Uncovering cross-industry learnings to capitalize on. IoE and digital innovation

Uncovering cross-industry learnings to capitalize on IoE and digital innovation BEE PART OF THE CHANGE Avenida de Burgos, 16 D, 28036 Madrid hablemos@beeva.com www.beeva.com

WHO WE ARE We are Technology & Innovation for the BBVA Group and non-financial industries. 100% BBVA Group owned. We provide Technological solutions to leverage organization s efficiency & innovation. Our Mission is... To support organizations in their Digital Transformation journey and bring value with emerging technologies. 100 % +40% Last 3 years growth +850 Employees CLOUD COMPUTING BIG DATA MACHINE INTELLIGENCE 2

OUR MISSION Early Identification & implementation of Innovative technologies building technical capabilities with not sufficient coverage in the market. Great expectation from the Market. Early Adopters. Transformation projects expectations Realization of first implementations, expectations become more realistic. Technology understanding and maturity increases. Technology trend is mainstream and has a stable market with wider adoption. Technology trends are nascent without significant adoption. Proof of Concept Innovation Trigger Peak of Inflated Expectations Trough of Disillusionment Slope of Enlightenment Plateau of Productivity time 3

INNOVATION FUNNEL 4

{FOSTERING INNOVATION @ BBVA GROUP Anticipating IT trends before commoditization Serving as IT & Digital Transformation Catalysts Attracting & Developing IT Talent Digital Channels Digital Products Digital Interfaces https://www.bbva.com/en/bbva-1-mobile-bankingeurope/ https://www.commerce360.es https://www.bbvaapimarket.com/ 5

WHY NON FINANCIAL INDUSTRIES Understand & Acquire knowledge from Non Financial Use Cases Participate in Early Implementations of New technologies in other industries {Attracting & Developing IT Talent with Diverse Background IoT & Big Data in Utilities, Services & Government Use Cases Blockchain for non Financial Use Cases AR for Industry, Gaming, Education & Arts DL for Image Recognition for Services & Construction Industries Bots & Chatbots in HR, Customer Care, etc. 6

MONETIZATION CHALLENGES Infrastructure Services Data Provide infrastructure for other solutions. Power, communications or devices. Provide services over own infrastructure. I.e. your provide an API to your IoT infrastructure (f.e. Urban Solid Waste) Provide added value services over gathered data. I.e. Statistics over traffic, consume patterns, demand patterns. 7

INFRASTRUCTURE CHALLENGES Offering support to others solutions Geographical Coverage Manufacturing Projects Wide areas coverage is expensive Create IoT suitable devices IoT = IoP (Internet of Pilots) Early stages, few clients, mostly pilots source: http://www.atdi.com/wp-content/uploads/2016/07/lgwcoverage.jpg https://www.cadenas.de/tl_files/cadenas/images/content/produkte/de/logos_3d_cad_kataloge_fullsize.jpg https://ae01.alicdn.com/kf/htb1vc0ukxxxxxx4xfxxq6xxfxxxl/4-locomotive-8-carriage-100-authentic-thomas-trains-educational- Electronic-Model-Electric-Rail-Train-car-slot.jpg_640x640.jpg 8

INFRASTRUCTURE CHALLENGES Examples Communications Manufacturing source: http://www.atdi.com/wp-content/uploads/2016/07/lgwcoverage.jpg https://www.cadenas.de/tl_files/cadenas/images/content/produkte/de/logos_3d_cad_kataloge_fullsize.jpg https://ae01.alicdn.com/kf/htb1vc0ukxxxxxx4xfxxq6xxfxxxl/4-locomotive-8-carriage-100-authentic-thomas-trains-educational- Electronic-Model-Electric-Rail-Train-car-slot.jpg_640x640.jpg 9

SERVICES CHALLENGES Offering services over your solution network Price Hardware is more expensive than software Deployment & maintenance Deployed by humans Resistant to environment Devices Heterogeneous devices integration Source: https://pixabay.com/p-605077/ https://www.researchgate.net/profile/luis_sanchez19/publication/282889741/figure/fig2/as:287782439927809@1445624088837/figure-2-santander-citycentre-fixed-iot-infrastructure-deployment-excerpt-view.png 10

SERVICES CHALLENGES Examples Urban Solid Residues Street Parking Monitor containers for optimizing routes Monitor free street parking places 11

DATA CHALLENGES Offering analytics over your services Data Quality Data quantity Use Case Models Optimize data capture locations: Selected places over too many devices (non-significant) Ex: Soil moisture sensor every five meters versus more damp and less damp points Optimize Communications frequency based on Use Case needs: Communications and battery avoid fine grain Forest fire detector sending a temperature measure per day Data analytics requires sector knowledge Build Use Business Case and Analytics Case first Speak client language Source: https://stats.stackexchange.com/questions/46334/line-graph-has-too-many-lines-is-there-a-better-solution http://3.bp.blogspot.com/-cm7jp55ja_a/tihxmeszkni/aaaaaaaabmq/u-cvnkju0w4/s1600/daq_less_more.png 12

DATA CHALLENGES Examples Urban Solid Residues Advertising Correlate waste generation with people flow for city safety services Auction ads screen based on measured people in the street 13

IoT VALUE IoT Value is Data Value DATA SCIENCE Data Science Models, built & continuously updated based on captured & transformed data allow for predictive & prescriptive analysis on business processes DATA PROCESSING Data Processing Layer introduces a first Intelligence Layer bringing tangible value when combined with operational processes COMMUNICATIONS IoT Communications devices are low on the value chain. Nevertheless Data processing is partially moving to Communications Devices, bringing more value to this layer. CONNECTED THINGS (SENSORS & ACTUATORS) IoT Things are lowest on the value chain, as they are currently non intelligent devices. Their task is to capture data (sensors) and perform tasks (actuators) 14

OUR MONETIZING IoT TODAY GUIDELINES Focus First on most beneficial Use Cases You may not need IoT for everything (in fact, you don t). Focus on Feasible Use Cases with a RoI. Moreover you may not need a full IoT new Architecture and may get benefits just investing on the Data Architecture as a first step. Optimize Devices Costs IoT technology and devices are rapidly evolving. Don t spend too much in current devices. Buy strictly what you need today. PoCs are key for Invest in Data Science Talent Invest where value comes from. Attract talent. Knowledge is cummulative and not easily replaceable. Build Iteratively a Scaleable & Flexible Infrastructure Build iteratively your IoT Solution based using a Use case per Use case strategy, starting with PoCs. Avoid Vendor Locking (if possible) Knowledge is the main asset of most (if not all) businesses. IoT brings knowledge. Don t make it depend on a single external agent. One size does not fit all. Keep Key Knowledge In-House Design your own IoT solutions and build skills in house, especially skills that bring the most value to your organization 15

BUILDING IoT TODAY 1 2 3 4 IDENTIFY & PRIORITIZE IoT ARCHITECTURE DESIGN IoT ARCHITECTURE VALIDATION ITERATIVE IMPLEMENTATION Identify & Prioritize IoT Use Cases based on expected RoI & Feasibility Define your IoT Use Cases success KPIs Identify needed skills and design skills building / acquiring / renting plan Design IoT Platform Architecture Footprint with focus on Scaleability and Flexibility Design IOT Platform Architecture building Roadmap based on Use Cases Prioritization Validate IoT Architecture with a first IoT end to end scaleable PoC Run a PoC programme for identified Use Cases validating each one of them before their operationalization Iteratively implement your IoT Architecture by building validated Use Cases Monitor success KPIs for each Use Case Keep a Lessons Learned record for next implementations 16

HORIZONTAL OR VERTICAL APPROACH IIOT CASE CIOT CASE 17

Horizontal over vertical BEE PART OF THE CHANGE Avenida de Burgos, 16 D, 28036 Madrid hablemos@beeva.com www.beeva.com

SOLUTIONS APPROACH THIS IS A DESCRIPTION 19

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THIS IS A VERY LONG LONG HEADER THIS IS SUBHEADER BEE PART OF THE CHANGE Avenida de Burgos, 16 D, 28036 Madrid hablemos@beeva.com www.beeva.com

THIS IS SUBHEADER BEE PART OF THE CHANGE Avenida de Burgos, 16 D, 28036 Madrid hablemos@beeva.com www.beeva.com

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1 2 3 Price Deployment HEADER 3 Hardware is expensive Deployed by humans Resistant to environment Nunc scelerisque feugiat cursus.aenean purus mauris, volutpat eget neque eu, interdum accumsan orci. 26

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