Reshaping Business Through IoT: Key Technology Factors to Consider

Reshaping Business Through IoT:

Key Technology Factors to Consider

12-10-2016

Roberto SiagriChairman & CEO Eurotech Spa

Eurotech's Global Footprint

JAPAN

ITALYFRANCEUSA

USA UK

Marketing and SalesDevelopment & EngineeringProduction

2

Eurotech Overview

• One of the world top players in the global Embedded Computers market

• Behind the products & services of more than 20 Global 500 companies

• 20+ Years of experience in “M2M” and distributed systems

– 20+ Years experience in embedded / gateway hardware & software

– 16 Years ago co-developed MQTT with IBM

– 10+ Years experience with Java in embedded

– 6+ Years history in M2M/IoT cloud platforms

• Strong vertical market competencies:

– Industrial & Logistics

– Transportation

– Defense & Security

– Healthcare & Medical3

Eurotech’s Essence

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

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The Innovation Imperative These forces

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

to disruption

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

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.

Adoption and impact path of the Industrial IoT

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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

Transition = Business Disruption i.e.: New value creation

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Key Findings

• It will change the basis of competition, redraw industry boundaries and create a new wave of disruptive companies, just as the current Internet has given rise to Amazon, Google and Netflix.

• However, the vast majority of organizations are still struggling to understand the implications of the Industrial Internet on their businesses and industries.

• For these organizations, the risks of moving too slowly are real.

12WEF-ACCENTURE

Industry needs  to  combine IT and OT

IT OT

Internet ofThings

Information TechnologyBusiness Process Automation& Office Automation

Operational TechnologyIndustrial & Factory AutomationSupply ChainAssets Monitoring

i.e: Engagement

i.e.:Predictive Maintenance

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IoT  is the  fusion of  IT  & OT

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

Business Applications

Sensors, Actuators,Displays, …

@

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How to tame complexity??

IT

OT

No more vertical M2M ApplicationsIoT = Horizontal M2M

IIoT ChallengesIs it enough to select some pieces?

HTTPServer

HTT

P

C++

SQLDB

Broker

Open HW

Linux

More Code

@

It might actually work, but is it:• Maintainable• Secure• High performance• Future proof• Cost effective• Reliable• Extensible• Agile

M2M / IIoT ChallengesHigh Level

Fragmentation

Complexity

Lock-in

Processor Architectures

Mobile Carrier OfferingsProprietary Technology

Business Models

Programming Environment

Monolithic Solutions

M2M / IIoT ChallengesSome Details

Fragmentation

Complexity

Lock-in

IT Vendors Worlds

Carrier Certifications

Monolithic OT Solutions

Security

Little Pieces – No StacksIoT Platform

Inflation

Interfaces

IoT Standardization

Data Center IntegrationPublic Cloud / Private Cloud

IT/OT Integration

SIM Management

Embedded Application Management

Scaling

Field Protocols

Processor Architectures

Mobile Carrier OfferingsProprietary Technology

Business Models

Programming Environment

Monolithic Solutions

M2M / IIoT ChallengesAddressing the Challenges – High Level

Fragmentation

Complexity

Lock-in

IT Vendors Worlds

Carrier Certifications

Monolithic OT Solutions

Security

Little Pieces – No StacksIoT Platform

Inflation

Interfaces

IoT Standardization

Data Center IntegrationPublic Cloud / Private Cloud

IT/OT Integration

SIM Management

Embedded Application Management

Scaling

Field Protocols

✔

✔

✔

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

Data Analytics, Predictive Tools

Enterprise-Class IoT Architecture & StackCore Competencies Combined

Multi-service Gateway

IoT Integration Platform

The Basic Formula for M2M / IIoTImplementing a full “M2M Stack”

Business Applications

Multi-ServiceGateway

M2MIntegrationPlatform

Application SoftwareFramework

Operating System

Hardware Platform

M2M Platform Client

Communication / Broker

Data Management Layer

API`s & Integrations

Data Store Layer

Infrastructure / IaaS

M2M Protocol

Integrate

Act

Store

Connect

Attach

The Internet of ThingsIIoT Implementations / Architectures 10 Key Aspects• Agility (enabling real-time business decisions – real-time aggregated data for applications, historical

data, fast write speeds, CEP front end)• Value-driven (preserving and extending value props – no “business normalization” but

encapsulating complexity, allowing to focus on core …)• Openness (Open & Industry Standards based in technology, architecture, ecosystem and attitude,

IT-centric by design, no-vendor lock-in by proprietary in approach and technology)• Flexibility (supporting diversity – down to the edge – HW, SW, type of applications, business

models) • Versatility (“No-Silo-Approach” – readiness for current and future requirements – ESB for machines

concept – integration of field and IT applications without creating dependencies – different from “classic telemetry”

• TCO-focused (including development, deployment, management, infrastructure, communication, investment protection, future-proving, certifications)

• Security (complete approach in architecture and elements)

• Validation (continuous testing, validation, feedback and improvement ensured, strong ecosystem )

• Scalability (not just up but “out”, volume and diversity)

• Completeness (End-to-End complete OT stack, IT/OT integration, security, flexibility and efficiency requires holistic approach, operating system for the IoT / IIoT)

LoosleyCoupledLayeredConteinerizedArchitecture-OPEN SOURCE-STANDARD-JAVA Programmable

Opportunities and benefitsmade possible by massive volumes of data from connected products, and the increased ability to make automated decisions and take actions in real time.

The key business opportunities will be found in four major areas:

• Vastly improved operational efficiency

• The emergence of an outcome economy

• New connected ecosystems

• Collaboration between humans and machines

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OT business opportunitiesbecause of IT integration

• Predictive Maintenance• Remote Assets Monitoring

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

Re-Thinking• Products• Value Add• Business Model• Business Processes

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Predictive Maintenance

With the Industrial Internet,

using new software capabilities to improve operational efficiency through predictive maintenance, and achievingresults such as :

-savings on scheduled repairs (12%),

-reduced maintenance costs (nearly 30%)

-fewer breakdowns (almost 70%)

manufacturers are already

www.eurotech.com

Thank You!