1. Internet of Things &
Logistics, hype or
business transforming?
Technologies ,Applications and approach
www.pwc.com
PwC Strategy & Operations
Management consulting Belgium
April 2016
2. PwC
Agenda
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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
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3. PwC
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 Let's Get Real
4. PwC
IoT market & areas of application
IoT verticals in the Picture
IoT Let's Get Real
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• 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
5. PwC
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
IoT Let's Get Real
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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 Networking
Automotive, 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
6. PwC
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.
IoT Let's Get Real
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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
7. PwC
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
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IoT Let's Get Real
Source: Verizon, State of the Market, The Internet of Things 2015 report
8. PwC
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
IoT Let's Get Real
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Range
The distance that a
transmitter can reliably
send and receive a signal
Power
The average power
usage during normal
working conditions
Scalability
The amount of device
connections that can be
added to a single hub
Reliability
The environment or setup
that may hinder or block
the signal
Connectivity Topographies
Mesh
Zigbee, Z-Wave
Direct Connect
Cellular, LPWAN, Satellite
Hub/Spoke
Wifi, BLE, RFID (UHF EPC2,NFC)
9. PwC
New radio technologies are emerging.
Options for all applications
IoT Let's Get Real
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Source: Peter R. Egli, 2015
5G
LPWAN
Luxembourg Becomes
Eighth Country to
Receive Nationwide
SIGFOX Internet of
Things Network
Coverage
10. PwC
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
IoT Let's Get Real
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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
11. PwC
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.
IoT Let's Get Real
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
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Position
Alters or redirects physical
objects
Sound
Produces or adjusts the sounds
of an environment
Light
Produces or adjusts the light of
an environment
Temperature
Produces or adjusts the amount
of heat in an environment
13. PwC
Interoperability is Key !
Most data are not used today
Interoperability is
critical to
maximizing the
value of IoT
Even though
consumer
applications garner
the most attention,
B2B applications
offer far more
impact.
IoT Let's Get Real
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Source: Expert interviews, McKinsey Global Institute analysis
14. PwC
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
IoT Let's Get Real
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15. PwC
‘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
IoT Let's Get Real
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30°
12°
16. PwC
Visual Quality and Actual Quality
IoT Let's Get Real
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0
1
2
3
4
5
0 2 4 6 8 10 12 14
QualityIndex
Visual Quality Indicators
Actual Quality
Ripening not visually
apparent until late in
process
Field Packing Transit DC Transit RetailerTransit
18. PwC
RFID , Beacons and Mobile ..
IoT in Fashion
IoT Let's Get Real
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Picking performance1
Auto-replenishment2
Real-time visibility3
Business/customer
Intelligence
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19. PwC
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
IoT Let's Get Real
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20. PwC
Create a
compelling digital
vision & Reshape
your business
strategy as
fundamentally
digital
Where to start?
Low Hanging fruit and
quick Wins increase
your appetite
IoT Let's Get Real
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Inventories your
processes
IoT
Adoption
The Internet of Things means richer data and deeper intelligence for all parties in a supply network. And that doesn’t just apply to product visibility. By allowing devices to “talk to each other” in the right way,