Internet of Things Industry 40 and Digitalization

at a Crossroads

Crossroads picture source httpswwwdigitaldealercomat-the-crossroads-of-culture-and-service-efficiency

Alain LouchezManaging Director

Center for the Development and Application of Internet of Things Technologies (CDAIT)

Atlanta GA USAwwwcdaitgatechedu

Event jointly organized by Konrad Adenauer Foundation Hamburg

and US Consulate General Hamburg October 18 2018

Amerikazentrum Am Sandtorkai 48 20457 Hamburg Germany

In January 2018 the World Economic Forum (in collaboration with McKinsey) published their findings on ldquoScaling Fourth Industrial Revolution Technologies in Productionrdquo and underlined that ldquomore than 70 of industrial companies are still either at the start of the journey or unable to go beyond the pilot stage (the so-called ldquopilot purgatoryrdquo)rdquo

Source httpwww3weforumorgdocsWEF_Technology_and_Innovation_The_Next_Economic_Growth_Enginepdf

In January 2018 the World Economic Forum (in collaboration with McKinsey) published their findings on ldquoScaling Fourth Industrial Revolution Technologies in Productionrdquo and underlined that ldquomore than 70 of industrial companies are still either at the start of the journey or unable to go beyond the pilot stage (the so-called ldquopilot purgatoryrdquo)rdquo

Source httpwww3weforumorgdocsWEF_Technology_and_Innovation_The_Next_Economic_Growth_Enginepdf

AGENDA

bull Part One What is the Internet of ThingsDigitalizationIndustry 40

bull Part Two The Building Blocks

bull Part Three The Rise of the Digital Company

bull Part Four Who Cares

bull Part Five What is standing in the way

bull Part Six Where do we go from here

PART ONE

What is the Internet of Things Digitalization and

Industry 40

Reneacute Magritte (1898-1960) The Treachery of Images

Die Wahrsagerin

Hans von Hayek (1869 Vienna ndash 1940 Munich)

We suspect the Internet of Thingshas a great future but we donrsquot know how it is going to

unfold

The expression Internet of Things (IoT) is best understood as a metaphor that encapsulates the immersion of almost

anything and everything (previously ldquoout of scoperdquo) into the communications space thanks to the timely

convergence of scientific technological and societal advances and trends Through embedded intelligence it

will transform the dimensions of the economy and society on a scale not experienced before

Nothing will be forever fixed inert will become active delayed instantaneous offline online and static

dynamic

The ldquoInternet of Thingsrdquo per se Does Not Exist

Katsushika Hokusai Under the Wave off Kanagawa (ca 1830-32)

7

The Internet of Things will give rise to a world in constant change ie a ldquopulsating worldrdquo Why

ldquopulsatingrdquo Because things will continuously be sending and receiving data

ldquoWhen wireless is perfectly applied the whole earth will be converted into a huge brain which in fact it is all things being particles of a real and rhythmic wholerdquo

Nikola Tesla ()

() January 301926 interview with Collierrsquos magazine reproduced by Twenty-First Century Books httpwwwtfcbookscomtesla1926-01-30htm

1 Machine is COMPLEMENTARY

2 Machine is SUBSTITUTE

1 STEAM

2 ELECTRICITY

3 COMPUTER

4 FUSION OF TECHNOLOGIES(physical digital biological including Industry 40 = Cyber-Physical Systems + Internet of Things)

1 MONITORING amp CONTROLConnecting Measuring Tracking and Tracing (early versions of telemetry telematics M2M LBS RTLS and ICS)

2 DATA OPTIMIZATION Datacaptured at the edge transformed into actionable and valuable ($) information (modeling descriptive predictive and prescriptive analytics)

3 INTERCONNECTION OF INTELLIGENT THINGSldquoThe grand vision of the Internet of Things (IoT) is a world of networked intelligent objectsrdquo (Harvard Berkman Center) see also the emerging concepts of ldquoMassive IoTrdquo and ldquoCritical IoTrdquo in the telecom industry and ldquoIntelligent Connectivityrdquo at GSMA

The Internet of Things in Historical ContextHardware darr Software uarr Data uarr Automation uarr Autonomy uarr

Two Machine Ages Four Industrial Revolutions

Three Stages of Internet of Things

Digitization ndash Digitalization ndash Digital Transformation

Source Gregory Unruh and David Kiron ldquoDigital Transformation on Purposerdquo MIT Sloan Management Review November 6 2017 httpssloanreviewmiteduarticledigital-transformation-on-purpose

A Framework for Understanding Digitalization

PART ONE

What is the Internet of Things Digitalization and

Industry 40

Reneacute Magritte (1898-1960) The Treachery of Images

Die Wahrsagerin

Hans von Hayek (1869 Vienna ndash 1940 Munich)

We suspect the Internet of Thingshas a great future but we donrsquot know how it is going to

unfold

The expression Internet of Things (IoT) is best understood as a metaphor that encapsulates the immersion of almost

anything and everything (previously ldquoout of scoperdquo) into the communications space thanks to the timely

convergence of scientific technological and societal advances and trends Through embedded intelligence it

will transform the dimensions of the economy and society on a scale not experienced before

Nothing will be forever fixed inert will become active delayed instantaneous offline online and static

dynamic

The ldquoInternet of Thingsrdquo per se Does Not Exist

Katsushika Hokusai Under the Wave off Kanagawa (ca 1830-32)

7

The Internet of Things will give rise to a world in constant change ie a ldquopulsating worldrdquo Why

ldquopulsatingrdquo Because things will continuously be sending and receiving data

ldquoWhen wireless is perfectly applied the whole earth will be converted into a huge brain which in fact it is all things being particles of a real and rhythmic wholerdquo

Nikola Tesla ()

() January 301926 interview with Collierrsquos magazine reproduced by Twenty-First Century Books httpwwwtfcbookscomtesla1926-01-30htm

1 Machine is COMPLEMENTARY

2 Machine is SUBSTITUTE

1 STEAM

2 ELECTRICITY

3 COMPUTER

4 FUSION OF TECHNOLOGIES(physical digital biological including Industry 40 = Cyber-Physical Systems + Internet of Things)

1 MONITORING amp CONTROLConnecting Measuring Tracking and Tracing (early versions of telemetry telematics M2M LBS RTLS and ICS)

2 DATA OPTIMIZATION Datacaptured at the edge transformed into actionable and valuable ($) information (modeling descriptive predictive and prescriptive analytics)

3 INTERCONNECTION OF INTELLIGENT THINGSldquoThe grand vision of the Internet of Things (IoT) is a world of networked intelligent objectsrdquo (Harvard Berkman Center) see also the emerging concepts of ldquoMassive IoTrdquo and ldquoCritical IoTrdquo in the telecom industry and ldquoIntelligent Connectivityrdquo at GSMA

The Internet of Things in Historical ContextHardware darr Software uarr Data uarr Automation uarr Autonomy uarr

Two Machine Ages Four Industrial Revolutions

Three Stages of Internet of Things

Digitization ndash Digitalization ndash Digital Transformation

Source Gregory Unruh and David Kiron ldquoDigital Transformation on Purposerdquo MIT Sloan Management Review November 6 2017 httpssloanreviewmiteduarticledigital-transformation-on-purpose

A Framework for Understanding Digitalization

Die Wahrsagerin

Hans von Hayek (1869 Vienna ndash 1940 Munich)

We suspect the Internet of Thingshas a great future but we donrsquot know how it is going to

unfold

The expression Internet of Things (IoT) is best understood as a metaphor that encapsulates the immersion of almost

anything and everything (previously ldquoout of scoperdquo) into the communications space thanks to the timely

convergence of scientific technological and societal advances and trends Through embedded intelligence it

will transform the dimensions of the economy and society on a scale not experienced before

Nothing will be forever fixed inert will become active delayed instantaneous offline online and static

dynamic

The ldquoInternet of Thingsrdquo per se Does Not Exist

Katsushika Hokusai Under the Wave off Kanagawa (ca 1830-32)

7

The Internet of Things will give rise to a world in constant change ie a ldquopulsating worldrdquo Why

ldquopulsatingrdquo Because things will continuously be sending and receiving data

ldquoWhen wireless is perfectly applied the whole earth will be converted into a huge brain which in fact it is all things being particles of a real and rhythmic wholerdquo

Nikola Tesla ()

() January 301926 interview with Collierrsquos magazine reproduced by Twenty-First Century Books httpwwwtfcbookscomtesla1926-01-30htm

1 Machine is COMPLEMENTARY

2 Machine is SUBSTITUTE

1 STEAM

2 ELECTRICITY

3 COMPUTER

4 FUSION OF TECHNOLOGIES(physical digital biological including Industry 40 = Cyber-Physical Systems + Internet of Things)

1 MONITORING amp CONTROLConnecting Measuring Tracking and Tracing (early versions of telemetry telematics M2M LBS RTLS and ICS)

2 DATA OPTIMIZATION Datacaptured at the edge transformed into actionable and valuable ($) information (modeling descriptive predictive and prescriptive analytics)

3 INTERCONNECTION OF INTELLIGENT THINGSldquoThe grand vision of the Internet of Things (IoT) is a world of networked intelligent objectsrdquo (Harvard Berkman Center) see also the emerging concepts of ldquoMassive IoTrdquo and ldquoCritical IoTrdquo in the telecom industry and ldquoIntelligent Connectivityrdquo at GSMA

The Internet of Things in Historical ContextHardware darr Software uarr Data uarr Automation uarr Autonomy uarr

Two Machine Ages Four Industrial Revolutions

Three Stages of Internet of Things

Digitization ndash Digitalization ndash Digital Transformation

Source Gregory Unruh and David Kiron ldquoDigital Transformation on Purposerdquo MIT Sloan Management Review November 6 2017 httpssloanreviewmiteduarticledigital-transformation-on-purpose

A Framework for Understanding Digitalization

The expression Internet of Things (IoT) is best understood as a metaphor that encapsulates the immersion of almost

anything and everything (previously ldquoout of scoperdquo) into the communications space thanks to the timely

convergence of scientific technological and societal advances and trends Through embedded intelligence it

will transform the dimensions of the economy and society on a scale not experienced before

Nothing will be forever fixed inert will become active delayed instantaneous offline online and static

dynamic

The ldquoInternet of Thingsrdquo per se Does Not Exist

Katsushika Hokusai Under the Wave off Kanagawa (ca 1830-32)

7

The Internet of Things will give rise to a world in constant change ie a ldquopulsating worldrdquo Why

ldquopulsatingrdquo Because things will continuously be sending and receiving data

ldquoWhen wireless is perfectly applied the whole earth will be converted into a huge brain which in fact it is all things being particles of a real and rhythmic wholerdquo

Nikola Tesla ()

() January 301926 interview with Collierrsquos magazine reproduced by Twenty-First Century Books httpwwwtfcbookscomtesla1926-01-30htm

1 Machine is COMPLEMENTARY

2 Machine is SUBSTITUTE

1 STEAM

2 ELECTRICITY

3 COMPUTER

4 FUSION OF TECHNOLOGIES(physical digital biological including Industry 40 = Cyber-Physical Systems + Internet of Things)

1 MONITORING amp CONTROLConnecting Measuring Tracking and Tracing (early versions of telemetry telematics M2M LBS RTLS and ICS)

2 DATA OPTIMIZATION Datacaptured at the edge transformed into actionable and valuable ($) information (modeling descriptive predictive and prescriptive analytics)

3 INTERCONNECTION OF INTELLIGENT THINGSldquoThe grand vision of the Internet of Things (IoT) is a world of networked intelligent objectsrdquo (Harvard Berkman Center) see also the emerging concepts of ldquoMassive IoTrdquo and ldquoCritical IoTrdquo in the telecom industry and ldquoIntelligent Connectivityrdquo at GSMA

The Internet of Things in Historical ContextHardware darr Software uarr Data uarr Automation uarr Autonomy uarr

Two Machine Ages Four Industrial Revolutions

Three Stages of Internet of Things

Digitization ndash Digitalization ndash Digital Transformation

Source Gregory Unruh and David Kiron ldquoDigital Transformation on Purposerdquo MIT Sloan Management Review November 6 2017 httpssloanreviewmiteduarticledigital-transformation-on-purpose

A Framework for Understanding Digitalization

7

The Internet of Things will give rise to a world in constant change ie a ldquopulsating worldrdquo Why

ldquopulsatingrdquo Because things will continuously be sending and receiving data

ldquoWhen wireless is perfectly applied the whole earth will be converted into a huge brain which in fact it is all things being particles of a real and rhythmic wholerdquo

Nikola Tesla ()

() January 301926 interview with Collierrsquos magazine reproduced by Twenty-First Century Books httpwwwtfcbookscomtesla1926-01-30htm

1 Machine is COMPLEMENTARY

2 Machine is SUBSTITUTE

1 STEAM

2 ELECTRICITY

3 COMPUTER

4 FUSION OF TECHNOLOGIES(physical digital biological including Industry 40 = Cyber-Physical Systems + Internet of Things)

1 MONITORING amp CONTROLConnecting Measuring Tracking and Tracing (early versions of telemetry telematics M2M LBS RTLS and ICS)

2 DATA OPTIMIZATION Datacaptured at the edge transformed into actionable and valuable ($) information (modeling descriptive predictive and prescriptive analytics)

3 INTERCONNECTION OF INTELLIGENT THINGSldquoThe grand vision of the Internet of Things (IoT) is a world of networked intelligent objectsrdquo (Harvard Berkman Center) see also the emerging concepts of ldquoMassive IoTrdquo and ldquoCritical IoTrdquo in the telecom industry and ldquoIntelligent Connectivityrdquo at GSMA

The Internet of Things in Historical ContextHardware darr Software uarr Data uarr Automation uarr Autonomy uarr

Two Machine Ages Four Industrial Revolutions

Three Stages of Internet of Things

Digitization ndash Digitalization ndash Digital Transformation

Source Gregory Unruh and David Kiron ldquoDigital Transformation on Purposerdquo MIT Sloan Management Review November 6 2017 httpssloanreviewmiteduarticledigital-transformation-on-purpose

A Framework for Understanding Digitalization

1 Machine is COMPLEMENTARY

2 Machine is SUBSTITUTE

1 STEAM

2 ELECTRICITY

3 COMPUTER

4 FUSION OF TECHNOLOGIES(physical digital biological including Industry 40 = Cyber-Physical Systems + Internet of Things)

1 MONITORING amp CONTROLConnecting Measuring Tracking and Tracing (early versions of telemetry telematics M2M LBS RTLS and ICS)

2 DATA OPTIMIZATION Datacaptured at the edge transformed into actionable and valuable ($) information (modeling descriptive predictive and prescriptive analytics)

3 INTERCONNECTION OF INTELLIGENT THINGSldquoThe grand vision of the Internet of Things (IoT) is a world of networked intelligent objectsrdquo (Harvard Berkman Center) see also the emerging concepts of ldquoMassive IoTrdquo and ldquoCritical IoTrdquo in the telecom industry and ldquoIntelligent Connectivityrdquo at GSMA

The Internet of Things in Historical ContextHardware darr Software uarr Data uarr Automation uarr Autonomy uarr

Two Machine Ages Four Industrial Revolutions

Three Stages of Internet of Things

Digitization ndash Digitalization ndash Digital Transformation

Source Gregory Unruh and David Kiron ldquoDigital Transformation on Purposerdquo MIT Sloan Management Review November 6 2017 httpssloanreviewmiteduarticledigital-transformation-on-purpose

A Framework for Understanding Digitalization

Digitization ndash Digitalization ndash Digital Transformation

Source Gregory Unruh and David Kiron ldquoDigital Transformation on Purposerdquo MIT Sloan Management Review November 6 2017 httpssloanreviewmiteduarticledigital-transformation-on-purpose

A Framework for Understanding Digitalization

ldquorefers to the intelligent networking

of machines and processes for industry

with the help of information and communication

technologyrdquo ()

ldquoare physical biological and

engineered systems whose operations are

integrated monitored andor

controlled by a computational corerdquo

()

ldquoCyber-Physical Systemsrdquo ldquoIndustrie 40rdquo

Successful Digital Enterprise = A DYNAMIC LOOP

() Source Platform Industrie 40 Bundesministerium fuumlr Wirtschaft und Energie httpswwwplattform-i40deI40NavigationENIndustrie40WhatIsIndustrie40what-is-industrie40html

() Source Dr Helen Gill From Vision to Reality Cyber-Physical Systems httpswww2eewashingtoneduresearchnslaar-cpsGill_HCSS_Transportation_Cyber-Physical_Systems_2008pdf

Digitalization

ldquoThe Internet of Things machine-to-machine communication and manufacturing facilities that are becoming ever more intelligent are heralding a new era the fourth industrial revolution Industrie 40rdquo ()

A Cyber-Physical System (CPS) is akin to a guiding conductor

(ldquocomputational algorithmrdquo) interacting with

an orchestra andor choir (ldquophysical componentsrdquo) for

the optimal (ldquotime-sensitiverdquo) generation of a

harmonious sound (ldquoseamless integrationrdquo)

The Internet of Things enables ldquoCyber-Physical Systemsrdquo

Unified Digital Platform Stack (Source Stanley Black amp Decker [])

Assets Applications

Connect

Unified View

Unified Operate

Unified

Connect

Unified Flow

Unified Predict

Unified IoT

Streaming amp Predictive Analytics

Machine Learning

Reporting E2E Monitoring Availability and Performance Optimization

Device Management

Asset Management

Application Enablement

Data storage amp Transformation

User and API Security

Unified Monetize

Subscription amp Usage Billing

Invoicing amp GL ReportingDevice

Connectivity

SIM

Management

Mobile Plan

Management

Operations amp Security Platform Infrastructure Management

Provisioning Bootstrap Data Integration Process Integration

Unified

Edge

Edge

Management

OTA FOTA

Device

Monitoring

Device

Diagnostics

Configuration

Management

[] Source Haseeb Shekhani Stanley Black amp Decker Digital Accelerator presentation at the 9th annual USA India Business Summit amp 24th Annual Georgia Tech Global Business Forum August 29 2018 (used with permission)

PART TWO

The building blocks

Wassily Kandinsky (1866-1944) Yellow Red Blue

Application

DNA

DEVICE- NETWORK- APPLICATION

Interface

Internet of Things = Complex Value Chain =IMAGE

Extraction

Medium Glue

Physical World

Computing World

Emerging Nanotechnology --- 5G --- Energy Harvesting --- Artificial Intelligence --- Blockchain --- etc

Theoretical Foundations of Cyber Manufacturing and IIoT

Source Chapter One Industrial Internet of Things and Cyber Manufacturing Systems Sabina Jeschke Christian Brecher Tobias Meisen Denis Oumlzdemir and Tim Eschert in S Jeschke et al (eds) Industrial Internet of Things Springer Series in Wireless Technology DOI 101007978-3-319-42559-7 (2017 ndash 715 pages) httpslinkspringercomcontentpdf101007978-3-319-42559-7pdf

Unified Digital Platform Stack (Source Stanley Black amp Decker [])

Assets Applications

Connect

Unified View

Unified Operate

Unified

Connect

Unified Flow

Unified Predict

Unified IoT

Streaming amp Predictive Analytics

Machine Learning

Reporting E2E Monitoring Availability and Performance Optimization

Device Management

Asset Management

Application Enablement

Data storage amp Transformation

User and API Security

Unified Monetize

Subscription amp Usage Billing

Invoicing amp GL ReportingDevice

Connectivity

SIM

Management

Mobile Plan

Management

Operations amp Security Platform Infrastructure Management

Provisioning Bootstrap Data Integration Process Integration

Unified

Edge

Edge

Management

OTA FOTA

Device

Monitoring

Device

Diagnostics

Configuration

Management

[] Source Haseeb Shekhani Stanley Black amp Decker Digital Accelerator presentation at the 9th annual USA India Business Summit amp 24th Annual Georgia Tech Global Business Forum August 29 2018 (used with permission)

PART TWO

The building blocks

Wassily Kandinsky (1866-1944) Yellow Red Blue

Application

DNA

DEVICE- NETWORK- APPLICATION

Interface

Internet of Things = Complex Value Chain =IMAGE

Extraction

Medium Glue

Physical World

Computing World

Emerging Nanotechnology --- 5G --- Energy Harvesting --- Artificial Intelligence --- Blockchain --- etc

Theoretical Foundations of Cyber Manufacturing and IIoT

Source Chapter One Industrial Internet of Things and Cyber Manufacturing Systems Sabina Jeschke Christian Brecher Tobias Meisen Denis Oumlzdemir and Tim Eschert in S Jeschke et al (eds) Industrial Internet of Things Springer Series in Wireless Technology DOI 101007978-3-319-42559-7 (2017 ndash 715 pages) httpslinkspringercomcontentpdf101007978-3-319-42559-7pdf

PART TWO

The building blocks

Wassily Kandinsky (1866-1944) Yellow Red Blue

Application

DNA

DEVICE- NETWORK- APPLICATION

Interface

Internet of Things = Complex Value Chain =IMAGE

Extraction

Medium Glue

Physical World

Computing World

Emerging Nanotechnology --- 5G --- Energy Harvesting --- Artificial Intelligence --- Blockchain --- etc

Theoretical Foundations of Cyber Manufacturing and IIoT

Source Chapter One Industrial Internet of Things and Cyber Manufacturing Systems Sabina Jeschke Christian Brecher Tobias Meisen Denis Oumlzdemir and Tim Eschert in S Jeschke et al (eds) Industrial Internet of Things Springer Series in Wireless Technology DOI 101007978-3-319-42559-7 (2017 ndash 715 pages) httpslinkspringercomcontentpdf101007978-3-319-42559-7pdf

Application

DNA

DEVICE- NETWORK- APPLICATION

Interface

Internet of Things = Complex Value Chain =IMAGE

Extraction

Medium Glue

Physical World

Computing World

Emerging Nanotechnology --- 5G --- Energy Harvesting --- Artificial Intelligence --- Blockchain --- etc

Theoretical Foundations of Cyber Manufacturing and IIoT

Source Chapter One Industrial Internet of Things and Cyber Manufacturing Systems Sabina Jeschke Christian Brecher Tobias Meisen Denis Oumlzdemir and Tim Eschert in S Jeschke et al (eds) Industrial Internet of Things Springer Series in Wireless Technology DOI 101007978-3-319-42559-7 (2017 ndash 715 pages) httpslinkspringercomcontentpdf101007978-3-319-42559-7pdf

Theoretical Foundations of Cyber Manufacturing and IIoT

Source Chapter One Industrial Internet of Things and Cyber Manufacturing Systems Sabina Jeschke Christian Brecher Tobias Meisen Denis Oumlzdemir and Tim Eschert in S Jeschke et al (eds) Industrial Internet of Things Springer Series in Wireless Technology DOI 101007978-3-319-42559-7 (2017 ndash 715 pages) httpslinkspringercomcontentpdf101007978-3-319-42559-7pdf

Operational Efficiencies

Regulatory Compliance

The two sides of the Internet of Things for Businesses

DOWN

UP

Costs Revenue

Profitability

ProductivityNew

ProductsServices

Product as a Service (outcome-based)

Brand new ecosystems (tied to the delivery maintenance upgrading and leveraging of ldquosmart goodsrdquo ie products born with embedded intelligence)

UP

See also Deloitte ldquoThe Internet of Things Moving from Cost Savings to Revenue Generationrdquo The Wall Street Journal May 10 2017 httpsdeloittewsjcomcfo20170510the-internet-of-things-moving-from-cost-savings-to-revenue-generation

Theodore Levitt (March 1 1925 Vollmerz Main-Kinzig-Kreis Germany ndash June 28 2006 Belmont Massachusetts) was an American economist and professor at Harvard Business School He was also editor of the Harvard Business Review and an editor who was especially noted for increasing the Reviews circulation and for popularizing the term globalization In 1983 he proposed a definition for corporate purpose Rather than merely making money it is to create and keep a customer Source Wikipedia

ldquoThe organization must learn to think of itself not as producing goods or services but

as buying customers as doing the things that will make people want to do business

with itrdquo

Theodore Levitt Marketing Myopia HBR (July-August 1960)

ldquoInternet of Thingsrdquo technologies will enable the manufacturing focus to evolve from delivering a stand-alone product to ensuring a business

(personal) effectresult ie creating value through use

ldquoProduct as a Servicerdquo

ldquoProduct as a Servicerdquo ndash Subscription EconomyldquoWhen companies pursue subscription models they find growthrdquo ()

() Source of quote and charts Zuora The Subscription Economy Index September 2018 httpinfozuoracomrs602-QGZ-447imagesZuora_SEI_Q2_Report_2018pdf In this study Zuora defines IoTcompanies as OEMs (Original Equipment Manufacturers) who are taking advantage of sensors and connectivity in order to diversify their revenue mix with digital services

SEI = Subscription Economy Index

ldquoThe organization must learn to think of itself not as producing goods or services but

as buying customers as doing the things that will make people want to do business

with itrdquo

Theodore Levitt Marketing Myopia HBR (July-August 1960)

ldquoInternet of Thingsrdquo technologies will enable the manufacturing focus to evolve from delivering a stand-alone product to ensuring a business

(personal) effectresult ie creating value through use

ldquoProduct as a Servicerdquo

ldquoProduct as a Servicerdquo ndash Subscription EconomyldquoWhen companies pursue subscription models they find growthrdquo ()

() Source of quote and charts Zuora The Subscription Economy Index September 2018 httpinfozuoracomrs602-QGZ-447imagesZuora_SEI_Q2_Report_2018pdf In this study Zuora defines IoTcompanies as OEMs (Original Equipment Manufacturers) who are taking advantage of sensors and connectivity in order to diversify their revenue mix with digital services

SEI = Subscription Economy Index

ldquoProduct as a Servicerdquo ndash Subscription EconomyldquoWhen companies pursue subscription models they find growthrdquo ()

() Source of quote and charts Zuora The Subscription Economy Index September 2018 httpinfozuoracomrs602-QGZ-447imagesZuora_SEI_Q2_Report_2018pdf In this study Zuora defines IoTcompanies as OEMs (Original Equipment Manufacturers) who are taking advantage of sensors and connectivity in order to diversify their revenue mix with digital services

SEI = Subscription Economy Index

PART THREE

The rise of the digital company

ldquoChance only favors the prepared mindrdquoLouis Pasteur (1854)

Claude Monet (1840 -1926) Impression Sunrise

Transforming Perceived Headwinds into Actual Tailwinds

Image source httpwwwjudo-chjpenglishdictionarytermskaesiwaza

Transforming Perceived Headwinds into Actual Tailwinds

Image source httpwwwjudo-chjpenglishdictionarytermskaesiwaza

3 FORCES

Integration

Outcome

Sustainability

Source Maria Marques Carlos Agostinho Greacutegory Zacharewicz Ricardo Goncalves Decentralized decision support for intelligent manufacturing in Industry JAISE - Journal of Ambient Intelligence and Smart Environments IOS Press 2017 9 (3) pp299-313 lt httpsdoiorg103233AIS-170436 gt lt103233AIS-170436gt lthal-01517407gt

Digitalization

bull Improve Internal Operationsbull Generate Competitive Advantagebull Deliver Long-lasting Value to All Stakeholders

3 END GOALS

Source Terri Toyota ldquoSustainability is now mission critical for businesses Heres whyrdquoWEF September 24 2018 httpswwwweforumorgagenda201809sustainability-is-now-mission-critical-for-businesses-heres-why

Circular business model

Recycle reuse remanufacturing ie regenerative practices and

processes to minimize waste and foster sustainability

Internet of Things

Interconnection of intelligent things to create and maximize value throughout the

whole value-chain and product lifecycle

Re-XR

O Outcome

I IntegrationCustomer end-result

Product is no longer a physical output but an

ongoing relationship based on customer needs and

wants

Successful Digitalization Must Focus on ROI

PART FOUR

Who cares

Statue of Themis Chuo University Japan

Developing Innovation and

Growing the Internet of

Things (DIGIT) Act

bull S 88 DIGIT Act introduced in the Senate on January 10 2017 by Sen Deb Fischer (R NE) [Bill passed in the Senate on August 3 2017 and was referred to the Subcommittee on Communications and Technology on August 11 2017]

bull HR 686 DIGIT Act introduced in the House on January 24 2017 by Rep Paulsen Erik Paulsen [R-MN-3]

Smart Manufacturing Leadership Act

bull S 768 Smart Manufacturing Leadership Act introduced in the Senate on March 29 2017 by Sen Jeanne Shaheen [D-NH]

bull HR 3240 Smart Manufacturing Leadership Act introduced in the House on July 13 2017 by Rep Peter Welch [D-VT-At Large]

Internet of Things (IoT)

Cybersecurity Improvement Act

of 2017

bull S 1691 Internet of Things (IoT) Cybersecurity Improvement Act of 2017introduced in the Senate on August 1 2017 by Sen Mark R Warner [D-VA] Read twice and referred to the Committee on Homeland Security and Governmental Affairs

bull Companion House legislation drafted by Rep Robin Kelly (D-IL-2) looks to build on the Senate legislation and establish similar basic requirements while also enhancing federal input into the process Kellys bill provides for an Emerging Technologies Advisory Board

Smart Cities and Communities Act

of 2017

bull HR 3895 To promote the use of smart technologies and systems in communities and for other purposes introduced in the House on October 2 2017

bull S 1904 A bill to promote the use of smart technologies and systems in communities and for other purposes introduced in the Senate on October 2 2017

The Internet of Things Growing Attention from US Legislators (Sample of Bills) ndash As of June 2018

Cyber Shield Act of 2017

bull HR 4163 and S 2020 introduced on October 27 2017 - In addition to a labeling scheme that compliant IoTdevices would bear if passed it would also be responsible for establishing a best-practices advisory committee

Securing the Internet of

Things Act of 2017

bull HR1324 - Securing IoTAct of 2017 introduced in the House on March 2 2017 by Rep Jerry McNerney[D-CA-9] and was referred to the Subcommittee on Communications and Technology on March 17 2017

IoTConsumer TIPS Act of

2017

The ldquoTeddy Bears amp Toasters Actrdquo ndashCalifornia ndash SB 327 and AB 1906 starting in 2020 under legislation signed Friday by Gov Jerry Brown on Friday September 28

2018

bull S 2234 IOT Consumer TIPS Act of 2017 introduced in the Senate on December 14 2017 by Sen Roger F Wicker [R-MS] Read twice and referred to the Committee on Commerce Science and Transportation on 12142017

Smart Building

Acceleration Act of 2018

bull HR 5069 Smart Building Acceleration Act of 2018 introduced in the House on February 16 2018 by Rep Peter Welch [D-VT-At Large] 02232018 Referred to the Subcommittee on Energy

Promoting Good Cyber Hygiene

Act of 2017

bull HR 3010 Promoting Good Cyber Hygiene Act of 2017introduced in the House on June 22 2017 by Rep Anna G Eshoo [D-CA-18]

bull S 1475 Promoting Good Cyber Hygiene Act of 2017 introduced in the Senate on June 29 2017 by Sen Orin G Hatch [R-UT]

Secure and Protect

Americans Data Act (SPADA)

bull HR 3896 introduced by Rep Janice Schakowsky [D-IL-9] on 10022017

bull About ldquoa process for overseeing persons who have access to personal information including through Internet-connected deviceshelliprdquo

Balancing the Rights of Web Surfers

Equally and Responsibly

(BROWSER)Act of 2017

bull HR 2520 introduced by Rep Marsha Blackburn [R-TN-9] on 5182017

bull About ldquoa mass-market retail service by wire or radio that provides the capability to transmit data to and receive data from all or substantially all internet endpointsrdquo

See pending privacy legislation (some of it related to IoT) in the 115th US Congress as reported by the Association of National Advertisers as of April 9 2018 here httpwwwananetgetfile26427

The ldquoThe California Consumer Personal Information Disclosure and Sale Initiativerdquo

(17-0039) may appear on the ballot in California as an initiated state statute on

November 6 2018

Illinois Senate Bill 1451 effective June 1 2018 to standardize and streamline

regulation of small wireless cell facilities

STATE

Smart IoTAct

bull Discussion Draft reviewed during May 22 2018 Hearing HR 6032 Smart IoT Act introd on 672018

PART FOUR

Who cares

Statue of Themis Chuo University Japan

Developing Innovation and

Growing the Internet of

Things (DIGIT) Act

bull S 88 DIGIT Act introduced in the Senate on January 10 2017 by Sen Deb Fischer (R NE) [Bill passed in the Senate on August 3 2017 and was referred to the Subcommittee on Communications and Technology on August 11 2017]

bull HR 686 DIGIT Act introduced in the House on January 24 2017 by Rep Paulsen Erik Paulsen [R-MN-3]

Smart Manufacturing Leadership Act

bull S 768 Smart Manufacturing Leadership Act introduced in the Senate on March 29 2017 by Sen Jeanne Shaheen [D-NH]

bull HR 3240 Smart Manufacturing Leadership Act introduced in the House on July 13 2017 by Rep Peter Welch [D-VT-At Large]

Internet of Things (IoT)

Cybersecurity Improvement Act

of 2017

bull S 1691 Internet of Things (IoT) Cybersecurity Improvement Act of 2017introduced in the Senate on August 1 2017 by Sen Mark R Warner [D-VA] Read twice and referred to the Committee on Homeland Security and Governmental Affairs

bull Companion House legislation drafted by Rep Robin Kelly (D-IL-2) looks to build on the Senate legislation and establish similar basic requirements while also enhancing federal input into the process Kellys bill provides for an Emerging Technologies Advisory Board

Smart Cities and Communities Act

of 2017

bull HR 3895 To promote the use of smart technologies and systems in communities and for other purposes introduced in the House on October 2 2017

bull S 1904 A bill to promote the use of smart technologies and systems in communities and for other purposes introduced in the Senate on October 2 2017

The Internet of Things Growing Attention from US Legislators (Sample of Bills) ndash As of June 2018

Cyber Shield Act of 2017

bull HR 4163 and S 2020 introduced on October 27 2017 - In addition to a labeling scheme that compliant IoTdevices would bear if passed it would also be responsible for establishing a best-practices advisory committee

Securing the Internet of

Things Act of 2017

bull HR1324 - Securing IoTAct of 2017 introduced in the House on March 2 2017 by Rep Jerry McNerney[D-CA-9] and was referred to the Subcommittee on Communications and Technology on March 17 2017

IoTConsumer TIPS Act of

2017

The ldquoTeddy Bears amp Toasters Actrdquo ndashCalifornia ndash SB 327 and AB 1906 starting in 2020 under legislation signed Friday by Gov Jerry Brown on Friday September 28

2018

bull S 2234 IOT Consumer TIPS Act of 2017 introduced in the Senate on December 14 2017 by Sen Roger F Wicker [R-MS] Read twice and referred to the Committee on Commerce Science and Transportation on 12142017

Smart Building

Acceleration Act of 2018

bull HR 5069 Smart Building Acceleration Act of 2018 introduced in the House on February 16 2018 by Rep Peter Welch [D-VT-At Large] 02232018 Referred to the Subcommittee on Energy

Promoting Good Cyber Hygiene

Act of 2017

bull HR 3010 Promoting Good Cyber Hygiene Act of 2017introduced in the House on June 22 2017 by Rep Anna G Eshoo [D-CA-18]

bull S 1475 Promoting Good Cyber Hygiene Act of 2017 introduced in the Senate on June 29 2017 by Sen Orin G Hatch [R-UT]

Secure and Protect

Americans Data Act (SPADA)

bull HR 3896 introduced by Rep Janice Schakowsky [D-IL-9] on 10022017

bull About ldquoa process for overseeing persons who have access to personal information including through Internet-connected deviceshelliprdquo

Balancing the Rights of Web Surfers

Equally and Responsibly

(BROWSER)Act of 2017

bull HR 2520 introduced by Rep Marsha Blackburn [R-TN-9] on 5182017

bull About ldquoa mass-market retail service by wire or radio that provides the capability to transmit data to and receive data from all or substantially all internet endpointsrdquo

See pending privacy legislation (some of it related to IoT) in the 115th US Congress as reported by the Association of National Advertisers as of April 9 2018 here httpwwwananetgetfile26427

The ldquoThe California Consumer Personal Information Disclosure and Sale Initiativerdquo

(17-0039) may appear on the ballot in California as an initiated state statute on

November 6 2018

Illinois Senate Bill 1451 effective June 1 2018 to standardize and streamline

regulation of small wireless cell facilities

STATE

Smart IoTAct

bull Discussion Draft reviewed during May 22 2018 Hearing HR 6032 Smart IoT Act introd on 672018

Developing Innovation and

Growing the Internet of

Things (DIGIT) Act

bull S 88 DIGIT Act introduced in the Senate on January 10 2017 by Sen Deb Fischer (R NE) [Bill passed in the Senate on August 3 2017 and was referred to the Subcommittee on Communications and Technology on August 11 2017]

bull HR 686 DIGIT Act introduced in the House on January 24 2017 by Rep Paulsen Erik Paulsen [R-MN-3]

Smart Manufacturing Leadership Act

bull S 768 Smart Manufacturing Leadership Act introduced in the Senate on March 29 2017 by Sen Jeanne Shaheen [D-NH]

bull HR 3240 Smart Manufacturing Leadership Act introduced in the House on July 13 2017 by Rep Peter Welch [D-VT-At Large]

Internet of Things (IoT)

Cybersecurity Improvement Act

of 2017

bull S 1691 Internet of Things (IoT) Cybersecurity Improvement Act of 2017introduced in the Senate on August 1 2017 by Sen Mark R Warner [D-VA] Read twice and referred to the Committee on Homeland Security and Governmental Affairs

bull Companion House legislation drafted by Rep Robin Kelly (D-IL-2) looks to build on the Senate legislation and establish similar basic requirements while also enhancing federal input into the process Kellys bill provides for an Emerging Technologies Advisory Board

Smart Cities and Communities Act

of 2017

bull HR 3895 To promote the use of smart technologies and systems in communities and for other purposes introduced in the House on October 2 2017

bull S 1904 A bill to promote the use of smart technologies and systems in communities and for other purposes introduced in the Senate on October 2 2017

The Internet of Things Growing Attention from US Legislators (Sample of Bills) ndash As of June 2018

Cyber Shield Act of 2017

bull HR 4163 and S 2020 introduced on October 27 2017 - In addition to a labeling scheme that compliant IoTdevices would bear if passed it would also be responsible for establishing a best-practices advisory committee

Securing the Internet of

Things Act of 2017

bull HR1324 - Securing IoTAct of 2017 introduced in the House on March 2 2017 by Rep Jerry McNerney[D-CA-9] and was referred to the Subcommittee on Communications and Technology on March 17 2017

IoTConsumer TIPS Act of

2017

The ldquoTeddy Bears amp Toasters Actrdquo ndashCalifornia ndash SB 327 and AB 1906 starting in 2020 under legislation signed Friday by Gov Jerry Brown on Friday September 28

2018

bull S 2234 IOT Consumer TIPS Act of 2017 introduced in the Senate on December 14 2017 by Sen Roger F Wicker [R-MS] Read twice and referred to the Committee on Commerce Science and Transportation on 12142017

Smart Building

Acceleration Act of 2018

bull HR 5069 Smart Building Acceleration Act of 2018 introduced in the House on February 16 2018 by Rep Peter Welch [D-VT-At Large] 02232018 Referred to the Subcommittee on Energy

Promoting Good Cyber Hygiene

Act of 2017

bull HR 3010 Promoting Good Cyber Hygiene Act of 2017introduced in the House on June 22 2017 by Rep Anna G Eshoo [D-CA-18]

bull S 1475 Promoting Good Cyber Hygiene Act of 2017 introduced in the Senate on June 29 2017 by Sen Orin G Hatch [R-UT]

Secure and Protect

Americans Data Act (SPADA)

bull HR 3896 introduced by Rep Janice Schakowsky [D-IL-9] on 10022017

bull About ldquoa process for overseeing persons who have access to personal information including through Internet-connected deviceshelliprdquo

Balancing the Rights of Web Surfers

Equally and Responsibly

(BROWSER)Act of 2017

bull HR 2520 introduced by Rep Marsha Blackburn [R-TN-9] on 5182017

bull About ldquoa mass-market retail service by wire or radio that provides the capability to transmit data to and receive data from all or substantially all internet endpointsrdquo

See pending privacy legislation (some of it related to IoT) in the 115th US Congress as reported by the Association of National Advertisers as of April 9 2018 here httpwwwananetgetfile26427

The ldquoThe California Consumer Personal Information Disclosure and Sale Initiativerdquo

(17-0039) may appear on the ballot in California as an initiated state statute on

November 6 2018

Illinois Senate Bill 1451 effective June 1 2018 to standardize and streamline

regulation of small wireless cell facilities

STATE

Smart IoTAct

bull Discussion Draft reviewed during May 22 2018 Hearing HR 6032 Smart IoT Act introd on 672018

ldquoLa Fabbrica del Futurordquo January 2012 ldquoNational Plan Impresa 40rsquo (no longer Industria 40) launched in September 2017

ldquoInnovate UKrdquo ldquoHigh Value Manufacturing (HVM) Catapultrdquo (October 2011) Future Cities Catapult(2012) Digital Catapult [November 2014) ldquoIOTUKrdquo (September 2015) Internet of Things Research Hub ldquoPETRASrdquo (January 2016)

ldquo Smart Manufacturing Leadership Coalitionrdquo (2006 inc in 2012) ldquoManufacturing USA (2013) and related advanced mfg programs IIC (2014)

ldquoManufacturing Industry Innovation 30rdquo launched in June 2014) amp ldquoGiGAIoT Alliancerdquo (September 2015)

Sample of Individual Country Initiatives ndash over 75 of worldrsquos GDP

China

Italy

Japan

Korea

UK

USA

Japan and Germany signed a joint statement cooperation on Internet of Things (IoT)Industrie 40rdquo (April 2016) Industrial Value Chain Initiative (IVI -June 2015) - See 2016 launch of Super Smart Society (Society 50)

Russia2017 Russian government approved Industry 40 roadmap ie Advanced Industrial Technologies (TechNet)

Mexico Roadmap for Industry 40 in Mexicordquo Ministry of Economy published in April 2016

Brazil Launch of ldquoInternet of Things ndash An Action Plan for Brazilrdquo in November 2017 Brazils IoT plan to start deployment in April 2018

ldquoMake in Indiardquo (2014) ldquoZero Defect Zero Effectrdquo (2014) Digital India (2015) New National Telecom Policy Draft ndash May 1 2018

India

Australia On 25th April 2017 the Australian Prime Ministers Industry 40 Taskforce signed a cooperation agreement with Germanyrsquos Platform Industrie 40

Public consultation on the Internet of Things (July 19 ndash 919 2016) on ldquopreparing for the IoT revolutionrdquo Document 1 and Document 2

France

CanadaJune 2018 Canada ndash Germany 2+2 RampD Projects in Industry 40 Technology - Call for Proposals (2018 -2019)

ldquoIndustrie 40rdquo (developed in the 2011-2013 timeframe) amp ldquoDigital Strategy 2025rdquo (April 2016) Reference Architecture Model for Industry 40 (RAMI 40 ndash PlatformIndustrie 40) was introduced in April 2015 See also Industrial Data Space initiative at Fraunhofer launched at the end of 2014 See ldquoGermany aims for faster internet digital progress with new digital affairs minister [Staatsministerin Dorothee Baumlr]rdquo March 2018

Germany

Spain Ministry of Industry Energy and Tourism of Spain (MINETUR) launched Connected Industry 40 announced in 2014 ie ldquoIndustria Connectada 40rdquo

Recent Country-focused IoTIndustry 40 Initiatives

July 2018

ldquoMade in China 2025rdquo (May 2015) ldquoInternet Plusrdquo (July 2015) and GSMA Report released in July 2018 on ldquoHow Greater China is set to lead the global Industrial IoT marketrdquo

European Union Coordinates National Digital Initiatives ()

List of National Initiatives in the European Union for digitizing industry active as of June 2017 ()

bullAustria Industrie 40 Oesterreich

bullBelgium Made different ndash Factories of the future

bullCzech Republic Průmysl 40

bullGermany Industrie 40

bullDenmark Manufacturing Academy of Denmark (MADE)

bullSpain Industria Conectada 40

bullFrance Alliance pour lIndustrie du Futur

bullHungary IPAR40 National Technology Initiative

bullItaly Industria 40

bullLithuania Pramonė 40

bullLuxembourg Digital For Industry Luxembourg

bullNetherlands Smart Industry

bullPoland Initiative and Platform Industry 40

bullPortugal Induacutestria 40

bullSweden Smart Industry

() of member states

EU Level See ldquoState of the Union 2017 ndash Industrial Policy Strategy Investing in a smart innovative and sustainable industryrdquo Press Release of September 18 2017 httpeuropaeurapidpress-release_IP-17-3185_enhtm

ldquoFifteen national initiatives for digitising industry have been launched across Europe in recent years With value chains increasingly distributed across Europe the further digitisation of industry brings challenges that can only be addressed through a coordinated EU-wide effort Seven more initiatives are under preparation The development of these national initiatives is an important element of the European Platform of National Initiatives on Digitising Industry A first preliminary analysismaps the national measures along the action lines of the DEI strategy building on the results of the Digital Transformation Monitor (DTM) and the Digital Economy and Society Index (DESI) A country overview with relevant information for digitising industry for all 28 Member States is available hererdquo

Source Digital Transformation Monitor httpseceuropaeugrowthtools-databasesdemmonitorcategorynational-initiatives

() Source httpseceuropaeudigital-single-marketencordination-european-national-regional-initiatives Details (updated as of November 2017) are provided here httpseceuropaeufuturiumensystemfilesgedlist_of_policy_initiatives_on_digitising_industry_across_eu_211117pdf

PART FIVE

What is standing in the way

Caspar David Friedrich (1774ndash1840) Wanderer uumlber dem Nebelmeer

Analytics

Standards

Trustworthiness Energy Source

Scaling

Interoperability

Data Storage

Miniaturization

Business Model

Expectations

Antenna Technologies

LatencyEthics

Education and Training

Regulation

Platform Management

ArchitectureSocial Acceptability

IT and OT Alignment

Cost Effectiveness

International Cooperation ETC

Policies

Spectrum Availability

Computing Paradigm

Fragmentation

Critical IoT Tugs of War

PRIVACY

CONVENIENCE SECURITY amp PRIVACY

SECURITY

IoTIndustry 40 Existential Challenge

TIMELESS RELEVANCE

LEGACY (dealing with the

past)

Technology Human Inertia

OBSOLESCENCE (dealing with the

future)

Technology Human

Readiness

It is always about more than technology

Fox News Report August 13 2018 httpwwwfoxnewscomtech20180813southern-californians-are-tossing-electric-scooters-into-ocean-burning-them-reporthtml

Curbed Atlanta July 16 2018 httpsatlantacurbedcom201871617575018bird-scooter-bike-share-regulation-last-mile-connectivity

Critical IoT Tugs of War

PRIVACY

CONVENIENCE SECURITY amp PRIVACY

SECURITY

IoTIndustry 40 Existential Challenge

TIMELESS RELEVANCE

LEGACY (dealing with the

past)

Technology Human Inertia

OBSOLESCENCE (dealing with the

future)

Technology Human

Readiness

It is always about more than technology

Fox News Report August 13 2018 httpwwwfoxnewscomtech20180813southern-californians-are-tossing-electric-scooters-into-ocean-burning-them-reporthtml

Curbed Atlanta July 16 2018 httpsatlantacurbedcom201871617575018bird-scooter-bike-share-regulation-last-mile-connectivity

IoTIndustry 40 Existential Challenge

TIMELESS RELEVANCE

LEGACY (dealing with the

past)

Technology Human Inertia

OBSOLESCENCE (dealing with the

future)

Technology Human

Readiness

It is always about more than technology

Fox News Report August 13 2018 httpwwwfoxnewscomtech20180813southern-californians-are-tossing-electric-scooters-into-ocean-burning-them-reporthtml

Curbed Atlanta July 16 2018 httpsatlantacurbedcom201871617575018bird-scooter-bike-share-regulation-last-mile-connectivity

It is always about more than technology

Fox News Report August 13 2018 httpwwwfoxnewscomtech20180813southern-californians-are-tossing-electric-scooters-into-ocean-burning-them-reporthtml

Curbed Atlanta July 16 2018 httpsatlantacurbedcom201871617575018bird-scooter-bike-share-regulation-last-mile-connectivity

Source Charles Reed Andersonrsquos opening keynote on ldquoIoT in Asia Pacificrdquo at IoT World USA Santa Clara CA USA May 15 2018 httpcharlesreedandersoncomcra-keynote-iot-world-2018-santa-clara-usa

32 in the Americas 41 in Asia Pacific

IoT initiatives are mostly disconnected from end users

ENABLING ENTERPRISE CRUCIBLE

The Human Factor

ldquo[CEO of GE Digital Bill] Ruh notes that digital transformations often fail

due to a lack of focus on lsquosoftrsquo elements such as culture leadership

and talentrdquo

Peter High ldquoThe CEO of GE Digital On What is Next For the Industrial Iconrdquo Forbes July 23 2018 httpswwwforbescomsitespeterhigh20180723the-ceo-of-ge-digital-on-what-is-next-for-the-industrial-icon7ba5bce13fdb

Crucible a place or situation in which concentrated forces interact to cause or influence change or development - Merriam-Webster

ldquoThe lsquohuman factorrsquo matters IoT may sound like it is all about technology

but human factors like culture organization and leadership are criticalrdquo

Cisco Press Release Cisco Survey Reveals Close to Three-Fourths of IoT Projects Are Failing May 23 2017 httpsnewsroomciscocompress-release-contentarticleId=1847422

PART SIX

Where do we go from here

Jan Vermeer (1632 -1675) The Astronomer

ldquoThe most important rule [of forecasting] I actually learned

as a small child was from an old cowboy where I was raised He taught me to never mistake a clear view for a short distance Just because something seems

terribly obvious and terribly necessary does not mean itrsquos going to happen quicklyrdquo ()

() Dr Paul Saffo (1997) - InfoWorld Futures Project InterviewMountain picture source httpstheplanetdcomalberta-road-trip-a-route-through-the-south

Source httpswwwbisinfotechcomelectronics-articlethe-iot-is-harder-than-we-thought

ldquoThe most important rule [of forecasting] I actually learned

as a small child was from an old cowboy where I was raised He taught me to never mistake a clear view for a short distance Just because something seems

terribly obvious and terribly necessary does not mean itrsquos going to happen quicklyrdquo ()

() Dr Paul Saffo (1997) - InfoWorld Futures Project InterviewMountain picture source httpstheplanetdcomalberta-road-trip-a-route-through-the-south

Source httpswwwbisinfotechcomelectronics-articlethe-iot-is-harder-than-we-thought

Source httpswwwbisinfotechcomelectronics-articlethe-iot-is-harder-than-we-thought

bull No managers should view digital mdash or any other major technological innovation mdash as their sure salvation

bull Digital is not just a thing that you can you can buy and plug into the organization It is multi-faceted and diffuse and doesnrsquot just involve technology

bull Donrsquot overlook that digital investments must be calibrated to the readiness of industry mdash both customers and competitors

The Donrsquots

() Thomas H Davenport and George Westerman ldquo Why So Many High-Profile Digital Transformations Failrdquo Harvard Business Review March 9 2018 httpshbrorg201803why-so-many-high-profile-digital-transformations-fail

()

Driving New Modes of IoT-Facilitated CitizenUser Engagement 2018

Center for the Development and Application of Internet of Things Technologies (CDAIT) IoT Thought Leadership Working Group ndash White Paper Leaders Karen I Matthews PhD (Corning) Chair and Paul MA Baker PhD (Georgia Tech) Clay Mahaffey (Kimberly-Clark) and Forrest Pace (AIG) Vice Chairs and sub-group leaders Jerome Holbus (Infor) Johnny Parham (Infor) Doug Guthrie (Comcast) and Kelly Arehart PhD (Kimberly-Clark) httpscdaitgatechedusitesdefaultfilesgeorgia_tech_cdait_thought_leadership_working_group_white_paper_july_9_2018_finalpdf

bull ldquoThe internet of things is in its infancy and therefore all related activities require prudent and judicious managementrdquo the [Georgia Tech CDAIT] report statesrdquo

bull ldquoIf hastily deployed enabling technologies do not deliver on the expected outcomes on both the technological and human axes cities will not be as enthusiastic in their support As a result if not denied IoT innovation will be delayedrdquo

Source Pamela Rentz ldquoGeorgia Tech IoT Study Takeaways for Smart Citiesrdquo TechWell July 19 2018 httpswwwtechwellcomtechwell-insights201807georgia-tech-iot-study-takeaways-smart-cities

Enabled Benefits

Time (cost)

A

B

Results-Driven Incremental Implementation

Traditional Implementation

The Dorsquos Walking Before RunningDesign Thinking + Results-Driven Incrementalism

Source Robert G Fichman and Scott A Moses ldquoAn Incremental Process for Software Implementationrdquo Sloan Management Review Vol 40 No 2 January 15 1999 pp 39-52 httpssloanreviewmiteduarticlean-incremental-process-for-software-implementation

ldquo A quick examination of the history of industrial revolutions reveals that each stage lasted 80ndash100 years In other words a revolution does not happen overnight rather a revolution is the culmination of continuous evolutions and improvements

We are at the beginning of the Fourth Industrial Revolution which is likely to last at least 50 yearsrdquo

Dr Ben Wang Executive Director of the Georgia Tech Manufacturing Institute (GTMI) in Wang B The Future of Manufacturing A New Perspective Eng (2018) httpsdoiorg101016jeng201807020

New York City streets in 1890 Besides telegraph lines multiple

electric lines were required for each class of device requiring different

voltages

Image source httpstopthecapcom20100317broadband-the-21st-century-equivalent-of-electricity-part-1-the-early-years

Source World Economic Forum (in collaboration with AT Kearney) Readiness for the Future of Production Report 2018 January 12 2018 httpwww3weforumorgdocsFOP_Readiness_Report_2018pdf

2018 World Economic Forum report analyzes 100 countries and economies to see how they might

benefit from the Fourth Industrial Revolution -or Industry 40 - and the rapid rise of new

manufacturing technologies

Readiness for Industry 40

The new framework is made up of two main components Structure of Production which measures a countryrsquos scale and complexity of production and Drivers of Production ndash the key enablers that position a country to capitalize on the Fourth Industrial Revolution to transform production systems (ie technology and innovation human capital global trade and investment institutional framework sustainable resources and demand environment)

Germany near the top 3 in structure of production 6 in drivers of production

bdquoKein Operationsplan reicht mit einiger Sicherheit uumlber das erste Zusammentreffen mit der

feindlichen Hauptmacht hinausldquo Helmuth Karl Bernhard von Moltke (1800-1891) []

[] Source Uumlber Strategie (1871) In Kriegsgeschichtliche Einzelschriften H13 (1890) hier zitiert nach Militārische Werke Band 2 Teil 2 Mittler amp Sohn Berlin 1900 S 291 booksgoogle

Paraphrased in English as ldquo No plan survives the first encounter with the enemyrdquo

Conclusion

Digitalization is a Very Long and Dynamic Journey

It belongs to the ldquoPerpetual Betardquo era a time when nothing is ever final [] and we need to be ready to rapidly adapt to unexpected circumstances

[] See Tim OlsquoReilly in What is Web 20 httpswwworeillycompubaweb2archivewhat-is-web-20htmlpage=4 and James H Morris (August 30 2006) Software Product Management and the Endless Beta

THANK YOU

alainlouchezgtrigatechedu

The views expressed in this presentation are solely the

authorrsquos own and do not necessarily represent those of

the Georgia Institute of Technology (ldquoGeorgia Techrdquo)

the Georgia Tech CDAIT members the University System

of Georgia or the State of Georgia