IoT Meetup Hamburg 3 February 2015 - Getting Hamburg set-up for the Internet of Things

Getting Hamburg set-up for the Internet of

ThingsUnderstand the opportunity and learn from our own community

Hamburg IoT Meetup, 5 February 2015

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Agenda

Introduction

Part 1: Understanding the Internet of Things opportunity

Part 2: Break-outs and closing remarks

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IoT is currently my life

Knud Lasse Lüth

Who am I? My projects

A competitive intelligence portal for IoT

… working full-time in IoT since 09/2014

… spent 5 years working in strategy consulting

… holds MA in Industrial Engineering and MA in

Business Administration

… enjoys kitesurfing and beach-volleyball

An IoT-enabled solution for

industrial automation

www.iot-analytics.com

Mconnect

Focus of today

MA = Master

@KnudLueth

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My focus is to provide competitive intelligence for IoT

Competitive

Intelligence (CI)

Market environment

Market development General

trends

Business

climate

Risk&

Attractiveness

Market

drivers

Economy

dynamics

Market

size

Regulation

Market

forecast

Segmen-

tation

Company

strategies

Company

profiles

M&A

activity

Business

cases

Market

shares

Product

intelligence

IoT Analytics intends to become the leading source for

competitive intelligence on the Internet of Things M&A = Mergers and Aquisitions

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Agenda

Introduction



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Starting point:

Germany missed the “Internet opportunity” in the 1990s…

In 1994, the Internet was the next

big thing…

… and created a whole new

industry

Time Magazine Cover 1994 List of biggest Internet companies 2014Source: Time Magazine, Wikipedia

# Company Headquarters IndustryRevenue

($B)

1 Amazon Seattle, WA E-commerce $74.45

2 Google Mountain View, CA Search $59.82

3 eBay San Jose, CA E-commerce $16.05

4 Tencent Shenzhen Social $9.91

5 Alibaba Hangzhou E-commerce $8.57

6 Facebook Menlo Park, CA Social $7.87

7 Rakuten Tokyo E-commerce $5.56

8 Priceline.com Norwalk, CT Travel $5.26

9 Baidu Beijing Search $5.21

10 Yahoo Sunnyvale, CA Web portal $4.68

11 Salesforce.com San Francisco, CA Cloud comp. $4.07

12 Yandex Moscow Search $1.21

13 Flipkart Bangalore E-commerce $1+

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($B)

1 Holisticon Hamburg IoT platform $174.45

2 Google Mountain View, CADevice

search$159.82

3 Thinventions Hamburg Hardware $116.05

4 Pepperminds Hamburg IoT platform $89.91

5 Otto Group Hamburg Cons. Prod. $68.57

6 Cisco San Jose, CA Communic. $47.87

7 LHT HamburgSmart

planes$25.56

8 China Mobile Beijing M2M $15.26

9 MioSoft Hamburg Software $15.21

10 Mconnect HamburgInd.

automation$14.68

11 Sportspunk Hamburg Misc. $14.07

12General

ElectricFairfield, CT Industry $11.21

13 Apple Menlo Park, CA Cons. Prod. $11+

Can we catch the next big technology wave?

Now, the Internet of Things is the

next big technology innovation

Who will dominate the industry

in 20 years?

HBR Cover 2014

Source: HBR, IoT Analytics

First prediction: 2034

List of biggest IoT companies 2034

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IoT among top 3 technological disruptions in next 10 years!

Potential economic impact in 2025Technology

3

2

1

4

5

6

Impact 2025Technology

9

8

7

10

11

12

Source: McKinsey

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But what is it exactly?

“Sensors and actuators embedded in

physical objects are linked through

wired and wireless networks, often

using the same Internet Protocol (IP)

that connects the Internet”

- Internet of Things definition by

McKinsey

Source: McKinsey

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The journey has certainly started…

0

50

100

150

Relevant Google Search traffic up 121% year-on-year

Google acquires

Nest for $3.4bn

Number of Google Searches per month for “Internet of Things” worldwide in Thousands

+121%IDC publishes report

claiming IoT will be a

$8.9tr. market in 2020

Apple announces

the iWatch

Sources: Google, IoT Analytics

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…. driven by 6 major technology factors

Source: Goldman Sachs Global Investment Research, Cisco, IoT Analytics

Emergence of

The Internet of Things

-54%

2004 2014

Cost of

sensors

Cost of

processingCost of

bandwidth

-97%

2004 2014

-98%

2004 2014

Adoption

of mobile

devices

Big data tools &

infrastructure

+320%

2004 2014

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Explosion of connected devices from ~11bn to ~50bn in 5 yrs

Note: Some forecasts only for specific years, in that case all other years in between are extrapolated based on the corresponding growth rate; Ericsson does not specify today’s number of connected devices – therefore: Average of all other studies assumed as starting point in 20141. CAGR = Compound annual growth rate 2. Connected devices includes all autonomous connected things (every forecaster has own definition) - does NOT include computers, mobile devices, tabletsSources: Cisco, Ericsson, ABI Research, Gartner, IHS, IDC, Harbor Research, IoT-Analytics.com

CAGR1

2014–’20Global IoT/IoE device forecasts

# of worldwide connected devices2 (in Billion)

Source Date

32Bn

28Bn

18Bn

23%

23%

17%

29%

2013

-2010

2013

2014

2014

2014

2014

21%

14%

5

10

15

20

25

30

35

40

45

50

2014 2015 2016 2017 2018 2019 2020

In 2020: ~2-6 connected devices for every person living on earth

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… with the potential to have an enormous impact

1. Wording as initially published 2. Cisco “value at stake” has been forecast as $19 trillion over total decade. Value has been spread over 10 years assuming the same annual growth rate as Cisco’s IoTdevice forecast 2014-’20 3. GE’s “potential GDP impact” was forecasted as $10-15 trillion in 20 years. Value for the previous years has been assumed using the average IoT device growth rate 2014-2020 of 21% 3. McKinsey’s “potential economic value-add” for the years 2014-2024 calculated taking the average IoT device growth rate 2014-2020 of 21%. 5. Gartner’s numbers have been calculated using Gartner’s annual IoT revenue growth 2014-2020 of 8%. Sources: McKinsey, General Electric, Cisco, Gartner, IoT Analytics

Global IoT/IoE economic value forecasts

Annual economic value of the IoT market (in Trillion USD)

10Tr4

Reference point: Total GDP of the USA in 2014

0

2

4

6

8

10

12

14

2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034

15 Trillion3

~4.0Tr2

Missing numbers have been extrapolated to allow comparison on same graph

Definition of “value” varies by company

Original

quote1Source Date

2012Industrial

internet only

“Industrial Internet could

add $10-15 trillion to

global GDP in 20 years”

2013“IoT has the potential to

create economic impact

of $2.7-6.2 trillion

annually by 2025”

2013“$19 trillion in IoE

value is at stake in the

next decade”

2013“IoT will result in $1.9

trillion in global

economic value-add in

2020”

(2)

(3)

(4)

(5)

Germany

GDP of the

total economy

IoT will surpass the economic power of Germany in next 10 years!

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Manufacturing will represent the biggest opportunity…

11%

15%

15%

Public&Services

Health

Manufacturing

5%

8%

21%

27%

Health

Mobility

Cities

Manufacturing

Percentage of total IoT market 2020

1. Revenue opportunities from the Internet of Things 2020. Category “Cities/Industry” interpreted as Manufacturing, Category Buildings/Infrastructure interpreted as Cities 2. Economic value-add for the Internet of Things by 2020 3. Value at stake in 2020 4. Number of connected devices in 2022Sources: Harbor Research, Gartner, IoT Analytics

Percentage of total IoT market 2020

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… but Smart Home currently enjoys the biggest popularity

1%

2%

2%

6%

19%

25%

28%

34%

63%

100%

Smart farming

Smart supplychain

Smart retail

ConnectedHealth

Connected car

Industrialinternet

Smart grid

Smart City

Wearables

Smart Home 61k 3.3k 430

33k 2.0k 320

41k 0.5k 80

41k 0.1k 60

10k 1.7k 30

5k 1.2k 50

2k 0.5k 5

1k 0.2k 1

0k 0.2k 0

1k 0.0k 1

3

2

1

4

5

6

7

8

9

10

Applications Overall popularity (and selected examples) Scores

1. Monthly worldwide Google searches for the application 2. Monthly Tweets containing the application name and #IOT 3. Monthly LinkedIn Posts that include the

application name. All metrics valid for Q4/2014.

Sources: Google, Twitter, LinkedIn, IoT Analytics

1 2 3

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Starting point of competitive intelligence: Top 10 IoT companies

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2

1

4

5

6

7

8

9

10

Company Overall popularity1 Specific products

1. Popularity ranking based on popularity in Google searches, Twitter tweets, LinkedIn posts, and news headlines in November 2014. 2. Com. Hardw = Communication hardware 3. M2M platform in

partnership with other companies

Source: Google, Twitter, LinkedIn, Company websites, IoT Analytics

18%

19%

19%

31%

32%

34%

34%

39%

42%

65%

SAP

Amazon

Gartner

Arduino

Intel

Microsoft

Apple

Cisco

IBM

Google

• IoT-enabled ERP• Hana database• M2M platform3

Technology offering2

Semi-

cond.

Sen-

sors

Com.

hardw

De-

vices

Plat-

form

Ana-

lytics

Data-

base Other

✓ ✓

✓ ✓ ✓

✓ ✓

✓ ✓

✓ ✓ ✓

✓ ✓✓

✓

✓

✓ ✓

✓ ✓ ✓ ✓

• Cloud storage/comp.• Echo Speech recogn.

• Market research

• Developer kit

• Processors• Gilileo developer kit• IoT platform

• Azure platform• Streaming analytics• Wearable camera

• Smart watch• Smart home platform

• Routers/Gateways/etc• Security solutions

• Analytics• Databases (eg Cloudant)• Application infrastr.

• Nest/Revolv smart home• Physical web platform• Google Glass• Self-driving car

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There are at least 100 different IoT business cases already

Landscape of 100 Internet of Things business cases1 (with examples)

1. Actual Internet of Things business cases using IoT-enabled devices– the list does not include individual technology business cases (e.g., standalone sensors, standalone IoT platforms) or enabling

business cases (e.g., IoT market research)

Source: IoT Analytics

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Example 1: Smart thermostat




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https://www.youtube.com/watch?v=PS-ERQ07BIg

1:40 – 3:20

Source: Youtube

https://www.youtube.com/watch?v=PS-ERQ07BIg

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Source: Nest

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Example 2: Cloud-based machine-control




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https://www.youtube.com/watch?v=ic4ycBdggKI

Source: Youtube

https://www.youtube.com/watch?v=ic4ycBdggKI

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MES = Manufacturing Execution System

Source: VDI, Kuka, Microsoft

“The idea was to use a mainstream technology that was

developed for other domains like the consumer industry,

and drive service-oriented technology into the automation

world,”

- Michael Haag, Head of Research and Development at

KUKA Robotics Corporation

The idea The technology implementation

Microsoft SQL

Server

Robots running on Windows XP Embedded

/ Windows .NET Compact framework

33 Controller points

1 primary controller

259 robots

Manages

production data

SAP resource planning

SAP quality assuranceMES system

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Example 3: Smart hub management




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https://www.youtube.com/watch?v=FoEPlE8Pg7I

Source: Youtube

https://www.youtube.com/watch?v=FoEPlE8Pg7I

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Source: SAP

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San Francisco is emerging as a big hub for IoT

Source: IoT Analytics company database of 1700+ Internet of Things companies

Urban region # of IoT companies

1 SF Bay area ~290

2 London, UK ~82

3 New York City ~80

4 Boston ~76

5 Chicago ~30

1

34

2

5

98

84

39

2520

22

17

1916

12

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Germany a top-3 IoT country but we have a startup problem!Few startups and little funding…

Company hubs # of IoT companies Most funded startups

USA

UK

Germany84

59

-32%

-40%

-66%29

1

2

3

Name Segment Location Funding

Jaw-

bone

Wearables San

Francisco

$520m

Prodea

Syst.

Smart home Richardson,

TX

$160m

iRhythm Connected

health

San

Francisco

$120m

Nest

Labs

Smart home Palo Alto $80m

AlertMe Smart

home

Cambridge $36m

Electric-

imp

Smart

home

Cambridge $23m

Roli Conn.

music

London $13m

Evrythng IoT platform London $7m

Tado Smart

home

Munich $16m

Yetu Smart

home

Berlin $8m

Relayr Dev. board Berlin $3m

Gestigon Gesture

contr.

Lübeck $1m

Source: IoT Analytics company database of 1700+ Internet of Things companies, Crunchbase

Lower

funding

Few

startups

All

Startups

All

Startups

All

Startups

864

98

589

Top

Countries

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But the real question is…

… why is Hamburg not on this map?

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A quick recap before we go to part 2…

Competitive

Intelligence (CI)

Market environment

Market development Top-3 disruptive

technology

Public interest

exploding

Technology cost

as big driver

Size of German

economy

50bn devices

in 2020

Manufacturing

the biggest

Smart Home

the hottest

>100 business

cases

Google most

prominent

San Fran-

cisco hub

No

Hamburg

Part 1 Part 2

Learning from the community to

get Hamburg on the map

(breakouts)

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Agenda

Introduction



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A few sources on the IoT that I frequently use

Name Website Type

Postscapes www.postscapes.comLargest online repository of IoT resources

(companies, hardware, platforms, etc.)

IoT Events www.iotevents.org All worldwide IoT Events

Profitbrickshttp://blog.profitbricks.com/top-49-tools-internet-

of-things/Collection of developer tools and more

LinkedIn Internet of Things

Group

https://www.linkedin.com/groups/Internet-

Things-73311/aboutLargest social discussion forum

Bosch Connected World

Bloghttp://blog.bosch-si.com/ Good blog about industrial IoT

IoT Analytics http://www.iot-analytics.com Competitive insights

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Last but not least: IoT Hamburg is about helping each other!

Regarding IoT Analytics

Regarding Mconnect (My other project)

How can we help you further? How you can help us?

We do the following:

Workshops for companies (IoT

strategy, business development, and

implementation planning)

Customized IoT data analyses

Open to collaboration / happy to give

advice

Give me feedback on the presentation

(e.g., what is missing that you would

like to see)

Follow IoT Analytics on social

networks or sign-up for our email

Newsletter

Contribute to IoT Analytics (e.g., by

writing an interesting joint article,

more…)

Connect us to your friends who work

in industrial production (factory

managers, production planners, etc.)

Help us develop an industrial

automation IoT solution (we are looking

for developer, maker team-members)

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Thanks and cheers to Hamburg’s IoT future!


($B)

1 Holisticon Hamburg IoT platform $174.45

2 Google Mountain View, CADevice

search$159.82

3 Thinventions Hamburg Hardware $116.05

4 Pepperminds Hamburg Hardware $89.91

5 Otto Group Hamburg Cons. Prod. $68.57

6 Cisco San Jose, CA Communic. $47.87

7 LHT HamburgSmart

planes$25.56

8 China Mobile Beijing M2M $15.26

9 MioSoft Hamburg Software $15.21

10 Mconnect HamburgInd.

automation$14.68

11 Sportspunk Hamburg Misc. $14.07

12General

ElectricFairfield, CT Industry $11.21

13 Apple Menlo Park, CA Cons. Prod. $11+

2014 2034