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: [email protected]
