Cogntiive IoT Platforms

Cognitive IoT Platforms: Connecting the automotive value chain from design through consumer information and vehicle usage

Kal Gyimesi | Automotive Marketing Leader | IBM Watson IoT2016 Automotive Leaders Summit | April 7, 2016

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Consumer’s experiences in their cars are transformed bythe Internet of Things

#1By 2020, the connectedCar will be the

connectedapplication

cars will be connected in 2015 and fully packed with sensor technologies

200million 350

By 2020, connectedvehicles will produce

of data persecond

MB

*http://www.gsma.com/newsroom/press-release/gsma-announces-the-business-impact-of-connected-devices-could-be-worth-us4-5-trillion-in-2020/ **http://www.gartner.com/newsroom/id/2970017

***http://press.ihs.com/press-release/country-industry-forecasting/big-data-drivers-seat-connected-car-technological-advance

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Programmable computing thrives in prescribed, predictable scenarios but is too limited for the complex IoT landscape.

The IoT is a monumental data challenge. Cognitive computing can keep up.

Cognitive systems aren’t programmed. They learn from virtually every interaction and the surrounding context to unleash the potential of the IoT.

Presenter

Presentation Notes

There’s massive opportunity to be had, but the IoT also presents a significant data challenge as the scale, complexity and diversity of IoT data threatens to overwhelm traditional computing systems. Traditional programmable systems are designed to handle specific scenarios and data sets. But IoT data doesn’t play by traditional rules. Images, videos, sound and machine-to-machine data all come together through the IoT. This data is then combined with data sources such as social media, weather reports and enterprise data, which provide additional context and relevancy that sharpens the value of insights. Because of security concerns, regulatory and compliance requirements, costs, or simply the need for speed, much of this data must be processed at the network edge. IBM Watson technology represents the leading edge of cognitive computing—in fact, it’s virtually the only comprehensive cognitive computing solution. Using natural language to communicate with people, Watson technology virtually eliminates the need for users to know complex coding and have specialized IT expertise. Cognitive computing provides the means for understanding and extending the insights gained from those massive volumes and diverse types of IoT data. Maybe the most exciting thing about Watson technology is that it may forever shift the conversation from “What is the answer?” to “What are the possibilities?” In the cognitive era, this is where the true competitive advantage first takes root.

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IoT has taken hold

What once seemed like hyperbole, now seems like understatement.

USD 1.7 trillionin value added by the IoT to the global economy in 2019.1

82 percentof enterprise decision makers say IoT is strategic or transformative to their enterprise.3

From 13 billion to 29 billion Projected growth in connected devices by 20202

1 Business Insider, "The 'Internet of Things' will be the world's most massive device market and save companies billions of dollars," John Greenough, April 14, 2015.2 IDC, Worldwide Internet of Things Forecast, 2015-2020, Doc #256397, May 2015.3 IDC, “Internet of Things: New Worldwide Demand Side Research on Perceptions and Plans for Adoption 2015,” September 10, 2015,

Presenter

Presentation Notes

The number of connected devices is growing. These devices are changing lives—and the nature of data. Device-derived data is massive, often geo-tagged and continual. It provides businesses with nearly real-time access into how its products are being used. By 2025, that data will equal 11 trillion dollars in economic value. Business-to-business (B2B) users will benefit the most. 70 percent of the value of the IoT will go to increasing efficiency in factories and connected supply chains. [Source: TBD] The IoT enables smarter decisions and can automate actions. The power of the IoT has already started disrupting business. 82 percent of enterprise decision makers say IoT is either strategic or transformative to their enterprise. As connected objects become more commonplace in our economy, new models and competitors are emerging.

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Proven value, immediate opportunity

Leaders are putting the physical world to work and achieving results now.

Transforming the customer experience

Boosting operational efficiency

Disrupting their industries

Sustaining the environment

Presenter

Presentation Notes

Forget someday. Cognitive IoT is here. And it’s already changing just about everything. Leaders are putting the physical world to work. Here’s how: Transform the customer experience and strengthen relationships Leaders are offering products and services designed to continually adapt—in context—to the connected consumer. They’re using deep insights to achieve new levels of customer engagement and gain valuable insights throughout the product lifecycle. As a result, they’re seeing greater loyalty and enhanced revenue and attaining true marketplace differentiation. Boost operational efficiency Leaders are gaining new levels of visibility across the supply chain and into previously obscured business processes. They’re identifying bottlenecks and inefficiencies and spotlighting sources of hidden cost. These organizations are seeing optimized performance, empowering employees and cutting costs across the enterprise. Disrupt, or be disrupted In this rapidly evolving landscape, leaders are changing the game. They’re reimagining business models based on the insights gained through IoT data. They’re finding new ways to monetize data value through asset-based online marketplaces and garnering new revenue from existing products and services. They’re partnering in new ways, with new players and across industries. Through more intelligent systems and processes, they’re gaining first-mover advantage in the marketplace.

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Open Platforms

Inexpensive Sensors

Cloud

Computing Power

Big Data & Analytics

Mobility

Cognitive

Internet of Things (IoT)

All coming together to create a perfect storm…

Social

The rapid evolution of technology is creating excitement and questions around what to do…we are in a point where dot.com stood in the 90’s

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Source: Modified from McKinsey Global Institute

Vehicle Manufacturing and Safety

Optimize production, diagnose safety and vehicle malfunctions on

the road

In-vehicle Digital ServicesBuild new revenue streams and loyalty from connected apps and services

New Service & Business Models

Deploy new business models extending beyond the traditional industry

Fleet OptimizationRemote monitoring and optimization of fleets

IoT generates value with vehicles across four primary focus areas

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Data unlocks value opportunities OperateSell

InsureManage

MakeProcure

ManufactureShip

ExperienceLearn

ConfigureSocialize

DevelopResearch

DesignDevelop

MaintainMonitorService

Optimize

Business Facing(B2B)

Customer Facing(B2C)

Primary Focus

Vehicle Manufacturing and Safety

In-vehicle Digital

Services

New Service & Business Models

Fleet Optimization

When it is shared across functions…

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Shifts in external forces are compelling ongoing transformationTechnology leads the way with consumer expectations close behind

What are the most important external forces that will impact the industry today and in 2025?

Technology progress

Globalization

Economies/markets

Sustainability

Government regulations

Consumer expectations

Corporate social responsibility

Global labor force

Personal mobility

66%

55%

68%

47% 50%

41%37%35%

27%20%

10%

46%45%

13%11%10%

3% 9%

2014 2025

Presenter

Presentation Notes

Technology Progress: advancements in digital, vehicle and enterprise technologies will continue with a great amount of innovation coming from outside the industry Consumer Expectations: the only one of the nine influencers to change directions from our Auto 2020 study. Digitally enabled consumers are driving significant change in products, services and how companies engage with them Government Regulations: Significant increase in government involvement from Auto 2020 to handle requirements of automated/ autonomous vehicles, driver distraction with in-vehicle technologies, and disruption of traditional process models such as retail Personal Mobility: increased expectations for 2025 as urbanization, lifestyle changes and cost effective alternatives are effecting how people want to move from one place to another Sustainability: significant decrease in expectations from Auto 2020 study as focus on how to provide energy efficient vehicles as subsided and is being replace with the concern of the impact of vehicles on the environment Economies/Markets: Little change as excitement over growth markets such as China has stabilized. Continued push into new markets will occur but will decrease in volume as markets become saturated Globalization: as the industry is already extremely globalized now, much of the focus is to continue to optimize the global footprint based on sales and operational needs Global Labor Force: skilled, available resources continue to be an issue – especially knowledge of technology from other industries. Complexity of systems will require additional skills in manufacturing and service. Unclear why this influencer isn’t rated higher – maybe just business as usual Corporate Social Responsibility: step change from the Auto 2020 study. Focus on corporate ethics and irresponsibility of 6 years ago as subsided and companies feel they are addressing the issues

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Development teams are meeting the challenge with Continuous Engineering platforms

Requirements

Design

…Software engineering is becoming a new competitive differentiator

Validation & Verification

“The ‘anchor’ for products won’t be the physical asset; it will be the digital entity – the product plus all the information associated with it.”COO, Automotive Manufacturer, Europe

Presenter

Presentation Notes

Take the consumer products industry, where customers buy many goods on a repeat basis. New technologies will soon enable them to receive a notification when they’re running out of a product and pre-order it to pick up later at a store, one U.S. executive explained. “All this information will be tied back to our distribution and production systems so that we know what’s selling, where and when, and can streamline our supply chain.” The push to real-time operations applies in other sectors, too. For example, at U.S. motorcycle maker Harley-Davidson’s recently renovated plant in York, Pennsylvania, sensors monitor the tiniest manufacturing details and automatically adjust the machinery when they detect that it’s drifting away from the prescribed setting. Harley-Davidson also uses the data the sensors generate to find – and eliminate – bottlenecks in production.

©2015 IBM Corporation

Greater personalized in-vehicle experiences Moving from intelligent and intuitive to self-enabling


Consumers show a high level of interest for the self-enabling vehicle with self-healing rating the highest

Self-healing

Self-socializing

Self-driving

Self-learning

Self-configuring

Self-integrating

What self-enabling vehicle capabilities would interest you in the future?

Extremely/Very interested

80% of industry executives felt comprehensive connected vehicle services will be a key differentiator by 2025

55%

44%

44%

48%

48%

44%

59%

55%

54%

54%

51%

49%

Global USA


Information services had the highest consumer interest while location-based services were the least desired

Information

Entertainment

Commerce

Health

Concierge

Education

Location-based

What mobility services would interest you in the future - things you can do from the car?

69% of industry executives listed “creating of new services based offerings” as a top growth strategy in the next 10 years

Extremely/very interested

53%

45%

41%

34%

41%

30%

55%

47%

46%

46%

44%

38%

Global USA

31%35%


Alternative mobility optionsConsumers will explore as they look for the most cost effective and efficient ways to get around

Public transportation integration

Multi-model integration

Car SharingOn-demand ride

sharing

Peer-to-peer rental

What mobility modes would interest you in the future - ways to get around?

Alternative methods of transportation are increasing in importance as consumers reduce their dependence on the personal car

Extremely/very interested

71%Personal Vehicle Ownership

33%

27%

32%

29%

29%

45%

40%

39%

36%

34%

Global

USA

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Outthink the competition with cognitive IoT

Cognitive IoT delivers insights once unknowable. Businesses can benefit in five key areas:

Extending expertise

Deepening human engagement

Creating cognitive processes and

operations

Infusing cognition into products and

services

Enhancing exploration and

discovery

Presenter

Presentation Notes

IoT devices generate critical data needed by cognitive processes and operations to understand, reason and learn about workflows and environments. Businesses that implement cognitive IoT will distinguish themselves in five key ways: Deeper human engagement Cognitive IoT spotlights the ways consumers interact with the world, helping businesses create a comprehensive picture of the individual, which is the basis for deeper, more relevant engagement. Extended expertise Cognitive IoT exponentially expands the scope of human expertise, providing context from billions of physical objects—far more than any human could comprehend—data that dramatically expands and continually improves the knowledge base that businesses can access to advise experts and practitioners. Products and services infused with cognition Where code and data go, cognition can now follow, as cognitive IoT exponentially extends the universe of digital products and services that can be infused with intelligence. Cognitive processes and operations Cognitive IoT generates critical data and context from all manners of devices to fuel cognitive processes and operations, enabling the devices to understand, reason and learn about workflows and environments. Acting autonomously, IoT devices can further optimize operations. Enhanced exploration and discovery Cognitive IoT devices provide significant feedback to the businesses that engineered and produced them, providing new insights into patterns and revealing new opportunities. The ability to use natural language for querying cognitive systems makes data exploration simpler for business users, rewarding exploration and fueling curiosity.


While one third of the companies overall feel they will adapt to the challenges of 2025, less than one in five feel they are prepared now

Companies who feel they are prepared for 2025

Prepared

Suppliers (14%)

OEM (23%)

Dealers (33%)

The pace of change is no longer controlled by this industry

Presenter

Presentation Notes

Hopefully, the results of this study have given you the feeling there is still much change ahead as we progress to 2025. Disruptions with the consumer, mobility and the ecosystem will not only create new opportunities for automotive companies but will also create many challenges – some the industry has never had to face before as the borders come down. We asked how prepared industry executives felt their companies were for the challenges ahead. Only one out of five said they thought their companies were prepared for the challenges of the future. But one third felt confident their companies could adapt in time to be successful. In either case, the time to start is now and the pace of change is not controlled by the industry anymore. - 2025 will be here sooner than you expect! Q22a: Based on everything we have covered today, how prepared is your company to face the challenges on the way to 2025? . (n=156) Q22b: How adaptable is your company to face the challenges on the way to 2025? (n=151)

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Kal GyimesiAutomotive Marketing LeaderIBM Watson [email protected]@kalgyimesi

Also follow, @IBMAutomotive

Find the IBM Institute for Business Value studies discussed today:https://ibm.biz/Auto2025https://ibm.biz/AutoConsumer

mailto:[email protected]

https://ibm.biz/Auto2025

https://ibm.biz/AutoConsumer

Cogntiive IoT Platforms

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