The Internet of Things Supply Chain Network Scholars

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The Internet of Things Supply Chain Network Scholars Spring 2016 Team: Krishna Nyshadham Alexander

The Internet of Things Supply Chain Network Scholars Spring 2016 Team: Krishna Nyshadham Alexander Hebrank Isabella Miller Daniel Ivanhoe

Takeaways What is Io. T? Insight into challenges and opportunities in supply chain in

Takeaways What is Io. T? Insight into challenges and opportunities in supply chain in the process of Io. T implementation How societal, economical, environmental, and governmental factors are affecting this trend Future projections for Io. T in supply chain, tech industry, and the global environment

What is Io. T? The Internet of Things (Io. T) Defined by Mc. Kinsey

What is Io. T? The Internet of Things (Io. T) Defined by Mc. Kinsey & Company: “sensors and actuators connected by networks to computing systems to monitor the natural world, people, and animals” What industry professionals are saying: “Buzzword that is streamlining the world around us”-Forbes Sensors and activators Opportunity to “discover profitability by uncovering data from newly connected devices and systems that optimize processes, deliver deep business insights, and drive innovation. ” –Intel “Intelligent efficiency…. adapted, anticipated, and networked. ” -ACEEE Technology People and process

What does it look like? A fully integrated and more automated supply chain process

What does it look like? A fully integrated and more automated supply chain process Every step of the supply chain is impacted by increasing: Overall efficiency Safety Meaningful data usage Accountability and tracking Customer satisfaction and relations Overall net handprint vs footprint COST SAVINGS $$$ Several other factors

Challenges & Opportunities in the Industry The challenges and opportunities are one in the

Challenges & Opportunities in the Industry The challenges and opportunities are one in the same. Here are some. The Internet of Things IS technology and the idea is still new. Offer unique services, products, and consulting. A lot of the necessary technology and service still does not exist. Data collection, better usage, security, regulations, and bandwidth to handle it. “Market for Io. T components and systems grew 160% in 2013 -2014, and could exceed 30% a year through 2025. ”-Mc. Kinsey&Company “Only 1% of data from an oil rig with 30, 000 sensors is currently examined. ”Mc. Kinsey&Company Increase global handprint. Decrease global footprint. “Historically, the public has only focused on the negative impacts of ICT. ” -Intel Cost reduction. -Need continued price declines in computing, storage, RFID tags, etc. -Who can do it better, faster? Improve their own existing supply chain processes. (DDVN) Talent demanded in employees that robots can’t replace. “Spanning utilization, warehouse space optimization, or production planning. ”-Gartner “Tasked with “delivering, sourcing, and maintaining the technology that makes Io. T possible to begin with. ”

Societal Factors Consumer • Smart home control • Optimized energy use • maintenance Retail

Societal Factors Consumer • Smart home control • Optimized energy use • maintenance Retail • Product tracking • Inventory control • Focused marketing Industrial Automotive • Smart Meters • Wear-out sensing • Manufactoring control • Climate Control • Parking • Traffic flow • Anti-theft location Medical Military • Wearable devices • Implanted devices • Tele-health services • Resource allocation • Threat analysis • Troop monitoring Environmental • Species tracking • Weather predicition • Resource management Agriculture • Crop management • Soil analysis

Global Implementation Developed Societies Developing Societies Focus on improving existing infrastructure to implement “Digital

Global Implementation Developed Societies Developing Societies Focus on improving existing infrastructure to implement “Digital Transformation”. Focus on implementing basic utilities for better quality of living and match developed economics Immediate need to beef-up bandwidth, sensor, router, and related infrastructure Very less current scope for the progress of Io. T Unprecedented demand resulting in challenging and competitive supply chain trend. Rising demand for basic infrastructure. Huge surge in trends anticipated in supply chain aspect of Io. T business and innovation opportunity Leading up to 2025, 40% of value could be generated from developing economies. ”-Mc. Kinsey & Company

India Study

India Study

Economic Factors “Companies will need to decide when and how to invest in the

Economic Factors “Companies will need to decide when and how to invest in the Io. T and will need to develop sufficient knowledge to make smart investments. ” –Mc. Kinsey & Company Factories 10 -25% potential improvement in labor efficiency = robots replacing humans 10 -20% energy savings Job Market Demand for workers will fall in processes that become automated Human work will shift to installing and maintaining the automated processes Io. T could make up 11% of world’s economy by 2020.

Environmental Factors “footprint” vs “handprint” viewpoint in net solutions Need to implement less energy

Environmental Factors “footprint” vs “handprint” viewpoint in net solutions Need to implement less energy AND clean energy Recognizing the exponential benefits of Information Communication Technology May be costly to implement but pay off in carbon reduction and foregone electricity Project with Daikin Applied Rebel HVAC units installed with intelligent gateways Intelligent gateways extract data from Rebel HVAC unit to the cloud rather than through IT system • Reduce truck rolls, service calls, reactive visits, missed energy saving opportunity • Machines making decisions between other machines and providing operational data at the same time INTELLIGENCE = PREPARATION = ENERGY SAVINGS Intel projects overall 16. 5% decrease in emissions and $1. 9 trillion in savings in fuel costs by 2020

Governmental Factors Safety and Security Data Security As Io. T popularity increases, do does:

Governmental Factors Safety and Security Data Security As Io. T popularity increases, do does: Data Sensitivity Hacking Ability Physical Safety Io. T devices may fail just as Wifi devices are hackable -Smart thermostats -Smart Cars Standards Hewlett-Packard Study of Io. T • Audited 10 popular internet-connected “smart” devices • Found 250 vulnerabilities • 60% had a lack of encryption during transport of firmware updates • 70% used unencrypted network services • 80% failed to enforce use of sufficiently long or complex passwords Most smart tech from small kickstarter companies Federal Trade Commission- Io. T Security Report • Groundwork for future regulation

Policy Creation Slows Down Supply Chain Policy creation and governmental regulation is a part

Policy Creation Slows Down Supply Chain Policy creation and governmental regulation is a part of the technology supply chain. Ex. Self driving cars require the support of regulatory approval New regulatory framework for such new technology Need established rules about the liability Slows down the overall creation process Cannot move forward in the until these policies are in place

Projecting the Io. T Future By 2020: • 4 billion connected people • $4

Projecting the Io. T Future By 2020: • 4 billion connected people • $4 trillion revenue opportunity • 25+ million apps • 25+ billion embedded intelligent systems • 50 trillion GBs of Data

Summary 1 2 3 • The supply chain is the backbone of any future

Summary 1 2 3 • The supply chain is the backbone of any future Io. T implementations and one of the most sensitive attributes in Io. T. • There is opportunity at every step of the supply chain- from development to logistics. • Any factor-external or internal- to Io. T will have a huge impact on the dynamics of supply chain strategy thus cannot be ignored.

References http: //www. cisco. com/c/en/us/solutions/internet-of-things/overview. html http: //www. intel. com/content/www/us/en/internet-of-things/iot-technology. html? cid=sem 116 p

References http: //www. cisco. com/c/en/us/solutions/internet-of-things/overview. html http: //www. intel. com/content/www/us/en/internet-of-things/iot-technology. html? cid=sem 116 p 234713 gc&intel_term=iot%20 overview&gclid=CK 7 c 0 d. OVw 8 s. CFVNqfgod. S 44 KXw http: //www. forbes. com/sites/jacobmorgan/2014/05/13/simple-explanation-internet-things-that-anyone-can-understand/# 61 eee 3346828 http: //appirio. com/category/business-blog/it/2015/12/how-the-internet-of-things-will-change-the-job-market/ http: //www. mouser. com/applications/iot-reality/? cm_mmc=Press. Release-PR-_-Mouser-_-Io. T_Site_Update-_-2015 -07 -01 http: //www. intel. com/content/dam/www/public/us/en/documents/corporate-information/policy-iot-energy- environmental. pdf https: //g. foolcdn. com/editorial/images/154865/internet-of-things-security_large. png http: //www. wassom. com/top-5 -legal-issues-internet-things-part-1 -data-security-privacy. html http: //www. computerworld. com/article/2490587/networking/popular-internet-of-things-devices-aren-t-secure. html https: //www. ftc. gov/system/files/documents/reports/federal-trade-commission-staff-report-november-2013 -workshop-entitled-internet-things-privacy/150127 iotrpt. pdf www. mckinsey. com/mgi http: //cerasis. com/2015/02/25/internet-of-things / http: //www. brookings. edu/~/media/research/files/papers/2015/10/26 -robots-emerging-technologies-public-policy-west/robotwork. pdf

Questions?

Questions?