Digital Single Market:Impact of Digitization

Jan Langedijk, Siemens Nederland N.V.

• www.siemens.nlEvent IMPACT?!, 9 november 2016

Digitization changes everything

From record store…

… to ride sharingFrom taxi …

… to Streaming

Why do we need a Digital Single Market?

Digital Single market

3 Policy Areas or “Pillars”

The Digital Single market strategy is made up to three policy areas or “pillars”

1. Improving acces to digital goods and services

2. An environment where digital networks and services can proper

3. Digital as a a driver for growth

EU Agenda for DSM - Strategy 2020

The EU Digital Agenda

is one of the 7 pillars of

the Europe 2020 Strategy

Hoe doet Nederland het?

Digital Single Markets: Impact

The digital economy and society index (DESI)

• Integration of Digital Technology covers(a) ‘business digitisation’ and (b)‘eCommerce’.

0

10

20

30

40

50

60

IE DK SE BE FI NL DE LT PT AT SI CZ MT ES UK EU28 HR CY FR SK IT LU EE BG EL PL HU LV RO

DESI 2016, Integration of Digital Technology dimension, by country

4a Business digitization 4b eCommerce

Source: European Commission, Digital ScoreboardEDPR 2016 – Integration of Digital Technology

EU-28 4a1 Electronic Information Sharing % enterprises (no financial sector, 10+ employees)

36 % (2015)

4a2 RFID % enterprises (no financial sector, 10+ employees)

n.a.

4a3 Social Media % enterprises (no financial sector, 10+ employees)

18 % (2015)

4a4 eInvoices % enterprises (no financial sector, 10+ employees)

n.a.

4a5 Cloud % enterprises (no financial sector, 10+ employees)

n.a.

4b1 SMEs Selling Online % SMEs (no financial sector, 10-249 employees)

16 % (2015)

4b2 eCommerce Turnover % turnover of SMEs (no financial sector, 10-249 employees)

9.4 % (2015)

4b3 Selling Online Cross-border % SMEs (no financial sector, 10-249 employees)

7.5 % (2015)

Integration of Digital Technology

Digitale agenda NL - Juli 2016

Digital Single Markets: Impact van digitalisering

Acties voor verder digitalisering van de Nederlandse economie:• onderwijs, kennis en innovatie• snelle, open infrastructuur• veiligheid en vertrouwen

Hoe doet Nederland het?

Digital Single Markets: Impact

Internet of Things (IoT)

Wikipedia:The internet of things (IoT) is the internetworking of physical devices,vehicles (also referred to as "connected devices" and "smart devices"),buildings and other items—embedded with electronics, software, sensors,actuators, and network connectivity that enable these objects to collectand exchange data.Google:noun: Internet of thingsa proposed development of the Internet in which everyday objects havenetwork connectivity, allowing them to send and receive data."if one thing can prevent the Internet of things from transforming the waywe live and work, it will be a breakdown in security"

Internet of Things (IoT) has a

transformation impact on (almost) all sectors

Wikipedia:The internet of things (IoT) is the internetworking of physical devices,vehicles (also referred to as "connected devices" and "smart devices"),buildings and other items—embedded with electronics, software, sensors,actuators, and network connectivity that enable these objects to collectand exchange data.Google:noun: Internet of thingsa proposed development of the Internet in which everyday objects havenetwork connectivity, allowing them to send and receive data."if one thing can prevent the Internet of things from transforming the waywe live and work, it will be a breakdown in security"

Big Data out – IoT in

IoT – Big Data - Analytics

Internet of Things - value predictions

Why now?

By 2020 there will be 5 times as many connected machines as connected people

Data

Sources

Data

Platforms

Benefit

User generated data Machine generated data

1.5 ZB

18 ZB

2013

20202.9 ZB

26 ZB

2013

2020

8B

20B2013

20203B

4B

2013

2020

Internet users Connected devices

Generated data Generated data

Internet of Things

Market segmentation by industry/application

Digitalization enables you to turn challenges into opportunities

Digital services Vertical software

Digitally enhanced electrification and automation

Challenges Digitalization delivers answers

ALERT

!

Balancing

Peak avoidance

Resilience

Business models

CO2 and cost avoidance

Loss prevention

Distributed optimization

Customer focusExamples Digital Grid• Managed service meters / non technical losses

• Load monitoring, grid control, data analytics

• Substation automation, micro grids

Take-aways

By 2020 there will be 5 times as many connected machines ( 20 Billion) as connected people ( 4 Billion)1Internet of Things (IoT) has a transformation impact on (almost) all sectors2DESI 2016 shows that NL has a good starting position in Europe. Further digitization of the economy is part of the “Digital Agenda NL 3the Internet of Things has got to be built on a platform that is easy, intelligent and open4A good connection between sector and politics (national as well as EU) is necessary5