Digital Transformation, not Digitalisation, is what’s new

July 7, 2017

ai-cropped-640x353Digitalisation is frequently used as the name of the game today. But digitalisation, i.e. conversation from analog to digital representation of information, started some 60 years ago and has been going on ever since. When a process is fully digitalised, from end to end, the process will be much more efficient than before. But most processes today are only partially digitalised which is like building a bridge and leve some meters here and there. Let’s take the example of a smart electricity meter, where the collection of usage data is digitalised and hopefully the receiving systems at the energy company. But then the processed details often are put on paper and sent to the customer who hopefully pays in a digital fashion or god forbid calls customer service.

A fully digitalised process is quite efficient but more importantly it is a great starting point for artificial intelligence in any form or shape to be applied. Imagine that we could move the simplest 30% of the decisions in a process from people to computers. What would that mean to your organisation’s cost, quality and speed of execution, and not to forget your competitiveness? What if we could add an algorithm making our system self-learning thus provide qualified decision support for the remaining decisions made by your staff and maybe even advise to your customers. This is what Digital Transformation is about and that is what we should talk about rather than digitalisation. 

It is IoT that adds the last meters of the digital bridge. By connecting the real world to the Internet where we already have people and organisations we can start complete the digitalisation of our processes – a sensor that tells when a door is open, where a car is located, when it’s time to repair a fridge or when the level of carbon dioxide is too high. And this is exactly what the more progressive organisations are working on right now. And since organisations and processes are quite unique there are a huge amount of opportunities for companies to develop algorithms to support specific processes. I already have many members in my alliance for Swedish IoT startups working with machine learning including Ekkono, Watty, Aifloo, CombiQ, BellPal and Imagimob

The effects of Digital Transformation will be massive in all industries and large-scale redundancy will definitely hit white-collar employees as organisations get their act together. I miss awareness and a serious debate about this in Sweden since it limits our chances to come out of this transition strong, the longer we wait to address the challenge.

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The power of making aware

June 1, 2017

It’s common wisdom that what you measure becomes important. That’s how we humans work. A clock makes you focus on time and so on. I consider myself a good driver having been driving 39 years without serious accidents and only a few speed tickets. When my kids practiced for driving license I heard about eco driving and thought that was a great initiative for the youngsters.

In November last year I signed up for the TeliaSense service which promised an easier car ownership through innovative services and features accessible from a nice app. I opted in to an annual inspection service from Bilprovningen, a maintenance service from Bilia and a road side assistance service from Viking which added good value to the car related services and Wi-Fi already in the app. Then in February I got a message that Eco Driving was added to the app and I immediately took a look more out of curiosity than to verify my superior driving skills. What! A big red and angry smiley starring at me! And in that moment I painfully recalled all the times my wife have told me that I’m driving aggressively.
From that day I have looked at the coloured smileys every single day. And guess what, it has changed my driving habits a lot.
I am amazed over my own behaviour! Yes I am a fighter and hate to lose but I would never have guessed that it would take me three months to become a better driver for my wife, my fellow drivers on the road and most importantly for the planet just because my driving was measured from an eco driving point of view and presented in my face.
I have also been presented statistics about what happens to people’s electricity consumption when their consumption is visualised to them and believe visualising individualised behaviour is a really good way to create value from IoT.
I’m working with Springworks who deliver this unique connected car service country by country together with mobile operators like Telia and it feels really good to see all work we do become something as meaningful as this!

Autonomous cars not around the corner

April 26, 2017

KITT_Knight_Rider2The car industry has its challenges. From being the ultimate provider of freedom, personal transportation and quality of life it now is supposed to solve the safety and sustainability issues it created. The very complicated and expensive cars of today are not utilised enough (5,5% according to my TeliaSense app), consume too much space, cause a lot of accidents and impact our planet badly when produced, used and discarded. It’s easy to suggest public transportation as an alternative but as soon as leaving the urban areas that is falling short. Intuitively the solution would include new ways of owning and using cars, electrical engines, even more safety features and cross-industry innovation within the car eco system. And since we can’t wait 10-15 years the cars already on the road must be included at least to some degree.

With this in mind I find today’s focus on self driving cars strange. We have continuous safety improvements in new cars, they are connected and loaded with sensors and most manufacturers have electric engines in some models. Also cars on the roads are being connected using the OBD port and offered services from the car eco-systems. But autonomous cars is what the industry, media and strangely enough IT companies are talking most about. I understand that manufacturers work on self driving cars since it’s a very complex challenge which will take many years to sort out, and it will bring continuous innovation to the cars down the road. But why talking so much about it already today? The technical challenges are big but not what will determine how soon we will see self-driving cars on the road. It’s culture, law and policies!

Take a look at airplanes. They are very complicated to make and fly but self-flying planes are here or at least around the corner depending on definitions. So are we ready for choosing flights with or without pilots? And which one would be cheaper? Imagine the first autonomous car running over a person or two in US, and what the penalties will do to the car maker involved. Some people argue we will have new infrastructure for self driving cars. But with new infrastructure I guess we could be more innovative than making cars without steering wheel.

The SAE (Society of Automotive Engineers) classification for autonomous cars has six levels, from none (Level 0) to fully automated systems (Level 5). Level 3 is a vehicle in which within known, limited environments (such as freeways), the driver can safely turn their attention away from driving tasks, but must still be prepared to take control when needed. Berg Insight estimates registrations of 16,5M new Level 3 cars and 7,8M new Level 4 cars and no fully autonomous ones (Level 5) 2030.

I’m sure we can make very good but not perfect self-driving vehicles a couple of years from now but can’t see them being used on public roads for many years, unless very limited in speed. There has been some early progress when it comes to regulation here and there but I haven’t seen any progress in the field of liability yet. And I guess a generation or two of drivers will probably have to disappear from the roads before it happens.


The next big thing is here!

March 27, 2017

technology-adoption-ratesIt’s ten years since iPhone came to market and created a new world of smartphones and apps. It feels like they have been and will be here forever. Given the pace of tech development it is time for the next big thing but it is hard to see any candidates. Glasses and wristbands are accessories and not even close. VR and AR are interesting but probably not what we are looking for. When we look back at 2017 we will see that the next big thing  was internet again, this time with things added to it!

When internet surfaced last time we had little or no idea of the impact it would make to countries, businesses and people around the world. We went through the three phases: connectivity, operational value and strategic value in maybe ten years and the impact has been in the ball park of electricity. Now when we are adding things to the people and organisations already at internet we will go through exactly the same thing again. Connectivity (remember the 50 billion devices) is soon behind us now when we finally get the missing low power infrastructure for IoT, LPWAN. Since hardware is more difficult to connect than people the first phase will take quite a lot of time, but the two following ones – operational and strategic value –  will be much faster since everything needed already is available on internet. We already see companies leveraging things connected to internet today – look at the four nominees to the IoT Enterprise of the Year award in Sweden: Verisure, Volvo Cars, Husqvarna and Assa Abloy – and this is about to explode across industries and countries. The core deliverables from things connected to internet are safety, sustainability and efficiency i.e. what you will find in most priority lists of today.

In essence: if you want to understand how IoT will develop, try remember how internet happened last time. If you want to understand the impact of IoT, take a sober look at what internet has done to you, your industry, your society and the world. If you want to keep your job and save your company, get going. Internet is the next big thing, again, and we are already in the middle of the revolution. This time ignorance will be no acceptable excuse.


LPWAN is the hottest topic in IoT 2017

March 7, 2017

connected catI dived into what I called narrowband networks for IoT 2011 since there was an obvious need for an infrastructure that didn’t exist. I used to say “think cat, bicycle and smoke detector” to put the finger on the need. Or translated into requirements: low cost and often small and light communication modules, low cost connectivity and very low energy consumptions. The answer to that would be inexpensive infrastructure which is providing primarily heart beats, events and when needed position. The first solution I found was Sigfox and after a training in Toulouse I wrote this post.

There are four key alternatives for LPWAN emerging: Sigfox, LoRa, 6LoWPAN and NB IoT. Each have it’s strengths and weaknesses and it’s likely they all will play a significant role in the rapidly emerging new generation of Internet. 
 
Sigfox is a proprietary solution with national networks built with Sigfox base stations operated by national Sigfox operators using the same back-end system operated by Sigfox. Sigfox has networks in some 30 countries today, with over 8 million connected devices and have a well developed eco system of developers and vendors on the terminal side.  
 
LoRaWAN is a global LPWAN specification created by the LoRa Alliance to drive a single standard for seamless interoperability across the industrys. Networks are built with LoRa Gateways and LoRa Network Servers available from several different vendors. LoRa alliance has some 400 members and continue develop the standard. LoRa could be compared with WiFi since networks can easily be built with one base station covering an area like a campus or square and expanded to cover cities and countries. But there is no common back-end arrangement for roaming, service level agreements etc. 
 
6LoWPAN is a concept originated from the idea that IP, the Internet Protocol, could and should be applied even to the smallest devices, and that low-power devices with limited processing capabilities should be able to participate in the Internet of Things. It’s worked on by an IETF working group. 6LoWPAN is similar to LoRa since networks typically are deployed independently in a campus, city or building with no global back-end service. 
 
NB-IoT is the narrowband bet by the mobile operators. It differs since it is using private spectrum and typically the infrastructure already in place in mobile networks. The initiative has been developed in record time and most mobile operators are planning roll-outs. The first NB IoT networks are expected mid 2017 and we have just started to see modules, developer tools etc. It is also interesting to follow how NB IoT relate to 5G since support for narrowband has become a key part of what is targeted. 
Due to the very big interest and potential for narrowband networks there are several other vendors and efforts to address this need.

LPWAN is now the hottest of questions in IoT since manufacturers, vendors, users, developers, consultants, operators, teachers and journalists all need to understand what it is, the different solutions available, how to develop applications for LPWAN and when to choose which solution. This is why I try to run as many “Get On Top Of LPWAN events” as I can to ensure Swedish IoT will remain leading edge.
Finally, I’m glad to let you know that we finally have a Sigfox operator also in Sweden! IoT Sweden was just announced and have started to roll out their network in larger cities already. They run their launch event at THINGS March 21 if you’re interested.

Read my lips: new requirements on privacy approaching

December 17, 2016

dataprivacy_218266510-1200x545I never miss an opportunity to make the point that Security and Privacy are the two big challenges for IoT, and that privacy is the bigger one. Security problems can be fixed since we accept apologies and forget rapidly. Was it billions of accounts Yahoo? Privacy issues are different since it is about trust and without a proper architecture no service can cope with new requirements on privacy.

Most people respond along the lines of “I have nothing to hide” or “that’s the way people are these days”. But people living in countries where they don’t trust the government have a completely different point of view. In most western countries we have quite tough policies about what you can ask people in interviews for employment. But given the data available to employers today (provided from users by signature!) combined with data analytics, they already know much more than you can imagine, so they don’t need to ask.

This is the naive era and it will come to an end, soon! Your personal data is yours and you should only give it away if you think it is a good idea! And many organisations are equally naive today! Critical data has to be kept safe! Web services for IPR management might not be a good idea for example. At least not unless you know where the servers (and their backups) are.

The only architecture I know of today which can support future requirements on privacy, is that users own their data and opt in to share it. I’m working with Springworks in the automotive industry today. In our company, enabling mobile operators to connect cars, the owners of the cars own the data generated in the car and they opt in to insurance companies, road side assistance companies etc to get some of their data. Car manufacturers typically argue that they own the data.

Here is a good example of what will drive new requirements on privacy – a report from Democratic Media on how wearables are used to collect and sell health data. Is this something we want? I don’t think so. Consumers and enterprises will raise new requirements, and governments will follow with legislation. Proper architectures for privacy and trusted partners will be kings.

 


Respect!

December 10, 2016

volvo-productionTechnology driven innovation continues to challenge and change our world. Internet is the single most important enabler and the last big thing is the smart phone, which gave us new ways of using the Internet including apps. The iPhone is about 10 years old now and it’s time for the next big thing: connecting things to Internet, where we already have people, organisations and services. This will once again change lives, organisations, industries, companies, cities and governments in the same way and magnitude that the arrival of Internet made last time. But this time it will happen much faster since most of the bits and pieces already are in place. We call this IoT right now but soon it will just be Internet again. 

I always think that everything is a science. Regardless of what you look into in more details, it proves to be very complicated. I love the massive opportunities Internet brought and believe these will be even bigger now when we add things to it. But Internet has created a trend which I dislike: by leaving out the physical part of the equation (like running a taxi business without taxis or hotel business without hotels) we are dependent on others doing the hard “physical” part which is connected to places, people, boarders, re-cycling, communities, manufacturing etc. Not that there is anything wrong with entrepreneurs executing on these opportunities, not at all, but we all have to think a little further before celebrating or investing in these initiatives. I see a whole range of challenges, including the vulnerability of these businesses when it comes to policymakers and not the least when the incentives to provide the underlying activities or assets disappear. The Internet part alone also tends to become global leaving only one or few companies in the market (Facebook, Twitter, Google…). Put differently, we simply have to think about the type of society we want to live in.

With Internet of Things this becomes quite obvious. Data is the gold of IoT and a lot of companies are focusing on building business on that data. But without anyone connecting the things, the T in IoT, there will be no data. And when companies make the effort, I don’t think it is obvious that they will share all their gold with anyone anyway. At least not for free. On top of that I’m convinced human beings as well as organisations will become much more cautious with their data and how it is shared and used. Security and privacy are the two big challenges to IoT!

Another dimension of this is that the opportunity to disrupt using Internet has made a lot of people completely lose the respect for the underlying assets or activities. A good example of that is all IT/Internet companies announcing plans to build a car. There is nothing wrong with that, if you have funds to buy all skills and other assets it takes. But I have still to see a car manufacturer announcing that they will start make fridges, shoes, smartphones or Internet search engines. Maybe traditional companies have more respect for the complexity of other industries. 

I believe we all would benefit from a little bit more respect for how difficult it actually is to do different things. A hackathon with youngsters to innovate healthcare over a weekend is great education and fun but makes no sense from a healthcare point of view. An app to keep track on parking spaces is easy to do compared to building the infrastructure to provide all the information needed. The how of IoT is about collaboration and eco-systems, where all relevant players have an important role bringing their experience and know-how to the solution.


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