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Internet of Things meets Big Data in the Enterprise
© 2015 SAP AG. All rights reserved. 2
The information in this presentation is confidential and proprietary to SAP and may not be disclosed without the
permission of SAP. This presentation is not subject to your license agreement or any other service or subscription
agreement with SAP. SAP has no obligation to pursue any course of business outlined in this document or any related
presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation
and SAP's strategy and possible future developments, products and or platforms directions and functionality are all
subject to change and may be changed by SAP at any time for any reason without notice. The information in this
document is not a commitment, promise or legal obligation to deliver any material, code or functionality. This
document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied
warranties of merchantability, fitness for a particular purpose, or non-infringement. This document is for informational
purposes and may not be incorporated into a contract. SAP assumes no responsibility for errors or omissions in this
document, except if such damages were caused by SAP´s willful misconduct or gross negligence.
All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ
materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements,
which speak only as of their dates, and they should not be relied upon in making purchasing decisions.
Legal disclaimer
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IoT means Big Internet
© 2015 SAP AG. All rights reserved. 4
IPv6 makes room for the internet to grow
5 © 2015 SAP SE or an SAP affiliate company. All rights reserved.
Connected world …
CAGR for M2M
market until 2020*
40-50%
*Source: Gartner – “Top 10 Tech Trends for 2013” – 2012
**Source: Economist Intelligence Unit – ”The Rise of the Machines” – 2012
Price of sensors,
microprocessors &
wireless technologies
today vs. 4 years ago
-80%
Connected Devices
1 B 2005
6 B 2015
50 B* 2020
© 2015 SAP SE or an SAP affiliate company. All rights reserved.
© 2015 SAP SE or an SAP affiliate company. All rights reserved. 6 Public
End of
18th century Use of water and steam
power to run mechanical
production facilities
Early 1970s
Use of electronics and
IT to automate
production
Beginning of
20th century Use of electrical power to enable
work-sharing mass production
Today
Use of cyber-physical systems to
monitor, analyze, and automate
business
1 2 3 4
… leads to Internet of Things / Industry 4.0
© 2015 SAP SE or an SAP affiliate company. All rights reserved.
7 © 2015 SAP SE or an SAP affiliate company. All rights reserved.
… and to Intelligent Products
Smart Data
Cyb
er-
Ph
ys
ical S
ys
tem
s
© 2015 SAP SE or an SAP affiliate company. All rights reserved.
8 © 2015 SAP SE or an SAP affiliate company. All rights reserved.
“Digitization in manufacturing will have a disruptive effect every bit as big as in other industries that have gone digital, such as office equipment, telecoms, photography, music, publishing and films.”*
© 2015 SAP SE or an SAP affiliate company. All rights reserved. *Source: The Economist, 21.04.2015
9 © 2015 SAP SE or an SAP affiliate company. All rights reserved. Connected policing
Connected healthcare
Connected cities Connected home
Connected car
Connected family Connected retail
Connected asset management
Responsive supply chains
Connected logistics
Predictive maintenance
Connected buildings
IoT touches almost every aspect of life & business
© 2015 SAP AG. All rights reserved. 10
$14.4T in value at stake – the combination of increased revenues and lower costs that is created or will migrate among companies and industries from 2013 to 2022.
Source: Cisco
Capturing your share of the value at stake Industries are investing now!
$5B
$8B
$10.5B
$3B
$10B
$2.7B
$4.5B
$4.2B
$1.1B
$4.2B
IM&C
Transportation
Oil and gas
Mining
Retail
in 2013 in 2017
Cisco
Internet of Things Business Opportunity
66%
Cross-Industry
Use Cases
Industry
Use Cases
$14.4T in Value at Stake - the combination of
increased revenues and lower costs that is
created or will migrate among companies
and industries from 2013 to 2022.
44%
Innovation
Customer experience
Supply chain and logistics
Employee productivity
Asset Utilization
$3 T
$2.5 T
$2.5 T
$2.5 T
$2.5 T
Top 5 Drivers for Value at Stake
Big Data Today GE engines in 2014
“
”
“These engines generate 1Tb of data
per aircraft per day”
Jeff Immelt – CEO GE
Keynote for Minds + Machines 2012
talking about the new LEAP engine
13 © 2015 SAP AG or an SAP affiliate company. All rights reserved.
Sense and Respond
Process data and perform analysis
to make informed and intelligent
decisions in real-time
Collect data from a variety of
sources including equipment,
sensors and social media Understanding
available data – big
or small
100101 011010
Challenging to
detect meaningful
signals in big data
Severe analytics
skills shortage 50-60% shortfall for experienced
data analysts Dun & Bradstreet and McKinsey Global Institute analysis
86% of organizations that used
predictive realized a competitive
advantage
Sense and respond are no longer enough
Difficult to apply
predictive algorithms
to anticipate business
trends
15 © 2015 SAP AG or an SAP affiliate company. All rights reserved.
Confidently anticipate what
comes next to implement
unthinkable scenarios
Identify hidden signals and drive
transformational results faster
Advanced
Analytics
Predict What’s Next
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Everything…
…and anything
Example use cases
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Building personalized health systems is IoT
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Predictive Maintenance is IoT
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Connected Logistics is IoT
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Technology Roadmap: The Internet of Things
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Ingredients of IoT
“Thing”
fe80::e2f8:47ff:fe2a:2340
Unique Identity
Sensors
Connectivity & Inter-Connectivity Analytics and Prediction
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From IoT to Big Data apps
Source Acquire Transform Stage Model Exploit View
Trusted Systems
External and
untrusted
sources
Other sources
Networks
Productivity Apps
Including mail
Repositories and
KM Stores
Logs and
measurements and
embedded sources
Internet/Mobile
CRM
Service
Billing
Industry
Solutions, such as
transportation,
logistics,
healthcare,
utilities etc
External
Systems
Internet/Mobile
Corporate
Assets
Explore
Report
Research
Predict
AutoDecide
Calculate
File Store
Data
Warehouse
Analytic
Store
Quality
Abstract
Enrich
Transform
Validate
Message
based
Integration
Real-time
and block
based
Data Stream
based
Integration
Crawler
based data
acquisition
Information
Indexing
TH
© 2015 SAP AG or an SAP affiliate company. All rights reserved. 23 Public
Internet of Things Characteristics and Requirements
Distribution
Widely distributed deployments
Environments not under direct
control of the service operator
Scale
10s – 100.000s of devices
Central management
Mass configuration and lifecycle
management
Connectivity
Wired, wireless, or cellular
Public internet
Direct or 3rd party middleware
Communication
Bi-directional
Stream or batch
Reliable or best-effort
Heterogeneity
Device types
External data sources
Data / event volumes
Edge Capabilities
Data processing
Distributed decisions
Disconnected operations
© 2015 SAP AG or an SAP affiliate company. All rights reserved. 23 Public
SAP HANA Cloud Platform The Industry 4.0 enabled in-memory platform-as-a-service
Machine Cloud (SAP)
HANA Cloud IoT Services
End Customer (On site)
Business owner (SAP Customer)
HANA Cloud Integration Business Suite Systems
(ERP, CRM , etc.)
SAP Connector Device
HANA Big Data Platform
Data Processing
Extended Storage
Hadoop
In-Memory Engines
Streaming
Storage ∞
HANA Cloud Platform
Machine Integration
Process Integration
IoT Applications (SAP, Partner and
Custom apps)
Deep Dive: SAP HANA Cloud Platform IoT Services
HANA Cloud Platform (HCP)
HANA Big Data Platform
IoT Core Services
Infrastructure Services
Other Services
IoT Models IoT Data
IoT Tools & Dashboards
Workbench SAP Partner Customer
Device Management
IoT Config
Edge SDK
IoT Model & Data Management
IoT App Enablement
App Data
Messaging
Applications
ISV
Geo-Spatial Services
Complex Event Processing
Integration Services
…
Edge
SAP IoT Connector
(3rd Party) Gateway
Device
Device
Device
Operator Console
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Event Stream
Processor
(ESP)
SAP HANA & Complex Event Processing
?
INPUT STREAMS/EVENTS
Event Data
Sensors
Alerts
Studio
(Authoring)
SAP HANA
Dashboard
Message Bus
Integrated events & history
Extreme performance & scalability
output to applications, dashboards, devices,
messaging platforms
OUTPUT
STREAMS/EVENTS
Analytics
Applications
Business
Data
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SAP HANA platform supporting big data applications
Column and
row store
+
Multi-core/
parallelization
In-memory
Compression
SQL interface
on columns &
rows
SQL
T
Text
Retrieval &
Exploration Predictive
analytics
Data Modeling
R
Integration
Math
Libraries
Application
Server
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Learn how to make money with it
Finding meaningful use cases is key to success
Visions are allowed, but first bills have to be paid
New business models are key to making money with IoT
Business models will have an impact on the architecture of solutions!
Complexity
Keep it simple!
Keep it understandable for customers and consumers
Privacy & Security
Privacy and Security will distinguish between success and failure
Managing one’s own privacy will become a complex task –
and needs to be kept simple
Risks and challenges for IoT
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SAP promotes IoT and innovation
Education: openSAP - How the Internet of Things and Smart Services Will Change Society https://open.sap.com/courses/iot1
D-shop: an IoT innovation space for SAP developers http://scn.sap.com/blogs/julienvayssiere/2015/01/31/d-shop-you-don-t-need-to-die-to-go-to-developer-heaven
Supporting the best startups: SAP Startup Focus http://startupfocus.saphana.com/sap-events/
30 © 2015 SAP AG or an SAP affiliate company. All rights reserved.
www.sap.com/iot
@SAP_IoT
SAP Internet of Things
SAP Internet of Things
© 2015 SAP SE or an SAP affiliate company. All rights reserved.
Thank you
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