Sensing-as-a-Service - Prepare for the Next Business Model for Internet of Things

1. SENSING-AS-A-SERVICE: PREPARE FOR THE NEXT BUSINESS MODEL FOR INTERNET OF THINGS Dr. Mazlan Abbas CEO REDtone IOT Sdn Bhd ©  RIOT  2015  

2. THE IOT MARKET THE UNTAPPED OPPORTUNITY ©  RIOT  2015  

3. BY 2020, HOW MANY DEVICES WILL EXIST? Gartner 26 Billion Units Cisco 50 Billion Units 2020 Intel 200 Billion Units IDC 212 Billion Units Source: [1] http://www.gartner.com/newsroom/id/2684616 [2] http://www.intel.com/content/www/us/en/internet-of-things/infographics/guide-to-iot.html [3] http://share.cisco.com/internet-of-things.html [4] http://www.zdnet.com/article/internet-of-things-8-9-trillion-market-in-2020-212-billion-connected-things/ ©  RIOT  2015  

4. WHAT WILL BE THE IOT MARKET SIZE $8.9 Trillion RMB 5-10 Trillion $14.4 Trillion China Market By 2020 - IDC 14,720 Jobs By 2022 - Cisco RM 9.8 Billion New Jobs in Malaysia Malaysia Market Sources: [1] http://www.businesswire.com/news/home/20131003005687/en/Internet-Poised-Change-IDC#.VKZdfHTMUuc [2] http://postscapes.com/internet-of-things-market-size [3] Gartner Market Databook 2014 & Frost & Sullivan [4] National IOT Strategic Blueprint ©  RIOT  2015  

5. 10/90 RULE – THE UNCONNECTED THINGS The Last 100 meter connectivity Connected World Still Disconnected The “last 100 meters” represent > 90% potential number of connections Today, the devices used in the “last 100 meters” are typically not connected. The wide-area network is to a larger extent connected e.g. through smartphones, home routers (e.g. ADSL routers) and GSM / 3G / 4G Routers. ©  RIOT  2015  

6. A COMPLICATED IOT ECOSYSTEM ©  RIOT  2015   [Source: Making Sense Of The Internet Of Things]

7. IOT VALUE CHAIN Service Enabler Smart Objects Network Operator System Integrator Service Provider Distributor / Reseller Customer Components •  Embedde d Chips •  Modules •  Wireless Modems •  Sensors and cameras •  Routers and gateways •  Antennas and Cables •  Smart Bins •  Smart Solar •  Temp Monitoring •  Fire Extinguishe rs •  Meters •  ATM/POS •  Camera/ Security •  Spectrum Allocation •  Network Infrastruct ure •  Backhaul Infrastruct ure •  Connectivi ty •  Availability & Quality •  Billing •  Customer Care •  Software •  Infrastruct ure •  Consulting •  Technolog y Selection •  Solution Design •  Wireless Network Design •  Interfaces •  Enterprise System Integration •  Applicatio n Developm ent •  Security •  Data Managem ent •  Hardware •  Installation •  Analysis •  App Managem ent •  Access Control •  Data Managem ent •  Quality of Service •  Packaging / Bundling •  Service Provisionin g •  Distributes Products •  Resells services •  Supply Chain and Fullfillment •  Buys Service •  Users service 30-40% ? % 5-10% 15-20% 15-20% 15-20% ? % Total Value ©  RIOT  2015  

8. ISSUES AND CHALLENGES WHY TELCOS HAVE DIFFICULTY TO EMBRACE IOT ©  RIOT  2015  

9. LEGACY BUSINESS IS STILL CONNECTIVITY LESS  COMPLEX     SIM-­‐CARD  BASED     OLD  HABITS  DIE  HARD   LOW  ARPU     M2M  HIGH  VOLUME   ©  RIOT  2015  

10. LACK OF DOMAIN EXPERTISE SOLUTIONS,  SELLING     AND  MANAGED  SERVICES     NEED  GO-­‐TO-­‐MARKET  PARNER     ©  RIOT  2015  

11. MINDSET BLOCK FULL  OF  SKEPTISM     LOW  SINGLE  DIGIT  GROWTH   CONTRIBUTION     ©  RIOT  2015  

12. STABLE BUSINESS VS. RISKY VENTURES IOT  BUSINESS  IS  FLUID     STAKEHOLDERS     EXPECTATIONS   NEED  TO  WORK  LIKE  STARTUP     ©  RIOT  2015  

13. THE END GAME END-TO-END IOT SERVICE PROVIDER ©  RIOT  2015  

14. END-TO-END IOT SERVICE PROVIDER s m a r t c i t y? Network? Platform? smart transport? s a u t o m o t i v e? m a r t Device Provider Network Provider Platform Provider Application Provider Customer ©  RIOT  2015  

15. PHASE-1 CONNECTIVITY PLAYER ©  RIOT  2015  

16. 1   BUSINESS MODEL Platform? s m a r t c i t y? Network? smart transport? Platform? s a u t o m o t i v e? m a r t Device Provider Network Provider Platform Provider Application Provider Customer ©  RIOT  2015  

17. PHASE-2 IOT ENABLER PLAYER ©  RIOT  2015  

18. 2   BUSINESS MODEL s m a r t c i t y? Network? Platform? smart transport? s a u t o m o t i v e? m a r t Device Provider Network Provider Platform Provider Application Provider Customer ©  RIOT  2015  

19. 3   BUSINESS MODEL IOT Subsidiary s m a r t c i t y? Network? Platform? smart transport? s a u t o m o t i v e? m a r t Device Provider Network Provider Platform Provider Application Provider Customer ©  RIOT  2015  

20. PHASE-3 IOT SOLUTIONS PLAYER ©  RIOT  2015  

21. 4   BUSINESS MODEL s m a r t c i t y? Network? Platform? smart transport? s a u t o m o t i v e? m a r t Device Provider Network Provider Platform Provider Application Provider Customer ©  RIOT  2015  

22. PHASE-4 IOT SERVICE PROVIDER ©  RIOT  2015  

23. 5   BUSINESS MODEL s m a r t c i t y? Network? Platform? smart transport? s a u t o m o t i v e? m a r t Device Provider Network Provider Platform Provider Application Provider Customer ©  RIOT  2015  

24. 6   BUSINESS MODEL -HYBRID s m a r t c i t y? Network? Platform? smart transport? s a u t o m o t i v e? m a r t Device Provider Network Provider Platform Provider Application Provider Customer ©  RIOT  2015  

25. 2   1   How to Evolve to a End- to-End IOT Service 3   4   Provider 5   6   ©  RIOT  2015  

26. OUR HYPOTHESIS SENSING-AS-A-SERVICE BUSINESS MODEL ©  RIOT  2015  

27. WHAT IF – we can create Compound Applications across industries? ©  RIOT  2015  

28. Connect Aggregate Derive Actionable Insights Data Fusion & Compound Applications ©  RIOT  2015  

29. CHALLENGES – DATA OWNERSHIP Commercial Sensor Data Providers Organizations Personal and Households Private Public Business entities who deploy and manage sensors by themselves by keeping ownership. They earn by publishing the sensors and sensor data they own through sensor publishers. Public infrastructure such as bridges, roads, parks, etc. All the sensors deployed by the government will be published in the cloud depending on government policies. All personal items, such as mobile phones, wrist watches, spectacles, laptops, soft drinks, food items and household items, such as televisions, cameras, microwaves, washing machines, etc Private business organization has the right to take the decision whether to publish the sensors attached to those items to the cloud or not. [Source: “Sensing as a Service Model for Smart Cities Supported by Internet of Things”, Charith Perera et. al., Transactions on Emerging Telecommunications Technology, 2014] ©  RIOT  2015  

30. THE GOLD RUSH MAKING SENSE OF SENSOR DATA … BUT WHAT DATA? ©  RIOT  2015  

31. VALUE IS CREATED BY MAKING SENSE OF DATA More Important Evaluated understanding Wisdom Understanding WHY Appreciation of Less Answers to questions. HOW Knowledge Important Answers to questions WHERE WHEN WHO WHAT Information Data Symbols VALUE PYRAMID ©  RIOT  2015  

32. NEW BUSINESS MODEL SENSING-AS-A-SERVICE ©  RIOT  2015  

33. URBAN PLANNING USING IOT Network Coverage Traffic Environment Pollution Noise ©  RIOT  2015  

34. SMART CITY HUB APPROACH Smart Waste Management Smart Public Transportation Smart Parking Smart Street Light Citizen Reporting Smart City Hub Other Smart City Hubs Static Real-Time Data Storage Social Media Data Storage Garbage Collection Public Transport Smartphones Users Parking Lighting Open Data ©  RIOT  2015  

35. IOT SOLVING SMART CITY ISSUES Smart Parking Smart Waste Management Smart Street Light Smart Public Transportation 1.  Who is using the car park? 2.  What is the status of the car park? 3.  When was the car park used? 4.  Where is the location of empty car park? 5.  How far is the car park? 6.  How much are the parking charges? 7.  How congested is the car park? 8.  Why so many cars prefer a particular carp park? 9.  Why is the carpark so full/empty? 1.  Who is collecting the garbage? 2.  What is the status of garbage bin? 3.  When was the garbage collected? 4.  Where is the location of full bins? 5.  How to plan the route of the trucks? 6.  How many days till the next collection? 7.  How much garbage is produced in an area? 8.  Why is the garbage truck not picking up garbage? 9.  Why is a particular area producing more garbage? 1.  Who is driving the bus? 2.  What is the occupancy? 3.  What is the bus condition? 4.  What is the driving pattern? 5.  When is the bus arriving? 6.  Where is the location of the bus? 7.  How to prolong the bus life? 8.  How many busses to deploy on a route? 9.  How best to hire drivers for the buses? 10. Why is the bus late? 11. Why is bus breaking down? 1.  Who triggered the lights? 2.  What is the brightness of the light? 3.  When were the lights switched on? 4.  Where is the location of faulty light? 5.  How bright should the lights be? 6.  How long should the lights be on? 7.  How busy is the road? 8.  Why is the electricity bill increasing? 9.  Why is the cost of maintenance high? ©  RIOT  2015  

36. NOISETUBE – POLLUTION DATA USING SMARTPHONES Local governments / city planners •  Improved decision-making •  Get immediate feedback and opinions from citizens •  Give immediate feedback to citizens Citizens and Communities concerned with noise •  Measure your daily sound exposure in dB(A) with your mobile phone •  Tag noisy sources to inform the community about them •  Visualize your measurements on a map and contribute to the creation of collective, city-wide noise maps •  Compare your experience with that of others Researchers •  Get access to and analyze (anonymized) collective noise data Developers •  Extend mobile app in whichever way you see fit ©  RIOT  2015  

37. COMMERCIAL IOT SENSOR PROVIDER Gathering temperature, light, pressure, humidity and pollution. The street town council center would want the temperature and humidity data for planning during rough weather The city would pay for access to the light sensors in order to decide when to turn on and off the street lights The weather department would want the temperature and pressure data A university may want access to the pollution information for research purposes for a limited period ©  RIOT  2015  

38. Environmental Monitoring Multiple Sensors Temperature CO Noise Car Presence •  •  •  •  Moisture temperature Humidity Pluviometer (rain gauge) Anemometer (wind-speed) •  •  •  •  Outdoor Parking Management Parking sensors Parks and Gardens Irrigation Sensors in green zones Ferromagnetic sensors •  Smart City Mobile Environmental Monitoring Sensors installed in public vehicles Temperature CO Noise Car Presence •  •  •  •  Guidance to free parking lots Panels located at intersections Taking information retrieved by the deployed parking sensors in order to guide drivers towards the available free parking lots •  Traffic Intensity Monitoring Devices located at main entrance of city Measure main traffic parameters •  Traffic volumes •  Road occupancy •  Vehicle speed •  Queue Length •  ©  RIOT  2015  

39. IOT VALUE CHAIN – WHERE IS THE MONEY? Platform Provider Application Provider Device Provider Network Provider No. of devices Edge devices/ sensors Gateways System Integration …. •  SIM-Cards Fixed Line Data Bundled packages Data Speed SMS/MMS Dedicated APN Fixed IP Voice/Data … No. of connected devices Data streams Storage API Keys Email/SMS APIs Support Type …. •  •  •  •  No. of dashboards No. of users No. of data sources Consulting Type sof Analytics (Basic/ Advanced) …. •  •  •  •  •  •  •  •  •  •  •  •  •  •  •  •  •  •  •  •  •  •  ©  RIOT  2015  

40. IDENTITY – MORE THAN JUST DEVICE FIND YOUR NICHE AREA ©  RIOT  2015  

41. ©  RIOT  2015  

42. COMPLEXITY OF ECOSYSTEM ©  RIOT  2015   [Source: Service Through M2M]

43. IMPORTANCE OF IOT ECOSYSTEM Leverage What Already Exists ©  RIOT  2015  

44. CHOOSE YOUR PATH SENSING-AS-A- SERVICE MNO VS MVNO VS MVNE IDENTIFY PARTNER VERTICAL OR HORIZONTAL IDENTIFY OPEN PLATFORM MULTi-SIDED MARKET? IDENTIFY BIZ MODEL ©  RIOT  2015  

45. THANK YOU ©  RIOT  2015  

46. ABOUT US Our History REDtone IOT Sdn Bhd is wholly owned subsidiary of REDtone International Berhad, a company that has over 20 years experience in providing telecommunications services in Malaysia. Our Company In November 11, 2014 REDtone IOT Sdn Bhd. was incorporated in Malaysia, to focus on providing Internet of Things services and solutions. Our headquarters are in Puchong, Selangor, Malaysia. Our Vision Our goal is to enable businesses to monitor its most important assets such as buildings, machinery, parking lots, electrical appliances, etc using Internet of Things (IoT).   To transform businesses through connecting, aggregating and deriving insights via sensors data. We help to build applications rapidly and cost effectively. ©  RIOT  2015