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Internet of Things from a Networked Society perspective

Like the pre-industrial and industrial worlds that preceded it, the Networked Society represents a fundamental paradigm shift for people, business and society. One in which new resources are continuously discovered, new forms of value are unleashed, and the most basic logics of life and business are transformed as a result. (Ericsson IoT Conference December 2014)

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Internet of Things from a Networked Society perspective

  1. 1. Networked Society Patrik Regårdh Head of Strategic Marketing Ericsson
  2. 2. EAB-14:073751 | Commercial in confidence | © Ericsson AB 2014 | December 2014 | Page 2 Vatican City 2005
  3. 3. EAB-14:073751 | Commercial in confidence | © Ericsson AB 2014 | December 2014 | Page 3 Vatican City 2013
  4. 4. EAB-14:073751 | Commercial in confidence | © Ericsson AB 2014 | December 2014 | Page 4 = You’d have spent $ 3055 in 1991 to buy all the stuff in this ad that you can now do with your phone. 1991 vs now
  5. 5. EAB-14:073751 | Commercial in confidence | © Ericsson AB 2014 | December 2014 | Page 5 Value of “Networked” INFORMATION RELATIONS MEDIA TRANSACTIONS THINGS USER NEED Predictions & Prevention Optimization ?? Content access Servicefication Netflix, Spotify “Best offer” Market reach Amazon, Alibaba Socializing Tracking behavior Facebook, QQ Find Reach the consumers Google, Bing BUSINESS NEED VALUE CAPTURE INFORMATION RELATIONS MEDIA TRANSACTIONS THINGS
  6. 6. EAB-14:073751 | Commercial in confidence | © Ericsson AB 2014 | December 2014 | Page 6 The “internet of things economy” Point examples Source: Morgan Stanley Blue Paper, “The Internet of Things Is Now – Connecting the Real Economy”, April 2014 Global mfctr at 25 TUSD /year • Savings on 500 BUSD /year Mining, Rio Tinto • 300 MUSD from remote ops Factory Automation Smart Water, today 20% leakage in Europe • 18BUSD in revenue 2020 Smart Grid ICT investments • 100BUSD in 2020 UK, up to 20% of domestic heating and cooling is wasted Utilities ICT investments 2020 at 140 BUSD Savings • 38000 lives yearly in Europe • Goods transportation waste Transport Use of RFID for inventory management •Non-food retail in UK – 5BUSD saving /year Retail Real-time weather analytics • 20 BUSD for Monsanto, DuPont, et. al. Precision Agriculture
  7. 7. EAB-14:073751 | Commercial in confidence | © Ericsson AB 2014 | December 2014 | Page 7 Internet of things › Open Environment – Across a value chain – Between value networks – Open Data and Marketplaces › Semantic interoperability – Different abstraction levels – Build on existing tools, e.g. ontologies, Linked Data, ...
  8. 8. EAB-14:073751 | Commercial in confidence | © Ericsson AB 2014 | December 2014 | Page 8 Mobility Experience Tranquillen BlaBla Car Uber
  9. 9. EAB-14:073751 | Commercial in confidence | © Ericsson AB 2014 | December 2014 | Page 9 REDEFINED ASSETS USERS – PARTICIPATING AND ACTIVE THINGS – CONNECTED AND INTELLIGENT DATA – OWN, SHARED AND OPEN CAPABILITIES – AVAILABLE AND ON-DEMAND DIGITIZATION– EXPONENTIAL AND UBIQUITOUS PLATFORMS – ECONOMICS AND SCALE
  10. 10. EAB-14:073751 | Commercial in confidence | © Ericsson AB 2014 | December 2014 | Page 10 NETWORKED SOCIETY logic
  11. 11. EAB-14:073751 | Commercial in confidence | © Ericsson AB 2014 | December 2014 | Page 11 Establish new position Replace current value logic Build value from alternative assets Create radically new market › Expand from established position › Reinforce existing value systems › Improve offering to current market › Focus on efficiencies Transforming business › › › › EVOLUTION DISRUPTION
  12. 12. EAB-14:073751 | Commercial in confidence | © Ericsson AB 2014 | December 2014 | Page 12 Determining forces › Expand from established position › Reinforce existing value systems › Improve offering to current market › Focus on efficiencies EVOLUTION DISRUPTION Establish new position Replace current value logic Build value from alternative assets Create radically new market › › › › “INSIDE CONTROL” “OUTSIDE DRIVE” › New consumer behavior › Changed regulatory rules › Disruptive technology › Redefined competition › Definition of core business › Scale gain opportunities › Maturing technology › Consolidation
  13. 13. EAB-14:073751 | Commercial in confidence | © Ericsson AB 2014 | December 2014 | Page 13 RESHAPED BUSINESS REDEFINED ECO-SYSTEMS VALUE CHAIN EFFICIENCY RESHAPED VALUE SYSTEMS VALUE CHAIN EFFECTIVENESS Better performance of current offering Improved offering to current market Synergy offering across industries Profoundly new offering creating new markets “INSIDE CONTROL” “OUTSIDE DRIVE” EVOLUTION DISRUPTION
  14. 14. EAB-14:073751 | Commercial in confidence | © Ericsson AB 2014 | December 2014 | Page 14 Iot opportunity ENCOURAGE USER CO-CREATION DEVELOP NEW PLATFORMS MAKE SENSE FROM DATA ESTABLISH NETWORKED PRACTICES DIGITIZE BUSINESS RESOURCES INNOVATE IN SERVICE BUSINESS OPERATIONAL EXCELENCE

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