FEI 2014 Venice

1. Roberto Siagri,
Chairman & CEO,
Eurotech SpA
Venice 17-3-2014
Transitioning from a Product to a Service Economy:
the Power of Cloud Technology in Innovation

2. YOU MIGHT BE HERE

3. CLOUD computing
is not about
Product & Technology
is about
Transition

4. The Cloud reverse pyramid
Saas
PaaS
Iaas

5. CLOUD technology
the birth of
Anything-As-A-Service
Not just
Iaas, Paas, Saas,
but
Device as a service
…..
X as a service

6. Which is the driving Force?
both service companies and manufacturers
are moving more dramatically into services
6
Vandermerwe and Rada, 1988
Servitization
is happening in almost all industries on a global scale

7. a Services Economy
Thebill

8. Industries will
experience
a type of
never seen
in the last
two decades

9. Progress
is expanding
Ex
nenop
lait
9
y
l

10. Technologies
create the
Ex
n
enop
l
a
it
10

11. 11
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

12. Complexity and Saturation
Time
Performance
new way
12
old way
illusion of the old
reality of the old
difficult to imagine of the new
Each new TECHNOLOGICAL substrate is more efficient than
the previous one

13. Time
Innovation
Custom Products
Commodity
13
The most important technologies “disappear”
Standard Products
Utility/ as a Service
Diffusion

14. Space
Time
Energy
Matter
Information
Computation
STEM compression :
the Engine of Innovation

15. 15
http://discovermagazine.com/galleries/zen-photo/a/age-of-abundance#.Uy0_1oV0BxI

16. 16
Less
More

17. Meta‐Trends in Technological Acceleration
17
IDEAS are the new “ultimate” raw material
 Moore's Law Miniaturization ‘65
 Transistors increase 2 times over 18 months
 Metcalfe's Law Interconnection ‘93
 Value of a network increases with the square of the
number of connections
 Gilder's Law Quantization ’00
 Bandwidth increases 3 times faster than computer power

18. IP Devices vs. Humans

19. A waterfall of Data
1.000 Exabyte= 1 Zettabyte
1 Zettabyte ~ to 36.000.000 years HD video
or
250 billion DVDs
19
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
EXABYTE

20. The Data Economy
20
Value
Abundance
Atoms
Bits
A lighter GDP

21. The dawn of a New Smart World
Transforming Bits of Data at the Edge of the Network
into Actionable Information and Knowledge in the
Users’ hands will bring about the biggest change in
industry since the steam engine

22. Software is Eating The World
Companies in
every industry
need to assume
that a software
revolution is
coming…
Marc Andreessen

23. Reducing Software Complexity or Cost
Value follow simplicity
Cost--Complexity
Time
HW
SW
23
Wirth’s law: “Software gets slower faster than hardware gets faster”

24. The integration Platform as a Service

25. The Internet of Things
• Standard Computer HW components
• Open & Industry Standards
• Cloud computing
• Standard SW components
Commoditization of distributed systems
Time
Cost‐Ubiquity
Z‐curve S‐curve

26. How to harness the complexity of IoT
Decoupling: Data-Producers from Data-Consumers
1- scale elastically
2- enable new services
3- reuse and combine
Integration /
Decoupling
Platform
Multi-
Service
Gateways
IoT
Infrastructure Solution
Operational Technology
Building Block
Data-Producers
Data-Consumers

27. How to harness the complexity of IoT
Decoupling: Data-Producers from Data-Consumers
1- scale elastically
2- enable new services
3- reuse and combine
Integration /
Decoupling
Platform
Multi-
Service
Gateways
Data-Producers
Data-Consumers

28. Simple interface for a complex system
Simplicity or Simplexity ?

29. Connecting the field at the Enterprise
Four Layers and Two Architectural Components
Business Apps
Multi-
Service
Gateway
M2M
Integration
Platform
Act
Integrate, Store
Control
Connect
+
Communicate
Compute
Collect
@
Field Interfaces
Enterprise Service Bus
Field - Devices
1
2
3
4

30. More data More services
Every business today is
producing a lot of Data
that can become
very valuable
Information.
Dati

31. iPass: Everyware Cloud
Customers
Vertical APP
Business
APP
Social
Accessible by multiple users at the
same time, at the service of many
applications
It allows remote maintenance and
remote supervision

32. Manufacturing Industry is in Transformation
32
by the forces of:
‐ Deregulation,
‐ Digitization
‐ Communication,
‐ Globalization
‐ Softwarization

33. Re-Thinking
• Products
• Value Add
• Business Model
• Business Processes

34. Tomorrow = Servitization
The evolution will most probably
extinguish the products that
do not offer services

35. www.eurotech.com
Thank You!