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©	
  RIOT	
  2015	
  
SENSING-AS-A-SERVICE:
PREPARE FOR THE NEXT BUSINESS MODEL FOR INTERNET OF THINGS
Dr. Mazlan Abbas
CE...
©	
  RIOT	
  2015	
  
THE UNTAPPED OPPORTUNITY
THE IOT MARKET
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  2015	
  
BY 2020, HOW MANY DEVICES WILL EXIST?
2020
Gartner
Cisco
Intel
IDC 212 Billion Units
200 Billion Uni...
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  2015	
  
WHAT WILL BE THE IOT MARKET SIZE
By 2020
- IDC
By 2022
- Cisco
Sources:
[1] http://www.businesswire....
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10/90 RULE – THE UNCONNECTED THINGS
The Last 100 meter
connectivity
The “last 100 meters” represent ...
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A COMPLICATED IOT ECOSYSTEM	
[Source: Making Sense Of The Internet Of Things]
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IOT VALUE CHAIN
Components
Smart
Objects
Network
Operator
Service
Enabler
System
Integrator
Service
...
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WHY TELCOS HAVE DIFFICULTY
TO EMBRACE IOT
ISSUES AND CHALLENGES
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LEGACY BUSINESS IS STILL CONNECTIVITY
M2M	
  HIGH	
  VOLUME	
  
LOW	
  ARPU
	
  	
  
SIM-­‐CARD	
  B...
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LACK OF DOMAIN EXPERTISE
SOLUTIONS,	
  SELLING	
  	
  
AND	
  MANAGED	
  SERVICES 	
  	
  
NEED	
  G...
©	
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MINDSET BLOCK
FULL	
  OF	
  SKEPTISM	
  	
  
LOW	
  SINGLE	
  DIGIT	
  GROWTH	
  
CONTRIBUTION	
  	
...
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STABLE BUSINESS VS. RISKY VENTURES
NEED	
  TO	
  WORK	
  LIKE	
  STARTUP
	
  	
  
IOT	
  BUSINESS	
 ...
©	
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END-TO-END IOT SERVICE
PROVIDER
THE END GAME
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s m a r t c i t y
smart transport
s m a r t
a u t o m o t i v e
END-TO-END IOT SERVICE PROVIDER
Devi...
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CONNECTIVITY PLAYER
PHASE-1
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s m a r t c i t y
smart transport
s m a r t
a u t o m o t i v e
BUSINESS MODEL
Device
Provider
Netwo...
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IOT ENABLER PLAYER
PHASE-2
©	
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s m a r t c i t y
smart transport
s m a r t
a u t o m o t i v e
BUSINESS MODEL
Device
Provider
Netwo...
©	
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  2015	
  
s m a r t c i t y
smart transport
s m a r t
a u t o m o t i v e
BUSINESS MODEL
Device
Provider
Netwo...
©	
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  2015	
  
IOT SOLUTIONS PLAYER
PHASE-3
©	
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s m a r t c i t y
smart transport
s m a r t
a u t o m o t i v e
BUSINESS MODEL
Device
Provider
Netwo...
©	
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  2015	
  
IOT SERVICE PROVIDER
PHASE-4
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s m a r t c i t y
smart transport
s m a r t
a u t o m o t i v e
BUSINESS MODEL
Device
Provider
Netwo...
©	
  RIOT	
  2015	
  
s m a r t c i t y
smart transport
s m a r t
a u t o m o t i v e
BUSINESS MODEL -HYBRID
Device
Provid...
©	
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1	
   2	
  
3	
   4	
  
5	
  
HowtoEvolvetoaEnd-
to-EndIOTService
Provider
6	
  
©	
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SENSING-AS-A-SERVICE
BUSINESS MODEL
OUR HYPOTHESIS
©	
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  2015	
  WHAT IF – we can create Compound Applications across industries?
©	
  RIOT	
  2015	
  Data Fusion & Compound Applications
Connect
Aggregate
Derive
Actionable
Insights
©	
  RIOT	
  2015	
  
All personal items, such as mobile phones,
wrist watches, spectacles, laptops, soft
drinks, food ite...
©	
  RIOT	
  2015	
  
MAKING SENSE OF SENSOR
DATA … BUT WHAT DATA?
THE GOLD RUSH
©	
  RIOT	
  2015	
  
Wisdom
Knowledge
Information
Data
More
Important
Less
Important
Evaluated understanding
Appreciation...
©	
  RIOT	
  2015	
  
SENSING-AS-A-SERVICE
NEW BUSINESS MODEL
©	
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  2015	
  
URBAN PLANNING USING IOT
Traffic
Pollution
Noise
Environment
Network Coverage
©	
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  2015	
  
SMART CITY HUB APPROACH
Smart Parking Smart Waste
Management
Smart Street Light Smart Public
Transpo...
©	
  RIOT	
  2015	
  
IOT SOLVING SMART CITY ISSUES
1.  Who is using the car
park?
2.  What is the status of
the car park?...
©	
  RIOT	
  2015	
  
NOISETUBE – POLLUTION DATA USING
SMARTPHONES
Citizens and Communities
concerned with noise
•  Measur...
©	
  RIOT	
  2015	
  
The city would pay for access to
the light sensors in order to
decide when to turn on and off
the st...
©	
  RIOT	
  2015	
  
Smart
City
Environmental
Monitoring
Multiple Sensors
Outdoor Parking
Management
Parking sensors
Mobi...
©	
  RIOT	
  2015	
  
IOT VALUE CHAIN – WHERE IS THE MONEY?
Device
Provider
Network
Provider
Platform
Provider
Application...
©	
  RIOT	
  2015	
  
FIND YOUR NICHE AREA
IDENTITY – MORE THAN JUST DEVICE
©	
  RIOT	
  2015	
  
©	
  RIOT	
  2015	
  
COMPLEXITY OF ECOSYSTEM
[Source: Service Through M2M]
©	
  RIOT	
  2015	
  
IMPORTANCE OF IOT ECOSYSTEM
Leverage What Already Exists
©	
  RIOT	
  2015	
  
CHOOSE YOUR PATH
SENSING-AS-A-
SERVICE
MNO VS MVNO VS MVNEIDENTIFY PARTNER
IDENTIFY OPEN PLATFORM
ID...
©	
  RIOT	
  2015	
  
THANK YOU
©	
  RIOT	
  2015	
  
ABOUT US
Our History
REDtone IOT Sdn Bhd is wholly owned subsidiary of REDtone International
Berhad,...
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Sensing-as-a-Service - Prepare for the Next Business Model for Internet of Things

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Presented at IOT Global Innovation Forum, 21-22 April 2015, Dallas, USA

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Sensing-as-a-Service - Prepare for the Next Business Model for Internet of Things

  1. 1. ©  RIOT  2015   SENSING-AS-A-SERVICE: PREPARE FOR THE NEXT BUSINESS MODEL FOR INTERNET OF THINGS Dr. Mazlan Abbas CEO REDtone IOT Sdn Bhd
  2. 2. ©  RIOT  2015   THE UNTAPPED OPPORTUNITY THE IOT MARKET
  3. 3. ©  RIOT  2015   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/
  4. 4. ©  RIOT  2015   WHAT WILL BE THE IOT MARKET SIZE By 2020 - IDC By 2022 - Cisco Sources: [1] http://www.businesswire.com/news/home/20131003005687/en/Internet-Poised-Change-IDC#.VKZdfHTMUuc [2] http://postscapes.com/internet-of-things-market-size [3] Gartner Market Databook 2014 & Frost & Sullivan [4] National IOT Strategic Blueprint $14.4 Trillion $8.9 Trillion RMB 5-10 Trillion China Market RM 9.8 Billion Malaysia Market 14,720 Jobs New Jobs in Malaysia
  5. 5. ©  RIOT  2015   10/90 RULE – THE UNCONNECTED THINGS The Last 100 meter connectivity The “last 100 meters” represent > 90% potential number of connections Today, the devices used in the “last 100 meters” are typically not connected. The wide-area network is to a larger extent connected e.g. through smartphones, home routers (e.g. ADSL routers) and GSM / 3G / 4G Routers. Still DisconnectedConnected World
  6. 6. ©  RIOT  2015   A COMPLICATED IOT ECOSYSTEM [Source: Making Sense Of The Internet Of Things]
  7. 7. ©  RIOT  2015   IOT VALUE CHAIN Components Smart Objects Network Operator Service Enabler System Integrator Service Provider Distributor / Reseller Customer •  Embedde d Chips •  Modules •  Wireless Modems •  Sensors and cameras •  Routers and gateways •  Antennas and Cables •  Smart Bins •  Smart Solar •  Temp Monitoring •  Fire Extinguishe rs •  Meters •  ATM/POS •  Camera/ Security •  Spectrum Allocation •  Network Infrastruct ure •  Backhaul Infrastruct ure •  Connectivi ty •  Availability & Quality •  Billing •  Customer Care •  Software •  Infrastruct ure •  Consulting •  Technolog y Selection •  Solution Design •  Wireless Network Design •  Interfaces •  Enterprise System Integration •  Applicatio n Developm ent •  Security •  Data Managem ent •  Hardware •  Installation •  Analysis •  App Managem ent •  Access Control •  Data Managem ent •  Quality of Service •  Packaging / Bundling •  Service Provisionin g •  Distributes Products •  Resells services •  Supply Chain and Fullfillment •  Buys Service •  Users service 5-10% 15-20% 15-20%30-40% 15-20% ? % ? % Total Value
  8. 8. ©  RIOT  2015   WHY TELCOS HAVE DIFFICULTY TO EMBRACE IOT ISSUES AND CHALLENGES
  9. 9. ©  RIOT  2015   LEGACY BUSINESS IS STILL CONNECTIVITY M2M  HIGH  VOLUME   LOW  ARPU     SIM-­‐CARD  BASED     OLD  HABITS  DIE  HARD   LESS  COMPLEX    
  10. 10. ©  RIOT  2015   LACK OF DOMAIN EXPERTISE SOLUTIONS,  SELLING     AND  MANAGED  SERVICES     NEED  GO-­‐TO-­‐MARKET  PARNER    
  11. 11. ©  RIOT  2015   MINDSET BLOCK FULL  OF  SKEPTISM     LOW  SINGLE  DIGIT  GROWTH   CONTRIBUTION    
  12. 12. ©  RIOT  2015   STABLE BUSINESS VS. RISKY VENTURES NEED  TO  WORK  LIKE  STARTUP     IOT  BUSINESS  IS  FLUID     STAKEHOLDERS     EXPECTATIONS  
  13. 13. ©  RIOT  2015   END-TO-END IOT SERVICE PROVIDER THE END GAME
  14. 14. ©  RIOT  2015   s m a r t c i t y smart transport s m a r t a u t o m o t i v e END-TO-END IOT SERVICE PROVIDER Device Provider Network Provider Platform Provider Application Provider Customer Network Platform
  15. 15. ©  RIOT  2015   CONNECTIVITY PLAYER PHASE-1
  16. 16. ©  RIOT  2015   s m a r t c i t y smart transport s m a r t a u t o m o t i v e BUSINESS MODEL Device Provider Network Provider Platform Provider Application Provider Customer Network Platform Platform 1  
  17. 17. ©  RIOT  2015   IOT ENABLER PLAYER PHASE-2
  18. 18. ©  RIOT  2015   s m a r t c i t y smart transport s m a r t a u t o m o t i v e BUSINESS MODEL Device Provider Network Provider Platform Provider Application Provider Customer Network Platform 2  
  19. 19. ©  RIOT  2015   s m a r t c i t y smart transport s m a r t a u t o m o t i v e BUSINESS MODEL Device Provider Network Provider Platform Provider Application Provider Customer Network Platform IOT Subsidiary 3  
  20. 20. ©  RIOT  2015   IOT SOLUTIONS PLAYER PHASE-3
  21. 21. ©  RIOT  2015   s m a r t c i t y smart transport s m a r t a u t o m o t i v e BUSINESS MODEL Device Provider Network Provider Platform Provider Application Provider Customer Network Platform 4  
  22. 22. ©  RIOT  2015   IOT SERVICE PROVIDER PHASE-4
  23. 23. ©  RIOT  2015   s m a r t c i t y smart transport s m a r t a u t o m o t i v e BUSINESS MODEL Device Provider Network Provider Platform Provider Application Provider Customer Network Platform 5  
  24. 24. ©  RIOT  2015   s m a r t c i t y smart transport s m a r t a u t o m o t i v e BUSINESS MODEL -HYBRID Device Provider Network Provider Platform Provider Application Provider Customer Network Platform 6  
  25. 25. ©  RIOT  2015   1   2   3   4   5   HowtoEvolvetoaEnd- to-EndIOTService Provider 6  
  26. 26. ©  RIOT  2015   SENSING-AS-A-SERVICE BUSINESS MODEL OUR HYPOTHESIS
  27. 27. ©  RIOT  2015  WHAT IF – we can create Compound Applications across industries?
  28. 28. ©  RIOT  2015  Data Fusion & Compound Applications Connect Aggregate Derive Actionable Insights
  29. 29. ©  RIOT  2015   All personal items, such as mobile phones, wrist watches, spectacles, laptops, soft drinks, food items and household items, such as televisions, cameras, microwaves, washing machines, etc Private business organization has the right to take the decision whether to publish the sensors attached to those items to the cloud or not. Public infrastructure such as bridges, roads, parks, etc. All the sensors deployed by the government will be published in the cloud depending on government policies. Business entities who deploy and manage sensors by themselves by keeping ownership. They earn by publishing the sensors and sensor data they own through sensor publishers. Personal and Households Commercial Sensor Data Providers Organizations PublicPrivate [Source: “Sensing as a Service Model for Smart Cities Supported by Internet of Things”, Charith Perera et. al., Transactions on Emerging Telecommunications Technology, 2014] CHALLENGES – DATA OWNERSHIP
  30. 30. ©  RIOT  2015   MAKING SENSE OF SENSOR DATA … BUT WHAT DATA? THE GOLD RUSH
  31. 31. ©  RIOT  2015   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 VALUE PYRAMID
  32. 32. ©  RIOT  2015   SENSING-AS-A-SERVICE NEW BUSINESS MODEL
  33. 33. ©  RIOT  2015   URBAN PLANNING USING IOT Traffic Pollution Noise Environment Network Coverage
  34. 34. ©  RIOT  2015   SMART CITY HUB APPROACH Smart Parking Smart Waste Management Smart Street Light Smart Public Transportation Static Data Storage Real-Time Data Storage Open Data Parking Garbage Collection Lighting Public Transport Smartphones Users Citizen Reporting Smart City Hub Other Smart City Hubs Social Media
  35. 35. ©  RIOT  2015   IOT SOLVING SMART CITY ISSUES 1.  Who is using the car park? 2.  What is the status of the car park? 3.  When was the car park used? 4.  Where is the location of empty car park? 5.  How far is the car park? 6.  How much are the parking charges? 7.  How congested is the car park? 8.  Why so many cars prefer a particular carp park? 9.  Why is the carpark so full/empty? 1.  Who is collecting the garbage? 2.  What is the status of garbage bin? 3.  When was the garbage collected? 4.  Where is the location of full bins? 5.  How to plan the route of the trucks? 6.  How many days till the next collection? 7.  How much garbage is produced in an area? 8.  Why is the garbage truck not picking up garbage? 9.  Why is a particular area producing more garbage? Smart Parking Smart Waste Management 1.  Who triggered the lights? 2.  What is the brightness of the light? 3.  When were the lights switched on? 4.  Where is the location of faulty light? 5.  How bright should the lights be? 6.  How long should the lights be on? 7.  How busy is the road? 8.  Why is the electricity bill increasing? 9.  Why is the cost of maintenance high? 1.  Who is driving the bus? 2.  What is the occupancy? 3.  What is the bus condition? 4.  What is the driving pattern? 5.  When is the bus arriving? 6.  Where is the location of the bus? 7.  How to prolong the bus life? 8.  How many busses to deploy on a route? 9.  How best to hire drivers for the buses? 10. Why is the bus late? 11. Why is bus breaking down? Smart Street Light Smart Public Transportation
  36. 36. ©  RIOT  2015   NOISETUBE – POLLUTION DATA USING SMARTPHONES Citizens and Communities concerned with noise •  Measure your daily sound exposure in dB(A) with your mobile phone •  Tag noisy sources to inform the community about them •  Visualize your measurements on a map and contribute to the creation of collective, city-wide noise maps •  Compare your experience with that of others Local governments / city planners •  Improved decision-making •  Get immediate feedback and opinions from citizens •  Give immediate feedback to citizens Researchers •  Get access to and analyze (anonymized) collective noise data Developers •  Extend mobile app in whichever way you see fit
  37. 37. ©  RIOT  2015   The city would pay for access to the light sensors in order to decide when to turn on and off the street lights Gathering temperature, light, pressure, humidity and pollution. COMMERCIAL IOT SENSOR PROVIDER A university may want access to the pollution information for research purposes for a limited period The weather department would want the temperature and pressure data The street town council center would want the temperature and humidity data for planning during rough weather
  38. 38. ©  RIOT  2015   Smart City Environmental Monitoring Multiple Sensors Outdoor Parking Management Parking sensors Mobile Environmental Monitoring Sensors installed in public vehicles Traffic Intensity Monitoring Devices located at main entrance of city Guidance to free parking lots Panels located at intersections Parks and Gardens Irrigation Sensors in green zones •  Temperature •  CO •  Noise •  Car Presence •  Ferromagnetic sensors •  Temperature •  CO •  Noise •  Car Presence •  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 •  Moisture temperature •  Humidity •  Pluviometer (rain gauge) •  Anemometer (wind-speed)
  39. 39. ©  RIOT  2015   IOT VALUE CHAIN – WHERE IS THE MONEY? Device Provider Network Provider Platform Provider Application Provider •  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) •  ….
  40. 40. ©  RIOT  2015   FIND YOUR NICHE AREA IDENTITY – MORE THAN JUST DEVICE
  41. 41. ©  RIOT  2015  
  42. 42. ©  RIOT  2015   COMPLEXITY OF ECOSYSTEM [Source: Service Through M2M]
  43. 43. ©  RIOT  2015   IMPORTANCE OF IOT ECOSYSTEM Leverage What Already Exists
  44. 44. ©  RIOT  2015   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?
  45. 45. ©  RIOT  2015   THANK YOU
  46. 46. ©  RIOT  2015   ABOUT US Our History REDtone IOT Sdn Bhd is wholly owned subsidiary of REDtone International Berhad, a company that has over 20 years experience in providing telecommunications services in Malaysia. Our Company In November 11, 2014 REDtone IOT Sdn Bhd. was incorporated in Malaysia, to focus on providing Internet of Things services and solutions. Our headquarters are in Puchong, Selangor, Malaysia. Our Vision Our goal is to enable businesses to monitor its most important assets such as buildings, machinery, parking lots, electrical appliances, etc using Internet of Things (IoT).   To transform businesses through connecting, aggregating and deriving insights via sensors data. We help to build applications rapidly and cost effectively.

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