IoT Meetup Hamburg 3 February 2015 - Getting Hamburg set-up for the Internet of Things

Getting Hamburg set-up for the Internet of
Things
Understand the opportunity and learn from our own community
Hamburg IoT Meetup, 5 February 2015

1
Copyright©2015byIwww.iot-analytics.comAllrightsreserved.
Agenda
Introduction
Part 1: Understanding the Internet of Things opportunity
Part 2: Break-outs and closing remarks

2
IoT is currently my life
Knud Lasse Lüth
Who am I? My projects
A competitive intelligence portal for IoT
… working full-time in IoT since 09/2014
… spent 5 years working in strategy consulting
… holds MA in Industrial Engineering and MA in
Business Administration
… enjoys kitesurfing and beach-volleyball
An IoT-enabled solution for
industrial automation
www.iot-analytics.com
Mconnect
Focus of today
MA = Master
@KnudLueth

3
My focus is to provide competitive intelligence for IoT
Competitive
Intelligence (CI)
Market environment
Market development General
trends
Business
climate
Risk&
Attractiveness
Market
drivers
Economy
dynamics
Market
size
Regulation
Market
forecast
Segmen-
tation
Company
strategies
Company
profiles
M&A
activity
Business
cases
Market
shares
Product
intelligence
IoT Analytics intends to become the leading source for
competitive intelligence on the Internet of Things
M&A = Mergers and Aquisitions

4
Agenda
Introduction

5
Starting point:
Germany missed the “Internet opportunity” in the 1990s…
In 1994, the Internet was the next
big thing…
… and created a whole new
industry
Time Magazine Cover 1994 List of biggest Internet companies 2014
Source: Time Magazine, Wikipedia
# Company Headquarters Industry
Revenue
($B)
1 Amazon Seattle, WA E-commerce $74.45
2 Google Mountain View, CA Search $59.82
3 eBay San Jose, CA E-commerce $16.05
4 Tencent Shenzhen Social $9.91
5 Alibaba Hangzhou E-commerce $8.57
6 Facebook Menlo Park, CA Social $7.87
7 Rakuten Tokyo E-commerce $5.56
8 Priceline.com Norwalk, CT Travel $5.26
9 Baidu Beijing Search $5.21
10 Yahoo Sunnyvale, CA Web portal $4.68
11 Salesforce.com San Francisco, CA Cloud comp. $4.07
12 Yandex Moscow Search $1.21
13 Flipkart Bangalore E-commerce $1+

6
Revenue
($B)
1 Holisticon Hamburg IoT platform $174.45
2 Google Mountain View, CA
Device
search
$159.82
3 Thinventions Hamburg Hardware $116.05
4 Pepperminds Hamburg IoT platform $89.91
5 Otto Group Hamburg Cons. Prod. $68.57
6 Cisco San Jose, CA Communic. $47.87
7 LHT Hamburg
Smart
planes
$25.56
8 China Mobile Beijing M2M $15.26
9 MioSoft Hamburg Software $15.21
10 Mconnect Hamburg
Ind.
automation
$14.68
11 Sportspunk Hamburg Misc. $14.07
12
General
Electric
Fairfield, CT Industry $11.21
13 Apple Menlo Park, CA Cons. Prod. $11+
Can we catch the next big technology wave?
Now, the Internet of Things is the
next big technology innovation
Who will dominate the industry
in 20 years?
HBR Cover 2014
Source: HBR, IoT Analytics
First prediction: 2034
List of biggest IoT companies 2034

7
IoT among top 3 technological disruptions in next 10 years!
Potential economic impact in 2025Technology
3
2
1
4
5
6
Impact 2025Technology
9
8
7
10
11
12
Source: McKinsey

8
But what is it exactly?
“Sensors and actuators embedded in
physical objects are linked through
wired and wireless networks, often
using the same Internet Protocol (IP)
that connects the Internet”
- Internet of Things definition by
McKinsey
Source: McKinsey

9
The journey has certainly started…
0
50
100
150
Relevant Google Search traffic up 121% year-on-year
Google acquires
Nest for $3.4bn
Number of Google Searches per month for “Internet of Things” worldwide in Thousands
+121%
IDC publishes report
claiming IoT will be a
$8.9tr. market in 2020
Apple announces
the iWatch
Sources: Google, IoT Analytics

10
…. driven by 6 major technology factors
Source: Goldman Sachs Global Investment Research, Cisco, IoT Analytics
Emergence of
The Internet of Things
-54%
2004 2014
Cost of
sensors
Cost of
processingCost of
bandwidth
-97%
2004 2014
-98%
2004 2014
Adoption
of mobile
devices
Big data tools &
infrastructure
+320%
2004 2014

11
Explosion of connected devices from ~11bn to ~50bn in 5 yrs
Note: Some forecasts only for specific years, in that case all other years in between are extrapolated based on the corresponding growth rate; Ericsson does not specify today’s number of connected
devices – therefore: Average of all other studies assumed as starting point in 2014
1. CAGR = Compound annual growth rate 2. Connected devices includes all autonomous connected things (every forecaster has own definition) - does NOT include computers, mobile devices, tablets
Sources: Cisco, Ericsson, ABI Research, Gartner, IHS, IDC, Harbor Research, IoT-Analytics.com
CAGR1
2014–’20Global IoT/IoE device forecasts
# of worldwide connected devices2 (in Billion)
Source Date
32Bn
28Bn
18Bn
23%
23%
17%
29%
2013
-2010
2013
2014
2014
2014
2014
21%
14%
5
10
15
20
25
30
35
40
45
50
2014 2015 2016 2017 2018 2019 2020
In 2020: ~2-6 connected devices for every person living on earth

12
… with the potential to have an enormous impact
1. Wording as initially published 2. Cisco “value at stake” has been forecast as $19 trillion over total decade. Value has been spread over 10 years assuming the same annual growth rate as Cisco’s IoT
device forecast 2014-’20 3. GE’s “potential GDP impact” was forecasted as $10-15 trillion in 20 years. Value for the previous years has been assumed using the average IoT device growth rate 2014-2020 of
21% 3. McKinsey’s “potential economic value-add” for the years 2014-2024 calculated taking the average IoT device growth rate 2014-2020 of 21%. 5. Gartner’s numbers have been calculated using
Gartner’s annual IoT revenue growth 2014-2020 of 8%. Sources: McKinsey, General Electric, Cisco, Gartner, IoT Analytics
Global IoT/IoE economic value forecasts
Annual economic value of the IoT market (in Trillion USD)
10Tr4
Reference point: Total GDP of the USA in 2014
0
2
4
6
8
10
12
14
2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034
15 Trillion3
~4.0Tr2
Missing numbers have been extrapolated to
allow comparison on same graph
Definition of “value” varies by company
Original
quote1Source Date
2012
Industrial
internet only
“Industrial Internet could
add $10-15 trillion to
global GDP in 20 years”
2013
“IoT has the potential to
create economic impact
of $2.7-6.2 trillion
annually by 2025”
2013
“$19 trillion in IoE
value is at stake in the
next decade”
2013
“IoT will result in $1.9
trillion in global
economic value-add in
2020”
(2)
(3)
(4)
(5)
Germany
GDP of the
total economy
IoT will surpass the economic power of Germany in next 10 years!

13
Manufacturing will represent the biggest opportunity…
11%
15%
15%
Public&Services
Health
Manufacturing
5%
8%
21%
27%
Health
Mobility
Cities
Manufacturing
Percentage of total IoT market 2020
1. Revenue opportunities from the Internet of Things 2020. Category “Cities/Industry” interpreted as Manufacturing, Category Buildings/Infrastructure interpreted as Cities 2. Economic value-add for the
Internet of Things by 2020 3. Value at stake in 2020 4. Number of connected devices in 2022
Sources: Harbor Research, Gartner, IoT Analytics
Percentage of total IoT market 2020

14
… but Smart Home currently enjoys the biggest popularity
1%
2%
2%
6%
19%
25%
28%
34%
63%
100%
Smart farming
Smart supply
chain
Smart retail
Connected
Health
Connected car
Industrial
internet
Smart grid
Smart City
Wearables
Smart Home 61k 3.3k 430
33k 2.0k 320
41k 0.5k 80
41k 0.1k 60
10k 1.7k 30
5k 1.2k 50
2k 0.5k 5
1k 0.2k 1
0k 0.2k 0
1k 0.0k 1
3
2
1
4
5
6
7
8
9
10
Applications Overall popularity (and selected examples) Scores
1. Monthly worldwide Google searches for the application 2. Monthly Tweets containing the application name and #IOT 3. Monthly LinkedIn Posts that include the
application name. All metrics valid for Q4/2014.
Sources: Google, Twitter, LinkedIn, IoT Analytics
1 2 3

15
Starting point of competitive intelligence: Top 10 IoT companies
3
2
1
4
5
6
7
8
9
10
Company Overall popularity1 Specific products
1. Popularity ranking based on popularity in Google searches, Twitter tweets, LinkedIn posts, and news headlines in November 2014. 2. Com. Hardw = Communication hardware 3. M2M platform in
partnership with other companies
Source: Google, Twitter, LinkedIn, Company websites, IoT Analytics
18%
19%
19%
31%
32%
34%
34%
39%
42%
65%
SAP
Amazon
Gartner
Arduino
Intel
Microsoft
Apple
Cisco
IBM
Google
• IoT-enabled ERP
• Hana database
• M2M platform3
Technology offering2
Semi-
cond.
Sen-
sors
Com.
hardw
De-
vices
Plat-
form
Ana-
lytics
Data-
base Other
✓ ✓
✓ ✓ ✓
✓ ✓
✓ ✓
✓ ✓ ✓
✓ ✓✓
✓
✓
✓ ✓
✓ ✓ ✓ ✓
• Cloud storage/comp.
• Echo Speech recogn.
• Market research
• Developer kit
• Processors
• Gilileo developer kit
• IoT platform
• Azure platform
• Streaming analytics
• Wearable camera
• Smart watch
• Smart home platform
• Routers/Gateways/etc
• Security solutions
• Analytics
• Databases (eg Cloudant)
• Application infrastr.
• Nest/Revolv smart home
• Physical web platform
• Google Glass
• Self-driving car

16
There are at least 100 different IoT business cases already
Landscape of 100 Internet of Things business cases1 (with examples)
1. Actual Internet of Things business cases using IoT-enabled devices– the list does not include individual technology business cases (e.g., standalone sensors, standalone IoT platforms) or enabling
business cases (e.g., IoT market research)
Source: IoT Analytics

17
Example 1: Smart thermostat

18
https://www.youtube.com/watch?v=PS-ERQ07BIg
1:40 – 3:20
Source: Youtube

19
Source: Nest

20
Example 2: Cloud-based machine-control

21
https://www.youtube.com/watch?v=ic4ycBdggKI
Source: Youtube

22
MES = Manufacturing Execution System
Source: VDI, Kuka, Microsoft
“The idea was to use a mainstream technology that was
developed for other domains like the consumer industry,
and drive service-oriented technology into the automation
world,”
- Michael Haag, Head of Research and Development at
KUKA Robotics Corporation
The idea The technology implementation
Microsoft SQL
Server
Robots running on Windows XP Embedded
/ Windows .NET Compact framework
33 Controller points
1 primary controller
259 robots
Manages
production data
SAP resource planning
SAP quality assurance
MES system

23
Example 3: Smart hub management

24
https://www.youtube.com/watch?v=FoEPlE8Pg7I
Source: Youtube

25
Source: SAP

26
San Francisco is emerging as a big hub for IoT
Source: IoT Analytics company database of 1700+ Internet of Things companies
Urban region # of IoT companies
1 SF Bay area ~290
2 London, UK ~82
3 New York City ~80
4 Boston ~76
5 Chicago ~30
1
3
4
2
5
98
84
39
25
20
22
17
19
16
12

27
Germany a top-3 IoT country but we have a startup problem!
Few startups and little funding…
Company hubs # of IoT companies Most funded startups
USA
UK
Germany
84
59
-32%
-40%
-66%29
1
2
3
Name Segment Location Funding
Jaw-
bone
Wearables San
Francisco
$520m
Prodea
Syst.
Smart home Richardson,
TX
$160m
iRhythm Connected
health
San
Francisco
$120m
Nest
Labs
Smart home Palo Alto $80m
AlertMe Smart
home
Cambridge $36m
Electric-
imp
Smart
home
Cambridge $23m
Roli Conn.
music
London $13m
Evrythng IoT platform London $7m
Tado Smart
home
Munich $16m
Yetu Smart
home
Berlin $8m
Relayr Dev. board Berlin $3m
Gestigon Gesture
contr.
Lübeck $1m
Source: IoT Analytics company database of 1700+ Internet of Things companies, Crunchbase
Lower
funding
Few
startups
All
Startups
All
Startups
All
Startups
864
98
589
Top
Countries

28
But the real question is…
… why is Hamburg not on this map?

29
A quick recap before we go to part 2…
Competitive
Intelligence (CI)
Market environment
Market development Top-3 disruptive
technology
Public interest
exploding
Technology cost
as big driver
Size of German
economy
50bn devices
in 2020
Manufacturing
the biggest
Smart Home
the hottest
>100 business
cases
Google most
prominent
San Fran-
cisco hub
No
Hamburg
Part 1 Part 2
Learning from the community to
get Hamburg on the map
(breakouts)

30
Agenda
Introduction

31
A few sources on the IoT that I frequently use
Name Website Type
Postscapes www.postscapes.com
Largest online repository of IoT resources
(companies, hardware, platforms, etc.)
IoT Events www.iotevents.org All worldwide IoT Events
Profitbricks
http://blog.profitbricks.com/top-49-tools-internet-
of-things/
Collection of developer tools and more
LinkedIn Internet of Things
Group
https://www.linkedin.com/groups/Internet-
Things-73311/about
Largest social discussion forum
Bosch Connected World
Blog
http://blog.bosch-si.com/ Good blog about industrial IoT
IoT Analytics http://www.iot-analytics.com Competitive insights

32
Last but not least: IoT Hamburg is about helping each other!
Regarding IoT Analytics
Regarding Mconnect (My other project)
How can we help you further? How you can help us?
We do the following:
Workshops for companies (IoT
strategy, business development, and
implementation planning)
Customized IoT data analyses
Open to collaboration / happy to give
advice
Give me feedback on the presentation
(e.g., what is missing that you would
like to see)
Follow IoT Analytics on social
networks or sign-up for our email
Newsletter
Contribute to IoT Analytics (e.g., by
writing an interesting joint article,
more…)
Connect us to your friends who work
in industrial production (factory
managers, production planners, etc.)
Help us develop an industrial
automation IoT solution (we are looking
for developer, maker team-members)

33
Thanks and cheers to Hamburg’s IoT future!
Revenue
($B)
1 Holisticon Hamburg IoT platform $174.45
2 Google Mountain View, CA
Device
search
$159.82
3 Thinventions Hamburg Hardware $116.05
4 Pepperminds Hamburg Hardware $89.91
5 Otto Group Hamburg Cons. Prod. $68.57
6 Cisco San Jose, CA Communic. $47.87
7 LHT Hamburg
Smart
planes
$25.56
8 China Mobile Beijing M2M $15.26
9 MioSoft Hamburg Software $15.21
10 Mconnect Hamburg
Ind.
automation
$14.68
11 Sportspunk Hamburg Misc. $14.07
12
General
Electric
Fairfield, CT Industry $11.21
13 Apple Menlo Park, CA Cons. Prod. $11+
2014 2034

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