Driving Innovation

IoT: UK Consultation &Governance implications

Dr. Maurizio PiluTechnology Strategy Board

IoT Forum, Berlin, 23-24 Nov 2011

#tsbiot

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What is the Technology Strategy Board?

• We are the UK’s Innovation Agency• A national body set up in 2007 to invest in

business innovation• We work across business, universities and

government• We mostly come from business

– 130 people with over 1700 years of business experience

• We have a budget of over £300m/year

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Context: The Digital programme

• Mission:

to help innovative businesses unlock the economic potential of digital technology, by identifying and addressing systemic challenges and resolving tensions between people, processes and technology.

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Overview of our IoT programme

• A £5m managed investment • Focus on the enablers of and barriers to the

ecosystem of applications and services of the Internet of Things

• Special Interest Group– Started on August 1st – https://ktn.innovateuk.org/web/internet-of-things

• Internet of Things Convergence– Now: £500k for preparatory studies – 2nd half 2012: £4m for a demonstrator activity

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Strategic pillars of our current investment

Increased access to data

Enablingapplication & services

More harmonized access to data

DA

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Discussion on best current thinking on investment

Kick-starting the IoT ecosystems workshop

UK Future Internet Strategy Group paper

Meetings with businesses and other input

Best Current Thinking

KTN Sector Meetings

Investment planSpecial Interest Group

IoT ConvergenceCompetition

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IoT – UK consultation in numbers

• 6 events across various sectors– Energy, Transport, Built Environment, Health,

Creative

• >400 businesses and academics• All run with the same format• Output summarized in a report• Built community of >700 UK IoT stakeholders

– https://connect.innovateuk.org/web/internet-of-things

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Consultation: participation

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Consultation: interested in connecting....

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IoT paper published 21st Sep 11• Cross sector opportunities• IoT architecture topologies• People centred design principles• Value chain recognition• Local and cloud based data• Data brokerage• Interoperability challenges• Security, privacy and trust• Liability• Join the IoT SIG for more info:https://ktn.innovateuk.org/web/internet-of-things

Direct link https://ktn.innovateuk.org/c/document_library/get_file?p_l_id=2140879&folderId=2543615&name=DLFE-48598.pdf

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Health warning!!

• Not a presentation on governance• Taking a strategic perspective from the

standpoint of a national innovation agency...• ....informed by 100s of discussions with

business• We are currently running a programme

– Will bring up many angles to the governance of IoT– We will share with the community

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What is the IoT ...

Slide courtesy of Jonathan Mitchener, TSB

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The multiple perspectives of the IoT

• It’s about sensors & devices• It’s about M2M• It’s about a big IT system that controls stuff• It’s all about data value chains• It’s about new services• It’s the Internet – no such thing as IoT• It’s about the user experience• It’s about growth-opportunities• It’s about new business models

How can Governance take into account all these perspectives and let them flourish?

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Consultation: Broad recurring themes

•Applications and services are key to prove value

•How to prove business models/demand

• Open data, data value chains, data markets• Open, end to end standards• Interoperability• Lower barriers to innovation and app/services development• Disintermediation between the infrastructures and apps/services • Enables secondary markets (app & services)• Apps and services that can scale, critical mass• Market creation for SMEs• Trust, privacy, resilience• Micropayments • Enables crossing organizational

and sector boundaries

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Consultation: key technical topics• Data value chains from the “things” trough application/services to end user• Services, service design, including information flows• Disincentives (including liabilities), incentives, costs, and benefits analysis  for organization to

make more data available • Business models for data, services and applications• People-centred design and value cases for users• Legal, regulatory and ethical considerations, including liabilities • Privacy, security, trust • Monetization and billing mechanisms• Integration between data sets to generate more value• Service level agreements between parties in the data/service value chain• Incentives to invest further in infrastructure (nodes, networks) based on information flows• Interoperability at the data and services layer• Coping with large quantities of data • Data/Information brokerage solutions, local hubs, gateways, including cloud based • Data usage, rights, provenance • Disintermediation  between the infrastructure and the application/services developers• ..........

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Lots to be proven ....

How far can/should governance go if we don’t understand how the market and value creation will unfold

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????Innovation, new applications, services, growth

???Core foundation of the IoT with industry support

to drive design of architectures, platformsgovernance, strategies, national investments

Out window of visibility today

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Innovation, new applications,

services, growth

Core foundation of the IoT to drive design of governance,

strategies, national investments

Where would governance be most effective? Where is it needed? Where is it damaging?

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IoT: It is still early!!

• Businesses feel there is no dominant player in IoT– Opportunities to compete, grow, etc.

• Natural textbook symptoms of early markets: fragmentation, lack of standards, bespoke solutions, etc.

• Who is the audience for governance discussions?

Governance activities should take into account that the market is not yet well developed, especially in apps and services.

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Benkler’s layers of governance• Physical layer • Logical layer• Content layer

Where does governance actions fit best? Can we learn lessons from the evolution of Internet governance?

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Two speed innovation cycles

1 Physical

2 Data Link

3 Network

4 Transport

5 Session

6 Presentation

7 Application

• Short development cycle• Fast moving applications• Fast rate of adoption• Low CAPEX short design

cycles• Abstracted from underlying

infrastructure

• Long development cycle• Slow moving standards• CAPEX intensive• Global co-ordination and

economies of scale – challenges & opportunities

• Large investment / high stakes• Spectrum usage changes

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Slide courtesy of Stuart Revell, ICTKTN (UK)

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Governance can stimulate innovation & competition ....

...a governance layer ...

Competition,Innovation

Incentive to invest, scale

Competition,Innovation

Incentive to invest, scale

Apps and services

Infrastructure (nodes, etc.)

Fragmentation,Lack of standards,

silos, etc

Businesses feel the lack of such layer to enable an IoT ecosystem

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... or stifle it ...

...a governance layer ...

Apps and services

Infrastructure (nodes, etc.)

Fragmentation,Lack of standards,

silos, etc

...a governance layer ...

...a governance layer ...

...a governance layer ...

...a governance layer ...

...a governance layer ...

?...a

gove

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ce la

yer .

..

But where is the right balance for a modern governance approach?

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What’s the best starting point?

Users,Customers

Business models, opportunities

Technology

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Device-centric vs service centric:Beyond the RFID lens

Much of the governance discussions have been heavily influenced by the RFID community – a relatively mature market

The evolution of IoT governance should take a much broader perspective.

What are the known unknowns?

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Services and apps pull the market

Enabling an ecosystem of apps and services that can scale is key. What type of governance will stimulate that, and what could get in the way?

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Tales of two philosophies: Big IT systems vs bottom up, decentralized

Two opposing views very visible.How does governance differ in these opposing scenarios? What should it be like to cater for both?

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Governance not same as architecture!

• Taking about “IoT architecture” at the same time of governance might be confusing– How many “platforms” has the EU funded?– 10s of competing industry “architectures”

• Should there be competition at the architecture/platform level?– You can have governance without specifying

architectures

• Anecdote from the consultation .....

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The connected consumer

TasksGamingFinancial

EntertainmentCalendarHealth

SecuritySocialMediaMusic

NewsVideo

LocationInformationMessagingNetworkingTransportContactsSafetyPhoto

Photo source: CSR plc and UKTI

Slide courtesy of Stuart Revell, ICTKTN (UK)

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Governance that works for people

• Scenario for the IoT are still immature• User centred design one of the key themes• Convergence means that IoT might be up-close-

and personal (vs for Engineers in the past)• Governance has to be fit for purpose for

customers and users

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It is fit for purpose?

• Liability and accountabilities– Surprisingly strong element across sectors– Best effort vs SLAs?

• Security, Trust, Resilience, authentication, provenance.– Seen as key for the markets to develop

• IoT coming from industrial, scientific background, moving closer to people problem much bigger and critical.

Governance is key here. But BEWARE, it has proven hard for the Internet too!!

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The path to standards & controls

At several events we run people get fired up when mentioning words such as standards, governance, controls.

Need to sell the benefit, see the upside, not the process or the fears.

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Governance for an IoT ecosystem ....

• Open data, data value chains, data markets• Open, end to end standards• Interoperability• Lower barriers to innovation and app/services development• Disintermediation between the infrastructures and apps/services • Enables secondary markets (app & services)• Apps and services that can scale, critical mass• Market creation for SMEs• Trust, privacy, resilience• Micropayments • Enables crossing organizational and sector boundaries

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http://www.innovateuk.org

twitter: maurizio_tsb Dr. Maurizio Pilu

THANK YOU

#tsbiot