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Internet of Things meets Big Data in the Enterprise

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Page 1: Harnessing The Internet of Things · SAP assumes no responsibility for errors or omissions in this document, except if such damages were caused by SAP´s willful misconduct or gross

Internet of Things meets Big Data in the Enterprise

Page 2: Harnessing The Internet of Things · SAP assumes no responsibility for errors or omissions in this document, except if such damages were caused by SAP´s willful misconduct or gross

© 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

Page 3: Harnessing The Internet of Things · SAP assumes no responsibility for errors or omissions in this document, except if such damages were caused by SAP´s willful misconduct or gross

© 2015 SAP AG. All rights reserved. 3

IoT means Big Internet

Page 4: Harnessing The Internet of Things · SAP assumes no responsibility for errors or omissions in this document, except if such damages were caused by SAP´s willful misconduct or gross

© 2015 SAP AG. All rights reserved. 4

IPv6 makes room for the internet to grow

Page 5: Harnessing The Internet of Things · SAP assumes no responsibility for errors or omissions in this document, except if such damages were caused by SAP´s willful misconduct or gross

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.

Page 6: Harnessing The Internet of Things · SAP assumes no responsibility for errors or omissions in this document, except if such damages were caused by SAP´s willful misconduct or gross

© 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.

Page 7: Harnessing The Internet of Things · SAP assumes no responsibility for errors or omissions in this document, except if such damages were caused by SAP´s willful misconduct or gross

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.

Page 8: Harnessing The Internet of Things · SAP assumes no responsibility for errors or omissions in this document, except if such damages were caused by SAP´s willful misconduct or gross

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

Page 9: Harnessing The Internet of Things · SAP assumes no responsibility for errors or omissions in this document, except if such damages were caused by SAP´s willful misconduct or gross

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

Page 10: Harnessing The Internet of Things · SAP assumes no responsibility for errors or omissions in this document, except if such damages were caused by SAP´s willful misconduct or gross

© 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

Page 11: Harnessing The Internet of Things · SAP assumes no responsibility for errors or omissions in this document, except if such damages were caused by SAP´s willful misconduct or gross

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

Page 12: Harnessing The Internet of Things · SAP assumes no responsibility for errors or omissions in this document, except if such damages were caused by SAP´s willful misconduct or gross

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

Page 13: Harnessing The Internet of Things · SAP assumes no responsibility for errors or omissions in this document, except if such damages were caused by SAP´s willful misconduct or gross

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

Page 14: Harnessing The Internet of Things · SAP assumes no responsibility for errors or omissions in this document, except if such damages were caused by SAP´s willful misconduct or gross

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

Page 15: Harnessing The Internet of Things · SAP assumes no responsibility for errors or omissions in this document, except if such damages were caused by SAP´s willful misconduct or gross

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

Page 16: Harnessing The Internet of Things · SAP assumes no responsibility for errors or omissions in this document, except if such damages were caused by SAP´s willful misconduct or gross

16 © 2015 SAP AG or an SAP affiliate company. All rights reserved.

Everything…

…and anything

Example use cases

Page 17: Harnessing The Internet of Things · SAP assumes no responsibility for errors or omissions in this document, except if such damages were caused by SAP´s willful misconduct or gross

© 2015 SAP SE or an SAP affiliate company. All rights reserved. 17 Public

Building personalized health systems is IoT

Page 18: Harnessing The Internet of Things · SAP assumes no responsibility for errors or omissions in this document, except if such damages were caused by SAP´s willful misconduct or gross

© 2015 SAP SE or an SAP affiliate company. All rights reserved. 18 Public

Predictive Maintenance is IoT

Page 19: Harnessing The Internet of Things · SAP assumes no responsibility for errors or omissions in this document, except if such damages were caused by SAP´s willful misconduct or gross

© 2015 SAP SE or an SAP affiliate company. All rights reserved. 19 Public

Connected Logistics is IoT

Page 20: Harnessing The Internet of Things · SAP assumes no responsibility for errors or omissions in this document, except if such damages were caused by SAP´s willful misconduct or gross

© 2015 SAP AG or an SAP affiliate company. All rights reserved. 20 Public

Technology Roadmap: The Internet of Things

Page 21: Harnessing The Internet of Things · SAP assumes no responsibility for errors or omissions in this document, except if such damages were caused by SAP´s willful misconduct or gross

© 2015 SAP AG or an SAP affiliate company. All rights reserved. 21 Public

Ingredients of IoT

“Thing”

fe80::e2f8:47ff:fe2a:2340

Unique Identity

Sensors

Connectivity & Inter-Connectivity Analytics and Prediction

Page 22: Harnessing The Internet of Things · SAP assumes no responsibility for errors or omissions in this document, except if such damages were caused by SAP´s willful misconduct or gross

© 2015 SAP AG or an SAP affiliate company. All rights reserved. 22 Public

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

Page 23: Harnessing The Internet of Things · SAP assumes no responsibility for errors or omissions in this document, except if such damages were caused by SAP´s willful misconduct or gross

© 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

Page 24: Harnessing The Internet of Things · SAP assumes no responsibility for errors or omissions in this document, except if such damages were caused by SAP´s willful misconduct or gross

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)

Page 25: Harnessing The Internet of Things · SAP assumes no responsibility for errors or omissions in this document, except if such damages were caused by SAP´s willful misconduct or gross

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

Page 26: Harnessing The Internet of Things · SAP assumes no responsibility for errors or omissions in this document, except if such damages were caused by SAP´s willful misconduct or gross

© 2015 SAP AG or an SAP affiliate company. All rights reserved. 26 Public

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

Page 27: Harnessing The Internet of Things · SAP assumes no responsibility for errors or omissions in this document, except if such damages were caused by SAP´s willful misconduct or gross

© 2015 SAP AG or an SAP affiliate company. All rights reserved. 27 Public

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

Page 28: Harnessing The Internet of Things · SAP assumes no responsibility for errors or omissions in this document, except if such damages were caused by SAP´s willful misconduct or gross

© 2015 SAP AG or an SAP affiliate company. All rights reserved. 28 Public

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

Page 29: Harnessing The Internet of Things · SAP assumes no responsibility for errors or omissions in this document, except if such damages were caused by SAP´s willful misconduct or gross

© 2015 SAP AG or an SAP affiliate company. All rights reserved. 29 Public

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/

Page 30: Harnessing The Internet of Things · SAP assumes no responsibility for errors or omissions in this document, except if such damages were caused by SAP´s willful misconduct or gross

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

30 Public