Seminar on - Systems Engineering for the Internet of Things (IOT) INCOSE, the Canadian National chapter of the International Council on Systems Engineering.

1. IoT Opportunities and Challenges | Commercial in confidence | © Ericsson 2016 | 2016-09-20 | Page 1
The Internet of things
Opportunities and challenges
CONSTANT WETTE
ARCHITECTURES & TECHNOLOGY
B U S I N E S S U N I T N E T W O R K S
INCOSE Canada Chapter conference
September 21st, 2016

2. IoT Opportunities and Challenges | Commercial in confidence | © Ericsson 2016 | 2016-09-20 | Page 2
A network of physical
objects capable of
sensing, communicating
or acting on their
environment
The INTERNET
OF THINGS

3. IoT Opportunities and Challenges | Commercial in confidence | © Ericsson 2016 | 2016-09-20 | Page 3
Source: Ericsson Mobility Report
Connected Devices
in 2020
26 BILLION
7 billionM2M DEVICES
9 billionMOBILE PHONES
10 billionCONSUMER ELECTRONICS

4. IoT Opportunities and Challenges | Commercial in confidence | © Ericsson 2016 | 2016-09-20 | Page 4
we are at the beginning
of something big
Source: Gartner Group
Consumer
Electronics
Utilities Wellness Infrastructures
Smart Cities
Agriculture &
Environment
Process
Industries Retail Banking
Automotive
Transport
opportunities
$1.9TRILLION
Predicted value-add of IoT
across sectors in 2020

5. IoT Opportunities and Challenges | Commercial in confidence | © Ericsson 2016 | 2016-09-20 | Page 5
Keys drivers
Devices
connected, cheaper, microsensors, microcontrollers
Network
cheaper connectivity, new standards, IPv6, 5G
Big data and Analytics
possible to store, process and analyze large data volume
Cloud
Low CAPEX/OPEX

6. IoT Opportunities and Challenges | Commercial in confidence | © Ericsson 2016 | 2016-09-20 | Page 6
technologies
CloudSecurity OSS/BSS
NetworksDevices
Data
Gateway
NB-IoT
Encryption
ID
SDK
APIs Analytics
XaaS
Provisioning
Maintenance
DevOps
Connectivity
and
Devices
Enablement
Platform
Applications

7. IoT Opportunities and Challenges | Commercial in confidence | © Ericsson 2016 | 2016-09-20 | Page 7
Connectivity options
Short Range
LAN
✓ Well established
standards
✓ Multiple standards
✓ Good for In-house
✓ Very low latency
✓ High Bandwidth
Long Range
LPWAN
✓ Emerging standards
✓ Long battery life
✓ Low cost
✓ Large coverage
✓ Low data rate
✓ Dedicated IoT
Long Range
Cellular
✓ Well established
standards
✓ Low battery life
✓ Global coverage
✓ Network slicing
✓ High data rate
✓ Traditional + IoT

8. IoT Opportunities and Challenges | Commercial in confidence | © Ericsson 2016 | 2016-09-20 | Page 8
IoT – a big part of 5G
5gUSE CASES
SMART VEHICLES,
TRANSPORT & INFRASTRUCTURE
BROADBAND EXPERIENCE
EVERYWHERE, ANYTIME
MEDIA
EVERYWHERE
INTERACTION
HUMAN-IOT
CRITICAL CONTROL
OF REMOTE DEVICES

9. IoT Opportunities and Challenges | Commercial in confidence | © Ericsson 2016 | 2016-09-20 | Page 9
Industry & Society Transformation
New Way of
Monetizing Assets:
APIs
New Delivery Model
XaaS
New Business
Models:
B2B2X
New Applications:
Apps Marketplace
New Business
Processes: business
processes transformation
Not connected
No monitoring
No data collection
M2M
Monitoring and
control
No data sharing
IoT
Multi-purpose
devices
Cloud & Data
sharing

10. IoT Opportunities and Challenges | Commercial in confidence | © Ericsson 2016 | 2016-09-20 | Page 10
Iot processes
Monitor events
or Things’ status
Collect / send
data on Things
or events
Control behavior
of other Things
automatic detection and processing
Analyze Things
behavior
Analyze Things
interactions
Analyze Events
correlation
Automatic fault
detections
Predict future
behavior / events
Instruct future
actions
anything
anywhere
anytime
Report insights
anything
anywhere
anytime
monitor, control, optimize and automate processes increases productivity and minimizes errors and cost

11. IoT Opportunities and Challenges | Commercial in confidence | © Ericsson 2016 | 2016-09-20 | Page 11
Opportunities
COST
BATTERY LIFEPERFORMANCE
COVERAGE
BI-DIRECTIONAL
DATA
SECURITY
RELIABILITY
& QoS
POSITIONING
TRANSPORT & LOGISTICS: Goods tracking
SMART CITIES: Smart bicycles
INDUSTRIAL: Process monitoring & Control
SMART BUILDINGS: Home automation
COST
massive
iot
Smart metering
Smart grid management
UTILITIES
Fleet Management
Goods tracking
TRANSPORT & LOGISTICS
Smart parking
Smart bicycles
SMART CITIES
Remote Diagnostics
Self-Driving cars
AUTOMOTIVE
Smoke detectors
Alarm systems
Home automation
SMART BUILDINGS
Flood monitoring & alert
Environmental
monitoring (Water, air,
noise, etc)
ENVIRONMENT
Wearables
Kids/Elderly tracker
Medical monitoring
CONSUMERS
Process monitoring
& Control
INDUSTRIAL
Waste management
City lighting
Maintenance monitoring

12. IoT Opportunities and Challenges | Commercial in confidence | © Ericsson 2016 | 2016-09-20 | Page 12
Iot ecosystems
CONNECTED
VEHICLE CLOUD
CONNECTED CARS
Dealer
Driver & Owner
App developer /
Content Provider
Vehicle
Support Center
Automotive
EM
Fleet Operator
Repair Shop
Media
Agencies
Insurance
Companies
Energy / Utilities
Companies
Utilities – Smart
Service &
Management
Transport ICT
Cloud &
Management
Public Safety
Networks and
Management

13. IoT Opportunities and Challenges | Commercial in confidence | © Ericsson 2016 | 2016-09-20 | Page 13
Iot ecosystems
CONNECTED
HOME
CONNECTED HOME
Real estate
broker
Visitors
Banks
Property
developers
Security companies
Emergency services
Facilities owners
Facilities Managers
Service and
maintenance
›Buildings
Automation
OEM
Insurance
Companies
Utilities
Companies
Smart Cities
Smart
Commercial
Buildings
Connected
Healthcare

14. IoT Opportunities and Challenges | Commercial in confidence | © Ericsson 2016 | 2016-09-20 | Page 14
GLOBAL
REACH
SECURITY
Cellular
is the
foundation
FLEXIBILITY
ECOSYSTEM SCALABILITY
QUALITY OF
SERVICE
CELLULAR
FOR IOT

15. IoT Opportunities and Challenges | Commercial in confidence | © Ericsson 2016 | 2016-09-20 | Page 15
Keys challenges
COST – Devices
BUSINESS MODEL - Value proposition,
Partners Ecosystem
REGULATION – Radio Spectrum
Data sovereignty
COST – Connectivity

16. IoT Opportunities and Challenges | Commercial in confidence | © Ericsson 2016 | 2016-09-20 | Page 16
Keys challenges
COVERAGE - 7x
MISSION CRITICAL SYSTEMS - Very low latency,
Ultra reliability
SECURITY – Identity
Privacy
BATTERY LIFE - 10 ans
STANDARD – Interoperability
Design cost

17. IoT Opportunities and Challenges | Commercial in confidence | © Ericsson 2016 | 2016-09-20 | Page 17
Ericsson plays a role in all
levels of IoT transformation
IndustrySolutions
IoT Rollout
Deployment, Integration, Project mgmt, Business Consulting
Enterprise IT & Business Processes
Service & Application Creation, Revenue Mgmt, Device Mgmt
IoT Platforms
Device Connection Platform, Service Enablement Platform
Connectivity
Radio Access, Core, Transmission
Accelerating IoT | Commercial in confidence | © Ericsson AB 2015 | 2015-08-26 | Page 20

18. IoT Opportunities and Challenges | Commercial in confidence | © Ericsson 2016 | 2016-09-20 | Page 18
Accelerating IOT IS A HUGE OPPORTUNITY
ERICSSON ACCELERATES IOT
GROWTH
CELLULAR IS THE FOUNDATION
IOT
Accelerating IoT | Commercial in confidence | © Ericsson AB 2015 | 2015-08-26 | Page 22

19. IoT Opportunities and Challenges | Commercial in confidence | © Ericsson 2016 | 2016-09-20 | Page 19