Digital Transformation’s Impact on Business Models

At #IoT Week 2019 in Aarhus, Denmark, Mette Walsted Vestergaard moderated a panel discussion covering the #DigitalTransformation impact on our Business today and Future Business Models. #IIoT

Listen to the audio of this insightful discussion below:

You can watch the video on the Siemens website at: https://new.siemens.com/dk/da/virksomhedsoplysninger/events/iot-week-2019.html

Panelists included:

  • Fredrik Ostbye from Grundfos
  • Bjarne Lykke-Sørensen from Siemens
  • Rob Tiffany from Ericsson

Top IoT Influencers To Follow in 2019

Thrilled to be named one of the top #IoT #IIoT influencers to follow in 2019 by MarkTechPost.

Check out the article where you can see the full list of IoT luminaries including friends Charlie Kindel, Tamara McCleary, Greg Kahn, Stacey Higginbotham, Evan Kirstel, Tom Raftery, Peggy Smedley, and Daniel Elizalde.

.

Ericsson Launches New IoT Center of Excellence

Ericsson

Ericsson has appointed Rob Tiffany to lead the company’s new internet of things “Center of Excellence” in North America. #IoT #IIoT

Tiffany started yesterday and reports to Ericsson’s Shannon Lucas, head of global customer unit emerging business for North America. Lucas reports to Niklas Heuveldop, who is Ericsson’s chief executive for the North American market.

As detailed by an Ericsson representative, the company’s new IoT “center of excellence” will “bridge the divide between customer needs and market readiness by co-creating new solutions with service providers, industrials and technology companies. The CoE is a blend of technology and business model innovation focused on cultivating a strong ecosystem of partners who move at speed.”

The news is noteworthy considering it represents a further investment by Ericsson into the IoT sector. In its own mobility report (PDF), Ericsson predicted the number of cellular IoT connections will reach 4.1 billion in 2024—increasing at an annual growth rate of 27%. “Massive IoT cellular technologies such as NB-IoT and Cat-M1 are taking off and driving growth in the number of cellular IoT connections worldwide,” the firm wrote. “Of the 4.1 billion cellular IoT connections forecast for 2024, North East Asia is anticipated to account for 2.7 billion—a figure reflecting both the ambitions and size of the cellular IoT market in this region.”

Added Ericsson CEO Börje Ekholm in the company’s latest quarterly report: “We continue to invest in strategic future growth areas such as Internet of Things (IoT) and saw increasing momentum with one important customer win with our connectivity platform solutions in the quarter. As parts of the portfolio in Emerging Business are in an early phase, sales are so far limited.”

Ericsson, of course, is one of the world’s largest wireless network equipment suppliers, and in the U.S. the company is increasing its lead over Nokia in the equipment market, according to new figures from Dell’Oro Group. The research firm’s figures cover the market for radio access network equipment.

Learn more at FierceWireless

10 Ways to Achieve Internet of Things Success for your Organization

The #IoT + #IIoT Megatrend is in Danger of Stalling

Many of you who are involved in one of the #IoT segments (industrial, healthcare, consumer, etc.) are currently living in PoC hell. Your pilots, trials and proof of concepts are not making the jump to production for a variety of reasons. I think it’s time to push the reset button on how we convey the value of IoT and how we deliver solutions. The best place to start is by listening to customers.

As it turns out, customers aren’t interested in hearing how smart you are or which esoteric technologies you’re using to build IoT solutions. The only reason they’re talking to you is because they’ve heard Internet of Things solutions can save them money, reduce unplanned downtime/non-productive time, optimize operations, improve worker safety, boost product quality, lower risk and many other compelling value props. Here’s a quick list problems and solutions to get you started:

  1. Customers are finding all the pieces to the IoT puzzle to be too complex. You need to focus on extreme simplicity and reduce friction at every tier of an IoT solution. Hundreds of pages of code examples isn’t working.
  2. Customers don’t have the skill sets needed to work with IoT solutions. Good enough has to be good enough, so stop using technologies and protocols that no one has ever heard of and embrace pervasively adopted tech that everyone already understands. If the tech you’re using isn’t familiar to customers, they’ll be uncomfortable about using your solution.
  3. Customers have heard about large-scale, IoT hack attacks and are reluctant to move forward due to security concerns. Security and privacy must be baked-in to your IoT solution from the get-go and defense in depth must be practiced at every tier of the solution. You must also respect a customers data governance and sovereignty requirements even if it means delivering a 100% air-gapped solution.
  4. Customers struggle to achieve an acceptable return on investment on their IoT solutions. Despite lower costs for all the components required to build an IoT solution, when a customer strings together sensors, microcontrollers, communications networks, storage, middleware, servers, analytics, and integration software, it’s possible that the combined cost could exceed the expected ROI. It’s critically important to beat-up on those costs to stay well-within the ROI envelope.
  5. Customers don’t want another data silo. Too many IoT solutions are focused solely on capturing data from machines and keeping it within their respective systems. It’s important to integrate with a customer’s existing databases, CRM, ERP and other systems no only to add context to machine data but to take actions on insights. Telling a customer they can write code to call APIs on their backend systems is the wrong answer. Make it easy.
  6. Customers keep hearing you must combine Artificial Intelligence with IoT in order to derive value. The tech industry must stop sending this message because it’s dead wrong and it’s scaring customers away. The average person doesn’t know anything about AI except that they think SkyNet is going to take over the planet and robots will be our overlords. There’s tremendous value in connecting your people and machines to gain real-time visibility and situational awareness over your operations. There’s additional value in layering even the simplest analytics to drive decisions and automation. None of this is rocket science and it’s stuff your customers can easily wrap their head around.
  7. Customers who are pitched horizontal IoT platforms quickly become paralyzed. Stop leading with generic, horizontal IoT platforms that try to be all things to all people because it doesn’t work. Customers are not interested in writing code to implement one of many millions of IoT use cases on the platform you’re selling. Your sales motion should include knowing your customer’s business and always leading with vertical solutions to problems they already want to solve.
  8. Customers often find the tech needed to create a smart, connected product eats too much into product profit margins. IoT-enabling products is a super-important way to provide better, ongoing customer service. Especially when those products come with warranties or SLAs that must be met, companies absolutely require IoT capabilities to reduce their risk and eliminate service calls that eat into profits. The sensors, microcontroller, power source, and connectivity for an individual product must always represent the smallest percentage of the total product cost to ensure mainstream adoption. Otherwise, only early adopters will use your smart, connected product.
  9. Customers are unsatisfied with the results they expected from analytics applied to IoT data. This often points to poor data quality and/or unlabeled data. Garbage in, garbage out. Ensure your IoT system is labeling incoming data points as well as mapping unintelligible items like PLC registers to something a human can understand. It’s also super-helpful if your IoT systems knows the data types and units of measure of the incoming data points inside captured data sets to help both simple and advanced analytic systems make sense of the data. Don’t overwhelm customers by delivering 100% of data communicated by endpoints into an IoT system. For the most part, de-duplicate incoming data and only send anomalous data values that stray outside acceptable limits.
  10. Customers have grown tiresome of IoT projects that take too long. I’ve heard of managers who’ve green-lighted IoT projects being asked to leave after 3 years of boiling the ocean to drive value at an organization. Don’t try to boil the ocean anymore. Find small, targeted use cases that can be tackled in just a few months to get tangible, quick wins. When everyone can see the value, move on to the next small project while continuing to build confidence and grow support across the organization. Remember to eat the IoT elephant just one bite at a time.

Keep it simple to achieve success!

Why the Internet of Things is as simple as Twitter

IoT and Twitter

Yes, #IoT + #IIoT and #Twitter are truly birds of a feather.

Twitter is made up of people who have something to say. These people express themselves by Tweeting. Oftentimes, no one is listening. There are other people on Twitter who choose to follow those Tweeters in order to listen to what they have to say. Those people are called Followers. These folks often follow lots of Tweeters to understand the state of their collective minds. A Follower gets notified when a Tweeter they’re following says something. Through the clever use of Hashtags, followers can also choose to search for specific topics aggregated across many Tweeters in order to derive larger insights. Depending on the insight, the Follower takes action. Sometimes, a Follower wants to say something to a Tweeter. They can do this with a Direct Message (DM). Of course, a Follower can only send a DM if the Tweeter has authorized this by following the Follower back. The Follower may say something to the Tweeter that either changes her behavior or updates her state of mind.

You never know.

The Internet of Things is made up of machines that have something to say. These machines express themselves by Publishing their telemetry data to some nearby or far away computer system over a communications network. Oftentimes, no one is listening and that data just piles up. There are computers, people, apps, analytics, machine learning and automation systems who are interested in what the machines have to say. They are called Subscribers. They Subscribe to lots of Publishers in order to know the current state of their collective health or performance. A Subscriber often gets notified when a Publisher streams new data which allows them to process that information in near real-time. Subscribers can also choose to search through data swimming in a lake to derive larger insights. Depending on the insight, the Subscriber takes action. Sometimes, a Subscriber or some other endpoint wants to send data to a Publisher or group of Publishers. They can do this through a Command and Control channel. Of course, a Subscriber can only send a message if the Publisher has authorized this action. The Subscriber might send a Command that either changes the Publisher’s behavior or updates its configuration.

You never know.

I realize it’s easy to get overwhelmed with the sheer complexity of these systems that are transforming our world. That’s why it’s important to maintain the simplest view of what these IoT systems are actually doing. Explaining it to others gets easier which allows you to focus on the specific element that drives value.

Hitachi Named a “Visionary” in Gartner Magic Quadrant for IIoT Platforms

Gartner IIoT MQ

Thrilled that due to hard work by a dream team of PMs, Software/Hardware Engineers & manufacturing + transportation experts, the Hitachi Lumada Industrial Internet of Things platform landed in the Visionaries quadrant of Gartner’s Magic Quadrant for #IIoT Platforms. #IoT

I am grateful to share this honor with with an amazing group of colleagues and friends from Japan, Europe and the U.S. that made this dream into a reality.

As the Global Product Manager and Chief Technology Officer for Lumada, this has been a rewarding journey for me to envision a completely portable Industrial IoT platform that could run at the Edge on a factory floor, in a bullet train, inside a customer’s data center or in any hyper-scale public cloud. This composable platform (use just what you need for your specific use case) combined with our revolutionary Asset Avatars (Digital Twins) that bring Lumada to life, is the very definition of “Visionary.” I also want to send a big congratulations to our Visionary friends at PTC (ThingWorx) and SAP (Leonardo).

Our Lumada IIoT platform coupled with our IoT Hardware Appliance takes you from Edge to Cloud.

Thanks to all the Hitachi collaborators, colleagues and friends I was lucky enough to take this journey with.

Get a free copy of the Gartner report here: https://www.hitachivantara.com/ext/gartner-magic-quadrant-for-industrial-iot.html

Digital Trends and Predictions for 2018

With software and adjacent technologies continuing to eat the world, we see the pace of #digital transformation accelerating in 2018 as organizations strive to enhance their customer and operational intelligence.

Organizations will grapple with a variety of digital technologies and skillsets this year to become more data-driven in order to improve their agility and decision-making capabilities. As always, they’ll be looking for ways to simplify operations and get more done with less. We predict the concepts and trends listed below will light a path for organizations to show them the way forward:

  • Climbing the Stairway from the Edge to the Cloud

The ongoing journey to move data, apps and other digital assets from private, on-premises data centers to public clouds will continue unabated as organizations look to reduce or eliminate internal ICT functions and responsibilities. Even in the midst of cutting costs, organizations will still struggle with concerns around cloud vendor lock-in via PaaS which will benefit IaaS virtual machines, container technologies like Docker and container orchestration technologies like Kubernetes, Docker Swarm, Mesos and Marathon. Overall, Amazon AWS plus Microsoft Azure and Office365 will continue to be the biggest beneficiaries of the public cloud megatrend. Along the way, one of the stair steps that remains on-premise is something called the Fog or the Edge. If you’re familiar with how content delivery network (CDN) proxy servers around the world cache and speed the delivery of Web content to your browser, Edge gateway devices do something similar. With more and more of an organization’s compute occurring in distant, public clouds, Edge devices residing on the local network can cache, aggregate, analyze and speed up cloud content to give employees inside the office a better experience. Edge devices can also be used with the Internet of Things where they connect to machines and cache, aggregate, and analyze data locally instead of waiting for that data to be transported to a distant cloud. Since neither people nor machines are vary tolerant of too much latency, expect the adoption of Edge gateway devices and associated local storage to surge in 2018.

  • Enhanced Networking Inside and Out

As organizations reduce the number of digital assets and activities that take place in-house, the primary role of ICT departments will be to create and maintain fast, reliable connectivity via wired and wireless technologies. Wired networking will be “more of the same” as we push speeds forward with fiber optics and Gigabit Ethernet to shuttle employees out to the Internet. Wireless is where things get more interesting. Inside the office, organizations will continue rolling out 802.11ac Wi-Fi access points running in the 5 GHz band to deliver data and high-bandwidth content like HD video to any device. Outside, the 3GPP has officially signed off on the first 5G specification which promises to deliver greater bandwidth, lower latency, better coverage, lower battery consumption and a higher number of simultaneously connected devices. As you might imagine, it will take some time to roll out technology based on this spec so we will look to get more mileage out of 4G technologies like LTE Advanced. On the slower side of things, you have Low-Power, Wide-Area Network (LPWAN) technologies that are making great strides for certain Internet of Things use cases. The ability to create a large wireless network in places where no cellular coverage exits is compelling for organizations capable of managing such a system. If you have devices or machines that don’t send much data every day, require years of battery life, or need to send data over long distances, one of the many LPWAN technologies might be a good fit. Whether you’re inside or outside, looking for narrowband or broadband, there’s plenty of wireless choices for organizations in 2018.

  • Mobility for People and IoT for Machines

While the mobile device revolution has been the biggest megatrend of this new century, the torch has now been passed to the Internet of Things. When you think about it, they’re not terribly different from each other except for the endpoints. Mobile device endpoints are proxies for people and Thing endpoints refer to machines (intelligent or otherwise). They’re both sending data about themselves and other topics of interest over a network. Both interact with apps, analytics and other on-prem or cloud data sources to derive value and business intelligence. In order to regain a level of simplicity and perhaps sanity, organizations will push back against the use of multiple enterprise platforms for Mobile people and IoT machines. Additionally, many organizations will wring their hands of having to understand an alphabet soup of protocols and myriad IoT standards and revert to using the same Web and Internet standards they already understand. Just like they currently do with Mobile and the Web, organizations will insist that IoT sends and receives JSON data to and from URLs over HTTP/REST while being displayed via HTML5, secured with TLS and brought to life with JavaScript. This use of familiar, widely-used, “good enough” Web technologies will win the day over the more advanced but esoteric technologies currently employed by IoT platforms. This move to simplicity and familiarity will reduce friction and help the Internet of Things deliver value and fulfill its promise the way the Mobile, Web and the Cloud have. Expect big changes in IoT for 2018 along with a big shakeout of the hundreds of Internet of Things platform companies.

  • Digital Twins make Everything Digital

The rise of Digital Twins will give every organization the starting point they’re looking for to begin their Digital Transformation. A Digital Twin is essentially a digital representation of a physical object. It can be a machine, a person, a complex mechanical subsystem, a collection of machines working together on an assembly line, or even a process. These twins have attributes or properties that describe them like a person’s heart rate or a motor’s temperature or current revolutions per minute (RPM). Organizations can assign key performance indicators (KPIs) to the current values of these properties. A red heart rate KPI might be 200 whereas a green motor temperature KPI might be 200 degrees Fahrenheit. Digital Twins can exhibit behavior by executing programming language and/or analytics code against the combination of their current property values and associated KPIs. Not only does this bring everything in an organization to life, it also facilitates the running of simulations to see how things will behave when different types of data points are fed to these Digital Twins. This is definitely the most promising and exciting technology for 2018.

  • Security, Privacy and GDPR cause Organizations to Stumble

Unrelenting cyberattacks keep organizations in a defensive posture rather than moving forward with important digital initiatives and deployments. While we won’t cover the myriad security steps every organization must follow in order to stay ahead of individual and state-sponsored hackers, this is one of the most important functions of an ICT department. Organizational leaders who don’t take this seriously by not funding the appropriate security technology or staffing the appropriate security employee headcount do so at their own peril. Needless to say, organizations must prioritize the privacy and protection of data, people (employees and customers), and systems if they want to remain viable. To turn up the heat a bit, the European Union’s General Data Protection Regulation (GDPR) becomes enforceable on May, 25 2018. This regulation gives control back to EU citizens and residents over their personal data by strengthening data protections for all individuals within the  European Union as well as the export of personal data outside the EU. Quite a few companies operating in countries across the globe play it fast-and-loose with the security and privacy of individual data without user consent. This comes to an end in May when companies can be fined  up to €20 million or 4% of their global annual revenue, whichever is greater, for violating this regulation. Any company operating in the EU must obtain explicit consent for all data collected from an individual as well as reason/purpose of using and processing that data. Additionally, that user consent may be withdrawn. Many companies around the world haven’t made the necessary changes to their digital systems to be compliant with GDPR and will be in for a rude awakening in 2018. Data privacy and security matters in a big way.

  • Making Sense of an Avalanche of Data with Advanced Analytics

While data and analytics systems have been around for decades, the amount of data collected for analysis by organizations has increased exponentially. With a 50x growth rate from machines alone, the Internet of Things has become the newest data source for organizations to analyze. Lots of little data integrated from people, machines and business systems adds up to an overwhelming amount of Big Data to make sense of. Luckily, there are an increasing number of streaming and batch analytics systems and tools to tackle this job. Making this trend better is that most of these technologies are open source and free which helps level the playing field between small, mid-sized and large organizations with varying amounts of money to spend. Head over to Apache.org. Another interesting trend in data science is how Python has surpassed R as the most popular language for Machine Learning. An increase on online courseware, an abundance of scientific libraries, and the fact that Python is one of the easiest programming languages to learn, means you don’t always have to be a PhD in Statistics to get the job done. Virtually every organization in the world is looking for Machine Learning/Deep Learning expertise, so this trend should help the supply side of this equation. The last analytics trend that is coming on strong in 2018 has to do with where data is analyzed. It will no longer be the exclusive domain of the cloud or large clusters of servers. The need to answer questions and make decisions more quickly is driving analytics of all types out to the Edge. Thanks to Moore’s Law and the need to eliminate latency, more and more edge gateway devices will be performing IFTTT and even Machine Learning predictions (with models trained in the cloud). There’s no shortage of important trends that are simplifying advanced analytics for organizations in 2018.

Clearly, 2018 is going to be a transformational year where properly-equipped decision-makers and leaders can shift their organization into the next gear to accelerate their digital transformation. Hold on tight.

VendLink Brought the Internet of Things to Life in the 1990s

The Internet of Things was launched in the early 1990s at a company called Real Time Data. #IoT

This was my first startup after getting out of the military. We brought vending machines to life with embedded software and hardware, early wireless data technology, and graphical software running on Windows.

Our IoT technology allowed operators to know the current state of their vending machines from across town or even across the country. This revolutionary service reduced costs, increased sales and enhanced customer satisfaction.

With VendLink up and running, route drivers only had to visit their vending machines when they needed restocking or mechanical service. Yes, we accurately predicted machine failures without Machine Learning technology. Furthermore, we learned customer preferences to deliver more of the products that people wanted which made each vending machine more profitable.