industry transformation

Björn Ekelund | Public | © Ericsson AB 2016 | 2016-02-26 |

Industrial digitalization: Challenges and experiences

Björn Ekelund Foto: Linus Iseborn, Södra


OUTLINE

• Ericsson at a glance • THE DIGITALIZATION DISRUPTION • Key TECHNOLOGIES • DOING IT


Ericsson at a glance

37,000

25,700

65,000

2.5 billion

1 billion

180

118,000

Subscribers managed by us

Subscribers supported by us

Services professionals Employees

Countries with customers R&D Employees

Patents

In R&D

228 B. SEK Net Sales

36 B. SEK

NETWORKS Create one network for a million different needs

IT Achieve business agility with Transformative IT

MEDIA Delight the TV

consumer every day

INDUSTRIES Connecting industries for

business acceleration

2014 Annual Report numbers


Global presence

21.7

12.6

15.5

11.1 2.4

13.4 3.9

20.0

4.1

13.5

x1,000 employees

employees worldwide

118,000

of our employees are dedicated to R&D

25,000 of our employees are active within Services

65,000


A transforming business

COMPETITION BUSINESS MIX

73%

27% SW &

SERVICES

34%

66%

HARDWARE

SW & SERVICES

1999

80%

20%

TELECOM

ICT

27%

73%

TELECOM

ICT

2014

HARDWARE

1999 2014


2020 1990’s 2000’s 2009 1980’s


1.9MILLION

NEW SMARTPHONE SUBSCRIPTIONS

$13 MILLION CROWDFUNDING

$ 2,7 BILLION E-COMMERCE

133 MILLION HOURS YOUTUBE VIDEO WATCHED

500,000 AIRBNB STAYS

3X UBER REVENUE OVER SIZE OF TAXI MARKET,

IN SAN FRANCISCO

2,7 BILLION LIKES ON FACEBOOK

Today is as slow as It gets

24h


• Ericsson Connected Vehicle Cloud • Connects driver, passengers and the

car itself to cloud based services • Openness to build an ecosystem

Change maker: Volvo cars


• More than 3M containers globally • 350 vessels connected • Reduced costs for fuel and insurance • Reduced carbon footprint • Improved delivery precision, flexibility

and overall value of Maersk services

Change maker: Maersk


Digital disruption

Infrastructure model

Operating model

Business model


Digital disruption

The value of data Customer

intimacy

Continuous everything

& DevOps

Servitization

Automation Security

Remote operation


Industry Transformation

HEALTH

WELLNESS

EDUCATION

LEARNING

MEDIA

CULTURE

TRANSPORT

MOBILITY

BANKING

TRANSACT

UTILITY

FUNCTION

RETAIL

EXCHANGE


Key Technologies

• Wireless Connectivity • Edge computing • CYBERPHYSICAL systems • Cybersecurity


Wireless connectivity


Wide range of technologies Data rate

Range ~1Mbps

~1kbps

~1Gbps

~10bps


Edge computing


$20 or $30 buys you…

Björn Ekelund | Public | © Ericsson AB 2016 | 2016-02-26 | 18

Example: Occupancy Detection

CLOUD CLIENT APP

3 of 12 People on bus

3 of 12 = 5MPixel JPEG every 5s

CLOUD CLIENT APP

3 of 12 3 of 12 People on bus

=

IP CAMERA

~$1000/day For 20-bus fleet

JPG Size Source: forret.com. Server Pricing Source: aws.amazon.com. Cellular Data Pricing Source: verizonwireless.com

18 MB/min ~1 KB/min

~1 KB/min ~$1/day For 20-bus fleet

INTELLIGENT EDGE

~1 KB/min


CYBERPHYSICAL systems


drone on a chip

Qualcomm Snapdragon Flight Main PCB

Flight Controller PCB

Wi-Fi PCB

Video Transmitter PCB

5.8GHz RF PCB

GPS Receiver PCB

Camera PCB

189 cm2 23.2 cm2


ABB YUMI


CYBERSECURITY


To do Big Data – you must be able to trust the little data


Most common Mistake: Believe you have

the EXPERTISE


Getting your feet wet


The innovator’s dilemma

From “Innovator’s dilemma” by Clayton Christensen

Core business

New business


The zone model


pragmatic approach

Identify key use cases

A low hanging fruit

Try Learn

Restart Collect data and experi-

ment


5G For Sweden


Pho

to: B

olid

en

PIMM Pilot for Industrial Mobile Communication in Mining • Mobile communications networks in

industrial context • Underground safety and robustness

• Improved safety • Increased productivity • New ecosystems and business

models


5GEM 5G-Enabled world class Manufacturing

• 5G in manufacturing industry - Wireless factory communication - Industrial Internet of Things - Mission critical, distributed cloud - Big data/analytics/AI

• Improved efficiency and flexibility • Improved quality and traceability • Employee satisfaction

Pho

to: S

KF


The most innovative person may not be employed by you


JOHN DEERE DIGITAL ECOSYSTEM


The ecosystem model

CORE ASSETS

DATA

Partner #1 Partner

#2

Partner #3

OWN OPERATIONS

Digitalization

PAINFUL COMPETITION

CHALLENGING CHANGE

Björn Ekelund [email protected] @bjornekelund @ericssonlabs www.ericsson.com/research-blog

mailto:[email protected]

http://www.ericsson.com/research-blog

industry transformation

Technology