Touch IoT with SAP Leonardo

1.1 Introduction to the Internet of Things

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 1

Introduction to the Internet of Things
Whats new in this course?

Update Fun Exercise

Internet of Things Touch IoT directly
SAP Leonardo
SAP IoT products
Prototype Challenge
More focused
New templates
Guest Speakers
Expert from IDC
Expert from TBR Winners
Expert from Intel Top 5 IoT Hardware
Top 200 Funding Entrepreneurs

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 2

Introduction to the Internet of Things
Course structure (1)

Get to know the Internet of Things

Go deeper into IoT with SAP

Prototype your first IoT application

Peer review

Winners will be announced

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 3

Introduction to the Internet of Things
Course structure (2)

Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7

Get to Know Go Deeper Create Your No Final

the Internet into IoT Own IoT Exam
of Things with SAP Prototype More Time
for Innovation

Video lectures and assignments Evaluate peers

Submit your work View results

Announce
Design, iterate, and prototype IoT application
winners

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 4

 What is IoT
and why should you care?

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 5

Introduction to the Internet of Things
Popular definitions

The Internet of Things (IoT) is the network of physical objects that contain embedded
technology to communicate and sense or interact with their internal states or the external
environment. Source: Gartner

The Internet of things (IoT) is the network of physical devices, vehicles, buildings, and other
itemsembedded with electronics, software, sensors, actuators, and network connectivity that
enable these objects to collect and exchange data. Source: Wikipedia

Everyday devices equipped with sensors and connectivity to work together, understand what
were doing, and operate automatically to make our lives easier. Source: Digital Trends

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 6

Introduction to the Internet of Things
openSAP definition

The Internet of Things (IoT) is the

network of physical objects that contain embedded technology to sense and interact with
their environment and each other to collect and exchange data to make our lives better.

Sense Analyze

Connect Store Share

Act Control
IoT Definition by Gartner, Wikipedia, Digital Trends, and openSAP

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 7

Introduction to the Internet of Things
Industrial revolutions from industry 1.0 to 4.0

First Second Third Fourth

Mechanical Power Mass Production Digital Revolution Internet of Things

Mechanical production Division of labor and mass All devices are

facilities with the production with the help of connected
help of water and electrical energy
steam power

Electronic and IT
systems that further
automate production

1800 1900 2000

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 8

 Internet of Things vs. Internet
What is the difference?

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 9

Introduction to the Internet of Things
Internet of People

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 10

Introduction to the Internet of Things
Internet of Things

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 11

 IoT Facts
6 things you should know about IoT

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 12

Introduction to the Internet of Things
IoT facts

The term Internet of Things ATMs are considered

was coined by Kevin Ashton
87% some of the first
from MIT in
of people have not IoT objects, and
1999 heard of the term went online as far back
Internet of Things. as 1974.

For a device to be labelled as IoT, it

# of Connected Only 10% of cars were
Objects must have 7 design features:
connected to the Internet
2016 6.4 billion in 2012. By 2020, its Sensors
2020 50 billion estimated that 90% will Internet connectivity
be. Processors
Energy efficiency
Cost effectiveness
Quality
Reliability
Security

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 13

 IoT in 2016
Why is the IoT boom happening now?

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 14

Introduction to the Internet of Things
Why IoT is booming now (1)

Availability Affordability Scalability

IoT devices are already Average cost of sensors Many devices offer simple
common, cheap, and easy to used in IoT will drop plug & play functionality.
replace. even more.
IoT devices are highly
Basic infrastructure to support By end of the decade, flexible, offering short- or
IoT is in place (Wi-Fi, LTE). the price for a sensor will long-term solutions for
be down to almost $0.30. companies, households,
By 2018, half countries.
of the world
will be connected
to the Internet.

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 15

Introduction to the Internet of Things
Why IoT is booming now (2)

Average Sensor Cost Forecast

$1.50

$0.75
Estimated Penetration of Global Population
Using the Internet
$.0.00
2004 2006 2008 2010 2012 2014 2016E 2018E 2020E 100%
Source: Goldman Sachs, BI Intelligence Estimates, 2014

50%

0%
2005 2007 2009 2011 2013 2015 2017E 2019E

Source: BI Intelligence, ITU

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 16

Introduction to the Internet of Things
Technology convergence

Artificial Natural language Virtual and

Intelligence generation Augmented Reality

Robotics and Internet of

Drones Things
and many more
2017 SAP SE or an SAP affiliate company. All rights reserved. Public 17
 The IoT world today
What is possible today?

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 18

Introduction to the Internet of Things
Oil and gas industry

Track
pressure, temperature, transfer Data-enabled
speeds in real time monitoring
improves employee
safety

Advanced sensors
attach to pipelines Optimize
routes to increase
shipment
efficiency

Forecast
future volumes

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 19

Introduction to the Internet of Things
Disaster relief

Remote control
functions Electronic
that alert vending displays raise
machines to dispense awareness for public
drinks during disasters announcements

Storage
batteries allow
machines to operate
Current location during power outages
stickers are on all
vending machines
in Japan to track location
immediately

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 20

Introduction to the Internet of Things
Smart pill bottles

Internet Reminder E-mails

Cap
connected transmits if medicine wasnt to a loved one or a
hub that plugs data to hub taken health provider
into the wall

Refill button
that connects them to
their pharmacy via
phone

Cost
$10$15 per month

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 21

Introduction to the Internet of Things
Smart contact lens

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 22

Introduction to the Internet of Things
The IoT world today lets imagine a normal day

In the
morning

Leaving the house At work

Back home

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 23

 Think outside the box
How IoT changes our lives

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 24

Introduction to the Internet of Things
Think outside the box how IoT changes our lives

New
products
Evolve products that
are connected to the
Internet and equipped
with sensors.

New
services
Services that can be
provided in addition
to a product.

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 25

Introduction to the Internet of Things
Unit summary and looking ahead

Unit Summary
What IoT is
IoT history and context
Why IoT is booming now
IoT examples

Looking Ahead
Internet of GOOD Things

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 26

Thank you

Contact information:

open@sap.com
 2017 SAP SE or an SAP affiliate company. All rights reserved.

No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP SE or an SAP affiliate company.

SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE (or an SAP affiliate
company) in Germany and other countries. Please see http://global12.sap.com/corporate-en/legal/copyright/index.epx for additional trademark information and notices.

Some software products marketed by SAP SE and its distributors contain proprietary software components of other software vendors.

National product specifications may vary.

These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or warranty of any kind, and SAP SE or its
affiliated companies shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP SE or SAP affiliate company products and
services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as
constituting an additional warranty.

In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or any related presentation, or to develop
or release any functionality mentioned therein. This document, or any related presentation, and SAP SEs or its affiliated companies strategy and possible future
developments, products, and/or platform directions and functionality are all subject to change and may be changed by SAP SE or its affiliated companies at any time
for any reason without notice. The information in this document is not a commitment, promise, or legal obligation to deliver any material, code, or functionality. All forward-
looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place
undue reliance on these forward-looking statements, which speak only as of their dates, and they should not be relied upon in making purchasing decisions.

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 28

 Touch IoT with SAP Leonardo
1.2 Imagination, Innovation, and the Internet of GOOD Things

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 1

 Imagination
What is it?

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 2

Imagination, Innovation, and the Internet of GOOD Things
Imagination

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 3

 Imagination, Creativity, Innovation
What is the difference?

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 4

Imagination, Innovation, and the Internet of GOOD Things
Imagination vs. Creativity vs. Innovation

Imagination Creativity Innovation

Envision what doesnt Apply imagination to Apply creativity to

exist yet address a challenge develop unique ideas

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 5

 Leonardo da Vinci
and his imagination...

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 6

Imagination, Innovation, and the Internet of GOOD Things
Leonardo da Vincis imagination

Scuba gear Helicopter Parachute

Self-propelled cart Revolving bridge

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 7

 Mass innovations
How do things go from imagination to innovation?

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 8

Imagination, Innovation, and the Internet of GOOD Things
Mass innovation

Innovation
Infancy
Today Future

1973 2007

Innovation
Democratization
2017 SAP SE or an SAP affiliate company. All rights reserved. Public 9
 The Internet of GOOD Things
Can we make the world a better place by combining
imagination, innovation, and IoT?

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 10

Imagination, Innovation, and the Internet of GOOD Things
Autonomous vehicles

Autonomous Vehicles
With driverless and connected
vehicles directly communicating with
their environment, human error is
taken out of the equation and
accidents are eliminated.

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 11

Imagination, Innovation, and the Internet of GOOD Things
Agriculture

Irrigation Sensors
Sensors help reduce water usage by
analyzing important factors such as
topography and moisture levels.

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 12

Imagination, Innovation, and the Internet of GOOD Things
Water quality

Water Quality
Sensors are placed in water streams
to monitor acidity, and also send
alerts when a water pump breaks.

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 13

Imagination, Innovation, and the Internet of GOOD Things
Healthcare

Track Diseases
Sensors detect patients datafrom
temperature to oxygen saturation.
Over time, those sensors help predict
where an outbreak of a disease like
Ebola is going to spread.

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 14

Imagination, Innovation, and the Internet of GOOD Things
Natural disasters

Warning Systems
With the help of sensors, natural
disasters such as earthquakes or
tsunamis could be detected earlier,
allowing more time for evacuation.

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 15

Imagination, Innovation, and the Internet of GOOD Things
Internet connectivity

Project Loon
Project Loon is a network of balloons
traveling on the edge of space,
designed to extend Internet
connectivity to people in rural and
remote areas.

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 16

Imagination, Innovation, and the Internet of GOOD Things
Unit summary and looking ahead

Unit Summary
Imagination vs. innovation and Leonardo da Vinci examples
Innovation infancy vs. democratization
IoT and larger application examples

Looking Ahead
Sensors, Connectivity, and Insights

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 17

Thank you

Contact information:

open@sap.com
 2017 SAP SE or an SAP affiliate company. All rights reserved.

No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP SE or an SAP affiliate company.

SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE (or an SAP affiliate
company) in Germany and other countries. Please see http://global12.sap.com/corporate-en/legal/copyright/index.epx for additional trademark information and notices.

Some software products marketed by SAP SE and its distributors contain proprietary software components of other software vendors.

National product specifications may vary.

These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or warranty of any kind, and SAP SE or its
affiliated companies shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP SE or SAP affiliate company products and
services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as
constituting an additional warranty.

In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or any related presentation, or to develop
or release any functionality mentioned therein. This document, or any related presentation, and SAP SEs or its affiliated companies strategy and possible future
developments, products, and/or platform directions and functionality are all subject to change and may be changed by SAP SE or its affiliated companies at any time
for any reason without notice. The information in this document is not a commitment, promise, or legal obligation to deliver any material, code, or functionality. All forward-
looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place
undue reliance on these forward-looking statements, which speak only as of their dates, and they should not be relied upon in making purchasing decisions.

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 19

 Touch IoT with SAP Leonardo
1.3 Sensors, Connectivity, and Insights

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 1

Sensors, Connectivity, and Insights
The growing importance of sensors

Experts predict Image, speech, The speed of Sensors will be The Internet of
there will be up and voice analytics will commonplace in Everything
to 100 trillion recognition will grow thirtyfold the 111 million market could
sensors by advance to near by 2030, with new cars and grow to $14.4
2030. 100% accuracy 95% of queries the 2 billion trillion by 2022.
by 2025. answered in smartphones
milliseconds. that will be
purchased in
2020.

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 2

Sensors, Connectivity, and Insights
Building blocks of IoT

Devices Gateway Back-End Systems Application

Business

Locally Connected
ERP

IoT Platform
Sensor Data
Directly Connected

On cloud
and/or
On premise

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 3

 Devices

Locally Connected
Sensors
An important element of IoT

Directly Connected
2017 SAP SE or an SAP affiliate company. All rights reserved. Public 4
Sensors, Connectivity, and Insights
What is a sensor?

A sensor is a small device that identifies information

from its physical surrounding.

Technically, a sensor device is a transducer, which consists

of a sensor for measuring the actual value and a
signal conditioner to convert the measurement into
meaningful information.

If the sensor detects

a change in the environment, it
records, indicates, or otherwise responds to it.

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 5

Sensors, Connectivity, and Insights
Sensors in action example: temperature sensor

Cooler with Event: Sensor detects Sensor

temperature temperature temperature generates signal
sensor rises increase to transmit
information

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 6

Sensors, Connectivity, and Insights
Sensor measurement examples

Temperature Position Vision

Pressure Motion Sound

Humidity Electricity Chemicals

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 7

 Gateway Back-End Systems

Business
ERP

Connectivity IoT Platform

Connection to back-end systems Sensor Data

On cloud
and/or
On premise

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 8

Sensors, Connectivity, and Insights
Example of sensor technologies with different connectivity methods

Wi-Fi Bluetooth RFID

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 9

Sensors, Connectivity, and Insights
Typical sensor device

Local or Remote
Sensor Device Receiving System

Signal

Message:
Signal JSON, XML, etc.

Signal Processors Emitter Protocol: HTTP or MQTT Message Receiving

System
Connectivity:
Signal
BLE, Bluetooth, 4G, 2G, etc.

Sensors Security Configuration

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 10

Sensors, Connectivity, and Insights
Connectivity cloud connected

A directly connected sensor can connect to back-end systems

and send data using high-speed Internet.
Back-End Systems
Business
ERP
Devices
IoT Platform
Sensor Data

On cloud
and/or
On premise
These types of sensors are based on Wi-Fi, 2G, 3G, 4G LTE, etc.

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 11

Sensors, Connectivity, and Insights
Connectivity locally connected

A locally connected sensor depends on nearby gateways,

smartphones, or other means to deliver messages to
Back-End Systems
back-end systems.
Business
Gateway
ERP
Devices
IoT Platform
Sensor Data

On cloud
and/or
On premise
These sensors are based on Bluetooth/BLE or ZigBee.

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 12

 Back-End Systems Application

Business

Insights ERP

IoT Platform
IoT applications to help Sensor Data

business and consumers

On cloud
and/or
On premise

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 13

Sensors, Connectivity, and Insights
Combined data from different sources for deeper insights

Back-End Systems Application Insight and Action

Device Data

Sensor Data Monitoring

Master Data

Business Data
Rules
Notification
Processes
Historical

Systems
ERP Analytics
(CRM, HCM, SCM)
and IoT Platform

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 14

Sensors, Connectivity, and Insights
Example of insights: device insights

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 15

Sensors, Connectivity, and Insights
Example of insights: aggregate consumption insights Top 5 Coffee Brands by Region
Percentage of Coffee Consumption

West East
30% South Mid-West
27%

20% 18%

10%
10% 8%
5%

Coffee Brand

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 16

Sensors, Connectivity, and Insights
Unit summary and looking ahead

Unit Summary
Key components involved in IoT:

Device layer
Gateway
Backend systems
Application layer

Looking Ahead
New Interaction Paradigms

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 17

Thank you

Contact information:

open@sap.com
 2017 SAP SE or an SAP affiliate company. All rights reserved.

No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP SE or an SAP affiliate company.

SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE (or an SAP affiliate
company) in Germany and other countries. Please see http://global12.sap.com/corporate-en/legal/copyright/index.epx for additional trademark information and notices.

Some software products marketed by SAP SE and its distributors contain proprietary software components of other software vendors.

National product specifications may vary.

These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or warranty of any kind, and SAP SE or its
affiliated companies shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP SE or SAP affiliate company products and
services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as
constituting an additional warranty.

In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or any related presentation, or to develop
or release any functionality mentioned therein. This document, or any related presentation, and SAP SEs or its affiliated companies strategy and possible future
developments, products, and/or platform directions and functionality are all subject to change and may be changed by SAP SE or its affiliated companies at any time
for any reason without notice. The information in this document is not a commitment, promise, or legal obligation to deliver any material, code, or functionality. All forward-
looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place
undue reliance on these forward-looking statements, which speak only as of their dates, and they should not be relied upon in making purchasing decisions.

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 19

 Touch IoT with SAP Leonardo
1.5 New Technologies Impacting IoT: Blockchain and Drones

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 1

 Blockchain
What is it and how does it work?

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 2

New Technologies Impacting IoT: Blockchain and Drones
Example: money transfer before blockchain

50 $ 49 $

3 days +
BOB BANK LISA

Bobs
Account
$$

Lisas
identification

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 3

New Technologies Impacting IoT: Blockchain and Drones
Example: money transfer with blockchain

50 $ 49 $

3 days +
BOB BANK LISA

Transfer money
Decentralized, without trusted middle party
Faster
Cheaper

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 4

New Technologies Impacting IoT: Blockchain and Drones
Bitcoin a money transfer application using blockchain technology

Bitcoin The world's first decentralized currency

Year of Introduction 2008

Inventor Unsure (Satoshi Nakamoto)

Technology Uses blockchain technology

Transactions per day 230,000+

Acronym BTC

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 5

New Technologies Impacting IoT: Blockchain and Drones
Blockchain the Bitcoin example

Lfd48Sfe
Sf532Fs
Lisa A8T22sL

000..45fLfS

BOB

LISA

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 6

New Technologies Impacting IoT: Blockchain and Drones
Blockchain definition

Decentralized Public Time stamped Persistent

Open to the Everybody can look Records date and A blockchain

whole network into the blockchain time of each contains historic
transaction/change transaction data

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 7

 Security
How secure is a blockchain?

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 8

New Technologies Impacting IoT: Blockchain and Drones
Blockchain security

Block 1 Block 2 Block 3

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 9

New Technologies Impacting IoT: Blockchain and Drones
Blockchain why you cant cheat at blockchain

27

19

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 10

 Other industry use cases
for blockchain technology

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 11

New Technologies Impacting IoT: Blockchain and Drones
Blockchain other industry use cases

Medical Records Supply Chain Testament Visas

School Certifications Photos Real Estate Licenses

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 12

 What about IoT
and blockchain?

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 13

New Technologies Impacting IoT: Blockchain and Drones
Blockchain and IoT

Farm

Warehouse
Retail Store

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 14

 Drones

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 15

New Technologies Impacting IoT: Blockchain and Drones
What is a drone?

A drone is an unmanned aircraft

system or an aircraft without a pilot.

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 16

New Technologies Impacting IoT: Blockchain and Drones
Different types of drones

Hobbyist Commercial
Drones Drones

Combination
Commercial
Drones

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 17

New Technologies Impacting IoT: Blockchain and Drones
Use cases (1/2)

Agriculture
Planting

Crop spraying

Crop monitoring

Irrigation

Health assessment

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 18

New Technologies Impacting IoT: Blockchain and Drones
Use cases (2/2)

Logistics and Delivery

Packages

Food

Emergence medicine and organs

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 19

 Drones and IoT
Do they go hand in hand?

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 20

New Technologies Impacting IoT: Blockchain and Drones
Sensors and drones

Accelerometer Barometer
Stabilizes the drone Measures pressure to determine altitude

Magnetometer GPS
Measures magnetic field Tracks location
of the earth

Gyroscope
Provides angular motion

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 21

New Technologies Impacting IoT: Blockchain and Drones
Why drones are the future of IoT

Can be Can be re- Capable of Can measure Drones as

deployable in programmed carrying flexible anything connected
any direction in mission payload without devices; data can
geographic be accessible
constrains through phone,
Internet, and
cloud

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 22

New Technologies Impacting IoT: Blockchain and Drones
Unit summary and looking ahead

Unit Summary
A blockchain is a decentralized database that can keep records
of all kinds of digital transaction
A drone is an unmanned aircraft that can fly autonomously

Looking Ahead
IoT and the Future of Business

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 23

Thank you

Contact information:

open@sap.com
 2017 SAP SE or an SAP affiliate company. All rights reserved.

No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP SE or an SAP affiliate company.

SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE (or an SAP affiliate
company) in Germany and other countries. Please see http://global12.sap.com/corporate-en/legal/copyright/index.epx for additional trademark information and notices.

Some software products marketed by SAP SE and its distributors contain proprietary software components of other software vendors.

National product specifications may vary.

These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or warranty of any kind, and SAP SE or its
affiliated companies shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP SE or SAP affiliate company products and
services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as
constituting an additional warranty.

In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or any related presentation, or to develop
or release any functionality mentioned therein. This document, or any related presentation, and SAP SEs or its affiliated companies strategy and possible future
developments, products, and/or platform directions and functionality are all subject to change and may be changed by SAP SE or its affiliated companies at any time
for any reason without notice. The information in this document is not a commitment, promise, or legal obligation to deliver any material, code, or functionality. All forward-
looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place
undue reliance on these forward-looking statements, which speak only as of their dates, and they should not be relied upon in making purchasing decisions.

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 25

 Touch IoT with SAP Leonardo
1.6 IoT and the Future of Business IDC

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 1

2
IoT: It Starts With Connections and Content

30 Billon 80 Billon

2020 2025
44 160
ZBytes ZBytes

Source: IDC IoT 2017

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 2

3

How Do You Know Who Is Ready for IoT?

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 3

4
IoT Velocity: (Surveyed C-Suite, ICT and Lines Of Business Point Of View)

N= 4,152 Source: Global IoT Decision Maker Survey, IDC, August, 2016

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 4

5
Industry IoT Velocity: (Surveyed Industries Point Of View)

Financial Services

Retail

Manufacturing

Health Care

Utilities

Government
N= 4,152
Source: Global IoT Decision Maker Survey, IDC, August, 2016
2017 SAP SE or an SAP affiliate company. All rights reserved. Public 5
 Evolving IoT Business Models
Two Paths to Increasing the Value of IoT Outcomes

Product- Services- Ecosystem-

Centric Centric Centric
Value
Model Value Chain Value Agility Value Network

Value chains are no longer relevant. Customers need to be at the center of strategy, rather than at
the end of a chain. Amy Konary, program VP, IDC Directions 2017

The Value of the IoT Solution is proportional to the speed and the number of times the original IoT
data is analyzed. 1
1. Turners Law of IoT

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 6

The IoT Business Model 1.0

IoT Platform

The Edge

IoT IoT Cloud Machine Learning

Devices Gateways & Analytics Cognitive Computing

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 7

 Sachin Gupta
Senior vice
president & group
CIO at Havells India
Ltd.

"To be a globally recognized corporation that provides

best electrical & lighting solutions, delivered by best-in-
class people."

+ +
2017 SAP SE or an SAP affiliate company. All rights reserved. Public 8
Characteristics of IoT Business Model 1.0

Implemented Beyond Proof of Concept

Customer in Learning Mode
Standalone Deployments
The Edge IoT Platform

Few Services & Systems Integration Requirements

Small Use of Analytics/Cognitive Learning
Limited Benefits from IoT Platforms Fully Integrated
IoT IoT Cloud Machine Learning

Limited But Growing

Devices Digital Business
Gateways Outcomes
& Analytics Cognitive Computing
Somewhat intgrated

Network & Hardware Vendors Perceived IoT

Separate
Leaders
0 20 40 60 80
N=3,814 Source: Global IoT Decision Maker Survey, IDC, August, 2016

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 9

The IoT Business Model 2.0

Open Data Platform Back-Office Systems

Open Source
Developers
SaaS
APIs
IoT Platform

The Edge Intelligent ERP

i-ERP

IoT IoT Cloud Machine Learning

Devices Gateways & Analytics Cognitive Computing

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 10

The IoT Business Model 2.0

Back Office Systems

Open Data Platform
Open Source
Developers
SaaS IoT Platform
APIs

The Edge Intelligent ERP

i-ERP

IoT IoT Cloud Machine Learning

Devices Gateways IaaS, PaaS & Cognitive Computing
Analytics

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 11

 Mark Shearer
Executive vice
president and
president,
Global SMB Solutions

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 12

 Characteristics of the IoT Business Model 2.0

Generate Significant Digital Business Outcomes

Standardized and Integrated Diverse Work Constant Use of Analytics/Cognitive

Flows with i-ERP Learning
Most IoT Apps Are Cloud Platform Compute Speed & Scale Become Core
Applications Requirements
Fully Operate as an aaS Model No Code/ Low Code Developer Model
Significant Increase in Services & Systems Software & Analytics Vendors Perceived IoT
Integration Needed Leaders

IDC IoT FutureScape Predictions November 2016:

By 2019, all effective IoT efforts will merge streaming analytics with machine learning trained
on data lakes, marts, and content stores, accelerated by discrete or integrated processors.
2017 SAP SE or an SAP affiliate company. All rights reserved. Public 13
Are There New Business Opportunities That
Emerge from These Business Models?

IoT Business Outcomes Gravity the force of

attraction that moves or tends to move IoT
business outcomes created by fixed or mobile IoT
solutions, toward the center of an IoT system
(e.g., a connected car, train, human, etc.).
Source: Vernon Turner, IDC, 2017

New Businesses Created IoT Gravity

IoT Data Broker (Sourced by IoT Gateways &
Platforms
IoT Data Arbitrager (Sourced by IoT Platforms)
IoT Derivatives Market (Sourced by IoT Analytics)

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 14

 Essential Industry Guidance

IoT Velocity Indicates Where Future IoT Business

Solutions Start

IoT Gravity Indicates Where Future IoT Business Models

Generate Wealth

Treat IoT Business Outcomes As Financial

Transactions to Understand Future Ecosystem
Opportunities
2017 SAP SE or an SAP affiliate company. All rights reserved. Public 15
Thank you

Contact information:

open@sap.com
 2017 SAP SE or an SAP affiliate company. All rights reserved.

No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP SE or an SAP affiliate company.

SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE (or an SAP affiliate
company) in Germany and other countries. Please see http://global12.sap.com/corporate-en/legal/copyright/index.epx for additional trademark information and notices.

Some software products marketed by SAP SE and its distributors contain proprietary software components of other software vendors.

National product specifications may vary.

These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or warranty of any kind, and SAP SE or its
affiliated companies shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP SE or SAP affiliate company products and
services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as
constituting an additional warranty.

In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or any related presentation, or to develop
or release any functionality mentioned therein. This document, or any related presentation, and SAP SEs or its affiliated companies strategy and possible future
developments, products, and/or platform directions and functionality are all subject to change and may be changed by SAP SE or its affiliated companies at any time
for any reason without notice. The information in this document is not a commitment, promise, or legal obligation to deliver any material, code, or functionality. All forward-
looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place
undue reliance on these forward-looking statements, which speak only as of their dates, and they should not be relied upon in making purchasing decisions.

2017 SAP SE or an SAP affiliate company. All rights reserved. Public 17