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Predictions on the Future of Wearables and Iot in the Enterprise

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IBM Market Development & Insights Leveraging wearables and the Internet of Things to disrupt, transform, and unlock value Predictions on the future of wearables and IoT in the enterprise Albert Opher, Hila Mehr, Andrew Onda, Brendan Cooper © 2017 IBM Corporation Synopsis Across industries, wearable technologies are transforming enterprise performance and enabling innovative business models. As part of the Cognitive Internet of Things (IoT) ecosystem, and augmented by other Industry 4.0 technologies, these body-worn technologies provide up to four core applications to businesses: real-time monitoring, remote collaboration, personalized perspective, and enhanced ability. Wearables transform enterprises by increasing efficiency, safety, quality, and collaboration; improving productivity; and reducing costs. As the technology and its adoption evolve, head- mounted displays, body-worn sensors, and exoskeletons will improve employee safety and productivity; and retinal devices and adjustable clothing will enhance employee and user experience. Combined with the power of IoT, wearables will disrupt traditional business models, help drive the data economy, and offer new value and insights to enterprises. Changes in differentiated services and revenue models will include shifting from B2B to B2B2C and as- a-service, while offering dynamic demand distribution opportunities. As wearables integrate into control centers in IoT enterprises, they will guide new, efficient business processes, and revenue generating and cost saving monetization opportunities. Wearable technology is already on the agenda of business leaders for its transformational potential—and it’s imperative that your business invests in wearables to stay competitive in the market. As you begin your wearables journey, IBM’s cross-industry experts can partner with you to develop and maximize your IoT strategies and operations with wearables. IBM MD&I 2 © 2017 IBM Corporation Summary of Predictions Adjustable clothing Bridges B2B relationships via sensors with consumers Exoskeletons used Retinal devices used to augment strength Transformative to control objects Head-mounted displays used for productivity, information sharing, and automation WithinEnterprises Tracking of worker movement for health and safety Limited Change Limited Low Adoption Across Industries Mass Adoption Present Day Within 3 yrs 5+ yrs IBM MD&I 3 © 2017 IBM Corporation Table of Contents How wearables disrupt industries New enterprise models with wearables Industry use cases Barriers to implementation IBM’s role in the enterprise wearables market Sources IBM MD&I 4 © 2017 IBM Corporation How wearables disrupt industries IBM MD&I 5 © 2017 IBM Corporation As part of the dynamic Internet of Things ecosystem, leaders are adopting wearable technologies—devices worn on or in the body in support of enterprise activities—to transform operations and performance. The market for global enterprise wearables will increase to 63.9 million unit shipments in 2020, up from 6.9 million in 2015.1 Performance Revenue Cost Enhancement Generation Reduction Wearables across industries Wearables enable innovative Wearables reduce costs improve enterprise and and differentiated services through operational customer experience. and revenue models. improvements. 76% of enterprise adopters 51% of technology and Smart glasses will save $1 report improvements in business leaders identify billion per year through field business performance since wearables as a priority for service deployments.4 deploying wearables.2 their organization.3 IBM MD&I 6 © 2017 IBM Corporation Enterprise wearables fall into seven broad categories. Head-worn Enhances navigation, information sharing, audio visual, and text viewing Examples: Vuzix M100 Daqri, Microsoft HoloLens, Atheer AiR Chest and Neck-worn Monitors fitness and healthcare metrics such as heart rate and blood Hearables pressure; enhances gaming Provides health, fitness, navigation, and experience notification feedback Examples: Fineck, Cattle Watch, Examples: Bragi Dash, Samsung Gear Toyota BLAID IconX, LifeBeamVi Arm and Wrist-worn Smart Clothing Watches function as extension of smart Tracks vitals through conductive phone functionality; wrist and arm bands or optical sensors woven into offer health and security applications shirts, shorts and underwear; Examples: Apple Watch, Fitbit, Provides haptic feedback Samsung Gear Examples: Hexoskin, Heddoko, Mimo Embedded and Ingested Allows large amounts of medical data to Leg and Ankle-worn be analyzed and carried within the body Tracks location, and health metrics such Examples: Given Imaging PillCam, as calories burned, heart rate, Proteus Discover, Lumee Oxygen and blood pressure Sensing System Examples: ExoSOLS, Wiiv, Fly Fit IBM MD&I 7 © 2017 IBM Corporation Wearables that utilize cognitive learn from real-time, contextual data, and augment other technologies. Cognitive Internet of Things (IoT) is… Instrumented and Intelligent In Real-time In Context Data Interconnected Applying adaptable machine Responding dynamically to Creating a personal and Marrying structured data with learning techniques to chronic, multi-dimensional consumable experience by unstructured data (e.g. social interconnected physical and/or time sensitive understanding the human media, text, email, voice) device data patterns and problems element in the context of trends both structured and unstructured data Wearables are part of the Cognitive IoT ecosystem Wearables utilizing cognitive connect to other devices to expedite processes and interactions. Other devices augment the wearable experience. Adaptive 3D Printing Autonomous Drones Robotics Vehicles IBM MD&I 8 © 2017 IBM Corporation Workforce, market, technology, and product factors are business drivers for the growing enterprise wearable market. Workforce Industry/Market Wearables enable training and safety measures Companies are required to adopt wearables to for workers requiring greater supervision. compete in the marketplace. Workforce safety is a concern, with more than Search for new revenue streams is a priority, with 2.3m work-related deaths per year.5 65% of CEOs preferring IT projects that make money rather than save money.6 Technology Products Wearables are an economically and Wearables are more rapidly designed for user technologically viable option. needs and customized experiences. Cognitive technology is increasingly used for data Continually changing consumer preferences and analytics and automation, with 80 of the top 100 desire for personalization are part of living in the largest software enterprises integrating cognitive.7 ”age of the customer.”8 IBM MD&I 9 © 2017 IBM Corporation Wearables impact enterprises by increasing efficiency, safety, quality, and collaboration; improving productivity; and reducing costs. ‣ Reduce the need for multiple devices through hands-free operations ‣ Re-engineer existing business processes, improving productivity ‣ Increase efficiency, and reduce operational errors and costs Improve Operations, Efficiency & Convenience ‣ Monitor and coach on the wellness and safety of the user ‣ Prevent and detect hazards, and notify employees and supervisors Increase Safety ‣ Provide rich data points for operational and customer understanding ‣ Measure final product size and shape, and verify specifications ‣ Predict defects to optimize machines ‣ Create new personalized customer service interactions Increase Quality ‣ Provide remote training and real-time feedback ‣ Enable faster decision-making and responsiveness Improve Collaboration & Tr a ining IBM MD&I 10 © 2017 IBM Corporation Wearables provide up to four core applications: real-time monitoring, remote collaboration, personalized perspective, and enhanced ability. Remotely monitor Monitor vitals and safety, Facilitate real-time machinery and identify hazards predictive analytics Real-time Monitoring Diagnose problems Send safety alerts Off-site access to and guide repair and prompts experts Remote Collaboration Real-time view of Hands-free access to Live view overlaid factory floor information with relevant data Personalized Perspective Operate and move Speed-up rehabilitation Integrate sensors with heavy objects attire for data Enhanced ability IBM MD&I 11 © 2017 IBM Corporation Enterprise wearables are found today across industries, with industrial and manufacturing primed for mass adoption. Training Corporate Wellness Security Employee Safety Stock Management & Repair Maintenance Customer Experience Payments Collaboration Industrial Logistics Insurance Travel Manufacturing Sports Government Retail Healthcare Media Banking No or light Mild Medium adoption adoption adoption Source: MD&I analysis of over two dozen IT industry analyst and media reports IBM MD&I 12 © 2017 IBM Corporation Initial enterprise wearable pilots are delivering value in customer experience, employee training, and operational efficiency. Customer Experience Employee Training Operational Efficiency Their Magic Band wrist- This HVAC, electrical, and Their “vision picking” pilot worn device unlocked plumbing contractor used used the AR capabilities of doors, fast-tracked lines, smart glasses to audibly smart glasses to view product and ordered food. Magic and visually connect location, replacing handheld Kingdom accommodated employees with senior scanners and paper. 20,000 3,000 additional daily technicians for hands-free items fulfilling 9,000 orders guests and reduced the technical support. The were picked, increasing park entry time by 25% device improved
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