Connected things as a strong market game changer?
Connected objects put together several markets. In 2015, 42 billion things are connected. In 2025, 155 billion things will be connected to Internet.
The value chain is different. Machine to machine implies a siloed connectivity, while the industrial network implies an interconnected connectivity.
Smart homes materialize a broad economic system, may be with too many possibilities. At present, the service is not up-front. There is a lack of services on the top of certain devices. The value added services isn't clear up to now. To take off the market needs to lift several barriers. First, price is the limit.
Connected objects will become one of the key pillars of tbe industrial giants in their servicisation strategy.
Luc Bretones, EVP Technocentre & Orange Vallée, Orange
To invent innovation locally you need to work at the local level so Orange has got offices in several countries.
IOT is a pillar of our innovation strategy. Orange has to work on value propositions. SIM-as-a-service is now on the market. New distribution models are created. At the same time, security has to be tackled. We want to customize customer experience.
Our company has a lack of good designers. The model is evolving from an Internet of things towards an Internet of services, from business to customer services, where you can monitor your home thanks to an SMS. Monitored security is on. Every area of life is under way. The car has got a specific need for connection.
Orange is an IOT data operator aiming to implement:
- connected devices
- internet of machines
- internet of objects
The objective is to get quickly a critical mass. To implement open innovation our company has to set up vertical partnerships. IOT is a broadfield in construction. On this topic data privacy is at the heart of Orange's concern.
What are the key current consumer applications and their business models?
- 90% value comes from services other than connected objects: Be it a better management of service to make it smooth, to guarantee the quality of service and delivery;
- Orange packs 4G in expectation to connect any objects, hybrid networks on different spectrum (LoRa and wifi);
- Orange connected services cover both B2B and B2C;
- Extend connectivity from cellular network, wifi to other wireless technologies: BLE, zigbee, etc.
- Spectrum of connected products and services: Orange Drive (critical, launched early 2015), Orange Smart Home, Silver cocoon (plug and go data platform), Pops by Citizen Science (connected health);
- Customer experience is the top priority – recruitment of designers as an example.
Orange ambition to be the data operator by 2020.
Orange Datavenue (data powered open platform): An IoT enabler platform for data storage, aggregation and securing, in wide range of verticals. Development of new B2B services that require to conclude major partnerships on verticals (entreprises and open data).
Round-table: How will connected objects impact our lives?
Moderated by: Olivier CARMONA, Director of Business Development, Awox
Xavier BOIDEVEZI, Vice President Business Development & Digital, SEB
Bernardo CABRERA, Head of M2M Marketing & Projects Management, Bouygues Telecom
Ludovic LE MOAN, CEO, Sigfox
Machine to machine is a reality. Today there are around 10 million of connected objects in France. 10% - 20% home appliances in the market have some connectable features.
From the car to consumer appliances, smart buildings, cities, any object can be connected now. At this level, there is a new business market emerging: security with two key elements simplicity and cost.
Generally four standards for connected devices exists, being endorsed by some telecom and internet giants like Google, Apple Homekit, Qualcomm.
What do I do with a connected object?
The key challenge is to make sense of usage for the consumer in terms of connectivity. The sector has to work more on positioning.
Today, music devices must be connected. For this segment connectivity is a must. For lighting, the market has been tackled with a different approach. With a connected lamp you can change its color right now. It's still a fragmented market.
The key driver is to work on the ecosystem of consumers. The global objective is to simplify life and offer embedded devices.
Experience should be at the benefit of technology. You're at the office and you want to start cooking your meal in the oven. How can we manage interoperability between products? It will bring added value. We need to explain what added-value this will bring to the end-user. So we need to move from manufacturing to service. At first, an innovation always seems crazy. Look at the mobile phone. Hackathons might be a way to develop applications and find a pool of ideas. We need to think big.
In terms of data monetization we have to find new models. There is a surge to be able to network vertical data and aggregate them from several fields of our lives (health, security, trips...). Digitalization and tools are increasing. Brands want to stick to consumers. The focus has to be laid on gather then analyse then exploit to finally aggregate.
Keynote: Paul-Edouard Launay - Jasper
Jasper is a start-up, working on operational excellence in IOT. Its aim is to launch, manage and monetize your IOT devices.
IOT is for everywhere and for all sizes of businesses. Services are for all of us. Jasper means to monitor and master the lifecycle of devices: manage / deploy / monetize. IOT always implies services we support. To deploy the equipment at the international level means having a seamless device.
- Business model is not clear yet (i.e. one of the invited company, SEB is still exploring its Business Model).
- Costs: Talking about Smart cit, how will the charges of connectable infrastructure and devices be covered, to whom?
- Energy: Identify the power consumption of devices; apply Low Power Wide Area (LPWA).
- Technologies come after consumer expectation: important to figure out what consumers value the most, what services can be offered to meet their needs? Then technologies come to serve the purpose.
To drive market taking-off:
- The majority of value will come outside the peripheries of home sensors or devices, but services.
- The market waits some model-effect of big manufacturers’ move, in expectation of lowering entry barriers, for example, lowering the costs.
- After the decision on what services to propose to consumers, both SEB and emphasized that true benefits/utilities will be delivered by partnership (open innovation) and by establishment of the ecosystem.
Data analytics allow home appliance makers to discover some key metrics associated with consumer expectation when the devices are being used, thus in return contributing to new services development ( transform themselves to service providers from pure manufacturers).
Advertising might be possible but commercial viability has not been proven yet. Data analytics are likely to make more sense, estimated by SEB.
Subsidiary of La Poste, DocaPost
- Again the key question is the users’ expectation from IoT
- The objective is to access services in wellness, energy, security, connected home and connected city to have a better life.
- “IoT, new vector to develop proximity services” according to David De Amorim
- The innovation will come from the combination of data from different objects and services . It's important to develop an ecosystem
- The way to develop IoT for DocaPost, subsidiary of La Poste will be done through the development of a cross vertical platform (called Le Hub) to be universal, advantages based on neutral both technically and positioning. La Poste wants to address France entirely. The hub will be launched next year and be showcased during the CES in Las Vegas in 2016 with Atol, BNP, Legrand, schools and other start-ups
- La poste wants to address all the sectors. That implies the use of the integration of many technologies to address specific sector such as Sigfox for smart meters or WiFI for cameras security
- For security concerns, La Poste has planned to enable users to manage data
Industrial Internet round table
Moderated by: Ezio ARMANDO, Managing Director in charge of Emerging Technology for Europe, Afriqua and Latin America, Accenture
Vincent CHAMPAIN, Operations Director, GE Corporate France
Andreas FIER, Head of Academic Relations, Deutsche Telekom AG
Didier GUILLOT, Innovation and multi-utilities Direction, director, Sagemcom
Rolf RIEMENSCHNEIDER, Head of Sector for Internet of Things, European Commission
Soline OLSZANSKI, VP Strategy & Innovation, Hub One
Olivier ROUXEL, in charge of RFID & IOT missions, DGE
The definition of IIoT (Industrial Internet of Things) remains blurred. Here, Accenture defined the IIOt as the connected applications and services for business purpose, a broader scope than the conventional definition focusing on manufacturing.
About the IoT architecture and the technologies:
- Deployment of the architecture is not the key question
- Low cost and very efficient architecture required
- The cost of connecting, analysing is almost zero according to GE
- Building consistent infrastructure to connect objects first !! then modules and devices
- The issue is to integrate, the challenge is who is managing and maintaining this architecture
- LoRa identified by panellists as a good technology thanks to the alliance behind
- Triangulation of technologies to locate objects; it’s the compilation of technologies that bring value
Main benefits from deploying IIoT:
- Additional productivity, more reliability especially for oil and gas sectors, new services to client
- From technical perspective : miniaturization, radio protocols and power consumption
- Environmental (energy, lighting), supervision and monitoring for building, assets and also staff, vertical applications
- Example in the airplane sector, many applications regarding the planes, the truck etc and also for the customer interaction
Keys of success for IIoT as the deployment path is currently low
- Business questions to be resolved : how to bring value out of the combination of the use of the technologies
- Security compliance to be resolved for some sector for instance in airplane sector
- 3 Focus to be addressed for Soline Olszanski from Hub One: what services bring, ecosystem to achieve a mass market, business model
- Standards questions to be fixed : fragmentation and lack of standards. Standardisation is coming
- No technologies war : Each technology will have its place in the IoT according to Didier Guillot from SagemCom
- Ecosystem is required otherwise development projects will take longer
- Needed for skilled people
- Continue beta tests
Next step is the finalisation of end users applications.
IDATE, Europe’s premier digital economy think tank, uncovers major disruptions in the telecom, Internet and TV markets
Over the past 15 years, IDATE’s DigiWorld Yearbook has become a vital source of information for industry players, delivering analysis of the developments that have shaped the telecoms, Internet and media markets during the year gone by, identifying core global trends and providing snapshots of what lies ahead. The purpose and scope of the Yearbook has expanded as digital technologies have become an increasingly central component in the different sectors’ transformation: connected cars, financial services, insurance, healthcare, retail sales, the collaborative economy…
IDATE Chairman, François Barrault, is delighted to be celebrating this 15th edition, noting that, “we have entered into a new stage in the digital transformation over the past few months. Today, new intermediaries are coming to shake up the status quo, many of them from outside the industry, taking advantage of new technologies and new consumer cultural behaviour to revolutionise the value chain. Everybody knows how Uber has disrupted the taxi business, and Airbnb the hotel market. But finance, insurance, health and automotive industry leaders have all had to sit up to the risk of digital innovations shaking up their ecosystem, and forcing them to depend on external, unavoidable platforms.” This echoes the central theme of the upcoming DigiWorld Summit (17 – 19 November 2015), as IDATE’s annual conference will be held this year under the banner of: “Digital First”.
“For we here at IDATE,” says CEO, Yves Gassot, “whose business it is to wade through the latest market developments on a daily basis, the process of looking back over the year’s events only confirmed the significance of certain game changers such as mobility, the cloud, the Internet of Things, big data and social media. Some would also add 3D printing and artificial intelligence to the list.”
Scorecard for the digital economy in 2015: back on a growth path, but Europe still lagging behind
After the recovery announced in 2013, DigiWorld markets confirmed a stronger rate of growth in 2014, generating 3,700 billion euros. All segments combined, growth increased to 4.4%, which is 0.5 points more than the year before. These figures are still below those being reported for the economy as a whole: global GDP rose by 5.9% in current value in 2014, compared to 5.3% in 2013. This global recovery will become stronger still in 2015, with DigiWorld markets generating 3,900 billion euros, and climbing to 4,400 billion in 2018.
• This improvement can of course be attributed to Internet services which continue to boast more than 20% annual growth and, despite still accounting for only a fraction of the market, are helping to sustain the whole (growing from 275 billion EUR in 2014 to 475 billion in 2018);
• But also to stronger performances from a large number of more traditional segments – which are typically bundled together as core DigiWorld markets, i.e. telecom and IT equipment and services, consumer electronics, TV services, etc. Growth in these markets, i.e. excluding Internet services, rose from 2.8% in 2013 to 3.2% in 2014.
• Europe as a whole continues to lag behind increasingly vigorous North American markets, and the powerhouse that is emerging Asian markets.
2025: snapshots of 10 key trends and three outlook scenarios for Internet, telecoms and TV markets
For the first time, this year’s edition includes outlook scenarios for Internet, telecom and TV markets and players, provided by IDATE’s teams:
• Internet 2025: Will the top platforms become even more powerful?
• Telecoms 2025: Can the top telcos strike a balance between becoming commodities and competing head on with the top OTT companies?
• TV 2025: How can distributors avoid being cut out of the loop?
About the DigiWorld Yearbook
The finest market insights from IDATE experts who track the changes at work in the globe’s telecom, Internet and media industries throughout the year.
The DigiWorld Yearbook is published in English and French and available in print and PDF format.
> The 2014 edition can be downloaded for free on www.idate.org
> The 2015 edition is available for purchase. Print: €100, incl. VAT; PDF: €69, incl. VAT on www.idate.org
For more information: www.idate.org/digiworldyearbook/
They are the key players of the Digital news and the Digital World… they will be at the DigiWorld Summit !
On sait que le groupe Vivendi se considère comme trop endetté pour rester en l'état et que sa préférence pourrait être de vendre ses actifs dans les télécoms (SFR, Maroc Telecom, GVT). Récemment, la presse a relayé les discussions engagées autour des mariages de SFR avec Numéricâble ou avec Free . Au-delà des considérations propres à Vivendi, ces rumeurs s'inscrivent dans le contexte très déprimé des opérateurs télécom en Europe (secteur maintenant globalement en récession tant pour les mobiles que pour le fixe) et confronté à des investissements lourds et des transformations rapides de leurs business models face à la migration des applications vers les acteurs OTT (Over The Top)… Il est probable que tout ne sera pas dénoué avant le DigiWorld Summit et que beaucoup d'intervenants de la journée du 15 novembre seront écoutés avec attention!
Stéphane ROUSSEL, Président & CEO, SFR (keynote le 15 novembre à 12:10)
Mais aussi :
Jean-Ludovic SILICANI, Président de l'ARCEP (keynote le 15 novembre à 12:35)
Anne BOUVEROT, Director General GSMA (Session Next Gen Telcos, 15 nov 11:15)
Michel COMBES, ex CEO Vodafone Europe (Session Next Gen Telcos, 15 nov 11:15)
Stéphane RICHARD, Président & CEO, France Telecom-Orange (keynote 15 nov à 3:45)
> More information on the website DigiWorld Summit 2012.