Why Digital counts? What Services can Internet of Things and Data Science deliver to our social and business economy?

What does Internet of Things mean?

The Internet of things (IoT) is the internetworking of physical devices, vehicles, connected devices and smart devises, buildings and other items, embedded with electronics, software, sensors, actuators, and network connectivity that enable these objects to collect and exchange data without requiring human-to-human or human-to-computer interaction.

Gartner survey shows that 43 % of Organizations are using or plan to implement the Internet of things in 2016.

By 2020, IoT will save consumers and businesses $1 trillion a year in maintenance, services and consumables.

Why Data Science becomes a must have?

We have been automating business processes for more than 40 years. We have been reporting on the data generated by business processes for decades. Today the market is requiring from technology, from systems and from ICT, to provide intelligence helping Enterprises to anticipate the future and take the right decisions at the right moment. Decisions that are based on simple extrapolations of the past are mostly wrong. Decisions should be based on well thought scientific models based on various factors, learning and expert systems, artificial intelligence, what we call overall Data science.

Data Science needs to be a fundamental pillar of any digital transformation effort. This is a new brand of analysts who are introducing data science courses into degrees ranging from computer science to business. Data Scientists usually require a mix of skills like mathematics, physics, statistics, computer science, algorithmic, machine learning and most importantly business knowledge.

What do we mean by Digital transformation?

Digital is the intensive use of new technologies (connected, machine to machine, big data, internet, embedded, intelligent) to optimize an existing business (for instance reduce its cost of operations) or to create new businesses (for example new business models, new business units or diversification).

Digital transformation is not about putting Digital everywhere and then let’s figure out what outcome we can measure. A clear enterprise strategy and a clear transformation roadmap should be the starting point. The Business Case should drive the introduction and usage of Digital for the right business processes. What counts is the outcome in an outcome based economy.

Digital technology is not a target in itself. What counts are the enabled services making existing operations more automated, more cost effective, more flexible, more agile and more robust.   What counts are the enabled services to help creating new businesses to generate new opportunities, to address new customers and to penetrate new markets.

87% of CFOs agree that growth requires faster and more intelligent data analysis and 50% of Networked enterprises are more likely to increase their market-share when using digital technology connecting them to their eco-system.

What Services can we expect from the Digital transformation? Examples and Benefits ?

Customers Sales and Services:

1. eCommerce Order to Cash in one click and delivery in 1 day for any product
2. Services and Support to customers delivered in less than 1h for any issue
3. Up to 20% increase in revenues from omni-channel communication with customers
4. 10 to 20% reduction in quality cost
5. 85% increase in forecasting accuracy

Assets:

1. Digital Assets Lifecycle Management through a twin parallel dynamic “image” available in the Cloud
2. Enabling Assets Performance, Strategy Management and  Benchmarking
3. Prediction the loss of life of Assets anytime
4. 10 to 40% reduction in maintenance costs
5. 30 to 50% reduction of total machine downtime
6. A Digital plant can save up to 250 M$  

Safety:

1. Signals to connected drivers during transportation to prevent accidents due to “fatigue”
2. Cars embedded sensors to keep security distance and enable self-driving
3. Prevent with "what if" scenarios big catastrophic accidents (like Fukushima)
4. Prevent up to US$200 billion in damages and health-costs annually

Capacity:

1. Transformation of the Energy Value Chain to enable energy efficiency, CO2 and renewable targets (20/20/20 by 2020 and ambitious targets in 2030, 2050)
2. Intelligent traffic management end to end to manage highways’ peak traffics
3. Connected Logistics in Ports to increase Dock's capacity
4. SmartGrids will enable the connection of 80% of renewables by 2050
5. Highways will increase their capacity by up to 300% using smart traffic management
6. Ports can increase their capacity by up to 100% by connected logistics

New businesses:

1. Become an Energy prosumer or get a smarter home in one click
2. Consumer to Consumer Energy selling through eCommerce platforms
3. Connected internet services in hospitality, transportation, waste collection, home services or any services in B2B, B2C, C2C
4. Digital can help reducing Time to Market by 50%

Let me ask you the following questions:

1. While any car you buy today has a minimum digital technology included, what time it would take us to have every home embedding a minimal digital technology?
2. 50% of the existing plants moving digital? By when?
3. Every Asset’s data has a digital “image”? By when ?