THE INTERNET OF THINGS - A BUSINESS OVERVIEW - NOVEMBER 2015 FIRST LINE SOFTWARE - AN EPISERVER GLOBAL SOLUTIONS PARTNER

The Internet of Things – A Business
            Overview
          Mike Medaglia (mike.medaglia@firstlinesoftware.com)
 First Line Software – an EPiSERVER Global Solutions Partner

                        November 2015

First Line Quick Facts

■ Global software engineering boutique
  with clients on five continents
■ Founded in 2009 by seasoned
  management team (20+ years in software
  development)
■ Global headcount: ~400
■ EPiServer Resources > 70 engineers
■ 2014 revenue: $15m
■ Global presence: USA, The Netherlands,
  Prague, Russia, Singapore
■ 4 service delivery centers that are Agile
  by design

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“In a digital world, threats often do not come
from established competitors but rather from
   innovative technologies that enable new
     businesses, start-ups that undermine
     established business models, or new
developments outside the way the company
        defined its competitive space”

                                     McKinsey

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Sources credited for this overview

■ Gartner
■ Industrial Internet Consortium
  (www.iiconsortium.org)

■ Enterprise IoT – 2015 – Dirk Slama, Frank
  Puhlman, Jim Morrish, Rishi Bhatnagar

■ Global Cities Challenge (NIST/US
  Ignite)

■ and other sources as noted

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The Industrial Internet is leading
the next economic revolution

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IoT – a definition
■ The term “Internet of Things” was coined by british entrepreneur Kevin Ashton in 1999…
  (It) is the network of physical objects or "things" embedded with electronics, software,
  sensors, and network connectivity, which enables these objects to collect and exchange
  data. The Internet of Things allows objects to be sensed and controlled remotely across
  existing network infrastructure, creating opportunities for more direct integration
  between the physical world and computer-based systems, and resulting in improved
  efficiency, accuracy and economic benefit. Each thing is uniquely identifiable through its
  embedded computing system but is able to interoperate within the existing Internet
  infrastructure. ..
       - Source: Wikepedia

  If the hammer and the shuttle could
  move themselves, slavery would be
  unnecessary
  - Aristotle (384 – 322 BC)

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IoT by the numbers – by 2020

■ 14 bn Connected Devices – Bosch SI
■ 50 bn Connected Devices – Cisco

■ $309 bn IoT Supplier Revenue – Gartner
■ $1.9 tn IoT Economic Value Add – Gartner
■ $7.1 tn IoT Solutions Revenue – IDC

■ Just how realistic are these numbers?

Source – Enterprise IoT

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All driven by a very small number..
“By 2020 component costs will have come down to the point that
connectivity will become a standard feature, even for processors
costing less than $1.”
- Peter Middleton, Gartner

   Driving the OT – IT Convergence:
      Low cost, powerful technology
         Cheap sensors & devices
         Low-cost processing power, data storage
      Big Data
         Collecting, storing and analyzing data is now more cost effective
      Smarter Machines
         Equipment is increasingly embedded with sensors & software
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The Spirit of Moore’s Law
continues….

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To Hype or not to Hype the IoT?

■ IoT and self-driving cars lead Gartner’s 2015 Hype
 Cycle report on Emerging Tech.
■ Conversely, Big Data fell off the report completely
 from its lead in 2012

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Gartner IoT Hype Cycle - Overview

■ This year (2015), this Hype Cycle is focused on the key building blocks to implement the IoT, as more
  enterprises realize the extent of the challenges. The challenges are formidable, as no one just "buys" IoT.
  Rather, an IoT deployment is a daunting array of components and software with few standards, requiring
  extensive set-up services. It will take time for the expected information flows to materialize and be integrated
  into business processes and the organization's culture.
■ The IoT is underpinned by a broad array of horizontal technologies, the majority of which are more than five
  years out from mainstream adoption. Some of the key near-term technology profiles for the IoT include:
       ■ Big Data
       ■ Embedded Software and Systems Security
       ■ High-Performance Message Infrastructure
       ■ IoT Architecture
       ■ IoT Business Solutions
       ■ IoT Platform
       ■ IT/OT Alignment
       ■ Low-Cost Development Boards
       ■ Managed Machine-to-Machine Communication Services

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There are key differences between the
Industrial Internet and Consumer IoT
          Industrial Internet   Consumer Iot

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Alliances & Consortiums

■ Consumer:
Zigbee Alliance, Bluetooth SIG, UPnP, Allseen, Open Interconnect Consortium,
Thread
■ Developers:
IETF, OASIS, Open Mobile Alliance, Eclipse IoT
■ Industry:
One M2M, Home Gateway Initiative, Continua, International Electrotechnical
Commission
■ Advocacy:
Industrial Internet Consortium, Industry 4.0, IPSO Alliance, M2M Alliance

■   Source: Ian Skerrett Dec 2014

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Ranking the Players

                      Source: IoT Nexus 2015

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Energy Management

1950                           2015
Energy grids delivered power   Energy grids deliver power
(not information) from small   (and a little information)
number of plants to millions   from small number of
                               plants to millions of
of businesses & homes
                               businesses & homes

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Aviation

 1960                      2015
 Jet performance data is   Jet performance data is
 downloaded by hand        downloaded by hand

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It’s the use cases
■ ‘Plan, Build, Run’ in Domains including Energy, Manufacturing, Industry, Healthcare, Transportation, Cities,
  etc. Asset tracking and tracing and optimization for IIoT.
■ Here are the obvious:

                        Energy: predicting when wind turbine gear boxes might fail and scheduling
                         maintenance; Predicting the next TWO DAYS of wind turbine output so utilities know
                         when to bring on back up power; predicting electrical grid transformer failures;
                         connected sniffers for natural gas leaks; smart electrical (think managing peak demand
                         at the neighborhood level); and smart pipeline grids.
                        Healthcare: device interoperability, smart pill bottles, remote monitoring.
                           90k physician shortage by 2025 (Derrick Jackson, Boston Globe, Sept 2015)
                           One possible metric: more treatment/hour/Healthcare worker
                           Monitoring will be important in under- and undeveloped countries

                        Public Sector: real-time traffic & parking information to reduce congestion, pollution,
                         noise; with drought in California think smart water monitoring
                        Transportation: railroad operators optimize traffic plans, speeds of rolling stock to save
                         capital, improve safety, cut costs; commercial aircraft jet engines can relay performance
                         and provide predictive maintenance data; sensors tracking temperature, geography,
                         door opening, humidity in perishable shipments
                        Manufacturing: Big Data analysis can boost efficiency, reduce machine downtime,
                         improve yields; predictive maintenance over 10-25 year life cycles
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It’s the use cases (cont)

       ■ Stress tracker by Boston neuroscientist - wrist bracelet that measures and transmits stress
         levels hoping to identify which colleges trigger the most anxiety, highways that induce the
         most stress, and companies with the mellowest workforce, etc. Then aggregate the data to
         quantify mental health – Boston Globe, Sept 2015 (Company: Neumitra)
       ■ Watch Rx – Alerts family members if dosage is missed, includes a speakerphone for
         caregivers to have conversations (under $100)
       ■ Dell Computer (IoT tracking) – Cows to Cloud, and Bee Hives
              Using RFID tags to track information on cows in India leading to better health & milk yield
              In Cork, Dell is using a wireless gateway to track sensors on bee hives for various data tracking and ultimately
               hope to attach a sensor to the queen bee

       ■ McLaren Racing and Pfizer teaming up for smart heart monitoring
       ■ EMC built a dark fiber ring in Ireland with Vodaphone M2M network that can re-route
         ambulances in real time for fastest trip to ER
       ■ Bosch trying to track and trace custom power tools within a meter in airplane mfg facilities
         using wifi now, maybe RF later.
       ■ By analyzing data in realtime, GE saves time and costs, as technicians know when to visit,
         say, a wind farm, to maintain a wind turbine versus making unnecessary periodic trips as
         part of scheduled maintenance.

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It’s the use cases (cont)

■ MIT’s Senseable City Lab – http://senseable.mit.edu cities have central nervous systems
      App to explore the spatio-temporal patterns of mobile phone activity in cities across the world
      HubCab- data on 170m taxi trips (pick up/drop off/length) in Manhattan were analyzed. Found that over
       90% of rides could be shared if riders accepted an inconvenience of FIVE MINUTES added to their trip.
       Also found that 20k rides per year were less than one block.
         Taxi Companies stopped the research
         Who could monetize this data?

      Trash Track – 500 sensors attached to e-waste in Seattle to find out where it went including how (train,
       truck) to map downstream carbon footprint as well. Also found that it left the country as well (trail went
       cold)…
      Matter flushed down toilets, credit card spending patterns during easter week in Spain, and many others

■ Global City Teams Challenge/ US Ignite (NIST, US Ignite)
      Almost all initiatives are self-funded
      IP ownership case by case

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But what about eCommerce, CMS
    and the IoT? This is an EPiSERVER
    Conference!

■ Inventory Management – Sensors, RF, Smart Shelves, Warehouses (Walmart,
  Amazon)
■ Fleet Management – predictive maintenance, driver fatigue tracking
■ Maintenance and Warranty of assets -
■ Realtime promotions – smartphone contact initiated by location, weather,
  traffic
■ Next Generation Vending Machines – notification of inventory levels,
  maintenance, reduced pricing for aging perishable goods (chips, cookies, etc)
■ Smart aisles, shelves, carts, & retail execution and monitoring

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It’s the use cases (cont)

■ The future is unpredictable: known knowns, known
  unknowns, unknown unknowns, and a fourth, unknown
  knowns i.e. things we should have anticipated but didn’t

                           Or:

   ‘what we know, what we do not know, what we cannot
   know, what we do not like to know’ - German
   sociologists Daase and Kessler (2007)

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Yet there will be roadblocks

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The Last Word on predicting the
  IoT?

■First Gartner IoT hype cycle analyst:

  ‘Those who live by the crystal ball die eating
  broken glass.’

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First Line’s Exciting
Complementary IoT Technologies

         ■ Wearable Tech
         ■ Cellular ID
         ■ Smart Cities
         ■ Healthcare
         ■ Warehouse Management

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Expertise in wearable technology
    R&D
■ Deep expertise in the full cycle of services
  involved in creation of cutting edge wearable
  computing devices
■ Both B2B and consumer markets
■ Hardware and embedded: batteries, sensors,
  accelerometers, multi-touch displays
■ Device interoperability and integration
■ Rich cloud-based analytics
■ Engaging web and mobile UI

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                                                  Think Results.

The iTraq Platform

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Smart Cities’ Apps

■ Ecology & Waste Management
■ Smart parking
■ e-Government applications
■ License Plate Recognition for Law
  Enforcement
■ Wi-Fi Analytics for shopping centers

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Medical Applications Expertise

■    Laboratory Information Management System
    (LIMS) for the country of Denmark
■ Physician’s Dictation System
     - Mobile and Web-based
■ Electronic Medical Records (EMR) application
■ Working with an Open Standard Mapping
  (MDMI) platform for ease of data conversion
  among disparate medical records, invoices,
  vendors, etc.
■ Working with a Common Data Model (OMOP)
  for the systematic analysis of disparate
  observational databases

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Dr. Barry Commoner – Physicist,
      Ecologist
Four laws of ecology
(from The Closing Circle, 1971)
Biologist and Ecologist Dr. Barry Commoner (1917-2012)

        Everything is Connected to Everything Else
           One ecosphere – what affects one affects all.

            Humans/other species are connected and
            dependent
        Everything must go somewhere
           There is no ‘waste’ and no ‘away’

        Nature knows best
           Technology improves upon nature, but such

            changes may be detrimental
        There is no such thing as a free lunch

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