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in the 21st century,
we won't experience 100 years of progress
it will be more like 20,000 years of progress
Law of accelerating returns
Ray Kurzweil
IT Commoditization
• Standard Computer‐HW components
• Standard SW components
• Open & Industry Standards
• Cloud computing
TimeDiffu
sion ‐Cost
Z‐curve S‐curve
Time
Innovation
Custom Products
Commodity
5
The most important technologies “disappear”
Standard Products
Utility/ as a Service
Diffu
sion‐Co
st
Adoption and impact path of the Industrial Internet
6
1. OperationalEfficiency
2. New Products & Services
3. Outcome Economy
4. Autonomous, Pull Economy
Near-term
Long-term
World Economic Forum
Largest Technology Market Ever
“1 Trillion devices by 2025”
“Market impact $4.5 Trillion by 2020”
“50 billion devices by 2020…”
Internet of Things
Softwarization
Companies in every industry need to assume that a software revolution is coming…
Marc Andreessen
The Digital Transformationthe fusion of
IT & OT business processes technical processes
13
The wave is arriving, it's time to decide
to ride or to be swept
is leading the way to a new industrial age
Transition= Disruption = New value creation• Improve operational efficiency
• Emergence of an outcome economy
• New connected ecosystems
• Collaboration between humans and machines
0 1 0 11 00 1 0 1 0 11 1 0 11
1 1 1 000 10 11 10 1 0 1 1 0 1 1 1 0 0 0 0 1
1 0 1 1 1 0 11 1 0 111 0 1 0 1 0 1 0
1 0 1 0 11 1 0000 1
1 0 1 1 0 11
0 1 0 11 00 1 0 11 0
Inside Opportunities
• Predictive maintenance• Remote Monitoring & Assets
Performance Management• Operational efficiency and
productivity gains
Outside Opportunities• new business models• products‐as‐a‐service,• pay‐per‐use • monetization of data
IoT platform : a cost of running the business
ERP
QA
CRMHR
IoT
Factory
Products
Customers
Employees
Data
The dawn of a New Smart World
Transforming Bits of Data at the Edge of the Network
into Actionable Information & Knowledge
Which is the driving Force?
both service companies and manufacturers
are moving more dramatically into services
20
Vandermerwe and Rada, 1988
is happening in almost all industries on a global scale
Servitization