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IOT PLATFORM STRATEGY – PAYING BY DOING VS. PARTNERSHIP DR. ADEL AL-HEZMI [email protected] IoT Tunisia Forum , Tunis | 26 th April 2018

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Page 1: IOT PLATFORM STRATEGY PAYING BY DOING VS. PARTNERSHIP · 2018-05-13 · iot platform strategy – paying by doing vs. partnership dr. adel al-hezmi adel.al-hezmi@t-systems.com iot

IOT PLATFORM STRATEGY – PAYING BY DOING VS. PARTNERSHIP

DR. ADEL AL-HEZMI [email protected]

IoT Tunisia Forum , Tunis | 26th April 2018

Page 2: IOT PLATFORM STRATEGY PAYING BY DOING VS. PARTNERSHIP · 2018-05-13 · iot platform strategy – paying by doing vs. partnership dr. adel al-hezmi adel.al-hezmi@t-systems.com iot

Outline

the Scale and Maturity of IoT 01

Frontend vs. Backend Challenges

IoT Product Strategies

Next steps …

02

03

04

Page 3: IOT PLATFORM STRATEGY PAYING BY DOING VS. PARTNERSHIP · 2018-05-13 · iot platform strategy – paying by doing vs. partnership dr. adel al-hezmi adel.al-hezmi@t-systems.com iot

T-SYSTEMS International gmbh

Information Technology and Telecommunications

Services in all industries Automotive, Finance, Transportation, Trade & public sector

Pioneer in cloud computing for large scale programs, multinational corporates & public hand

Datenbasis Finanzzahlen: DT Geschäftsbericht 2017

6,9 Bill. € Revenue

0,5 Bill. € EBITDA adjusted

37 924 Employees

Page 4: IOT PLATFORM STRATEGY PAYING BY DOING VS. PARTNERSHIP · 2018-05-13 · iot platform strategy – paying by doing vs. partnership dr. adel al-hezmi adel.al-hezmi@t-systems.com iot

IoT Is Not a Product!

Aerospace

& Defence

Healthcare

Automotive &

Transport

Manufacturing

Agriculture

Retail

Energy &

Utilities

Industrial Internet

Others

Page 5: IOT PLATFORM STRATEGY PAYING BY DOING VS. PARTNERSHIP · 2018-05-13 · iot platform strategy – paying by doing vs. partnership dr. adel al-hezmi adel.al-hezmi@t-systems.com iot

The Scale of IoT by Market

2020 Installed Base of the IoT Units

2020 Cumulative IoTSpending ($)

20.4 Billion total units in 2020

Source: Gartner - The Business Impact of IoT

Page 6: IOT PLATFORM STRATEGY PAYING BY DOING VS. PARTNERSHIP · 2018-05-13 · iot platform strategy – paying by doing vs. partnership dr. adel al-hezmi adel.al-hezmi@t-systems.com iot

Typical IoT Architecture

Factory

Cellular IoT SW16

LTE-M

Weightless-P

LPWA – complex and fragmented!

Machina Research 10

LTE Cat-OLTE Cat-1

Weightless-N

API

Industry

Utilties Automotive

Home Health

Information

Data

Physical Devices (or

things)

Connectivity

Protocols

Platforms

Enablers

Applications

Wisdom

Knowledge

Increasing number of vendors and products Increasing solution complexity

Page 7: IOT PLATFORM STRATEGY PAYING BY DOING VS. PARTNERSHIP · 2018-05-13 · iot platform strategy – paying by doing vs. partnership dr. adel al-hezmi adel.al-hezmi@t-systems.com iot

adoption and impact path of the Industrial Internet

Operational Efficiency

• Asset utilization

• Operational cost reduction

• Worker productivity

New Products & Services

• Pay-per-use

• Software-based services

• Data monetization

Outcome Economy

• Pay-per-outcome

• New connected ecosystems

• Platform-enabled marketplace

Autonomous, Pull Economy • Continuous demand-sensing • End-to-end automation • Resource optimization & waste reduction 1

2 3

4 Near -term

Long -term

Phases 1 and 2 represent immediate opportunities that drive the near-term adoption, starting with operational efficiency. These activities are happening now, and will likely accelerate in the next two years.

Phases 3 and 4 include long-term structural changes that are roughly three years away from mainstream adoption. The impact of the Industrial Internet is incremental in the near-term but transformative over the long- term. The development of the Industrial Internet will be disruptive to businesses and industries, and those disruptions will occur within the next five years. These disruptions will manifest themselves in Phases 3 and 4

Page 8: IOT PLATFORM STRATEGY PAYING BY DOING VS. PARTNERSHIP · 2018-05-13 · iot platform strategy – paying by doing vs. partnership dr. adel al-hezmi adel.al-hezmi@t-systems.com iot

Hype Cycle for the Internet of Things

Source: Gartner - The Business Impact of IoT

Iot Platform

IoT Enabled ERP

IoT Solutions (from PasS to SaaS)

Page 9: IOT PLATFORM STRATEGY PAYING BY DOING VS. PARTNERSHIP · 2018-05-13 · iot platform strategy – paying by doing vs. partnership dr. adel al-hezmi adel.al-hezmi@t-systems.com iot

Barriers to iot success

Source: Gartner - The Business Impact of IoT

Business Barriers

Cost and Funding Concerns

Privacy Concerns

PoC over-focused on technology

Regulatory Concerns

Technology Barriers

Security

Integration Complexity

Technology Immaturity

Lack of IoT Skills

Human Barriers

Resistance to Change

Insufficient Resources

Fragmented Leadership

No Leadership for IoT

N = 2539

In some markets as many as 80% of POCs do not

make it into production

Page 10: IOT PLATFORM STRATEGY PAYING BY DOING VS. PARTNERSHIP · 2018-05-13 · iot platform strategy – paying by doing vs. partnership dr. adel al-hezmi adel.al-hezmi@t-systems.com iot

moving from product-based to service-based offerings

IoT Services Roadmap

Rev

enue

Exp

ansi

on

Cus

tom

er E

ngag

emen

t

Platform-as-a-

service

Stand-Alone

product

Product

+ remote

support

Product +

Value-add Service

Page 11: IOT PLATFORM STRATEGY PAYING BY DOING VS. PARTNERSHIP · 2018-05-13 · iot platform strategy – paying by doing vs. partnership dr. adel al-hezmi adel.al-hezmi@t-systems.com iot

Towards Enterprise Architecture

Big picture oriented Exploring potential

technologies Identify expected business

model and processes Assess the risk and

stability

Think big – start small Minimal viable product Prioritization Ensure interoperability

across an integration architecture

Up-Down Approach

Roadmap Architecture Thinking

DevOps

Appropriate micro-service architecture

Sustainability API first / Container / Cloud Continuous Delivery Pipeline

Lightweight architecture Supporting not only the IT Simple and state-of-the-art

tools Culture: open to change End-to-End responsibility

Page 12: IOT PLATFORM STRATEGY PAYING BY DOING VS. PARTNERSHIP · 2018-05-13 · iot platform strategy – paying by doing vs. partnership dr. adel al-hezmi adel.al-hezmi@t-systems.com iot

Alliances and consortiums

Page 13: IOT PLATFORM STRATEGY PAYING BY DOING VS. PARTNERSHIP · 2018-05-13 · iot platform strategy – paying by doing vs. partnership dr. adel al-hezmi adel.al-hezmi@t-systems.com iot

Recommendation

Focus on business outcomes, not the IoT technologies

Start your IoT journey now

Push business value to the front of your IoT use case selection

Business and technology go hand in hand

IoT will have a material effect on business —across the board

Source: Gartner - The Business Impact of IoT

Page 14: IOT PLATFORM STRATEGY PAYING BY DOING VS. PARTNERSHIP · 2018-05-13 · iot platform strategy – paying by doing vs. partnership dr. adel al-hezmi adel.al-hezmi@t-systems.com iot

Than you!

Q&A