Industrial internet deployment: What new benefits will 5G bring?

18.9.2017

Dr. Jari Collin, CTO

Telia Finland

SHORT BIO: JARI COLLIN

Industry Experience

• CTO at Telia Finland, 2016-

• CIO at Efora (the maintenance company of Stora Enso), 2014-16

• CIO at Elisa corporation, 2008-14

• Head of IT integration at Nokia Siemens Networks, 2006-08

• Several roles in supply chain & IT management at Nokia Networks, 1994-2006

Academic Background

• Adjunct Professor of Enterprise Information Systems and Service Networks, Aalto University, 2013-

• D.Sc. (Tech.) in Industrial Management, Helsinki University of Technology, 2003

• M.Sc. (Tech.) in Industrial Management, Tampere University of Technology, 1996

Research Interest

• Industrial internet and supply chains

• Digital transformation

STORYLINE

• New competition requires real-time capabilities

• Technology layers of Industrial Internet

• Evolution of connectivity -layer

• Benefits of 5G

TOWARDS NEW COMPETITION

Smart, connected products are

transforming competition

Data-driven service business

models

Company C: IT-systemsCompany B: IT-systems

BUSINESS KNOWLEDGE

Open data

Company A: IT-systems

”Information Operations Centre”INFORMATION

DATA

Digital

services

New

networked

business

opportunitiesDATA DATA DATA

Cross-company data utilization is the

main source of new innovations

Customer value is created by

sharing data in a value network

MANUFACTURING COMPANIES NEED TO BUILD NEW CAPABILITIES

Focus shifts from product delivery to the use

of products in a customer environment

Customer solutions that are optimized

in real-time

Invest Implement Maintain Operate Use

Supply Chain

Customer’s Demand Chain

Product

Delivery

Project

Delivery

Maintenance

Delivery

Operations

Delivery

Digital

Delivery

Source: Porter & Heppelmann: How smart connected products are transforming competition (HBR, 11/2014)

Four steps are needed to build real-time

capabilities of industrial internet solutions

Building real-time capabilities requires

a systematic deployment approach

EXAMPLE FROM CAR INDUSTRY: TELIA SENSE IN SWEDEN AND DENMARK

TECHNOLOGY IS NO LONGER A BOTTLENECK – BUT IT CONSISTS OF PARTS THAT NEED TO BE INTEGRATED

LEVEL 6: Digital service

LEVEL 5: Application

LEVEL 4: Analytics

LEVEL 3: Data storage

LEVEL 2: Connectivity

LEVEL 1: Sensors

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DATA

INFORMATION

BUSINESS

KNOWLEDGE

TECHNOLOGY LAYERS FOR INDUSTRIAL INTERNET

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MOBILE DATA USAGE: TOTAL MARKET IN FINLAND

2017-07-18

TOTAL USAGE USAGE PER SIM

Note: Total mobile data traffic is more

in Finland than in Germany

Note: Data growth (year-on-year) is still

close to 60%

MOBILE CONNECTIVITY SOLUTIONS ARE WIDE AND DEVELOPING FAST…

M2M

(mainly 2G)

Wi-Fi

(on top of fixed networks)

LPWAN

(LoRa, Sigfox)

LTE/NB-IoT

5GOptimized characteristics

1. Cost

2. Coverage / frequency

3. Data speed

4. Capacity

5. Energy consumption (battery)

6. Latency

7. Easiness of implementation

8. Security

9. …

LTE/NB-IOT TECHNOLOGY – SOON AVAILABLE IN THE MARKETS

Core network

• New virtualized core elements provide extra capacity and support new services

Radio network

• Narrow Band-IoT cell is a separate entity, which is embedded in a LTE cell

• Not significant impact to current LTE radio network – only software upgrade in

base stations

• Neither mobility nor session continuity towards 2G, 3G, or 4G networks (no

handovers)

Chipsets and terminals

• Main difference compared to M2M is long battery duration; ~ 10 years

• Practical NB-IoT user throughputs <10 kbit/s; max. 64kbit/s

• NB-IoT terminals and sensors should support several frequency bands

5G WILL SPEED-UP THE 4th INDUSTRIAL REVOLUTION

5G USE CASES

5G

Enhanced Mobile Broadband

with Improved Coverage,

Capacity and Customer Experience

New opportunities –

low latency and higher mobility

Supporting society with advanced

communication solutions

Verticals and Internet of Things

Nokia LTE BTS and Mobile Edge Computing,

OZO live server, 3 OZO cameras deployed at

Telia 5G arena over live 4G network.

VR cameras to provide

360 Live OZO stream

VR gear

Macro eNB MEC

and

Edge Video Orchestration

LTE

LIVE VIRTUAL REALITY WITH NOKIA OZO AND MOBILE EDGE COMPUTING AT TELIA 5G AREENA ON JUNE 15TH 2017

”WE ARE READY WITH 5G, AND WILL BRING IT TO YOU AS SOON AS THE WORLD IS READY.”

.”5G

MARKET CAP USD 20.1 BILLION**, (SEK 1567.9 BN)

RESULT OF A MERGER WITH TELIA & SONERA 2002

HEADOFFICE IN STOCKHOLM

2 21,000 EMPLOYEES*

2016 NET SALES SEK 84.2 BILLION*

TELIA BRAND IN ALL MARKETS

16

TELIA COMPANY

IN BRIEF