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BERLIN | 21-22 MARCH 2017

New Policy & Industry Initiatives & Opportunities: Whole-of-Government Initiatives

Steven Beletich EDNA Operating Agent

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Contents

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NetworkStandby

GovtRegulatoryResponses

GovtVoluntaryResponses

IndustryVoluntaryResponses

Whole-of-GovtResponses

IntelligentEfficiency

GovtRegulatoryResponses

GovtVoluntaryResponses

IndustryVoluntaryResponses

Whole-of-GovtResponses

Whole-of-GovtResponses

JapanIndiaUSAKorea

Context

§  Governments see benefits of connectivity §  (Quasi) whole of governmnent §  IoT centric

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Japan

§  “Abenomics” –  Investment in “Innovation Creation” –  Supports IoT –  Leverage IoT & big data into many sectors

§  NexGen IoT acceleration lab –  Japan as best place to trial IoT, AI & robotic business models –  Disruptive start-ups –  Project support & funding –  Guide regulatory reform

5METI=MinistryofEconomy,TradeandIndustry

Basis – McKinsey IoT Report (impact by 2025)

7 Source: Compiled by METI based on McKinsey & Company materials http://www.mckinsey.com/insights/mgi/in_the_news/by_2025_internet_of_things_applications_could_have_11_trillion_impact

P

Manufacturing 33%

Infrastructure 15% Healthcare

14%

Retail 11%

Logistics 8%

Other 19%

$11 trn p.a.

traffic volume control, water & air quality management

self service checkouts, RFID, taylored advertising

optimization of transport routes, self-driving trucks, navigation systems Productivity incl energy savings

Disease prevention due to monitoring, health management

　　IoT, AI, big data

Socio-economic revolution

Population decline, aging of society

Substitution for workers

Exhaustion of regional economies

Self-driving systems to improve mobility of elderly

Energy restrictions Smart meters, etc.

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Financial burden of healthcare, nursing

Preventative medicine based on wearable data and health

insurance data

Formulating vision, strategic initiatives for IoT, big data, AI

Mobility Healthcare ○ Vision: Highly advanced self-driving vehicles ○ Project: Pilot testing of highly advanced self driving systems that accelerate, control and steer vehicles in convoys on expressways

○ Vision: Life-long employment society thanks to healthy lifespan extension ○Project: Development of new healthcare industry leveraging health management, insurance claim data; analysis of genome data; smart clinics

Review of systems necessary for self driving vehicles Standardise connectivity of medical

equipment Rules for use of personal data

Regulatory reform

Manufacturing ○ Vision: Realization of world’s top manufacturing competitiveness; shift from standard products to tailor made product; zero design lead time; zero inventories ○ Project: Testing of pilot smart factories (networking of upstream-downstream, design-production)

Increase in social value

Standardization of telecoms specifications to promote data usage

・ Expansion in healthy life extension industries ・ Optimization of health insurance,

nursing insurance premiums ・ Growth in real working population　　　　　

・ Big reduction in traffic accidents ・ Solution to driver shortage ・Provision of transport to elderly

・ Improvement in labor productivity ・ Improvement of export competitiveness of manufacturers ・ Export of manufacturing systems

Initiatives to realize future outlook

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NexGen IoT Acceleration Lab

・Generate short-term projects driven mainly by start-ups as spearheads, and medium-term cross-industrial consortium projects for social implementation in each of 10-20 thematic areas

Manufacturing Infrastructure Construction FinTech Mobility Medical

/ Healthcare Smart Homes

(1) IoT projects generation ・Create IoT projects by facilitating partnerships among large companies, start-ups, foreign companies, and research institutes, local governments, through activities such as matching events

(2) Funding support ・Financially support short-term projects driven by start-ups ・Conduct medium-term feasibility studies and field tests for implementation

(3) Regulatory reform/exceptions (‘sanctuary’) ・Breakthrough current regulations and rules essentially for new business models

NEXGEN IOT ACCELERATION LAB

GOVERNMENT OF JAPAN WILL PROVIDE

FUNCTIONS

(４) IoT Category-base scenarios/strategies ・Share the views/scenarios/strategies how IoT changes the society/solve social problems

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India

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Draft Policy on Internet of Things

Department of Electronics & Information

Technology(DeitY)

Ministry of Communication and Information Technology

Government of India

Digital India Program §  Transform India: digital empowered society + knowledge economy §  100 smart cities - USD 1.1b allocated

–  Smart parking –  Intelligent Transport System –  Smart urban lighting –  Waste management –  Smart city maintenance –  Tele-health care –  Citizen safety –  Smart grid –  Smart energy –  Water Management

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Elements of Digital India Program

§  Demonstration §  Incubation & capacity building §  Innovation, research & development §  Incentives & engagement §  Human resource development §  Standards

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Standards

§  Globally acceptable standards for –  IoT standardization –  Energy communication protocols –  Cloud communications –  Data creation and traceability –  Energy consumption –  Data security –  Data privacy & accuracy

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USA

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FOSTERING THE

ADVANCEMENT OF THE

INTERNET OF THINGS

THE DEPARTMENT OF COMMERCE

INTERNET POLICY TASK FORCE &

DIGITAL ECONOMY LEADERSHIP TEAM

January 2017

Green Paper – January 2017

§  Dept of Commerce - foster advancement of IoT §  Benefits

–  Personal convenience –  Public safety –  Efficiency & environment –  Mobility –  Health care –  Productivity –  New industries and consumer goods

§  For full potential - infrastructure & policies in place §  Including cyber-security and privacy

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High Level Actions

§  Enable infrastructure availability & access §  Craft balanced policy & build coalitions

§  Promote standards & technology advancement

§  Encourage markets

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Stakeholder Approach

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Notice and Takedown System, convened by the U.S. Patent and Trademark Office (USPTO) and the National Telecommunications and Information Administration (NTIA).62 Commenters noted that the U.S. Government should continue to employ these processes to solve policy challenges as an alternative to pursuing top-down regulatory solutions while IoT technologies are still advancing and gaining market scale.63

3. An Approach for Departmental Action to Advance the Internet of Things

Given the great economic and social potential of IoT, as well as the qualitatively different challenges raised by its development, it is important for the Department to engage proactively yet selectively on issues described in this paper.

The Department has a longstanding approach to encouraging innovation in new technologies, while taking steps to address policy matters in a proactive, multistakeholder manner. We have approached emerging market trends and technologies with restraint and an eye toward allowing new entrants room to experiment and mature before they encounter significant government intervention. These guiding principles worked well as the Internet developed, and – as gleaned from our commenters – are appropriate to apply in the IoT sphere as well. Coupled with close partnership and collaboration with stakeholders, including our government and international partners, a cautious but thoughtful approach will map well to an emerging landscape where existing and new policy and technology norms and standards are starting to coalesce or collide. The overarching goal will remain the same: to foster the benefits of IoT while meeting its challenges.

Figure 1. The Department of Commerce will work across multiple stakeholder communities to foster IoT advancement.

62 See NIST, Framework for Improving Critical Infrastructure Cybersecurity, https://www.nist.gov/sites/default/files/documents/cyberframework/cybersecurity-framework-021214.pdf. For information on the Forum, see https://www.uspto.gov/learning-and-resources/ip-policy/copyright/multistakeholder-forum-dmca-notice-and-takedown-system. 63 See ADP Comment at 3; General Motors Comment at 3; U.S. Chamber of Commerce Center for Advanced Technology and Innovation Comment at 3-4.

South Korea

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Master Plan for

Building the Internet of Things (IoT)

that leads the hyper-connected, digital revolution

2014. 5. 8

Ministries of the Republic of Korea

Objectives

§  Establish & expand creative IoT market §  Foster global IoT businesses §  Establish infrastructure

–  For safe and dynamic development of IoT

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Industry Sectors

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04

Market Trend and Ecosystem AnalysisⅡ

[ Market Trend ] Leading businesses of the world are competing to develop a dominating platform and standards in order to take lead in the IoT ecosystem based on their core competencies.

- They are seeking for mutual competition and cooperation, not knowing who will be the winner, as there is no dominate provider as of yet.

[ Ecosystem ] The market ecosystem is transforming itself into an open one where anyone can easily develop and provide services and access and use of things via smart phones or mobile apps.

- It is a market where small and medium-sized venture companies with creative ideas can take lead in, as there are a variety of applicable areas including the public sector, industries, and consumer products for daily life.

Network and Communication Businesses

IoTCompetition/ Cooperation

Constantly playing the leading role in IoT through projects for communication equipment, lines, and platforms

Development cooperation led by specialized businesses in home electronics and semiconductors

Build plants and factories/ Building automation/ Develop IoT for automobiles

Expand to the IoT platforms based on their own Internet platforms

Home Electronics/ Semiconductor Businesses

Manufacturing/ Automation/ Automobile Businesses

Software/ Internet Businesses

Type Ecosystem Status

Service (S)

· (Government) Though various pilot projects were implemented, they were not widely applied due to the burden of development and operational costs. · (Industry) It was mostly large businesses that introduced IoT; there was a low rate of IoT introduction by SMEs due to cost

constraints. · (Individual) Global businesses are competing with each other in the areas of wearable devices, home electronics, and

automobiles. SMEs are making efforts to make their way into the market of diverse areas of consumer product application.

Platform (P)

· Large businesses in Korea are developing the platform, but they lack leadership in the global market.· As SMEs in Korea lack platform, it is difficult for them to enter the market; they are even likely to be dependent on global

businesses. · Global standardization is in progress based on oneM2M* (established July ’12 and to be completed in August ’14)

Network (N)· Technologies are being developed, which use software to process the rapidly increasing traffic in a flexible manner · There is an increasing demand for non-licensed low-power, long-distance band to interconnect objects of remote areas.· Infrastructures such as 5G, Giga-Internet, and IPv6 are being developed and constructed to facilitate IoT.

Device (D)· After the widespread take up of smart phones, global companies are now competitively developing augmented, intelligent,

and converged devices.· The market is forecasted to expand based on wearable devices and smart sensors.

Security (Se)· As there are increasing cases of security breaches in IoT services (for home, home electronics, and healthcare),

countermeasures are being discussed.· Technologies and services should be developed, where functions for security and privacy protection are installed from the

designing stage.

* oneM2M : Standard development institutions around the world – Europe (ETSI), North America (ATIS and TIA), China (CCSA), Japan (ARIB and TTC), and Korea (TTA) - officially launched oneM2M (in July 2012), in which 267 businesses including Cisco, Huawei, 3M, Intel, IBM, and Oracle have joined (there are 13 Korean businesses including Samsung Electronics, LG Electronics, SKT, KT, LGU+, etc.).

Ecosystem

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Master Plan for Building the Internet of Things (IoT)

[ Vision: A Leading Country in Hyper-connected Digital Revolution ]

One of the leading countries in the world where citizens, businesses, and the government are actively developing and using IoT services.

[ Goal (2013 → 2020) ]

[ Strategy 1. Increase Collaboration Among Players in the Ecosystem (SPNDSe) ]

The government will collaborate with global businesses, large businesses, and communication service providers to develop an open platform, upon which other businesses that make up the entire ecosystem can participate and further cooperate in developing IoT products and services.

Collaboration between the entire government (ministries and local governments) and the private sector (businesses) will be encouraged for IoT services to reach industries and expand throughout the entire country.

Vision, Goal, and StrategyⅢ

Type 2013 2020

Domestic market volume* expansion KRW 2.3 trillion KRW 30 trillion

No. of SMEs and mid-grade export businesses 70 350

No. of employees in SMEs and mid-grade businesses 2,700 30,000

Productivity and efficiency increase in user companies 30% increase

* Market volume does not include the value-added impact of IoT applications to other industries.

IoT Ecosystem Strategy

Vitamin Project …… MinistriesLocal Government

Entire Industries

Support service development of SMEsS

Provide an open platform…P Global Businesses Large Businesses Communications Service Providers

International Standard

Induce infrastructure investmentN Giga Internet 5G Mobile

Communication IPv6……

Improve sensor/ device competitivenessD Smart Sensors Wearable Devices Connected Car……

Develop services with security issues taken into consideration

from the planning stageSe Information Security Privacy Authentication/

Encryption……

Conclusions – Whole of Government Initiatives

§  “Quasi” §  Other strategies exist (e.g. Europe) §  Many countries at start §  High level strategies drafted §  Few strategies (e.g. India) mention device energy §  Key recurring themes

–  IoT focus –  Sectors: manufacturing, energy, transport, health –  Privacy & security –  Standardisation –  Market development –  Intra-governmental co-operation

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