Razón social

00.00.2015

INDUSTRIA 4.0.MÁS ALLÁ DE LA CONECTIVIDAD.

Alejandro Cadenas GonzálezNew IoT Products & ServicesTelefónica

Barcelona, 15 Junio 2016

Talking about a revolution

3

Industrial revolution eliminated limitations of force

Source: “The Second Machine Age”, E. Brynjolfsson, A. McAfee

4

And digital revolution is eliminating the barriers of knowledge

As-a-ServiceBusiness Models

Platform Business Models

Marketplace Business Models

Data driven Business Models

5

And digital revolution is eliminating the barriers of knowledge

6

Now it’s time for

Infrastructure

Ubiquitous computing

Microcomputers

IPv6

•Maturity of production

•Environmental & efficiency

consciousness

•Need for global competitiveness

+

Why?

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Now it’s time for

New trend / need emerge

New entrants and disruptive models

Early adoptersadopt

Advancedincumbents adopt

Mainstreamincumbents adopt

Laggard incumbentsdrop

Advanced incumbents, established entrants

How?

“Strategic principles for competing in the digital age”,

2014, McKinsey

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And industry is at the IoT spot

Challenges and Framework

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Challenges are important…

Need for expert partners� Vertical Knowledge required

Include security-by-design or as a explicit feature� Security

Stay close to customers to understand motivations� Uncertain (at least initially) ROI

Don’t expect standard technologies and startwith ad-hoc E2E projects

� Standards

Big hype around data-based IoT solutions� Data processing

Scalability needs to be a must for any implementation� Scalability

Full operational model to be defined� Operation

Initial phases where products may not be fullyindustrialised

� Replicability

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A way to look at IIoT is hybridization

Digital World

PhysicalWorld

Traditional industrial productive processes

Digital Enterprise capabilities

Digital Enablement

12

Telefónica strategic vision is all about connecting the dots

Big Data

Products

and services

OSS/BSS/IT

Physical

assets

3

2

1

Telefonica vision

4

IoT

Clear directions to make it happen

14

Partner approach

15

1,5961,425

1.118 1.111

848732

359 294189 180

Digital competencies & Open Innovation

Traditional Telco + Digital Telco

Cloud Services

m2m

Mobile

Payment

Big Data

e-Commerce

Security

Digital Signage

e-Health

IoT platform builders

Focused in innovation projects4th Telco by R&D investment

#4 Telco by

R&D

Source: European Comission, 2015

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IoT and Analytics are the two sides of the same coin

IoT Analytics

ConnectivityConnectivity DevicesDevices VerticalsVerticals

Level 1

Level 2

Level 3

Predictive AnalysisPredictive Engines + Machine Learning

Data AnalysisTrends + Patterns + Alerts

BI DashboardReporting

Building a bottom-up strategy

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Global-local solutions

Telefonica is #1

or #2 in almost

every country in

Latam

Telefonica is #1

in 3 of the 5

largest markets

in EU

Own mobile network in 15 countries

Carefully crafted assembly of industry allies

Roaming partners networks

18

… and there’s the connectivity too!!!

And the right team to run the last mile

Focus on established verticals and full support from senior management

Smart

mobility

Smart

cities

Smart

retail

• New product layers

• Routing optimization

• Analytics for mobility data lake

• Efficient resource management

• Citizen communications

• e-government

• Customer journey activation

• In-store analytics• Data monetization

• Platform and energy efficiency intelligence

• Full process optimization

Smart

Energy

Platforms and technology

Business Development

New IoTBusiness

Chief IoT Officer

Smart Agro

Resource Management

Industry 4.0

And big bet on New P&S at a Global level

Open

innovation focus

Scouting and

new businesses

New products

and enablers

Next

core businesses

Portfolio in

evolution

Innovation

hubs

Market

New IoT

core area

New product

for existing

core IoT area

OB local

business

Assessed and dismissed

opportunities

New opportunities and threats detection

Test and validate new products

and technologies

Nurture new core areas

Success stories

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Scale and reliability

UE directive: 80% of deployment by 2020

UK directive: 100% of deployment by 2020

30 M households

53 M meters (electricity & gas)

Households

23.5M

Meters

42.3M

Center and South lots

Cellular

+

RF

Selecting the most appropriate

technology

Demonstrating higher operating

soundness

Ensuring the level of service

required

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Integration capabilities

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Intelligence in expert environmentsR&D facility in Chile specialized in Industry, Mining, Agriculture

Expert system based on AI Predictivemaintenance to predict failures and

program replacements

LPWA connectivity

Data acquisition+

signal adaptation

Alejandro Cadenas GonzálezNew IoT Products & Services

Telefónicaalejandro.cadenasgonzalez@telefonica.com

acadenas@twitter

THANK YOU