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IoT Innovations of Thoughts market, challenges & partnerships 1
IoT
Innovations of Thoughts
market, challenges & partnerships
1
The pulse of innovation
Agenda
1. Kontron world
2. 50 Billion devices
3. A green use case
4. The challenges & partnerships
5. Final thoughts
2
The pulse of innovation
» Kontron develops, produces and
markets embedded computer
technology (ECT) products and services
for sectors such as industrial automation,
medical technology, telecommunications, security &
defense, transportation and infotainment worldwide.
» Kontron is one of the world’s leading companies in
this space.
» The company has a long tradition as a technology
leader with proven innovative capacity through
excellent research and development work.
» Selected key financials
Revenue 2013 = EUR 445.3 million
Adj. EBIT 2013 = EUR 4.6 million
Market Cap = ~ EUR 253 million
Kontron – We Are Where You Are Our strength: Design, configuration & system integration worldwide
Leader in the global ECT space
3 3
Source: Kontron | October 2014
Augsburg
San
Diego
Montreal
Beijing
Bangalore Penang
Toulon
Tokyo
Brazil
Region Revenue
per GEO Mio €
EMEA 218,3
North
America 204,8
Emerging
Markets 22,2
The pulse of innovation - 4
» 6.100 m² in total
» Space for up to 300 office-workers, plus cafeteria and lobby
» Modern Assembly plant and logistic operations
» Option for adding a 3rd floor if necessary later (1st building)
Vision for Kontron Powerful “Technology Campus” in Augsburg
Kontron’s Technology campus
4
The pulse of innovation
Big Economic Impact
IoT adds up to $15T to global GDP over the next 20 years (GE)
April 22, 2013 Vol. 888888 Nr.000001
Internet Inflection Points: Past & Future
After Cisco IBSG 2012
200M
10B
50B
1995 2000 2013 2020
“Fixed” (you go to the
device)
Mobility (device goes
with you)
IoT (age of
devices)
IoE (people, process, data,
things)
On The Verge The Smart Systems
market is reaching
its tipping point for
dramatic growth.
(Harbor Research,
March 18, 2013)
IoT – The Next Computing Inflection?
Services Drive
Revenues & Growth
Value-added services are projected to be the largest and the fastest growning revenue sources in IoT. (Harbor Research, March 18, 2013)
Since 2008, More Devices than People are Connected to the Internet (Cisco)
5
The pulse of innovation - 6
The pulse of innovation - 7
Internet of Things (IoT) segmentation
7
Never thought about…
Ideas
Deployed
Deployments are
primarily traditional M2M
The pulse of innovation - 8
From M2M to IoT
M2M
Internet
of
Things
data driven
collaboration driven
by full digital integration
The pulse of innovation
A green use case
9
The pulse of innovation
Use Case – Autonomous Decisions & Control
Precision Farming / Fertilization
10
„Bauernschlau“ (street smart)
now goes digital
The pulse of innovation 11
Get data from sensors
Build soil geo map /
fertilization planning Load fertilization map
Auto Pilot controls
vehicle
Report / Store / Compute -
Progress/Fuel consumption,
fertilizer consumption,
operating hours …
Soil sensors report data
Use Case – Autonomous Decisions & Control
Precision Farming / Fertilization
The pulse of innovation
Use Case – Precision Farming
Why does this makes sense
12
Yield Increase 5200 $US / 1000 Hectares / Year
Pesticide Cost Decrease 1B $US / Year
Fuel Reduction 30-50%
CO2 Emission Reduction 15-25%
Source: US Government - Department of Ecology
North America
Data is the new currency
The pulse of innovation
The challenges & opportunities
13
The pulse of innovation
Market trends How does IoT influence the traditional ECT market?
Trend
Connected devices enable IoT
Reduction of SWaP1 – everything becomes smaller
Decreased time-to-market by “plug & play” platform solutions
comprising HW, SW, and services
Software is more and more the bottleneck with regard to
time-to-market
Reduction of R&D spend in non-core development areas
Enablement of new business models (e.g. services)
Customers invest more and more in emerging markets
Trust in HW/SW solutions becomes more and more a key
concern for customers (and their customers)
Trust in financial & operational stability of ECT suppliers
14
Devices
Solutions
Business model
Buying behavior/
brand recognition
1 Size, weight and power
1
2
3
4
5
6
7
8
9
The pulse of innovation - 15
The challenges & the opportunity
15
» Apply end-to-end view for your customers
» Leverage solutions into multiple verticals
» Reduce complexity
Our Goal:
The pulse of innovation - 16
IoT is about strategic partnerships
16
The pulse of innovation - 17
To build an End-to-End solution
17
Edge solutions
Back-end solutions
Cloud Management Cloudera
Data distribution services RTI
Connectivity Telekom
Cloud OS Microsoft
Protection & Security Wibu-Systems
More than Silicon Intel
The pulse of innovation
Final thoughts
18
The pulse of innovation - 19
» Think big in the business model; start small with the implementation
» Look at a partner with a partner ECO system in the early stages
» Don’t be scared for acronyms; understand the customer value
» Don’t engineer a 120% solution, improve as you go
» Do have a (cost) scalability plan
Final thoughts
19
www.kontron.com
Augsburg Deggendorf Toulon Copenhagen Chichester Solothurn Liberec Pilsen Warsaw San Diego/Poway Columbia Fremont Montreal
Beijing Hong Kong Taipei Penang Bangalore Mumbai Sydney
Good luck
