Internet of Things & Logistics, hype or business transforming?Technologies ,Applications and approach

www.pwc.com

PwC Strategy & OperationsManagement consulting BelgiumApril 2016

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Agenda

IoT Let's Get Real

Connected Devices

IoT Platforms Opportunities

1 3 42

• What is IoT?

• Facts & figures

IoT Overview

• Connectivity

• M2M

• Sensors

• Smart Systems

• Interoperability

• Applications in logistics

• Benefits

• Where to Start

3

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What is the Internet of Things?Definition & Facts

The “Internet of Things” (IoT) describes an ecosystem of sensors, embedded computers, and “smart” devices that communicate among themselves and with private/public cloud services in order to collect, analyze and present data about the physical world.

About IoT• While IoT is widely hailed as the next big thing, the key

ingredients — network connectivity, cloud, security, and infrastructure —have existed for decades.*

• ATMs are considered some of the first IoT objects, and went online as far back as 1974.

• This year, we will have close to 5 billion connected things.• And some predict that by 2020, the number of Internet-connected

things will reach or even exceed 50 billion.***Source: Verizon: State of the Market, The Internet of Things 2015 report**Source: http://www.forbes.com/sites/bernardmarr/2015/10/27/17-mind-blowing-internet-of-things-facts-everyone-should-read/

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IoT market & areas of applicationIoT verticals in the Picture

IoT Let's Get Real

• Maintenance• Utilities• Lighting• Policing & surveillance• Emergency services• Signage• Traffic control• Waste management

Smart Cities

• Lighting• Security• Heating• Smoke alarm• Pet feeding• Irrigation controller• Infotainment• Cooking & groceries• Energy monitoring

Smart Homes

• Patient care• Elderly monitoring• Remote diagnostic• Bio-wearables• Equipment monitoring

Smart Health• Telematics• Infotainment• Smart parking• Public transport• Airlines/Trains• Shipping

Smart Transport

• Production control• Supply chain• Robotics• Energy monitoring

Smart Industry• Thermostat• Security• Lighting• Electrical• Transit• Occupancy• Energy monitoring• Emergency alerts

Smart Buildings

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Where is the opportunity?

New IoT capabilities are creating opportunities in the development of new consumer facing applications as well as in improving the operational efficiencies of traditional businesses

Industries with the Greatest Potential

Healthcare and Fitness

Asset Tracking, Logistics, Supply

Chain

Manufacturing and Industrial

Utilities

Policing and Security

Emergency and Disaster Response

Consumer Products

IT and NetworkingAutomotive,

Fleet, and Telematics

Home and Building Automation

Smart Cities

80% of IoT-based economic benefit expected by 2020- Machina Research

Consumer Engagement and Product Enrichment

Operational Efficiency and Asset Utilization

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Is this a lucrative marketplace?

• According to estimations by the McKinsey Global Institute, the IoT will have a total economic impact of up to $11 trillion by 2025.

• GE believes that the “Industrial Internet” (their term for IoT) will add $10 to $15 trillion to global GDP in the next 20 years.

• CISCO believes the IoT could generate $4.6 trillion over the next ten years for the public sector, and $14.4 trillion for the private sector.Source: http://www.forbes.com/sites/bernardmarr/2015/10/27/

17-mind-blowing-internet-of-things-facts-everyone-should-read

$1T

xx

$10T

$5T

2020

2013

2016

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Is IoT M2M?M2M Technologies enable IoT Solutions

IoT solutions use M2M technologies to monitor and transfer the status of physical assets to improve business processes and cost efficiencies in specific industries, such as utilities, healthcare, and logistics so why calling IoT?

The difference is Smart versus Remote Monitoring

Source: Verizon, State of the Market, The Internet of Things 2015 report

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Connectivity

Connectivity allows the device to transmit and receive data with other devices and with a private/public cloud service. There are four factors to consider when choosing a connectivity method

RangeThe distance that a

transmitter can reliably send and receive a signal

PowerThe average power

usage during normal working

conditions

ScalabilityThe amount of

device connections that can be added to

a single hub

ReliabilityThe environment or

setup that may hinder or block the signal

Connectivity Topographies

MeshZigbee, Z-Wave

Direct ConnectCellular, LPWAN, Satellite

Hub/SpokeWifi, BLE, RFID (UHF

EPC2,NFC)

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New radio technologies are emerging.Options for all applications

Source: Peter R. Egli, 2015

5G

LPWAN

Luxembourg Becomes Eighth Country to

Receive Nationwide SIGFOX Internet of

Things Network Coverage

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Connected Devices: Sensors

The price of sensors has dropped dramatically through economies of scale driven by the significant increase in smartphone sales in the global market

Acoustic, sound,

vibration

Electric current, electric

potential, magnetic, radio

Ionizing radiation, subatomic particles

Optical, light, imaging, photon

Thermal, heat, temperature

Position, angle, displacement,

distance, speed, acceleration

Force, density, level

Automotive, transportation

Environment, weather, moisture, humidity

Navigation instruments

Pressure Proximity, presence

Chemical Flow, fluid velocity

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Primary Sensor Types

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Smart Devices

Many “smart” products may include a bundle of various sensors that work together as well as local data storage, local analytics and event triggering or a user interface to present the data.

As IoT becomes more prevalent and information becomes available to intelligent systems, a trend will emerge for systems to act on the environment independently of human involvement. Smart thermostats and self driving cars are two prominent examples

PositionAlters or redirects physical

objects

SoundProduces or adjusts the

sounds of an environment

LightProduces or adjusts the light of an environment

TemperatureProduces or adjusts the

amount of heat in an environment

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Interconnected Intelligent Systems

Smart network

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Interoperability is Key !Most data are not used today

Interoperability is critical to maximizing the value of IoTEven though consumer applications garner the most attention, B2B applications offer far more impact.

Source: Expert interviews, McKinsey Global Institute analysis

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Applications in Logistics

visibility providing identity, location, and other tracking information using:• Cloud-based GPS, RFID and

WSN technologies.• Location – Smart routing ( Traffic,

opening hours)• Access control – Security & tamper

evidence• Real-time Inventory management• Temperature – Smart Cold chain

The IoT revolution will allow us to enhance Supply Chain Management ( SCM) solutions by providing Actionable data. From automation of the manufacturing process to improved visibility within the warehouse

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‘Food’ for thought

Each year, perishables suppliers ship over five billion pallets valued at €2.5 trillion of chilled meats, seafood, cheese, produce, temperature sensitive pharmaceutical and biomed products. (EPCglobal)The GDP of France is €2.5T

30°

12°

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Visual Quality and Actual Quality

Qua

lity

Inde

x

Visual Quality Indicators

Actual Quality

Ripening not visually apparent until late in

process

Field Packing Transit DC Transit RetailerTransit

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Fashion from factory to the customer

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RFID , Beacons and Mobile .. IoT in Fashion

Picking performance1

Auto-replenishment2

Real-time visibility3

Business/customer Intelligence4

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Benefits

Moving the supply chain process from a reactive mode to a proactive one, this Context-aware intelligence can enhance the supply chain visibility by implementing IoT. IoT can help supply chain professionals:•Reduce asset loss. Know about product issues in time to find a solution.•Ensure temperature stability. Monitor the cold chain – according to the Food and Agriculture Organization of the United Nations, about one third of food perishes in transit every year.•Manage warehouse stock. Monitor inventory to reduce out-of-stock situations.•Gain user insight. Embedded sensors provide visibility into customer behaviour and product usage.•Create fleet efficiencies.

• Reduce redundancies – deadhead miles account for up to 10 percent of truck miles, according to the EPA, and 28 percent for private fleet trucks, according to the National Private Truck Council.

• Save fuel costs. Optimize fleet routes by monitoring traffic conditions

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Create a compelling digital vision & Reshape your business strategy as fundamentally digital

Where to start?

Low Hanging fruit and quick Wins increase your appetite

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Inventories your processes

IoTAdoption

Be prepared for an exiting future embrace the IoT and make your business Smart...

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