SENSING-AS-A-SERVICE: NEW

BUSINESS MODEL FOR IOT

Dr. Mazlan AbbasCEO - REDtone IOT Sdn Bhd

(Adjunct Prof. UTHM)Email: mazlan.abbas@redtone.com

March 21, 2016

AGENDA• The Untapped IOT Opportunity• Why Telcos Have Difficulty To Embrace IOT?• The End-Game – Being An-End-to-End IOT Service Provider?• Sensing-as-a-Service Business Model• Identity Crisis – Find Your Niche Area

THE UNTAPPED OPPORTUNITY

THE IOT MARKET

BY 2020, HOW MANY DEVICES WILL EXIST?

2020

Gartner

Cisco

Intel

IDC 212 Billion Units

200 Billion Units

50 Billion Units

26 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/

HOW BIG IS THE IOT MARKET?

By 2016 Gartner predicts 6.4 billion devices will be connected to the internet -- and 5.5 million new 'things' will join them each day.

63 devices connected every second

10/90 RULEThe Last 100 meter

connectivity

The “last 100 meters” represent > 90% potential number of connections

Still DisconnectedConnected World

WHAT EXACTLY IS IOT?INTERNET OF THINGS PRIMER

InternetofEverything

[Source: http://postscapes.com/what-exactly-is-the-internet-of-things-infographic ]

[Source: http://postscapes.com/what-exactly-is-the-internet-of-things-infographic ]

[Source: http://postscapes.com/what-exactly-is-the-internet-of-things-infographic ]

A COMPLICATED IOT ECOSYSTEM

[Source: Making Sense Of The Internet Of Things]

IOT VALUE CHAIN

Components Smart Objects

Network Operator

Service Enabler

System Integrator

Service Provider

Distributor / Reseller Customer

• Embedded Chips

• Modules• Wireless

Modems• Sensors

and cameras

• Routers and gateways

• Antennas and Cables

• Smart Bins• Smart

Solar• Temp

Monitoring• Fire

Extinguishers

• Meters• ATM/POS• Camera/S

ecurity

• Spectrum Allocation

• Network Infrastructure

• Backhaul Infrastructure

• Connectivity

• Availability & Quality

• Billing• Customer

Care

• Software• Infrastruct

ure• Consulting• Technolog

y Selection• Solution

Design• Wireless

Network Design

• Interfaces• Enterprise

System Integration

• Application Development

• Security• Data

Management

• Hardware• Installation

• Analysis• App

Management

• Access Control

• Data Management

• Quality of Service

• Packaging / Bundling

• Service Provisioning

• Distributes Products

• Resells services

• Supply Chain and Fullfillment

• Buys Service

• Users service

5-10% 15-20% 15-20%30-40% 15-20% ? % ? %

Total Value

WHY TELCOS HAVE DIFFICULTY TO EMBRACE IOT

ISSUES AND CHALLENGES

LEGACY BUSINESS IS STILL CONNECTIVITY

M2MHIGHVOLUME

LACK OF DOMAIN EXPERTISE

SOLUTIONS,SELLINGANDMANAGEDSERVICES

MINDSET BLOCK

LOWSINGLEDIGITGROWTHCONTRIBUTION

STABLE BUSINESS VS. RISKY VENTURES

END-TO-END IOT SERVICE PROVIDER

THE END GAME

s m a r t c i t y

smart transport

s m a r ta u t o m o t i v e

END-TO-END IOT SERVICE PROVIDER

DeviceProvider

NetworkProvider

PlatformProvider

ApplicationProvider

Customer

Network Platform

CONNECTIVITY PLAYERPHASE-1

s m a r t c i t y

smart transport

s m a r ta u t o m o t i v e

BUSINESS MODEL

DeviceProvider

NetworkProvider

PlatformProvider

ApplicationProvider

Customer

Network

Platform

Platform

1

IOT ENABLER PLAYERPHASE-2

s m a r t c i t y

smart transport

s m a r ta u t o m o t i v e

BUSINESS MODEL

DeviceProvider

NetworkProvider

PlatformProvider

ApplicationProvider

Customer

Network Platform

2

s m a r t c i t y

smart transport

s m a r ta u t o m o t i v e

BUSINESS MODEL

DeviceProvider

NetworkProvider

PlatformProvider

ApplicationProvider

Customer

Network Platform

IOT Subsidiary

3

IOT SOLUTIONS PLAYERPHASE-3

s m a r t c i t y

smart transport

s m a r ta u t o m o t i v e

BUSINESS MODEL

DeviceProvider

NetworkProvider

PlatformProvider

ApplicationProvider

Customer

Network Platform

4

IOT SERVICE PROVIDERPHASE-4

s m a r t c i t y

smart transport

s m a r ta u t o m o t i v e

BUSINESS MODEL

DeviceProvider

NetworkProvider

PlatformProvider

ApplicationProvider

Customer

Network Platform

5

s m a r t c i t y

smart transport

s m a r ta u t o m o t i v e

BUSINESS MODEL -HYBRID

DeviceProvider

NetworkProvider

PlatformProvider

ApplicationProvider

Customer

Network Platform

6

1 2

3 4

5

How

to E

volv

e to

a E

nd-

to-E

nd IO

T Ser

vice

Pr

ovid

er

6

SENSING-AS-A-SERVICE BUSINESS MODEL

OUR HYPOTHESIS

Home Health Transport OfficeWaste

WHAT-IF – WE CAN DO DATA BLENDING

Creating New Compound Applications

DATA OWNERSHIPS

Personal /Household

Private

Public Commercial SensorData Provider

MAKING SENSE OF SENSOR DATA … BUT WHAT DATA?

THE GOLD RUSH

Wisdom

Knowledge

Information

Data

More Important

Less Important

Evaluated understanding

Appreciation of

Answers to questions.

Symbols

Understanding

Answers to

questions

WHO

WHY

HOW

WHAT

WHERE WHEN

VALUE IS CREATED BY MAKING SENSE OF DATA

More Important

Less Important

EXAMPLE – SMART PARKINGWisdom

Knowledge

Information

Data

Understanding

N/A

Empty (0), Full (1)

Who park at this lot? What kind of vehicle?

Where is the empty parking lot?

When is the peak period?

How to implement a tiered charging?

How to find “overstayed” vehicles?

Why this parking area is not fully occupied?

SENSING-AS-A-SERVICENEW BUSINESS MODEL

URBAN PLANNING USING IOT

Traffic

Pollution

Noise

Road conditions

Network Speed

Single Infrastructure • Multiple Usage

BENEFITS OF SENSING-AS-A-SERVICE

Harnessing the Creativity

Rapid Deployment

Sustainable Business Model

Assisting ScientificCommunity

IOTCloud

Smart Parking Smart Waste Management

Smart Street Light Smart Transportation

Open Data Parking GarbageCollection Lighting

PublicTransport Smartphone

Users

Smart CityHub

Social Media

IOT Applications

Sensor Data

Users

CitiAct

BUILDING THE NEXT SMART CITY SOLUTIONS

IoT in Smart City

Environmental Monitoring

Multiple Sensors Outdoor Parking Management

Parking sensors

River MonitoringWater Quality and

Flood Warning

Traffic Intensity Monitoring

Devices located at main entrance of city

Guidance to free parking lots

Panels located at intersections

Smart CitizenCrowdsensing

Smart Waste ManagementSensors in waste bins and

garbage trucks • Temperature• CO• Noise• Car Presence • Ferromagnetic

sensors

• Water level• Weather• Flow sensor• pH sensor

• Measure main traffic parameters• Traffic volumes• Road occupancy• Vehicle speed• Queue Length

• Taking information retrieved by the deployed parking sensors in order to guide drivers towards the available free parking lots

• GPS• Infra-red sensors

• User generated feedback with smartphones that help to make cities better

IOT VALUE CHAIN – WHERE IS THE MONEY?

DeviceProvider

NetworkProvider

PlatformProvider

ApplicationProvider

• 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)

• ….

FIND YOUR NICHE AREAIDENTITY – MORE THAN JUST A DEVICE GAME

IMPORTANCE OF IOT ECOSYSTEM

Leverage What Already Exists

CHOOSE YOUR PATH

SENSING-AS-A-SERVICE

MNO VS MVNO VS MVNEIDENTIFY PARTNER

IDENTIFY OPEN PLATFORM

IDENTIFY BIZ MODEL

VERTICAL OR HORIZONTAL

MULTI-SIDED MARKET?

THANK YOU@REDtoneIOTREDtoneIOT

• EMAIL: mazlan.abbas@redtone.com• TWITTER: @mazlan_abbas• FACEBOOK: www.facebook.com/drmazlanabbas• LINKEDIN: my.linkedin.com/in/mazlan/• SLIDESHARE: www.slideshare.net/mazlan1• ABOUT ME: about.me/mazlan.abbas