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Keynote Address at ICOS 2015 @ Melaka (Aug. 24, 2015)
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INTERNET OF THINGS OPEN THE INNOVATION GATE Dr. Mazlan Abbas, CEO - REDtone IOT Sdn Bhd IEEE Conference on Open Systems (ICOS 2015), 14 August, 2015, Melaka Copyright © RIOT 2015 All Rights Reserved
OPEN THE INNOVATION GATE • Introduction - Internet of Things and its Business Opportunities • Why Telcos Have Difficulty in Embracing IoT • Making Sense of Data • Encourage Adoption and Innovation of IoT • Open the Innovation Gates • Summary Copyright © RIOT 2015 All Rights Reserved
The economic impact of the Internet of Things will be greater in advanced economies. [Source: An Executive’s Guide to Internet of Things, McKinsey Quarterly, 8 August 2015] Copyright © RIOT 2015 All Rights Reserved
THE CURRENT ERA OF IOT HOW IS IT DIFFERENT FROM M2M? Copyright © RIOT 2015 All Rights Reserved
[Source: http://postscapes.com/what-exactly-is- the-internet-of-things-infographic ] Copyright © RIOT 2015 All Rights Reserved
10/90 RULE The Last 100 meter connectivity Connected World Still Disconnected 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. Copyright © RIOT 2015 All Rights Reserved
BRING IOT TO THE NEXT LEVEL FUTURE OF COMMUNICATIONS AND PRODUCTIVITY Copyright © RIOT 2015 All Rights Reserved
BUSINESS OPPORTUNITIES Capabilities Benefits Improved Performance Monitor Control Reduced Costs Create Innovative Products Optimize New Revenue Streams Autonomous Copyright © RIOT 2015 All Rights Reserved
WHAT ARE THE BUSINESS CHALLENGES Fragmented industry Security and Privacy of data Managing vast amounts of data Finding the right business model Copyright © RIOT 2015 All Rights Reserved
4 REASONS WHY TELCOS HAVE DIFFICULTY TO EMBRACE IOT Copyright © RIOT 2015 All Rights Reserved
LEGACY BUSINESS IS STILL CONNECTIVITY SIM-CARD BASED OLD HABITS DIE HARD M2M HIGH VOLUME LOW ARPU LESS COMPLEX Copyright © RIOT 2015 All Rights Reserved
LACK OF DOMAIN EXPERTISE THINK BEYOND CONNECTIVITY SOLUTIONS, SELLING AND MANAGED SERVICES NEED GO-TO-MARKET PARTNER Copyright © RIOT 2015 All Rights Reserved
MINDSET BLOCK FULL OF SKEPTISM LOW SINGLE DIGIT GROWTH CONTRIBUTION Copyright © RIOT 2015 All Rights Reserved
STABLE BUSINESS VS. RISKY VENTURES IOT BUSINESS IS FLUID NEED TO WORK Copyright © RIOT 2015 All Rights Reserved LIKE STARTUP
THE END GAME END-TO-END IOT SERVICE PROVIDER Copyright © RIOT 2015 All Rights Reserved
END-TO-END IOT SERVICE PROVIDER s m a r t c i t y Network Platform smart transport s a u t o m o t i v e m a r t Device Provider Network Provider Platform Provider Application Provider Customer Copyright © RIOT 2015 All Rights Reserved
PHASE-1 CONNECTIVITY PLAYER Copyright © RIOT 2015 All Rights Reserved
1 BUSINESS MODEL Platform s m a r t c i t y Network smart transport Platform s a u t o m o t i v e m a r t Device Provider Network Provider Platform Provider Application Provider Customer Copyright © RIOT 2015 All Rights Reserved
PHASE-2 IOT ENABLER PLAYER Copyright © RIOT 2015 All Rights Reserved
2 BUSINESS MODEL s m a r t c i t y Network Platform smart transport s a u t o m o t i v e m a r t Device Provider Network Provider Platform Provider Application Provider Customer Copyright © RIOT 2015 All Rights Reserved
3 BUSINESS MODEL IOT Subsidiary s m a r t c i t y Network Platform smart transport s a u t o m o t i v e m a r t Device Provider Network Provider Platform Provider Application Provider Customer Copyright © RIOT 2015 All Rights Reserved
PHASE-3 IOT SOLUTIONS PLAYER Copyright © RIOT 2015 All Rights Reserved
4 BUSINESS MODEL s m a r t c i t y Network Platform smart transport s a u t o m o t i v e m a r t Device Provider Network Provider Platform Provider Application Provider Customer Copyright © RIOT 2015 All Rights Reserved
PHASE-4 IOT SERVICE PROVIDER Copyright © RIOT 2015 All Rights Reserved
5 BUSINESS MODEL s m a r t c i t y Network Platform smart transport s a u t o m o t i v e m a r t Device Provider Network Provider Platform Provider Application Provider Customer Copyright © RIOT 2015 All Rights Reserved
6 BUSINESS MODEL -HYBRID s m a r t c i t y Network Platform smart transport s a u t o m o t i v e m a r t Device Provider Network Provider Platform Provider Application Provider Customer Copyright © RIOT 2015 All Rights Reserved
THE GOLD RUSH MAKING SENSE OF SENSOR DATA … BUT WHAT DATA? Copyright © RIOT 2015 All Rights Reserved
TO OVERCOME 3 KEY CHALLENGES Automating the collection of data Analyzing data to effectively identify actionable insights Integrating data from multiple sources Only by addressing all three can organizations turn raw data into information and actionable insights. Copyright © RIOT 2015 All Rights Reserved
VALUE IS CREATED BY MAKING SENSE OF DATA Wisdom More Important Evaluated understanding WHY Appreciation of Understanding Knowledge Answers to questions. HOW Answers to questions WHERE WHEN WHO WHAT Information Less Symbols Data Important VALUE PYRAMID Copyright © RIOT 2015 All Rights Reserved
EXAMPLE SMART PARKING Wisdom More Important N/A Why this parking area is not fully occupied? Understanding How to implement a tiered charging? How to find “overstayed” vehicles? Knowledge Who park at this lot? What kind of vehicle? Where is the empty parking lot? When is the peak period? Information Less Data Empty (0), Full (1) Important Who Benefits? - Citizens / Parking Operators / City Council / Shops Copyright © RIOT 2015 All Rights Reserved
DATA BLENDING Waste Home Health Transport Office Creating New Compound Applications Copyright © RIOT 2015 All Rights Reserved
CHALLENGES – DATA OWNERSHIP Commercial Sensor Data Providers Organizations Personal and Households Private Public Business entities who deploy and manage sensors by themselves by keeping ownership. They earn by publishing the sensors and sensor data they own through sensor publishers. Public infrastructure such as bridges, roads, parks, etc. All the sensors deployed by the government will be published in the cloud depending on government policies. All personal items, such as mobile phones, wrist watches, spectacles, laptops, soft drinks, food items and household items, such as televisions, cameras, microwaves, washing machines, etc Private business organization has the right to take the decision whether to publish the sensors attached to those items to the cloud or not. [Source: “Sensing as a Service Model for Smart Cities Supported by Internet of Things”, Charith Perera et. al., Transactions on Emerging Telecommunications Technology, 2014] Copyright © RIOT 2015 All Rights Reserved
HOW-TO ENCOURAGE ADOPTION AND INNOVATION OF IOT Copyright © RIOT 2015 All Rights Reserved
“Makers, startups and crowdsourcing efforts result in high numbers of low-revenue niche IoT applications.” Copyright © RIOT 2015 All Rights Reserved
BENEFITS SENSING-AS-A-SERVICE Copyright © RIOT 2015 All Rights Reserved
COMMERCIAL IOT SENSOR PROVIDER Gathering temperature, light, pressure, humidity and pollution. The street town council center would want the temperature and humidity data for planning during rough weather The city would pay for access to the light sensors in order to decide when to turn on and off the street lights The weather department would want the temperature and pressure data A university may want access to the pollution information for research purposes for a limited period Copyright © RIOT 2015 All Rights Reserved
HARNESSING THE CREATIVITY Copyright © RIOT 2015 All Rights Reserved
PARTICIPATORY SENSING – “RAPID DEPLOYMENT” Copyright © RIOT 2015 All Rights Reserved
REDUCTION OF DATA ACQUISITION COST – “SUSTAINABLE BUSINESS MODEL” Copyright © RIOT 2015 All Rights Reserved
DIFFERENT BUSINESS MODELS Copyright © RIOT 2015 All Rights Reserved
IOT CLOUD SERVICES – “PAY-PER-USE SERVICES” OR “SUBSCRIPTION-BASED” Copyright © RIOT 2015 All Rights Reserved
COLLECT DATA PREVIOUSLY UNAVAILABLE – “ASSIST SCIENTIFIC OR SURVEY ACTIVITIES” Copyright © RIOT 2015 All Rights Reserved
EMPOWER THE CITIZENS TO SENSE GETTING INSIGHTS FROM CROWDSENSING Copyright © RIOT 2015 All Rights Reserved
SMARTPHONE AS YOUR “SENSING ASSISTANT” Sensors: ① Camera – “Eyes” ② Audio – “Ears” ③ Accelerometer – “Speed” ④ GPS – “Location” ⑤ Gyroscope – “Movement” ⑥ Compass – “Direction” ⑦ Proximity – “Closeness” ⑧ Ambient light – “Eyes” ⑨ Others… Crowdsourcing Via Crowdsensing Context ① ① Spatial – Location / Speed Orientation ② ② Temporal – Time / Duration ③ ③ Environmental – Temperature / Light / Noise Level ④ ④ User Characterization – Activity (Mobility Pattern) / Social (Friends, Interactions) Copyright © RIOT 2015 All Rights Reserved
MAKING CITIES BETTER USING CITIZENS Network Coverage Traffic Environment Pollution Noise Copyright © RIOT 2015 All Rights Reserved
COLLECTIVE COLLABORATION WITH CITIZENS Incident reporting facilities - citizens can report on issues concerning public infrastructure allowing collective collaboration to ensure an active response Copyright © RIOT 2015 All Rights Reserved
EMPOWERING SMART CITIZENS LIVABILITY LOCAL AREA SERVICES PUBLIC SAFETY NATURAL DISASTER MOBILE APPLICATION Users Smartphone Users PORTAL CITISENSE.COM Open Data Social Media CASE MANAGEMENT SYSTEM DASHBOARD Copyright © RIOT 2015 All Rights Reserved
WHICH CAME FIRST – THE CHICKEN OR THE EGG? Copyright © RIOT 2015 All Rights Reserved
CONNECTING AND AGGREGATING SMART CITIZENS AND SENSORS Copyright © RIOT 2015 All Rights Reserved
Moisture temperature Humidity Pluviometer (rain gauge) Anemometer (wind-speed) • • • • Temperature CO Noise Car Presence • • • • Environmental Monitoring Multiple Sensors Parks and Gardens Irrigation Sensors in green zones Outdoor Parking Management Parking sensors Ferromagnetic sensors • Smart Citizen Crowdsensing Smart City User generated feedback with smartphones that help to make cities better • Mobile Environmental Monitoring Sensors installed in public vehicles Temperature CO Noise Car Presence • • • • Guidance to free parking lots Panels located at intersections Traffic Intensity Monitoring Devices located at main entrance of city Measure main traffic parameters • Traffic volumes • Road occupancy • Vehicle speed • Queue Length • Taking information retrieved by the deployed parking sensors in order to guide drivers towards the available free parking lots • Copyright © RIOT 2015 All Rights Reserved