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Building a Profitable IoT Ecosystem
Sharing the Value
Patrick Zhang
President, Marketing and Solutions Department,
Products & Solutions, Huawei
2
Connected Elevator Internet of Vehicle Predictive Maintenance
Smart Metering
More…
More…
Smart parking Connected City Lighting Smart Water
Smart Home
How to Share the Value from Industry Digitalization
Cost Saving Revenue Sharing New Profit Growth New Business More…
3
Smart Water, $5.7/meter/year from Cost Saving
Telco Business Modeling
$5.7US
/meter/year
Service
IoT
Platform
Meter
ConnectivityMisreading
compensation
Leakage loss
Meter reading cost
Meter
Amortization
0.7
27.3
5.7
2.9
Manual reading
(million USD/year)
Smart Water
(million USD/year)
0.14
19.1
4
5
30%
80%
Water Company Business
30%
Cost Saving 8.36M USD/year Telco Income : 4M USD/year
700k meters
4
Smart Parking, $7.5 ARPU from Revenue Sharing
Labor cost**
$1.62M
Revenue*
$2.74M
* Revenue: $2.74M = 1,000 parking spaces x $2.5/day x 365 days x 3 years
** Labor cost: $1.62M = 60 staffs x $750/month x 12months x 3 years
95% Revenue
Parking
Company
$5.21M
2X• Increase parking space usage
• Missing payment prevention
60 → 10 headcounts $0.27M
5% Revenue
$0.27M
Telco Business Modeling
Manual Parking
Management
Smart Parking
Parking Company Business
Parking Space
Connection
IoT platform
Device
$0.46
ARPU
$7.5
ARPU
Telco shares
5% revenue
Parking
Mgmt
System
3rd Party
APP
1,000 parking spaces in 3 years
16X connection ARPU
5
Connected Elevator, $6.5 ARPU from New Profit Growth
Cost Saving $4.88M/yearTraditional
IoEL$ 4.94M
$ 4.13M
$ 2.47M
Elevator Manufacturer Business
$ 7.54M
Accessories
Maintenance
39%
Connection
Service
Agile Controller
Elevators
IoT Platform
AR IoT Gateway
Telco Business Modeling
$6.5
ARPU$0.7
ARPU
$ 1M
(10K elevators maintained in this case)
6
Smart Home, $7.5 ARPU from New Business
$32
/month
$32
/month
$7.5
/month
Internet Internet +
Smart Home
Service
IoT
Platform
Connection
Device
Equipment package: $7.5
• 1 Home gateway
• 1 Door sensor
• 1 Motion sensor
• 1 IP Camera
ARPU increase: $7.5 (23%)
Service provided
• Home monitoring
• Home security
Service package
$7.5/month
Equipment package
$7.5, 24-month contract
Kit Smart Home
7
Create Value , Share Value over IoT Platform
IoT Agent
…
Smart Home IoVehicleUtility OtherSmart City
3rd Party
Cloud & APP
IT System/
OT System/
Vertical Industry Cloud
Device Management
Connectivity Management
Application Enablement
OceanConnect
IoT Platform
API
Device ServiceConnection IoT Platform
Copyright©2016 Huawei Technologies Co., Ltd. All Rights Reserved.
The information in this document may contain predictive statements including, without
limitation, statements regarding the future financial and operating results, future product
portfolio, new technology, etc. There are a number of factors that could cause actual
results and developments to differ materially from those expressed or implied in the
predictive statements. Therefore, such information is provided for reference purpose
only and constitutes neither an offer nor an acceptance. Huawei may change the
information at any time without notice.
Thank You.
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