IoT - KOSTA

Business Strategy and System Development

Dr. June Sung Park, KAIST | SEMAT, Inc.

IoT

1| Copyright © 2016. Dr. June Sung Park. All rights reserved.

TABLE OF CONTENT

Copyright © 2016. Dr. June Sung Park. All rights reserved. 2|

IoT Global Trend

IoT Business Value Chain

IoT Architecture

IoT Use Case Patterns

IoT Business & System Development Process

IOT GLOBAL TREND


Market Forecast

IOT GLOBAL TREND


McKinsey estimates the total IoT market size in 2015 was $900M, growing to $3.7B in 2020 attaining a 32.6% CAGR. McKinsey estimates IoT global market an economic impact of $11.1 trillion per year in 2025 for IoT applications.

McKinsey, The Internet of Things: Mapping the Value beyond the Hype, June 2015. Forbes, Roundup Of Internet Of Things Forecasts And Market Estimates, Nov. 2016.

Industry Revolution

IOT GLOBAL TREND


Smart, connected products substantially changes the work of virtually every function within the manufacturing firm. What is under way is perhaps the most substantial change in the manufacturing firm since the Second Industrial Revolution more than a century ago.

M. Porter & J. Heppelmann, How Smart, Connected Products are Transforming Competition, Harvard Business Review, Nov. 2014. M. Porter & J. Heppelmann, How Smart, Connected Products are Transforming Companies, Harvard Business Review, Oct. 2015.

Digital Business

IOT GLOBAL TREND


Every industrial company must become a software company.

McKinsey, GE’s Jeff Immelt on Digitizing in the Industrial Space, 2015.

D:/2010-15/IoT WG/GE 디지털경영혁신.avi

Platform Economy

IOT GLOBAL TREND


Accenture, Platform Economy: Technology-Driven Business Model Innovation from the Outside In, 2016.

IOT ARCHITECTURE


IOT ARCHITECTURE


Smart Connected Device

Enterprise IT

IoT Analytics Platform

Internet

Sensor

Microprocessor

Data Storage

Software

OS

Digital UI

Data

Physical Device

Smart

Component

Wireless

Connectivity

Component

Business

Operation Business

Operation

IoT App Marketplace

Apps for IoT Device

IoT Application

Enablement

IoT Data

Analytics

IoT Application

Platform

Daimler Mobility Service

IOT ARCHITECTURE


Daimler’s Car2Go is a free-floating car sharing system offering flexible mobility with Smart Fortwo cars. Cars can be located and booked spontaneously via smartphone app or the internet portal. Customers pay only for the rental time. Parking fees, fuel costs, taxes and insurance are already included.

Daimler also launched an intermodal service through its Moovel transit platform that helps customers optimize their route using different types of transport such as Car2Go, bike sharing, public transport and taxi using smart phone apps and a web portal.

With the Moovel transit platform, transit agencies get real-time access to a whole world of mobile ticketing, including mobile sales, Smart Card management, real-time analytics, trip planning and transaction data.

RideTap is a SDK available for developers who want to deep link to car, bike, and ride-sharing services in their apps.

Moovel-based applications integrate seamlessly into complex backend environments, simplifying operations for transit agencies.

Daimler IT

Internet

Data

Smart Fortwo Car

Business Operation Car Sharing Service

Remote Fleet Management

IoT App Marketplace

Apps for Car2Go and Intermodal Transport

Moovel Platform and RideTap Developer Portal

IoT Application

Platform

Transit Agencies IT

Mobile Ticketing

LED RFID

Car Controls

Gartner IoT Reference Architecture

IOT ARCHITECTURE


Gartner, Delivering Digital Business Value with Integrated IoT Solutions, Aug. 2016.

IBM IoT Reference Architecture

IOT ARCHITECTURE


IBM, SOA Design Principles and the Internet of Things, IBM SOA Architect Summit, 2014.

System of Systems

IOT ARCHITECTURE


M. Porter & J. Heppelmann, How Smart, Connected Products are Transforming Competition, Harvard Business Review, Nov. 2014.

IOT USE CASE PATTERNS


Connected Product Lifecycle Management



Monitoring Monitoring of the product’s condition, its environment, its operation and

usage, enabling notifications of changes, and improving product design,

market segmentation, after-sale service, new sales opportunities, etc.

Control Control of product functions through remote upgrades, reconfiguration and

maintenance

Optimization Optimization of product performance, personalization of the user

experience and predictive diagnostics, service and repair, applying

algorithms and analytics to in-use or historical data

Autonomy Autonomy of product operation, self-coordination of operation with other

products and systems, autonomous product enhancement and

personalization, self-diagnosis and service

Meditronic,

Medical Device,

Ireland

General Electric,

Brilliant Factories,

U.S.A.

Joy Global,

Mining Equipment,

U.S.A.

ABB Robotics,

Robotics,

Switzerland

Manufacturing Servitization



Service Bundling

Service bundling to provide connected value-added services directly to

customers, enabling new ongoing customer relationships and

disintermediation of channel partners or maintenance partners

Product as a Service

Product as a Service where customers pay the usage-based fee without

buying the product and the manufacturer assumes responsibility for and

associated cost of maintenance

Product Sharing

Product sharing service where service subscribers share the product

without buying it

Productless Service

Productless service providing IoT-based information services or owner-user

matching services without manufacturing or even owning the product

Schneider Electric,

Energy Management,

France

Smoove,

Bike Mfg & Sharing,

France

OnFarm,

Agri. Data Service,

U.S.A.

GE Aviation,

Tue Choice Flight Hour,

U.S.A.

API-Driven Economy



Product API Product APIs to allow the end customer to assemble the parts of the

solution—both the products involved and the platform that ties the system

together—from different companies

Open API Open APIs to enable 3rd party players including app developers to create

new applications and generate new revenues

API Gateway API gateways to simplify the integration of the IoT system with mobile apps,

social media or the customer’s and partners’ backend applications

API Portal API Portal with SDKs to allow developers register for, learn about and

leverage APIs to speed app development and maximize app quality

Nest Labs,

Home Automation,

U.S.A.

Netflix,

Streaming Media,

U.S.A.

GM,

Developer Network,

U.S.A.

Philips Lighting,

HUE API,

Netherlands

Bosch mySpin



Bosch’s mySpin integrates the smartphone with the car’s head unit. The driver can then use compatible smartphone apps directly from the car’s touchscreen.

mySpin is a middleware that creates a link between the dashboard system and a smartphone via the car manufacturer-provided API.

Bosch supports the developer community with a portal, SDK, templates and tutorials to expand the range of available apps.

mySpin competes with Apple’s CarPlay, Google’s Android Auto and car manufacturers’ proprietary solutions.

Land Rover InControl is a suite of services that connects the driver to the car and the outside world, even when the driver is away from the vehicle. It provides such services as infotainment, checking the fuel level, finding the car in a parking lot, locating a stolen car, viewing car diagnostic data, e-call service, etc.—all through a smartphone app.

Land Rover InControl Apps based on mySpin enables the use of vehicle-optimized smartphone apps on the car’s touchscreen by connecting the smartphone to the USB port.

Bosch mySpin

Platform

Smartphone

API

Car

Manufacturer

API

App Developer

Community

IOT BUSINESS VALUE CHAIN




OT

IT

Business Info Design

Business Process Design

Device Design

Customer Support & Services

Marketing & Sales

System Development

Business Scenario Design

HW & Embedded SW Devt

Analytics Cloud Implementation

Enterprise Application Devt

Product Sales

Service Subscription

Service Cloud Implementation

Customer Support

Service Operation

Business Operation

Facility Management SaaS


Equipment Manufacturer

SaaS Customer

Facility Management

SaaS ISV

Business Info Design

Device Design

Customer Support & Services

Marketing & Sales

System Development


HW & Embedded SW Devt

Analytics Cloud Implementation

Enterprise Application Devt

Equipment Sales

Service Subscription

Service Cloud Implementation

Customer Support

Service Operation

Business Operation

Equipment Purchase & Installation

Equipment Operation & Management

API


Business Process Design

IOT BUSINESS DEVELOPMENT


IOT BUSINESS & SYSTEM DEVELOPMENT PROCESS


System Implementation

System Analysis & Design


Business Process (BPMN)

Business Data (UML Class)

Use Case (UML)

Customer Journey Map

Standard Vocabulary

UX

Service Messages (XSD)

Service Inventory Service Interface

(WSDL, REST)

Database Schema

Use Case Scenario CRC Object-Oriented Class

Component (Docker Image?)

Process Orchestration (BPEL)

UI

Ignite IoT Development Methodology



System Analysis & Design


D. Slama, et al., Enterprise IoT: Strategies and Best Practices for Connected Products and Services, O’Reily, 2015. (http://enterprise-iot.org/)



Automating a mess generates an automated mess.

Michael Hammer, Professor at MIT Founder of BPR One of America’s 25 Most Influential Individuals Author of One of 3 Most Important Business Books

Lean Startup & Agile Development



Product Planning

Product Backlog

Sprint

System Implem.

with Model

Storming

Sprint Review & Retrospective using Essence

Sprint Planning

Release Planning


System Analysis & Design (Spike )

Product Increment

Steve Blank, The Four Steps to the Epiphany, K&S Ranch, 2013. Eric Ries, The Lean Startup: How Today's Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses, Crown Business, 2011.

THANK YOU

[email protected] https://www.linkedin.com/in/june-sung-park-a66683/

https://twitter.com/junesungpark https://www.facebook.com/JP.Institute.of.Software/

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