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)

1. Networked Society
Patrik Regårdh
Head of Strategic Marketing
Ericsson

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Vatican City 2005

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Vatican City 2013

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=
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

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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

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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

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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, ...

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Mobility Experience
Tranquillen BlaBla Car Uber

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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

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NETWORKED SOCIETY logic

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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

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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

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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

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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