1. #tsbiot
Driving Innovation
IoT: UK Consultation &
Governance implications
Dr. Maurizio Pilu
Technology Strategy Board
IoT Forum, Berlin, 23-24 Nov 2011

2. Driving Innovation
What is the Technology Strategy Board?
• We are the UK’s Innovation Agency
• A national body set up in 2007 to invest in
business innovation
• We work across business, universities and
government
• We mostly come from business
– 130 people with over 1700 years of business
experience
• We have a budget of over £300m/year

3. Driving Innovation
Context: The Digital programme
• Mission:
to help innovative
businesses unlock the
economic potential of
digital technology, by
identifying and
addressing systemic
challenges and resolving
tensions between
people, processes and
technology.

4. Driving Innovation
Overview of our IoT programme
• A £5m managed investment
• Focus on the enablers of and barriers to the
ecosystem of applications and services of the
Internet of Things
• Special Interest Group
– Started on August 1st
– https://ktn.innovateuk.org/web/internet-of-things
• Internet of Things Convergence
– Now: £500k for preparatory studies
– 2nd half 2012: £4m for a demonstrator activity

5. Driving Innovation
Strategic pillars of our current investment
DATA and INFORMATION VALUE CHAIN
Increased access to data
More harmonized
access to data
Enabling
application & services

6. Driving Innovation
Kick-starting the IoT UK Future Internet Meetings with businesses
ecosystems workshop Strategy Group paper and other input
KTN Sector
Meetings
Best Current
Thinking
Discussion on best current
thinking on investment
Investment IoT Convergence
Special Interest Group plan
Competition

7. Driving Innovation

8. Driving Innovation
IoT – UK consultation in numbers
• 6 events across various sectors
– Energy, Transport, Built Environment, Health,
Creative
• >400 businesses and academics
• All run with the same format
• Output summarized in a report
• Built community of >700 UK IoT stakeholders
– https://connect.innovateuk.org/web/internet-of-things

9. Driving Innovation
Consultation: participation

10. Driving Innovation
Consultation: interested in connecting....

11. Driving Innovation
IoT paper published 21st Sep 11
• Cross sector opportunities
• IoT architecture topologies
• People centred design principles
• Value chain recognition
• Local and cloud based data
• Data brokerage
• Interoperability challenges
• Security, privacy and trust
• Liability
• Join the IoT SIG for more info:
https://ktn.innovateuk.org/web/internet-
of-things
Direct link
https://ktn.innovateuk.org/c/document_library/get_file?p_l_id=2140879
&folderId=2543615&name=DLFE-48598.pdf

12. Driving Innovation
Health warning!!
• Not a presentation on governance
• Taking a strategic perspective from the
standpoint of a national innovation agency...
• ....informed by 100s of discussions with business
• We are currently running a programme
– Will bring up many angles to the governance of IoT
– We will share with the community

13. Slide courtesy of Jonathan Mitchener, TSB
Driving Innovation
What is the IoT ...

14. Driving Innovation
The multiple perspectives of the IoT
• It’s about sensors & devices
• It’s about M2M
• It’s about a big IT system that controls stuff
• It’s all about data value chains
• It’s about new services
• It’s the Internet – no such thing as IoT
How can
• It’s about the user experience Governance take
• It’s about growth-opportunities into account all these
• It’s about new business models perspectives and let
them flourish?

15. Driving Innovation
Consultation: Broad recurring themes
• Open data, data value chains, data markets
• Open, end to end standards
• Interoperability
• Lower barriers to innovation and app/services development
• Disintermediation between the infrastructures and apps/services
• Enables secondary markets (app & services)
• Apps and services that can scale, critical mass
• Market creation for SMEs
• Trust, privacy, resilience
• Micropayments •Applications and services are key
• Enables crossing organizational to prove value
and sector boundaries •How to prove business
models/demand

16. Driving Innovation
Consultation: key technical topics
• Data value chains from the “things” trough application/services to end user
• Services, service design, including information flows
• Disincentives (including liabilities), incentives, costs, and benefits analysis for organization to
make more data available
• Business models for data, services and applications
• People-centred design and value cases for users
• Legal, regulatory and ethical considerations, including liabilities
• Privacy, security, trust
• Monetization and billing mechanisms
• Integration between data sets to generate more value
• Service level agreements between parties in the data/service value chain
• Incentives to invest further in infrastructure (nodes, networks) based on information flows
• Interoperability at the data and services layer
• Coping with large quantities of data
• Data/Information brokerage solutions, local hubs, gateways, including cloud based
• Data usage, rights, provenance
• Disintermediation between the infrastructure and the application/services developers
• ..........

17. Driving Innovation
Lots to be proven ....
How far can/should
governance go if we
don’t understand how the
market and value
creation will unfold

18. Driving Innovation
????
Innovation, new applications, services, growth
Out window of
visibility today
???
Core foundation of the IoT with industry support
to drive design of architectures, platforms
governance, strategies, national investments

19. Driving Innovation
Innovation, new
applications,
services, growth
Where would
governance be most
effective? Where is it
needed? Where is it
damaging?
Core foundation of the IoT
to drive design of
governance, strategies,
national investments

20. Driving Innovation

21. Driving Innovation
IoT: It is still early!!
• Businesses feel there is no dominant player in IoT
– Opportunities to compete, grow, etc.
• Natural textbook symptoms of early markets:
fragmentation, lack of standards, bespoke solutions, etc.
• Who is the audience for governance discussions?
Governance activities
should take into account
that the market is not yet
well developed,
especially in apps and
services.

22. Driving Innovation
Benkler’s layers of governance
Where does
• Physical layer governance actions fit
• Logical layer best? Can we learn
lessons from the
• Content layer evolution of Internet
governance?

23. Slide courtesy of Stuart Revell, ICTKTN (UK)
Driving Innovation
Two speed innovation cycles
• Short development cycle
• Fast moving applications
7 Application
• Fast rate of adoption
• Low CAPEX short design cycles
6 Presentation
• Abstracted from underlying
dependencies?
infrastructure
5 Session
Inter-
4 Transport
3 Network
• Long development cycle
• Slow moving standards
2 Data Link • CAPEX intensive
• Global co-ordination and economies
1 Physical of scale – challenges &
opportunities
• Large investment / high stakes
• Spectrum usage changes

24. Businesses feel the lack
Driving Innovation of such layer to enable an
Governance can stimulate IoT ecosystem
innovation & competition ....
Apps and
services Competition,
Innovation
Incentive to invest,
scale
Fragmentation, ...a governance layer ...
Lack of standards,
silos, etc
Competition,
Innovation
Incentive to
invest, scale
Infrastructure
(nodes, etc.)

25. But where is the right
Driving Innovation balance for a modern
governance approach?
... or stifle it ...
Apps and
services
...a governance layer ...
...a governance layer ...
Infrastructure
Fragmentation,
Lack of standards,
silos, etc
?
...a governance layer ...
...a governance layer ...
...a governance layer ...
(nodes, etc.)

26. Driving Innovation
What’s the best starting point?
Users, Business
Customers models,
opportunities
Technology

27. Driving Innovation
Device-centric vs service centric:
Beyond the RFID lens
Much of the governance
discussions have been heavily
influenced by the RFID community
– a relatively mature market
The evolution of IoT governance
should take a much broader
perspective.
What are the known unknowns?

28. Driving Innovation
Services and apps pull the market
Enabling an ecosystem of
apps and services that can
scale is key. What type of
governance will stimulate
that, and what could get in
the way?

29. Driving Innovation
Tales of two philosophies:
Big IT systems vs bottom up, decentralized
Two opposing views very visible.
How does governance differ in these opposing scenarios?
What should it be like to cater for both?

30. Driving Innovation
Governance not same as architecture!
• Taking about “IoT architecture” at the same time
of governance might be confusing
– How many “platforms” has the EU funded?
– 10s of competing industry “architectures”
• Should there be competition at the
architecture/platform level?
– You can have governance without specifying
architectures
• Anecdote from the consultation .....

31. Slide courtesy of Stuart Revell, ICTKTN (UK)
Driving Innovation
The connected consumer
Tasks News
Gaming Video
Financial Location
Entertainment Information
Calendar Messaging
Health Networking
Security Transport
Social Contacts
Media Safety
Music Photo
Photo source:
CSR plc and UKTI

32. Driving Innovation
Governance that works for people
• Scenario for the IoT are still immature
• User centred design one of the key themes
• Convergence means that IoT might be up-close-
and personal (vs for Engineers in the past)
• Governance has to be fit for purpose for
customers and users

33. Driving Innovation
Governance is key here.
But BEWARE, it has
It is fit for purpose? proven hard for the Internet
too!!
• Liability and accountabilities
– Surprisingly strong element across sectors
– Best effort vs SLAs?
• Security, Trust, Resilience, authentication,
provenance.
– Seen as key for the markets to develop
• IoT coming from industrial, scientific
background, moving closer to people  problem
much bigger and critical.

34. Driving Innovation
The path to standards & controls

At several events we run
people get fired up
when mentioning words
such as standards,
governance, controls.
Need to sell the
benefit, see the upside, not
the process or the fears.

35. Driving Innovation
Governance for an IoT ecosystem ....
• Open data, data value chains, data markets
• Open, end to end standards
• Interoperability
• Lower barriers to innovation and app/services development
• Disintermediation between the infrastructures and apps/services
• Enables secondary markets (app & services)
• Apps and services that can scale, critical mass
• Market creation for SMEs
• Trust, privacy, resilience
• Micropayments
• Enables crossing organizational and sector boundaries

36. #tsbiot
Driving Innovation
http://www.innovateuk.org
Dr. Maurizio Pilu
twitter: maurizio_tsb
THANK YOU