the internet of things in africa - idc iot conference 2016 · the internet of things in africa ......

The Internet of Things in Africa

George Kalebaila

Senior Manager of Telecoms & MediaIDC Middle East, Turkey and Africa

February 2016

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Machine to Machine

M2M

A device…that captures an event…

transmits it over a network…to an application….

that translates it into meaningful information.

Internet of Things

IoT

A network of uniquely identifiable “things”

that communicate without human

interaction using IP connectivity

Internet of Everything

IoE

Bringing together the people, process, data, and things to make networked

connections more relevant by turning information

into actions.

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Battle of Buzzwords: M2M vs IoT vs IoE

The transformation of customer relationships

Garnering Greater Customer Loyalty

The transformation of work

Increasing Employee Productivity

The transformation of products and services

Developing New Revenue Streams

The transformation of business processes

Driving Operational Efficiency

IoT is part of every discussion

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Digital Transformation

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IoT: An Evolving Market

Devices, connectivity and IT services will make up the majority of the IoT market in 2020 with more than

70% of the total spend.

The worldwide Internet of Things market will grow from $655 billion in

2014 to $1.7 trillion in 2020.

In 2020 there will be more than 30 billion devices connected.

Source: Worldwide Internet of Things Forecast, 2015–2020 (IDC #256397)

872 9741,124

1,3391,639

2,048

2014 2015 2016 2017 2018 2019

MEA IoT Spending ($Billion)

4,4675,097

5,9717,163

8,768

10,895

2014 2015 2016 2017 2018 2019

22%

Source: IDC, 2015

$ 2 BillionSouth Africa($Million)

19%

In South Africa, Services and Software spending will increase as IoT matures

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IoT is Not a Technology – It’s a Complex Ecosystem with Industry-Specific Implications

4Source: IDC TSDB 2015

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IoT ecosystem entails partnerships to deliver complete solutions that deliver business value

Hardware/ Device Manufacturers

IT Service Providers

Regulators/ Government

Cloud Service Providers

Software Vendors

Network Service Providers

Standards Organizations

System Integrators

Customers/End users

Customers/End users

IoT

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When IoT-based Products Become Connected, Their Value Significantly Increases

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Lower Operational

Costs

Customer Acquisition &

Retention

Business Process Efficiency

Product & Service Improvement and

Innovation

of South Africa enterprises are planning major/significant investment in IoT over the next 3 years.Source: IDC EMEA Enterprise Communications Survey, 2015

N=81

33%

Drivers for IoT Investment

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IoT Challenges to Overcome

4Source: IDC TSDB 2015

Top Five Industries Spending on IoT

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Manufacturing

Utilities

Retail

Transport

Government

1

2

3

4

5

19%

17%

12%

17%

27%

CAGR 2014 - 2019

Connected VehiclesOperationsField Service

Fleet managementFreight MonitoringAir traffic monitoring

Asset ManagementSafety/emergency ReponsesAutomated Public transit

Digital SignageOmni-Channel OperationsConnected Vending Machines monitoring

Smart GridSmart meteringLeakage detection & Demand monitoring

Key IoT Solutions

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South Africa: N= 55 Source: Enterprise Communication Survey, 2015

13%

22%

9%

15%

9%

7%

18%

16%

18%

13%

2%

22%

24%

24%

33%

33%

33%

35%

36%

36%

40%

40%

36%

38%

27%

24%

31%

22%

25%

22%

11%

24%

27%

D I G I T A L S I G N A G E

P A Y M E N T S Y S T E M S

H E A L T H C A R E ( I . E . R E M O T E P A T I E N T M O N I T O R I N G )

B U I L D I N G M A N A G E M E N T

A S S E T T R A C K I N G

P A Y - A S - Y O U - D R I V E I N S U R A N C E

S E C U R I T Y S Y S T E M S

P E O P L E T R A C K I N G

F L E E T M A N A G E M E N T

E N E R G Y M A N A G E M E N T

S M A R T C I T Y

Use now Plan to use within 1 year Plan to use within 2-3 years

Essential Guidance

Building Incremental IoT Value

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1. Know Your Final Customer of Your IoT Outcomes:

1. Private Sector

2. Public Sector

3. Enterprise

4. Consumer

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2. Ask The Right IoT Question?

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3. Impact On Your Business Model: Customer Experience is Now Instantaneous

System of Relationship

System of Decision

System of Transaction

S

E

N

S

E

Respond

Decision

Data Types

Machine and sensors

Geolocation

Transaction data

Mobile apps data

Email and messaging

Social networks and customer communities

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4. Ensure the CIO Is The Leading IoT Decision Maker

Close The CIO/Line of Business Gap

Get Buy In To That The Digital Strategy Is The Business Strategy

Enterprise Business Tech Governance Must Be Integral Part Of Board Governance

Challenge Legacy & Take Risk

Architecture leader. Business Innovator

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5. Understand Where IoT Content Will Be Created – And Then Processed!

0 10 20 30 40 50 60

Don't know

Collect and tranfer to data center

Collect and process at "the edge"

2014 2015

Edge

Enterprise

Edge

Enterprise54%

43%

40%

54%

Q. How will your organization manage data generated by the IoT sensors?

Retail

Manufacturing

N=2350Source: IDC’s Global IoT Decision Maker Survey, August 2015

Sensors

IoT Device

IoT Device

IoT Device

IoT Gateway

Data Manage

mentProcess AutomationResource MgmtCommunication

IoT Platform

Data Manage

mentProcess AutomationResource MgmtCommunication

The Edge

The

Enterprise

Thank You!

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George Kalebaila

Senior Manager of Telecom and MediaIDC MEA

+27847771850

Email: gkalebaila@idc.com