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Short report 2016 International IoT Industry Development Trend Forum Agenda, July 15, 2016 8:50-17:00, Bougainvillea hall, Shenzhen, by Rob van Kranenburg ([email protected]) P.R. China found a golden formula in the cooperation of Wuxi and Shenzhen; it is a winning combination. So here I sit in Chengdu with a green tea latte and I worry. I worry for the development of #IoT in Europe and the rest of the world. I have no worries about the development of #IoT in P.R. China. EU has a lot of building blocks, such as the Estonian e-card, but it still has not grasped the fundamental political nature of the digital transition. With every step it takes out a gatekeeper and it will not stop because politicians would want it or think they can regulate it. It will take out politicians and democracy full stop so you better prepare with some kind of cybernetic structure to bridge the moment of breakdown. It is a new political reality, and P.R. China has grasped that essential fact quite a while ago. It has to be the spearhead for every investment, the lens through which every decision is evaluated. The 2016 International IoT Industry Development Trend Forum was held on Friday July 15, 2016, in Shenzhen. This forum on the theme of “lead IoT era and share the world wide wisdom” was one of three major sectors during The 9th APEC Small and Medium Enterprises Technology Conference and Exhibition. To promote the development of global emerging industry and explore a new way of international resources integration, the National Ministry of Civil Affairs started experiments in international associations launched by non-governmental organizations. Under this trend, Shenzhen IOT joined the Wuxi IOT Industry Research Institute launch the Shenzhen Qianhai Free Trade Zone AIOT. As one of the pilot cities, Shenzhen has a profound industrial base and research ability in the sensing, transmission and application of the IOT technology. IOT is seen as a technology-intensive industry, which can be established mainly top level through basic standard making, product coding and information security. It was no surprise that the opening of the 2016 International IoT Industry Development Trend Forum was by leaders of the Small and Medium-sized Enterprises Bureau of the Ministry of Industry and Information Technology , the Guangdong Small and Medium-sized Enterprises Bureau, and the President of IoT Service sharing alliance Alliance. China has grasped that if it does not manage to bring the vast number of SME into the third industrial revolution, IOT or Internet Plus plan, by providing a common developer platform, and public and service sharing platforms it will be hard to manage nation wide safety and security. The discussion on whether IoT is a new institutional structure has already passed. The engineers, leading the P.R. China IoT developments, are fully aware that as a technical operation it is basic automation plus the nature of the tcp/ip protocol (just build for speed and resilience) and the rock-bottom cheapness of hardware and data storage that makes IoT different from ubicomp, pervasive computing, and ambient intelligence. Technically it is not rocket science. The integration into the economy and society as a cybernetic system is the hard part. Vital to the understanding of the Chinese engineering mind-set is that it differs fundamentally in the ontological outlook on the world. The technical drivers, protocols, circuits and sensors may be the same but whereas it is difficult for Europeans to not take the motto 'wisdom of the earth' metaphorically, to the Chinese mind-set this is a pure hard fact. Throughout a number of key presentations it is stressed that data and information from humans is subjective and that IoT, data collected by sensors in real time is objective. As such it truly is a mirror, a copy if you will, of what is really happening. Thus it is a better basis for decision-making. This radical transparency that is operating in the heart of IoT is thus welcomed as it brings truth and exposes irregularities, overhead, fraud and deceit. In other places in the world it is

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Page 1: P.R. China found a golden formula in the cooperation of ... › sites › default › files › docs › blog… · Wuxi IOT Industry Research Institute launch the Shenzhen Qianhai

Short report 2016 International IoT Industry Development Trend Forum Agenda, July 15,20168:50-17:00,Bougainvilleahall,Shenzhen,byRobvanKranenburg([email protected])P.R.ChinafoundagoldenformulainthecooperationofWuxiandShenzhen;itisawinningcombination.SohereIsitinChengduwithagreentealatteandIworry.Iworryforthedevelopmentof#IoTinEuropeandtherestoftheworld.Ihavenoworriesaboutthedevelopmentof#IoTinP.R.China.EUhasa lotofbuildingblocks,suchastheEstoniane-card,but itstillhasnotgraspedthefundamentalpolitical nature of the digital transition.With every step it takes out a gatekeeper and itwill not stopbecausepoliticianswouldwantitorthinktheycanregulateit.Itwilltakeoutpoliticiansanddemocracyfull stop so you better prepare with some kind of cybernetic structure to bridge the moment ofbreakdown.Itisanewpoliticalreality,andP.R.Chinahasgraspedthatessentialfactquiteawhileago.Ithastobethespearheadforeveryinvestment,thelensthroughwhicheverydecisionisevaluated.The 2016 International IoT Industry Development Trend Forum was held on Friday July 15, 2016, inShenzhen.Thisforumonthethemeof“leadIoTeraandsharetheworldwidewisdom”wasoneofthreemajorsectorsduringThe9thAPECSmallandMediumEnterprisesTechnologyConferenceandExhibition.To promote the development of global emerging industry and explore a new way of internationalresources integration, the National Ministry of Civil Affairs started experiments in internationalassociations launched by non-governmental organizations. Under this trend, Shenzhen IOT joined theWuxi IOTIndustryResearch Institute launchtheShenzhenQianhaiFreeTradeZoneAIOT.Asoneofthepilotcities,Shenzhenhasaprofoundindustrialbaseandresearchabilityinthesensing,transmissionandapplicationoftheIOTtechnology.IOTisseenasatechnology-intensiveindustry,whichcanbeestablishedmainlytoplevelthroughbasicstandardmaking,productcodingandinformationsecurity.

Itwasnosurprisethattheopeningofthe2016InternationalIoTIndustryDevelopmentTrendForumwasbyleadersoftheSmallandMedium-sizedEnterprisesBureauoftheMinistryofIndustryandInformationTechnology,theGuangdongSmallandMedium-sizedEnterprisesBureau,andthePresidentofIoTServicesharingallianceAlliance.ChinahasgraspedthatifitdoesnotmanagetobringthevastnumberofSMEintothethirdindustrialrevolution,IOTorInternetPlusplan,byprovidingacommondeveloperplatform,andpublicandservicesharingplatformsitwillbehardtomanagenationwidesafetyandsecurity.ThediscussiononwhetherIoTisanewinstitutionalstructurehasalreadypassed.Theengineers,leadingtheP.R.ChinaIoTdevelopments,arefullyawarethatasatechnicaloperationitisbasicautomationplusthenatureofthetcp/ipprotocol(justbuildforspeedandresilience)andtherock-bottomcheapnessofhardwareanddatastoragethatmakesIoTdifferentfromubicomp,pervasivecomputing,andambientintelligence.Technicallyitisnotrocketscience.Theintegrationintotheeconomyandsocietyasacyberneticsystemisthehardpart.VitaltotheunderstandingoftheChineseengineeringmind-setisthatitdiffersfundamentallyintheontologicaloutlookontheworld.Thetechnicaldrivers,protocols,circuitsandsensorsmaybethesamebutwhereasitisdifficultforEuropeanstonottakethemotto'wisdomoftheearth'metaphorically,totheChinesemind-setthisisapurehardfact.ThroughoutanumberofkeypresentationsitisstressedthatdataandinformationfromhumansissubjectiveandthatIoT,datacollectedbysensorsinrealtimeisobjective.Assuchittrulyisamirror,acopyifyouwill,ofwhatisreallyhappening.Thusitisabetterbasisfordecision-making.ThisradicaltransparencythatisoperatingintheheartofIoTisthuswelcomedasitbringstruthandexposesirregularities,overhead,fraudanddeceit.Inotherplacesintheworlditis

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preciselystalledforthesereasons.Philosophicallyspeakingwecanquestiontheverynatureofthisobjectivitybecauseonlycertainparametersinnatural,machineandhumanbehaviourarebeingmeasuredandothersnot.Apartfromthiscoreissue,theveryquestionastowhomorwhatisdoingthecalibrationalsobecomesafactorinadebatewhether'trueobjectivity'canbereached.Butitisessentialtounderstandatthispointthattothecurrentmind-setthesequestionswillbeaskedafterthesystemhasbeenputintoplace.InEuropetheseveryquestionshavebeenaddressedinforexampletheOnlifeManifesto,butthesequestionsandtheirtentativeanswersarenotdirectlyusedforinputinrealpolicyframeworks.'Newability'describeshowoneisabletoconfrontthe'new'with'agency',asyousimplycannotaffordtobetakenbysurpriseorhavenooriginal,readoriginatingfromyourownexperience-response.Twospecialcaseswereforegrounded,bothaskingforattentiontopressingsocio-economicissues,theruralcommunitiesandthedisabled,peoplewithspecialneeds.P.R.Chinahasaround300millionpeoplewithspecialneeds,theblind,deaf,thepeopleinwheelchairs,theageingpopulation,iscurrentlybeingoverlooked.Ofcoursethereisequalityinprincipleandtherearespecialgovernmentprograms,butIoTenablesthatspecificequipmentcanbe(3Dprinted)tailoredtoeachindividual.Imaginea300millionnetworkwithitsowncloud,applications,andspecialservices;thisisanamalgamofexpertsthatcanbecomeabusinesspropositionandsocialecosystem.Threehundred(300)villagesadayaredisappearinginP.R.China.Thecountryiscurrentlyat54,3percenturbanization.Inordertogoto70%still450millionpeoplehavetobe'urbanized'.Alotoffarmersareover60,farmingfromexperience.Weneedopen,genericandquicksimpleIoTsolutionstoharvesttheirwisdomandexplaintheadvantagesofaddingsensordatatotheirwaysofworking,notonlyinharvestingandreapingbutalsointrackingqualitythroughthesupplychain.IoTthushasbecomethenewpoliticalreality.Itisofferinganidealmirrorofarealworldorganizationagainstwhichactualsocialorganizationwillbejudgedandmeasured.Thisisattheheartofthesocialcreditsystemthatgivescitizensreportsaboutbehaviourandactionsandguidelinesashowtoactpotentially.FromaEuropeanperspective,stillfocusedontheindividualanditspotentialtobegainedpurelythroughandbyitsownactions,suchaschemeisseenaspaternalistic.AssuchitforgetsthatthroughouttheEnlightenmentithassetupschemestobringparticularsectionsofsocietyintoaparticularethicsandeverydayactivities.ButifyouhavemadetheleapintotheDigitalTransition,thennotonlycollaborationbecomesakeydriverforallmatters,youaretrainingeverysection,everydomain,andeveryaspectofhumanlifeinconvergenceasamind-set.SotosaythatIoTwillreconstructthepoliticalsystemandcreateabrandnewmutuallybenefitingorganizationonapolicyframeworklevel,istosaythatIoTisreallyaboutsocialorganizationonthelevelofsociologyortospeakasZhencongHan,GeneralManagerofGovernmentandCorporateClientDivisionofChinaTelecommunicationsCorporationinhisKeynoteReconstructionofServiceCapabilitytoPromoteRapidDevelopmentofIoTIndustrythatintermsofservicecapability,AIisthenumber1challenge,closelyfollowedbyspeechrecognitionandnumber3:thehumanfactordevelopment.IhavelongarguedthatIdentityManagement-ofpeople,machinesandprocesses-isattheheartofany21thcenturystablesociety.ThisrequiresboldthinkingthatisonlyfoundcurrentlyinP.R.China.Intermsoffinance,thereareplanstothenotionofthe'bank'intotheheartofthesystem.DeepintotheheartoftheChineseuneaseistheobsessionwiththe'fake',the'copy',afraudulentobjectthatisnotwhatitclaimstobe.Insuchavastcountryandurbanizationhappeningsofast-33yearsagoShenzhenwasabeach-itisvitalthatthings,processesandpeoplecanbetrustedasthereisnomoreorganicwaytoknowthemforwhattheyare.Buildingsocialcreditsystemsforpersonal,machineandprocessbehaviourthenbecomesaprogressiveandpositiveact,andwillbringtrustintoeconomicactivities.

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Mostimportantthoughitwilldealdecisivelywithinformationasymmetry(youhavedatathatIdon't)andinformationopaqueness.TherehavebeenanumberofInternethoaxesandscams,peoplelostalotofmoney.Whispersandrumoursbecomelikewhirlwindstoriesthroughsocialmedia.Allthisinformationmanipulationindustrycanbedisrupted.Theinterestonloansiscurrentlytoohighbecausealotofpeoplegivefalseinformationandcannotrepaytheirloans.Whyshoulda'centralbank'beinbetweenthematchofwhowantsandwhohasmoney?Thiscanbeself-organizedifonatypeofblockchainallpartieshaveaccesstothesame,truthful,realtimedata.Disruptionisreal,onlyafundamentalchangeoftheverynotionofwhatis'credit'inthesystem,canbringstabilitytoazoneofonebillionpeople(notforgettingthatwhenthisisdoneright,themodelcanandwillbeexportedtotherestoftheworld).Inthecaseofinsurance,accidentscannotonlybeprevented,butitcouldalsoseeifyouwereangryinthecarordistracted.Thereforenewbusinessmodelscanonlybedevisedwithinsystemthatredistributesinsecurity(notsecurity)acrossallcurrentstakeholders,otherwisenewgatekeepersandpowerfulconglomerateswillarise(OverTheTopPlayers)thataretooinfluencedbyoldfashionedcapitalistindicatorslikeego,superficialsocialcapital(Iimpressyouwithmysizeofmycar,house,boat,company...)ormoney(thatpeoplecaninheritandcollectdishonestly,orifyouareagovernmentsimplyprintyourself).ThenewIoTrealityisactuallyabletoorganizenotaround'money'butaround'value'.Itcanfirstformvaluesettlements,thenitfindwaysofsharingschemes.Assuchitcanimpactanddisruptfourhundredyearsofcapitalism,asitcutsoutthemiddlementhengrowsolidandrichandthenstarttoprotecttheirownpositionsforgettingtheirconnecting,transitorynature.Afasterandmoreprecisemodelofvaluereformationcansolvethecurrentdiscrepanciesinthisequation.Itwillbethenpossibletoreceivealoannotonlandoronassetsbutontherealmotivation,talent,behaviour,anddemonstratedactivities;verydifferentbutmuchmoretunedtothetimesparameters.CitizensarekeepingRMB140trillioninthebank,savingastheyareunsurewheretoinvest.Putting#IoTattheheartoftheeconomicsystemreplacessubjectivityinpricing,bringsrealtimedatatoinvestmentsandthusrestoresconfidenceandtrust.Peoplewhohavemoneytoinvestcanenterintomeaningfulrelationswithfellowcitizenswhoneedmoneytomakenewinfrastructure,services,andapplications.ThereisonemorereasontoworryasaEuropean.NewbusinesswillhavenomoreHQ,butarestructuredinsmallteams.Therewasaveryopenmind-setattheConference.Peoplehonestlyaddressedtherealissues.Therewasapanelandgood,tough,questionsbytheaudience.ItlookslikethecreativeanddesignfocusofShenzhenisreallymeetingtheIndustrialInternetWuxiandthatshouldbealoudwakeupcalltotherestoftheworld.But,inallhonesty,Idon'tseewhereelsetheintelligenceresides.NotinEurope,notintheUS.TheoldDARPAveteransoftcp/iparesilentandfailtotakefullresponsibilityforthedeepflawsintheInternetarchitecturethatrendersitinepttodealwithIoT.TheEU#IoTmandarinsstillthinkin'projects',notin'survival'.Therest(Brazilians,Russians,Malaysians...)allhavegreatplansonpaperinvestingandburningalotof(everybody'senergy),thanendupbuyingCiscoastheycannotorganize.TheDutchstubbornlyrefusetosimplyconnectthefewdatabasesthatkeepthemfrombecomingasmartcitythesizeofaChinesesuburb.Ahwell,theonlyseriouspeopleImeetareChinese,and,OKyes,fromSingapore.Apartfromthecomplacentandplayfulnatureofthepolicyofficersandchosenpoliticians,themainreasonisthegapbetweenacquiredknowledgeandaninnateembodiedknowingfosteringadeepintegrationbetweentheoreticalmodellingandeverydaypraxis.Sayingsomethinglike:#IoTinter-connectivityisnotsimplyafeedbackloop,butstrongmutualdependenceandreallyknowing,feeling-thistobetruearetwoverydifferentthings.Stating:

ü "Everythingcanbecomeanodeonthenetwork",ü "Businessmodelwillbehubsonthemaininterlinks",ü "Whenthingsareconnected,unkownsetsofqualitiescanbecomeattributedtotheirvirtual

identities"

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andknowing,again,feelingwhatthismeansforthequalityofdata,systemsandlife,thesearetwoverydifferentthings.ForCouncil,aloosenetworkofindividualIoTprofessionals,wehopetobeactiveverysoonintheChinesemarketasoneofthekeytakeawaysisthatmostcompaniescannotaffordtostrategicallychangethemselves.Thatiswherewecomein.Weknowwhatitisallabout,FounderofCouncil,theinternetofthings.eu@robvankTokeepupwithournewssignupforournewsletter:http://www.theinternetofthings.eu/what-is-the-internet-of-things#iotcouncil-contact