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From Elevators
to People Flow
Ari Virtanen
Senior Vice President
KONE
Digitalization impact?
Selection of the Pope
3 Confidential | © KONE Corporation | Ari Virtanen
Digitalization can be very disruptive
4
1996
Market Cap: 28 BUSD
Employees: 140,000
2012
Bankrupt
Employees: 17,000
April 2012
Market Cap: 1 BUSD
Employees: 13
5
Industrial Internet is a phenomenon compared
to Industrial Revolution (Source: GE)
Changes in business environment
2000 2020
Competition within industry Competition across industries
Product leadership as a target Leading position in ecosystem as a target
Technology innovations to drive business Business innovations, enabled by
technology
Internal R&D only Open innovation, value co-creation
Competence requirements known Competence requirements changing
Implications to KONE
Our vision
KONE delivers the best
People Flow® experience
8
Outside of
Buiding
Parking
hall
Entrance Lobby Main
landing
Elevator Escalator Stairs Corridor Office
apartment
Customer perspective
Destination
Access Information
Monitoring
Monitoring
Lighting
Entertainment
Gates
Escalators
Locks
Access
Automatic doors
Information
Destination
Elevators
HVAC
KONE People Flow
Intelligence
Safety
So far so good,
but what’s next?
Effective ecosystems become a necessity
3rd party
Cloud3rd party
Cloud
3rd party
Cloud
solutions
Open interfaces
In cloud
3rd party
systems &
developers
Open interfaces in
buildings
CENTRALISEDMANAGEMENT
Confidential | © KONE Corporation
Conclusions
Digitalization and Industrial Internet are huge
opportunities for proactive players, passive ones will
suffer – be they companies or countries
Moving towards ecosystems will require new ways of
working and doing business in open economy

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From elevators to people flow - Ari Virtanen - KONE