Live Blogging Gartner ITxpo Barcelona!

After a harrowing trip via Air France (#neveragain) I’m in lovely Barcelona, live-blogging Gartner ITxpo courtesy of Siemens — but they aren’t dictating my editorial judgment.

Keynoter is Peter Sondergaard, Sr. VP, Gartner Research:

  • start with high-scale traditional IT structures, but with new emphasis on cloud, etc. IT system now partially inside your org. and part outside.  We are half-way through transition to cloud: half of sales support now through cloud. More financial, HR & other functions. General trend toward cloud, but still some internal processes as necessary. Must clean up traditional inside processes.
    • “Ecosystems are the next evolution of Digital”
    • Must learn to measure your investments in customer experience.
    • Starting to explore VR & AR (personal shout out to PTC & clients such as Caterpillar!!)
    • must understand customer’s intent through advanced algorithms.  Create solutions to problems they don’t even know they have!
  • next domain of new platform: Things:
    • build strategies with two lenses: consumer preferences, AND the enterprise IoT lens.
    • leverage exponential growth in connected things
    • 27445 exabytes of data by 2020!
    • can’t just bolt on new systems on old ones: must rework existing systems to include devices — processes, workflow, much harder (i.e., my circular company paradigm).
  • intelligence: how your systems learn and decide independently
    • algorithms– algorithmic intelligence — drives decisions
    • now, AI, driven by machine learning. Machines learn from experience.
    • information is new code base
    • we will employ people to train things to learn from experience through neural networks
  • ecosystems
    • linear value supply chains transformed to ecosystems through electronic interchange.
    • others can build experiences, etc. that you haven’t thought out through APIs  — my “share data” Essential Truth. APIs implement business policies in the digital world.c
  • customers
    • customer driven

Where to start?

  • 70% of IoT implementation is through new organization within companies!

Now other Gartner analysts chime in:

  • insurance: engage your customers.
  • smart gov: must interact with those who implement. Must re-imaging public involvement sense/engage/interact
  • case study: Deakin University in Australia: digital platforms to enhance student experience.
  • case study: Trenitalia mass transit system switching to predictive maintenance! Huge cost savings. “Experience hands & beginners mind at work” — love that slogan!!!! “Listen to the train instead of scheduling maintenance”
  • blockchain: ecosystem, brilliant in simplicity. All can see transaction but no one can invade privacy. Use to solve many problems: data provenance, land registry, public infrastucture, AI.
  • Woo: use this to TRANSFORM THE WORLD!!!
  • ratz — I was preoccupied at time, they talked about a new mobility system for seniors — re my SmartAging paradigm!!
  • paradigm shift — partnering with competitors (much of what I wrote about in DataDynamite: share data, don’t hoard it!)  Think about Apple & Google driving car companies’ interfaces. “Do you join hands with digital giants or join hands with them?”).
  • ooh, love the digital assistant correcting his presentation. I can only dream of a future where there are millions added to grammar police!

 

 

Smart Disposables: Could This Be Birth of Internet of Everything?

Could EVERYTHING be “smart?” It may be happening sooner we thought, and with implications that are hard to fathom today.

That’s the potential with new technology pioneered by Shyam Gollakota, an assistant professor at the University of Washington.  For the first time, it would let battery- and cordless-less devices harvest signals from Wi-Fi, radio, or TV to communicate and power themselves.

Astounding!

For a long time, the most “out there” idea about IoT sensors has been Prof. Kris Pister’s “smart dust” concept, which aimed at a complete sensor/communication system in a package only one cubic millimeter in size. Pister argued that such devices would be so small and cheap that they could be installed — or perhaps even scattered — almost everywhere. The benefits could be varied and inconceivable in the past. According to Pister, possible applications could include:

  • “Defense-related sensor networks
    • battlefield surveillance, treaty monitoring, transportation monitoring, scud hunting, …
  • Virtual keyboard
    • Glue a dust mote on each of your fingernails.  Accelerometers will sense the orientation and motion of each of your fingertips, and talk to the computer in your watch.  QWERTY is the first step to proving the concept, but you can imagine much more useful and creative ways to interface to your computer if it knows where your fingers are: sculpt 3D shapes in virtual clay, play  the piano, gesture in sign language and have to computer translate, …
    • Combined with a MEMS augmented-reality heads-up display, your entire computer I/O would be invisible to the people around you.  Couple that with wireless access and you need never be bored in a meeting again!  Surf the web while the boss rambles on and on.
  • Inventory Control
    • The carton talks to the box, the box talks to the palette, the palette talks to the truck, and the truck talks to the warehouse, and the truck and the warehouse talk to the internet.  Know where your products are and what shape they’re in any time, anywhere.  Sort of like FedEx tracking on steroids for all products in your production stream from raw materials to delivered goods.
  • Product quality monitoring
    • temperature, humidity monitoring of meat, produce, dairy products
      • Mom, don’t buy those Frosted Sugar Bombs, they sat in 80% humidity for two days, they won’t be crunchy!
    • impact, vibration, temp monitoring of consumer electronics
      • failure analysis and diagnostic information, e.g. monitoring vibration of bearings for frequency signatures indicating imminent failure (back up that hard drive now!)
  • Smart office spaces
    • The Center for the Built Environment has fabulous plans for the office of the future in which environmental conditions are tailored to the desires of every individual.  Maybe soon we’ll all be wearing temperature, humidity, and environmental comfort sensors sewn into our clothes, continuously talking to our workspaces which will deliver conditions tailored to our needs.  No more fighting with your office mates over the thermostat.
  • Interfaces for the Disabled (courtesy of Bryndis Tobin)
    • Bryndis sent me email with the following idea: put motes “on a quadriplegic’s face, to monitor blinking & facial twitches – and send them as commands to a wheelchair/computer/other device.”  This could be generalized to a whole family of interfaces for the disabled.  Thanks Bryndis!”

Now imagine that a critical component of such a tiny, ubiquitous device was removed. Because it didn’t need a battery it could be even smaller and cheaper (because of cheaper and simpler radio hardware circuitry).

The goal is having billions of disposable devices start communicating,” Gollakota said (my emphasis).

You may remember that I’ve written before about my metaphor of a pre-IoT era of “Collective Blindness,” the universal inability to peer (literally or figuratively) inside things in the past, which forced us to create all sorts of work-arounds to cope with that lack of real-time data. Imagine how precise our knowledge about just about everything will be if Gollakota’s technology becomes commonplace.

.As Technology Review reported, the critical challenge is making it possible for a device lacking a traditional power source to communicate: “Transferring power wirelessly is not a new trick. But getting a device without a conventional power source to communicate is harder, because generating radio signals is very power-intensive and the airwaves harvested from radio, TV, and other telecommunication technologies hold little energy.”

The principle making the innovation possible is “backscattering,” reflecting waves, particles or signals back in the direction they came from, which creates a new signal.

The early results are encouraging. Gollakata has made a contact lens that can connect with a smartphone. Think I’ll pass on that one, but other devices he and his team have created include brain implants and “a flexible skin patch that can sense temperature and respiration, a design that could be used to monitor hospital patients.”  Marketers will love this one: a concert poster broadcasting a bit of the featured band’s music over FM radio!

Jeeva Wireless, Gollakata’s commercial spinoff, is using a variety of the technology, “passive Wi-Fi.” Devices using it can data up to 100 feet and connect through walls.

Tiny passive devices using backscatter could be manufactured for as little as a dollar. “In tomorrow’s smart home, security cameras, temperature sensors, and smoke alarms should never need to have their batteries changed.”

Gollakata sums up the potential impact: “We can get communication for free” (my emphasis).

That’s incredible, but in light of the continuing series of major DDoS attacks made possible by weak or non-existent IoT security measures, I must remind everyone that speed, power, and ubiquity aren’t everything: we also need IoT security, so I hope the low cost and ability to function without a dedicated energy source won’t obscure that need as well.


 

BTW: a MIT profile on Gollakata mentions one of his other, related, inventions, which I think would mesh beautifully with my SmartAging vision to help seniors age in place in better health.

It’s called  WiSee, which uses wireless signals such as Wi-Fi to “enable whole-home sensing and recognition of human gestures. Since wireless signals do not require line-of-sight and can traverse through walls, WiSee can enable whole-home gesture recognition using few wireless sources (e.g., a Wi-Fi router and a few mobile devices in the living room).”

I love the concept for seniors, because (like Echo, which I’m finally getting!!) it doesn’t require technical expertise, which many seniors lack and/or find intimidating, to launch and direct automated devices. In this case, the activation is through sensing and recognition of human gestures. According to Gollakata,“’Gestures enable a whole new set of interaction techniques for always-available computing embedded in the environment. As an example, he suggests that a hand swiping motion in the air could enable a user to control the radio volume while showering – or change the song playing on the stereo in the living room while you are cooking in the kitchen.”

He goes on to explain:

“…. that the approaches offered today to enable gesture recognition – by either installing cameras throughout a home/office or outfitting the human body with sensing devices – are in most cases either too expensive or unfeasible. So he and his group members are skirting these issues by taking advantage of the slight changes in ambient wireless signals that are created by motion. Since wireless signals do not require line-of-sight and can traverse through walls, he and his group have achieved the first gesture recognition system that works in those situations. ‘We showed that this approach can extract accurate information about a rich set of gestures from multiple concurrent users.”

Combine that with speaking to Alexa, and even the most frail seniors could probably control most of the functions in a smart home. Gollakota says that the approaches offered today to enable gesture recognition – by either installing cameras throughout a home/office or outfitting the human body with sensing devices – are in most cases either too expensive or unfeasible. So he and his group members are skirting these issues by taking advantage of the slight changes in ambient wireless signals that are created by motion. Since wireless signals do not require line-of-sight and can traverse through walls, he and his group have achieved the first gesture recognition system that works in those situations. “We showed that this approach can extract accurate information about a rich set of gestures from multiple concurrent users, “he says.

Incredible work, professor!

Circular Company: Will Internet of Things Spark Management Revolution?

Could the IoT’s most profound impact be on management and corporate organization, not just cool devices?

I’ve written before about my still-being-refined vision of the IoT — because it (for the first time!) allows everyone who needs instant access to real-time data to do their jobs and make better decisions to share that data instantly —  as the impetus for a management revolution.

My thoughts were provoked by Heppelmann & Porter’s observation that:

“For companies grappling with the transition (to the IoT), organizational issues are now center stage — and there is no playbook. We are just beginning the process of rewriting the organization chart that has been in place for decades.”

If I’m right, the IoT could let us switch from the linear and hierarchical forms that made sense in an era of serious limits to intelligence about things and how they were working at thaFor companies grappling with the transition, organizational issues are now center stage—and there is no playbook. We are just beginning the process of rewriting the organization chart that has been in place for decades.t moment, to circular forms that instead eliminate information “silos” and instead give are circular, with IoT data as the hub. 

This article expands on that vision. I’ve tried mightily to get management journals to publish it. Several of the most prestigious have given it a serious look but ultimately passed on it. That may be because it’s crazy, but I believe it is feasible today, and can lead to higher profits, lower operating costs, empowering our entire workforces, and, oh yeah, saving the planet.

Audacious, but, IMHO, valid.  Please feel free to share this, to comment on it, and, if you think it has merit, build on it.

Thanks,

W. David Stephenson


The IoT Allows a Radical, Profitable Transformation to Circular Company Structure

 

by

W. David Stephenson

Precision assembly lines and thermostats you can adjust while away from home are obvious benefits of the Internet of Things (IoT), but it might also trigger a far more sweeping change: swapping outmoded hierarchical and linear organizational forms for new circular ones.

New org charts will be dramatically different because of an important aspect of the IoT overlooked in the understandable fascination with cool devices. The IoT’s most transformational aspect is that, for the first time,

everyone who needs real-time data to do their jobs better or
make better decisions can instantly 
share it.

That changes everything.

Linear and hierarchical organizational structures were coping mechanisms for the severe limits gathering and sharing data in the past. It made sense then for management, on a top-down basis, to determine which departments got which data, and when.

The Internet of Things changes all of that because of huge volumes of real-time data), plus modern communications tools so all who need the data can share it instantly. 

This will allow a radical change in corporate structure and functions from hierarchy: make it cyclical, with real-time IoT data as the hub around which the organization revolves and makes decisions.

Perhaps the closest existing model is W.L. Gore & Associates. The company has always been organized on a “lattice” model, with “no traditional organizational charts, no chains of command, nor predetermined channels of communication.”  Instead, they use cross-disciplinary teams including all functions, communicating directly with each other. Teams self-0rganize and most leaders emerge spontaneously.

As Deloitte’s Cathy Benko and Molly Anderson wrote, “Continuing to invest in the future using yesteryear’s industrial blueprint is futile. The lattice redefines workplace suppositions, providing a framework for organizing and advancing a company’s existing incremental efforts into a comprehensive, strategic response to the changing world of work.”  Add in the circular form’s real-time data hub, and the benefits are even greater, because everyone on these self-organizing teams works from the same data, at the same time.

You can begin to build such a cyclical company with several incremental IoT-based steps.

One of the most promising is making the product design process cyclical. Designers used to work in a vacuum: no one really knew how the products functioned in the field, so it was hard to target upgrades and improvements. Now, GE has found it can radically alter not only the upgrade process, but also the initial design as well:

“G.E. is adopting practices like releasing stripped-down products quickly, monitoring usage and rapidly changing designs depending on how things are used by customers. ‘We’re getting these offerings done in three, six, nine months,’ (Vice-President of Global Software William Ruh said). ‘It used to take three years.’”

New IoT and data-analytics tools are coming on the market that could facilitate such a shift. GE’s new tool, “Digital Twins,” creates a wire-frame replica of a product in the field (or, for that matter, a human body!) back at the company. Coupled with real-time data on its status, it lets everyone who might need to analyze a product’s real-time status (product designers, maintenance staff, and marketers, for example) to do so simultaneously.

The second step toward a cyclical organization is breaking down information silos.

Since almost every department has some role in creation and sales of every product, doesn’t it make sense to bring them together around a common set of data, to explore how that data could trigger coordinated actions by several departments? 

Collaborative big-data analysis tools such as GE’s Predix, SAP’s HANA, and Tableau facilitate the kind of joint scrutiny and “what-if” discussions of real-time data that can make circular teamwork based on IoT-data sharing really achieve its full potential.

The benefits are even greater when you choose to really think in circular terms, sharing instant access to that real-time data not only companywide, but also with external partners, such as your supply chain and distribution network – and even customers – not just giving them some access later on a linear basis.  For example, SAP has created an IoT-enabled vending machine. If a customer opts in, s/he is greeted by name, and may be offered “your regular combination” based on past purchases, and/or a real-time discount. That alone would be neat from a marketing standpoint, but SAP also opened the resulting data to others, resulting in important logistics improvements. Real-time machine-to-machine (M2M) data about sales at the new vending machines automatically reroute resupply trucks to those machines currently experiencing the highest sales. 

With the IoT, sharing data can make your own product or service more valuable. With the Apple HomeKit, you can say “Siri, it’s time for bed,” and the Hue lights dim, Schlage lock closes, and Ecobee thermostat turns down. By sharing real-time IoT data, each of these companies’ devices become more valuable in combinations than they are by themselves.

Hierarchical and linear management is outmoded in the era of real-time data from smart devices. It is time to begin to replace it with a dynamic, circular model with IoT data as its hub.

High-speed 3D Printer & IoT Could Really Revolutionize Design & Manufacturing

There’s a new high-speed 3D printer on the horizon which, coupled with the IoT, could really revolutionize product design and manufacturing.

I’ve raved in the past about 3D printing’s revolutionary potential, but I’ll admit I was still thinking primarily in terms of rapid prototyping and one-off repair parts.  Now, according to Bloomberg, HP is going to transfer its ink-jet printer expertise to the 3D printer field, with a $130,000 model set for release later this year that, for the first time, could make 3D printing practical and affordable for large-scale manufacturing, with “parts at half the expense and at least 10 times faster than rival printers — and likely [using] lower-cost materials.”

Combined with the IoT, that would go a long way toward making my “precision manufacturing” vision a reality, with benefits including less waste, streamlined products (a single part replacing multiple ones that previously had to be combined into the final configuration),  factories that are less reliant on outside parts and encouraging mass customization of products that would delight customers. 

Customers are already lining up, and see manufacturing-scale 3D printing as a game-changer:

Jabil Circuit Inc. [itself a digital supply-chain innovator] plans to be an early adopter of HP’s device, printing end plastic parts for aerospace, auto and industrial applications that it currently makes using processes such as injection molding, John Dulchinos, vice president of digital manufacturing at the electronics-manufacturing service provider, said in an interview.

“‘We have use cases in each of these segments,’ Dulchinos said. ‘Parts that are in hundreds or thousands or tens of thousands of units — it’s cheaper to 3D print them than mold them.’”

Other HP partners in the venture include BMW, Nike, and and Johnson & Johnson. The article cites research by Wohlers Associates predicting that manufacturing using 3D printers could “eventually grab at least 5 percent of the worldwide manufacturing economy, and translate into $640 billion in annual sales.”

3D Systems is also making the transition to large-scale 3D printing.

As I’ve written before in regard to GE’s leadership in the field, toss in some nanotech on the side, and you’ve really got something.

 

Liveblogging #IoT @ #Liveworx 2016 — day 2

Colin Angle, CEO, iRobot:

  • smart home: people have hard time learning how to use current generation of smart home devices. Unacceptable delay in activation. we need “just live your life, and the house does the right thing.” Shouldn’t have to pull out phone.  Will be aware of your location, act naturally.
  • “Need metaphor of the room to exist” — and robot will do that. Cool: Future iRobot could do that while doing its own job. New generation of iRobot has mapped 1/2 billion sq. feet in less than a year.
  • Would be a lot cooler if you can just buy a smart bulb, screw it in, and it would just work without having to do anything.
  • Pogue: how do you deal with the criticism that iRobot LOOKS as if it is cleaning randomly? Angle: Customers just cared that it actually did the job. “Just make it clean better” — I don’t care how long it takes, because I’m not there.
  • Next generation of robotics will be manipulation.
  • Angle: “if you’re worried about AI taking over, don’t worry about me, worry about the marketing guys.  … I just vacuum floors.”  This is so funny: “I used to be a self-respecting robot scientist, but it wasn’t until I became a vacuum salesman that I made any money.”

Eric Schaeffer, Accenture:

  • significant change, affecting both demand and supply. No industry unaffected.
  • to remain competitive, countries and companies will have to be at edge of innovation. Faster than ever.
  • strategies focused on cost-cutting less effective than emphasis on new products
  • World Economic Forum looking at impact of internet on business and society
    • 1st report: industrial internet of things & how it would transform industries. Adoption accelerating.
    • 3-4 yrs. from now, major structural changes, massively transformative (but you can begin w/ incremental change).
    • only 7% of 500 companies surveyed said they had comprehensive IoT strategy.
  • illustrations: water distribution network, dramatic time savings in time to install plane seats.
  • where’s the value? integrate smart products and back-office systems for IoT and As-a-Service Enabled approach.
  • Moving to multi-dimensional definition of a product.
  • Companies will become platforms
  • Sales models will move to as-a-service
  • They have identified 30% “uplift” for generic company. Specific improvements from digitization of the enterprise varies from one industry to another
  • Examples:
    • a Euro telecoms company: using a Google Glass-style product for field technicians at job sites and to capture data in field. 20-40% productivity gains.
    • pay-per-use vehicle services: a French tire company that wants to create 1 b Euro biz in “mobility.” — from selling tires to selling outcomes! Money-back guarantee. 2.5 liters reduction in gas use for 100 km driven — huge reduction in trucking companies. 
    • connected homes: working with multiple clients to define what the services will be.
  • Scope and scale of changes acute.
  • Recent survey: 42% of companies have said improvement has been in how they interact with customers.
  • Leading companies moving from product push to creating value by:
    • focusing on higher value solutions
    • focusing on enhanced experience
    • focusing on customer outcomes.
  • still focus on the what, but also the how!
  • dramatic shift to “Total Experience Innovation.”
    • Be Solution Centric: all centered on customer
    • Build an Insight Platform: continuously renew
    • Drive Pivotal Leaders: find right leaders.
  • Examples:
    • ALS patients: helping them regain control of their lives through wearables, displays, etc. done with Phillips.
    • industrial equipment manufacturer: breaking silos. Innovation digital factory: to instill connectivity into the biz, and build outcome-based offers, and increasing level of engagement with customers.
  • Future:
    • implantable technologies
    • wearable internet
    • IoT everywhere
    • connected home
    • driverless cars
    • robotics
    • sharing economy

Here’s the main event!  Prof. Michael Porter, iRobot’s Colin Angle & PTC’s Jim Heppelmann on IoT transformation:

  • Porter & Heppelmann’s research collaboration on IoT: he was a PTC board member. “Magical opportunity”
  • Porter: both products and internal operations are changing due to IoT
  • Porter: still in early stages of industrial conversion
  • Porter: IoT is wrong term: real emphasis is change in products and what they can do. Embedding in service companies. Every service business will be affected.
  • Heppelmann: the IoT also affects how the customer operates the product.
  • Angle: iRobot has jumped into IoT with both feet. Touches every aspect of their biz.
  • Heppelmann: missed the human element in this. That led to their AR initiative, so people could relate to the new products in ways that are both physical and digital.
  • Angle: iRoomba sending data back in real time on how it’s being used. No more focus groups! Robot part of design team.
  • Heppelmann: fundamentally different design process now.
  • Porter: who collects, who decides how to use the data? New chief data officer position.
  • Angle: who is best to handle the data? Idea of chief data officer interesting. Product ID a new competency.
  • Porter: starting to see new organizational structures pop up. Becoming possible to sell almost anything as a service.
  • Heppelmann: “devops” — combine development & operations. Chief Data Officer — whose job is it to decide what the data is telling various departments?
  • Porter: can’t have handoffs between each group, because you need continuing dialogue.
  • Heppelmann: industrial companies can learn from software companies, with techniques such as agile dev in software.  Continuous improvement. Also, “customer analytics.”

 

Liveblogging #IoT @ #Liveworx 2016

1st up is Jim Heppelmann, PTC CEO and co-author w/ Michael Porter of the great 2-part HBR series on IoT strategy & tactics.

But 1st, few words from David Pogue, the great consumer tech writer: imagine his surprise when he sees his kids at home in CT have cranked the Nest 2 66 degrees. So he turns it up, LOL.

Heppelmann:

  • part of a fundamental transformation
  • one of biggest game-changing technologies of our time
  • things evolving from being simple physical products to complex systems, systems of systems
  • “single new reality that’s physical and digital at the same time”
  • example of rapid change: Augmented Reality & Virtuality combined with IoT: Terri Lewis, director of solutions & tech at Caterpiller — XQ Gen Set — rental power for job sites & sport events — “asset utilization” big deal for rentals & for the customers — can operate from a remote device (iPad in this case). PTC’s new product is Vuforia Studio Enterprise — “democratizing AR.” When used as a sales tool, lets customer look inside the product, vs. a static brochure.
  • humans prefer to use sight and sound simultaneously: he & Porter are working on another article on adding AR to business setting.
  • analytics: analytics is the new refinery for data, which is the new oil.  Announcing Thingworx Analytics. Example: Flowserve, an industrial products company.World’s largest flow control company. Helps to do real-time management of the device. It now takes only 1 repair trip to fix assembly rather than 3 before, because they know the actual problem at beginning. Do real-time simulations to see if it was solved.  Augmented Reality allows the person right at the pump, to see what is actually happening — that wasn’t possible before. Radically reduces time & money necessary to get it back online — reducing what was a $2 billion loss in 2015 alone.
  • New announcement: HPE industrial, hardened server to run such a system.
  • Engineering products: working with a group of local STEM kids in a robotics competition, FIRST Robotics. Use AR as part of the design review process, using Google Cardboard & Agile Engineering process. Team demo’s it.
  • He thinks they are THE company for digital/physical convergence.

Michael Campbell, Vuforia Studio AR:

  • augmented reality without writing code
  • reduces the CAD data set by 150x to optimize it, but protects all the visual richness
  • use in design review
  • can create compelling AR in a few minutes! Woo!
  • can actually put the digital info on the physical product itself.  Creo Illustrate for tech illustrators: step-by-step illustrations (wow, would that be great for product assembly and repair uses!). Intuitive interface, drag-n-drop.

 

Amazon Leads IoT With Comprehensive Services, Platform & Devices!

Several months ago I predicted that Amazon’s Echo might become the IoT’s killer device, primarily because it is voice activated. It appears that prediction is coming true, which should give the entire consumer IoT a boost because Amazon is also providing a soup-to-nuts approach of devices, platform, and storage meeting a wide range of IoT needs, which puts a real emphasis on customer ease of use.

 Amazon Flywheel

Amazon Flywheel

Even more exciting from my perspective, is that part of that success may be due to something I was unaware of that fits beautifully with my “circular enterprise ” vision of the IoT: Jeff Bezos’ back-of-the-envelope sketch when he founded the behemoth, of what he called the “Amazon Flywheel,” It’s as good an illustration as I can think of regarding my vision of circular organizations and strategy — not to mention their profitability!

Even the WSJ got on board with an article about Amazon in regard to the IoT, although it focused solely on Echo and its voice app, Alexa, and ignored the all-important mechanics that it also provides.

 Amazon IoT Button

Amazon IoT Button

The latest step in fleshing out the ecosystem was the announcement earlier this month of the AWS IoT Button, modeled on its highly successful DASH button, which allows ordering more than 100 different consumer products from Amazon by simply pressing the button (the “button” is also now also available in virtual form as a software service, so that a number of products, such as a Whirlpool smart washing machine, will determine that the owner is running low on detergent, and automatically send an alert to her phone. A simple touch on the phone triggers a refill order from Amazon). The 1st edition IoT button sold out instantly!

It joins a comprehensive, and growing, package of IoT devices and services from Amazon that I suspect will quickly make it the platform of choice for the consumer IoT:

You get the idea: this is a conplete solution, from platform to cloud storage to devices to highly-personal (voice) interface.


 

And there’s that matter of the Amazon Flywheel that I mentioned previously.  I came across it in researching this post, in a blog post by John Rossman in which he referred to the Flywheel as “a long-tested systems dynamic view of Amazon’s core retail and marketplace business” (music to my ears: it was exposure to Jay Forrester & Peter Senge’s work on systems dynamics that first got me interested in cyclical processes, back in the late ’80s). He explains how this continuous loop leads to dynamic growth, especially in Amazon’s infrastructure offerings:

“When thinking through an IoT solution, what is most obvious is the end device.  But this is the classic “tip of the iceberg” in creating an end-to-end solutions.  The IoT Value Chain is defined by devices, connectivity, big data, algorithms, actions, and connection to the rest of the enterprise.  As more and more IoT Devices get introduced, a greater amount of data (both big and small) is generated. This data, once integrated with algorithms create a greater overall customer IoT impact generating more demand for more devices. All of these devices and services can be hosted on AWS and utilize their infrastructure capabilities leading to greater growth of the infrastructure. At this point, the loop looks familiar: infrastructure growth leads to lower costs, which means more services and companies rely on the infrastructure locking into a cycle of higher customer impact.  Amazon Web Services has several existing IoT enabling products include AWS Redshift, AWS Kinesis, AWS Machine Learning and recent acquisition of 2lemetry show that the big bet for Amazon is not in creating devices for its retail business, but in providing cloud infrastructure and software to thousands of companies needing to build IoT devices and capabilities.  This is the AWS IoT flywheel and the real business in IoT for Amazon.”

Yeah, but the bucks that it will get from Dash orders and from Echo ain’t shabby either. Keep up that cyclical thinking, Mr. Bezos!

 

PS: this also makes me more and more confident that Echo and Alexis can be the key to the robust “SmartAging” approach that I visualize because its use of voice will help seniors, especially the tech-averse, manage their health AND their homes and allow them to age in place healthily! Gonna have to get me some partners to go after Alexa Fund backing…

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Live Blogging from SAP’s SCM CRM IoT 2016

I’m back in Sodom and Gomorrah in the desert, AKA Las Vegas, to speak at another SAP IoT conference: SCM CRM IoT 2016, and to live blog again!

Keynoters: Hans Thalbauer, sr. vp of extended supply chain solutions at SAP, and Dr. Volker G. Hildebrand, global vp or customer engagement & commerce for SAP Hybris:
Hildebrand:

  • theme: move beyond traditional CRM: look at entire customer journey
  • you have to meet customer expectations for convenience, relevance, reliability, and in real-time.
  • real lesson from Uber: customers upend markets, not companies; carry power of internet in their pocket; if you’re fighting alone, you have no chance of success;
  • when London cabbies went on strike, Uber membership went up 850% in 3 days.
  • “74% of execs. believe digital transformation is improving value for customers”
  • must thinking beyond CRM: 2 of 3 companies don’t think their CRM doesn’t support their future needs for customer engagement.
  • blend marketing & commerce.
  • personalization is key to digital commerce.
  • beyond service: customer served before, during & after buy; flawless field service. 53% abandon online purchase if they don’t be quick answers to questions.
  • why no app from cable provider allowing you to get assistance Uber-style? Instead, hold on phone.
  • One-to-one future is here.
  • Omnichannel selling
  • By 2020: 1 million fewer B2B sales reps (@Forrester)
  • EY: enabled collaboration with 15,000 client partners
  • “Engage your customers like never before:” commerce, marketing, service & sales.

Bob Porter, Pregis (protective packaging):

  • liked ease of use with Hybris (vs. Salesforce)

Thalbauer (digital transformation of supply chain):

  • end-consumer driven economy
  • very related to IoT
  • tech adoption accelerating
  • biz model transformation
  • instant notification if the equipment malfunctions
  • change of business transformation
  • disruption in every aspect of business:
    • customer-centric (demand sensing, omni-channel sales, same-day delivery)
    • individualized products (configured products, digitalized inventory, lot size of one)
    • resource scarcity (talent, sustainability, natural resources)
    • sharing economy (social networks, business networks, asset networks)
  • sweet: combo of 3-D printing at warehouse & Uber-based model for final delivery.
  • extended supply chain demo: sweet (literally): 3-D printing of chocolates at high-end stores! — wonderful example of IoT data-centric enterprise
  • SAP increasing pace of innovation
    • fastest-growing planning solution in history
    • only live logistics platform in the market
    • product innovation platform re-defined
    • demand-driven manufacturing
    • digital assets.

Next up: Sacha Westermann, Port of Hamburg, on how it uses IoT to streamline operations, improve efficiency & reduce accidents through “smartPORT”:

  • it’s very big (largest port in Germany), and very complex! Ships, rail (largest rail hub in Europe), trucking. 24/7.
  • big emphasis on environment: need to reduce emissions, improve sustainability.
  • can’t expand area, but must be able to handle more volume.
  • key factor is connectivity between all parties.
  • smartPORT includes energy & logistics.
  • smart maintenance: use mobile to call up SAP order & create messages, take photos. Example of malfunction with a drawbridge. Technician got new button from stock, installed it, customers didn’t even know there was a problem.
  • port monitor: digital map with all info to operate the harbor. Mobile version on iPad.
  • SmartSwitch for rail: sensors on the switches to measure conditions. Automated data flow to maintenance company.
  • dynamic info on traffic volumes: combines all real-time data on traffic. Detects available parking spaces. Created “PrePort Parking” as holding area for trucks that are early or late. Trucks park bumper-to-bumper for maximum efficiency.
  • special traffic lights: cycle changes based on real-time traffic flow. Warning messages if pedestrians cross.
  • smartROAD: smart sensing of the bridge-structural load — identifies interdependencies and to do predictive maintenance.
  • Take aways:
    • good application requires lot of data
    • must share data
    • data privacy critical for confidence
    • everyone gets just info they need
    • more participants, higher the benefit for each
    • open interfaces basic
    • application must be self-explanatory

Next up: me!, on 4 Essential Truths of IoT & how that translates into strategy.


 

Mike Lackey, IoT Extended Supply Chain, SAP explaining their IoT strategy & direction, with emphasis on “driving customer value”:

  • he’s using universe of 75 billion connected devices by 2022.
  • case study: STILL, the smart lift truck from Germany. Forklift sold as service, based on weight of materials carried. They will communicate among themselves, M2M.
  • “It is not about Things, it is about what the Things can do to radically transform business processes!”
  • oil & gas: reducing spills. They worked with the company that made the platform that failed in Deep Horizon — hadn’t been maintained in years.
  • Burbury: want to know exactly what you looked at, share the info among their stores. Creepy: invasion of privacy??
  • UnderArmour: why do you have to wear a band — build sensors right into clothes.
  • Hagleitner (I reported about them at last SAP event) provides supplies for corporate washrooms, etc. Paradigm shift: sensors let them know which dispensers need new materials. “big washroom data
  • applications: drive adoption with a few killer applications. Differentiate with “Thing to Outcome”
  • cloud: leading cloud experience for customers and partners at lowest TCO
  • platform: open big data platform. high-value services for SAP, customer & partner
  • Kaeser Compressors also made paradigm shift: no longer sell air compressors, but air — must guarantee it works constantly. Million data points per compressor daily. Differentiates them from competitors.
  • one tractor company now can recommend to farmers what they should plant based on data from sensors on the plows.
  • Asset Intelligence Network: great example of data sharing for mutual advantage. To be released soon.
  • Enables connected driving experience.
  • SAP IoT Starter Kit can get you started.

Digital Twins: the Ultimate in Internet of Things Real-Time Monitoring

Get ready for the age when every product will have a “digital twin” back at the manufacturer, a perfect copy of not just the product as it left the factory floor, but as it is functioning in the field right now. That will be yet another IoT game-changer in terms of my 4th IoT Essential Truth, “rethink products.”

Oh, and did I forget to mention that we’ll each have a personal body twin from birth, to improve our health?

For the first time we’ll really understand products, how they work, what’s needed to improve them, and even how they may be tweaked once they’re thousands of miles from the factory, to add new features, fix problems, and/or optimize efficiency.

Key to circular organizations

Even better, the twin can play a critical role in accomplishing my vision of new circular organizations (replacing obsolete hierarchies and linear processes), in which all relevant departments and functions (and even supply chain members, distribution networks and customers, where relevant) form a continuous circle with real-time IoT data as the hub).  Think of the twin as one of those manifestations of the real-time data to which all departments will have simultaneous access.

GE Digital Twin visualization

               GE Digital Twin visualization

I’ve often remarked how incredible it was that companies (especially manufacturers) were able to function as well as they did and produce products as functional as they were despite the inability to peek inside them and really understand their operations and/or problems. Bravo, industrial pioneers!

However, that’s no longer good enough, and that’s where digital twins come in.  In a WSJ blog post this week, General Electric’s William Ruh, my fav IoT visionary/pragmatist, talked about how the company, as part of its “Industrial Internet” transformation, is making digital twins a key tool:

“Every product out there will have one, and there will be an ability to connect a system, or systems of digital twins, easily. The digital twin is a model of an asset, a product such as a jet engine or a model of the blades in a jet engine. Sensors on those blades pull the data off and feed them into the digital twin. The digital twin is kept current with the data that is run off the sensors. It is in sync with the reality of the blade. Now we can ask what is the best time to change the blade, how the blade performs, options to get greater efficiency.”

Proof of the pudding?

Ruh says they’ve created a wind turbine and twin they call the “Digital Windfarm,” which generates 20% more electricity than a nearby conventional turbine.

PTC is also working on digital twins. According to the company’s Executive VP for Digital Twin, Mike Campbell,:  “It’s a model that uniquely represents a physical occurrence in the real world. This one-­to­one mapping is important. You create a relationship between the digital data and a unique product occurrence from a variety of sources: sensors, enterprise data on how it was made, what its configuration was, its geometry, how it is being used, and how it is being serviced.”

Predix

The key to digital twins is GE’s “Predix” predictive analytics software platform, which the company is extending across its entire product line. As always, the key is a constant stream of real-time data:

“weather, component messages, service reports, performance of similar models in GE’s fleets—a predictive model is built and the data collected is turned into actionable insights. This model can perform advanced planning, such as forecasting a ‘plan of the day’ for turbine operation, determining a highly efficient strategy to execute planned maintenance activities, and providing warnings about upcoming unplanned maintenance events, all of which ultimately generates more output and revenue for the customer.”

Digital doppelgängers

Here’s where the really sci-fi part kicks in: Ruh also predicts (Predix??, LOL) that GE’s medical division will soon create digital twins for you and me — at birth!

“I believe we will have a digital twin at birth, and it will take data off of the sensors everybody is running, and that digital twin will predict things for us about disease and cancer and other things. I believe we will end up with health care being the ultimate digital twin. Without it, I believe we will have data but with no outcome, or value.”

And, frankly, there’s also a spooky aspect to what GE’s doing, working with retailers to create psychographic models of customers based on their buying preferences. I’m dubious on that account: I do appreciate some suggestion about what might interest me, especially books, based on my past purchases. On the other hand, a couple of weeks I shopped for — but didn’t buy — biz cards online. Now, I get AdSense ads for these cards everywhere — even on this homepage (sorry for stuff that isn’t IoT, dear reader) Get over it, OK? Count me out when it get’s down to really granular psychographic profiles — too many risks with privacy and security.

I suspect digital twins will become a staple of the IoT, yielding critical real-time info on product status that will enable predictive maintenance and, as Ruh has written elsewhere, speeding the product upgrade process because, for the first time, designers will know exactly how the products are functioning in the field, as opposed to the total lack of information that used to be the norm. Stay tuned.

Day 2, Live Blogging from SAP’s IoT2016 Internet of Things Event

I’m up first this morning, & hope to lift attendees’ vision of what can be achieved with the Internet of Things: sure, cool devices and greater efficiency are great, but there’s so much more: how about total transformation of businesses and the economy, to make them more creative, precise, and even environmentally sustainable?

I’ve just revised my 4 IoT Essential Truths, the heart of my presentation, bumping make privacy and security the highest priority from number 4 to number 1 because of the factors I cited last week. I’ll draw on my background in crisis management to explain to the engineers in attendance, who I’ve found have a problem with accepting fear because it isn’t fact-based, how losing public trust could kill the IoT Golden Goose.

I’ll go on to explain the three other Essential Truths:

  • Share Data (instead of hoarding it, as in the past)
  • Close the Loop (feed that data back so there are no loose ends, and devices become self-regulating
  • Rethink Products so they will contain sensors to feed back data about the products’ real-time status, and/or can now be marketed not as products that are simply sold, but services that both provide additional benefits to customers while also creating new revenue streams for the manufacturer.

I’ll stress that these aren’t just truisms, but really difficult paradigm shifts to accomplish. They’re worth it, however, because making these changes a reality will allow us to leave behind old hierarchical and linear organizational structures that made sense in an age of limited and hard-t0-share data. Instead, we can follow the lead of W.L. Gore and its cyclical “lattice management,” in which — for the first time — everyone can get the real-time data they need to do their jobs better and make better decisions. Equally important, everyone can share this data in real time, breaking down information silos and encouraging collaboration, both within a company and with its supply chain and distribution network — and even with customers.

Amen.


Back with Michael Lynch of SAP!

  • we can change the world and enhance our understanding greater than ever.
  • can help us solve global warming.
  • great case study on heavy truck predictive maintenance in GoldCorp Canadian gold mines.
  • IoT maturity curve:
  • Critical question: who are you in a connected future?  Can lead to re-imaginging your corporate role.
  • UnderArmour is now embedding monitors into clothing.
  • Tennant makes cleaning equipment. Big problem with lost machines, now can find them quickly.
  • Asset Intelligence Network — Facebook for heavy equipment — SAP will launch soon.
  • example of a tractor company that’s moving to a “solutions-based enterprise.” What is the smallest increment of what you do that you could charge customer. Like the turbine companies charging for thrust.

SAP strategy:

  • “Our solution strategy is to grow by IoT-enabling core industry, and providing next generation solutions for millions of human users, while expanding our platform market by adding devices.”
  • they have an amazing next-gen. digital platform. More data flow through there than Alibaba & Amazon!
  • CenterPoint Energy — correlating all sorts of data such as smart meter & weather. Better forecasting.
  • Doing a new home-based diabetes monitoring system with Roche.
  • Doing a lot of predictive maintenance.
  • Connected mining.
  • Building blocks:
    • Connect (SAP IoT Starter Kit)
    • Transform
    • Re-imagine

Ending the day with my presentation on first steps for companies to take in beginning an IoT strategy, with special emphasis on applying analytical tools such as HANA to your current operations, and building “precision operations” by giving everyone who needs it real-time data to improve their job performance and decision-making. Much of the presentation will focus on GE, with its “Brilliant Factories” initiative!

http://www.stephensonstrategies.com/">Stephenson blogs on Internet of Things Internet of Things strategy, breakthroughs and management