30 November - 1 December 2015

London “ChallengeUp! Summit”Final Preparation for Innovation SummitDemo DayInvestor Pitches Press & Communication

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Challenge Up! is the Joint Internet of Things Acceleration and Incubation Program by

Intel, Cisco and Deutsche Telekom.

Smart Solutions

Information Security

Big Data

Analytics

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Cloud Computing

challengeup.eu www.facebook.com/ChallengeUpAccelerator

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The Innovation ChallengeInnovation used to be supported in corporations by classical R&D and funnel processes (see fig. 1) with no real exchange and innova-tion transfer. The next stage innovation process in corporation still focused on the funnel (fig 2.) but was also permeable with spinning-off innovative topics or taking innovative topics from external into the funnel. But what we need today to face the challenges of global IoT is to combine the above mentioned not only with the competi-tion between corporations and startups and turn it into co-opetition but also with the possibility to bring the innovation to customers (see fig. 3).

The complexity in today’s and especially tomorrow’s technologies and markets (B2B) provoke the bundling of means. Successful industry partners, like the partnership with startups of Intel, Cisco and Deutsche Telekom, can leverage corporate efforts to answer customer demands much better with joint and open innovation.Additionally we see early stage startup companies competing in the complex world of IoT, competing against successful industry corpo-rations and other innovative companies. Those startups are much more successful if supported with joint “business and sales power” focus and “fast Proof of Concepts (PoCs)”. There is a need to provide startups exactly with this business development power and even better in a joint “3x as powerful and fast”-way. Therefore Intel, Cisco and Deutsche Telekom teamed up to bundle their strength and combine it with startup innovation.

Connected Innovation in a Connected WorldEverything will be connected in the future. The Internet of Things (IoT) is one of the booming industries of today. But no incumbent has delivered an end-to-end solution for IoT yet. Not even close. Additionally young and agil startups push into the market with disruptive innovative products. Therefore the challenge of today is not only to get a stake out of the IoT market, but also foster in-novation and include startups. Today we need connected innova-tion in a connected world.

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Our Answer – Challenge Up!Having understood the innovation challenge and a way to face it, three global tech players – Intel, Cisco and Deutsche Telekom – are teaming up to address the challenges of IoT and being a true pioneer of Open Innovation 2.0 and connecting innovation. That joint partnership is called Challenge Up! – an accelerator and incuba-tor program targeting IoT startups.

Challenge Up! aims at helping innovative IoT startups go-to-market faster through joint projects, mentoring, high-value networking and corporate assets. It is an example of true pioneer Open Innovation 2.0 with bringing together startups, corporations and customers in a new platform to perform co-opetition and building use cases overarching corporate and customer limits.

Challenge Up is about co-innovation, co-development and co-sales!• Co-Innovation/OpenInnovation2.0aspracticedwithinChallenge Up! and its three corporate partners is new and unique and has specific requirements for and from industry partners• ChallengeUp!isfocusedonbusiness value for new trends and technologies requiring the “double (triple) parent” approach to co-innovate, co-develop and co-sell• FastPoCpowerandthereforecustomertractionwithintheshort- est time can be seen as a “hyper innovation” for startups and the industry partners.

Challenge Up! startups are not only – as stated before –supported by the joint partnership of Intel, Cisco and Deutsche Telekom, but also gain access to their huge combined customer base.

Challenge Up! program is an EMEA wide IoT accelerator and incu-bator that was launched in a joint partnership by Intel, Cisco and Deutsche Telekom. Key goals were to understand hot IoT topics, business- and go-to-market models of the IoT startups in order to cross-check those with common industry believes mainly driven by larger corporate players. Furthermore, selected use cases with start-ups, Challenge Up! partners and their customers were identified, executed and launched to create real business value.

Challenge Up! received applications from over 40 EMEA countries, over 300 in number and 12 startups were finally selected and went through the Challenge Up! program.

• PressfromMWC:62articles• 15.000+Facebooklikes• Presentat30+startup/ IoT events• 5.500+IoTmultipliers reached through direct mail• Emailto5.500multipliers

WhyisChallengeUp!aUniqueProgramandPioneerofOpenInnovation2.0

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Challenge Up! program was build up in five phases starting with the selection of 12 startups, an acceleration week and incubation days with mentoring sessions on campus of the three partners, finding use cases and connecting the startups into the corporation and to their customers. The program ended with a joint launch and demo day of the startups at the Challenge Up Innovation Summit and Demo Day in London (within an external event UnBound Digital).

• 60+mentorsfromI/C/DT• 44mentorsperformedmore than400onlineassessments (alone during selection phase)

Timeline

Challenge Up! differs strongly from all other corporate acceleration and innovation programs. Not only the fact that we combined forc-es of three global tech players, but also combined co-innovation within B2B industries and focused on adding business value at the same time, made it unique. Additionally, besides gaining trac-tion via the sales power of the three partners, startups may also get funded and backed with venture capital, strategic investments and are supported in commercializing their product or service for global markets. And all of that also adds to its huge success.

Challenge Up! did not only connect startups to the three partners, but also created a real connected innovation team between the companies as well. With over 60 mentors from all three companies working together closely during the selection process and then further during mentoring session with the startups and defining use cases with and for customers.

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Challenge Up! Showed Impressive Results Challenge Up! gave very strong innovation and trend insights in the IoT market. It showed that overall the hot industry topics based on the startups are completely in line with those penetrated and high-lighted by industry leaders and key sectors. However we found many contradictions between industry believes and the startups’ perspec-tives.

Startups are following general broad industry trends and market pre-dictions. Most of them are willing to partner and complement with incumbents as they often can’t compete directly in most sectors. They bridge into areas where incumbents aren’t active or poorly ex-ecuting. From their point of view, Challenge Up! is a great way to get to know the corporations and find best use cases to work together and bundle innovative approaches with corporate go-to-market power.

Challenge Up! startups are separated into IoT fields of Smart Home, SmartFactory,SmartCity,IT-Security,Data,AnalyticsandIoTPlatforms. As corporate processes can be complex and the concept ofOpenInnovation2.0withstartupsnoteasilyimplementedfollow-ing selected use cases show the great success of Challenge Up! in producing common implementation use cases.

Challenge Up! Use CasesWithin the Challenge Up! program were 12 startups: Admetsys, ComfyLight,DeviceHub,Hi-Park,Ifinity,n-Join,Oort,ProGlove,SEMSeye,Senic,TaggaloandWaylay. All of the startup had at a use case with at least one of the corporate partners, most of them even with two or three. Four outstanding examples and use cases from n-Join, Senic, Semseye and ProGlove will be described as following:

Challenge Up! startups are in SmartHome,SmartFactory,SmartCity,ITSecurity,Data,AnalyticsandIoTPlatforms

On site sessions, such as the acceleration week in Cracow or the in-cubation days Berlin and Dublin brought together startups, mentors and senior management from Intel, Cisco and Deutsche Telekom in a vibrant environment. The mentorships last not only during the on-site incubation weeks but also throughout the whole program.The startups got additionally access to partner events and met customers of the three partners, e.g. access to CEBIT and the “Long Night of Startups” during the Berlin Incubation Days or be part of the UnBound Conference in London.

• 100%ofstartupswould recommend the program• >90%wouldparticipate in the next edition of Challenge Up!

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n-Join–anintegratedsolutionwithCisco,IntelandDeutscheTelekom - leverages the rapid advancements in IoT to make produc-tion facilities and factories more flexible, maximize their output and reduce their environmental signature. n-Join provides the software, including integration and design, while Cisco will support with hard-ware and Deutsche Telekom with their cloud infrastructure. n-Join software was integrated into Cisco UCS server and already installed at a client site. The data is stored and analyzed both on premise and on Deutsche Telekom’s cloud environment thus can be easily ac-cessed through the cloud. Furthermore Intel is committed to do a Proof of Concept with n-Join in factories. n-Join is already installed at Strauss Dairy in northern Israel, one of the largest dairy product manufacturer in Israel.

Senic is a universal dial for IoT, it is able to control smart lights, locks, thermostats or speakers with simple gestures rather than browsing through apps on a smartphone. Senic creates natural user interfaces (NUI) to make the interaction with technology seamless and smart at home and work. Senic’s first product is Nuimo, an universal controller for Internet of Things. Senic will push the smart office concept jointly with Cisco,IntelandDeutscheTelekom. Intel will integrate Senic in their computers, Cisco in Collaboration Sys-tems such as MX300 and Deutsche Telekom will integrate Senic in their Smart Home platform Qivicon. Senic and the three Challenge Up! partners and their engineers worked very closely to overcome technical obstacles and make the smart office proof of concept.

SEMSEYE is basically Google Analytics for retailers and shopping malls. It is a unique solution for monitoring people flows and is built on the most advanced algorithms for intelligent video processing. Intel runs a pilot using SEMSEYE in the Dublin Croke Park Sports stadium and also for the City of Dublin (City Project ‘Smart Cities’ /museums and libraries), where SEMSEYE will be used to monitor visi-tor flows. Additionally SEMSEYE might be integrated on Cisco’s CMX Platform. DeutscheTelekom installed SEMSEYE in five flagship stores in Romania, and in two flagship stores in Poland. Also Telekom Roma-nia is promoting SEMSEYE to their customers (retail, e.g. Penny store).

ProGlove is a smart glove that enables its users to scan hands-free and provides them with an instant feedback. The device unlocks a new level of business intelligence through additional data point. ProGlovecombineswearabletechnologywithIoTforindustry.Oneuse case is in creating a smart supply chain and thereby accelerating the handling of packages and goods by faster and more ergonomic picking. ProGlove can be seamlessly integrated into Supply Chain

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Monitoring solutions of e.g. warehouses, logistics and transportation companies. Currently Proof of Concepts (PoC) are run with selected customers from Cisco, Intel and DTAG. Additionally, ProGlove has a direct network connection via Cisco 829 router. The integration of the gateway functionality into the Cisco 829 router makes a separate gateway obsolete.

ExemplaryInsightsfromChallengeUp!IoTFieldSmartFactory:Many larger corporations are entering the smart manufacturing space with nobody covering the entire end-to-end solution. Many startups focus on value through easy to integrate technology that delivers easy to understand benefits. Challenge Up! insights show, that startups position themselves as lean smart factory enabler, delivering an end-to-end and easy-to-install solution to digitize machines; especially for small and midsize businesses. However they focus rather on specific solutions targeting clear defined use cases that could add significant customer value and will be part in future stages of a smart factory platform. Therefore it is quite obvious that 100% of the Challenge Up! startups asked, state that not only partnerships are very important within the smart factory field but also piloting as proof of concept. Challenge Up! gives startups the possibility to do exactly that!

Insights from Challenge Up! partners and startups now show that there will be digitalization of the entire horizontal and vertical value chain in factories. Additionally, data will be the key driver of pro-duction lines in the future. And to get to that scenario, startups and corporations have to work hand in hand and perform in an open innovation environment and mindset.

If you would like to know about the insights for the other fields, please contact VV@hubraum.com or be part at the next Challenge Up! program!

Challenge Up! program is not only about finding innovation for corporations but also helping to bridge the gap between startup culture and corporations. Challenge Up! focuses on startups, help-ing to develop their product and find best go-to-market strategies and piloting with customers. But even besides those, Challenge Up! helped startups and their teams in developing professionally. Find some interesting insights from startups below, based on the startup feedback given in our questionnaires.

ParticipantsInsightsfromChallengeUp!Program

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• 100%wouldrecommendtheprogramtootherstartups• 89%declared,thatparticipationhelpedintheirprofessional development• Mostimportantthingsourstartupslearned:Salesknow-howand go-to-market strategy insights• Mostvaluabletostartupswerethementoringsessionsand networking• Diversityfrommentorsbasedontheconceptof“threeparenting” was very well appraised• Learnedhowtoaddressbigcorporationswithinsalesactivities and understand complex processes and organizational structures• Strengthofprogramiscontinuousmentorrelationshipthatlasts throughout the program, not only during incubation sessions

Quote: “The program is awesome, the combination of companies, the people”

Quote: “Greater insights into the structure of the companies involved and the decision making process within each one. This is critical for the success of any joint operation and for a startup it can appear initially as a black box”

QuotesfromtheChallengeUp!Partners:“We are looking forward to the creative ideas for new products and services from across the region to improve how we live and work together. By giving startups access to the complimentary resources of our three global companies we can help them accelerate their ideas into commercial success,” said Christian Morales, Corporate Vice Pres-ident and General Manager Europe, Middle East and Africa at Intel.

“With an expected 50 billion things connected to the Internet by 2020, the Internet of Everything opens up great opportunities. To help better address these opportunities, Challenge Up! brings together the best of the technology world in an ecosystem of open innovation,” said Mike Flannagan, vice president, Data and Analytics Business Group at Cisco.

“With Challenge Up! we are giving a great signal to the startup world, bringing together the resources and know-how of three corporations. We will use our combined experience for the benefit of the Challenge Up! program and the support of the startup community,” said Elias Drakopoulos, Senior Vice President responsible for Europe B2B at Deutsche Telekom.