Blood Pressure*, ECG, location*, fall cases
and others
• Offered with Favorwatch mobile
application to monitor the elderly
• Based on annual subscription
• Optional features* will include but not
limited to:
• Health professionals*
• Pharmacy*
• Care givers*
• Elderly care centers*
• Hospitals*
favorwatch
*Coming Soon
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Security and Privacy of
data
Managing vast
amounts of data
Fragmented industry
Finding the right
business model
What Are The Business Challenges
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• Which Business Model Will You Choose?
• Will it B2C or B2B focus?
• What are your IoT specialization? Which
industry to focus?