leading transformation through mobility Patrick Johansson / CEO Networked Society Day 2016

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1 leading transformation through mobility Patrick Johansson / CEO Networked Society Day 2016

2 50 Billion CONNECTED DEVICES 5 Billion CONNECTED PEOPLE 1 Billion CONNECTED PLACES Networked Society Day 2016 Commercial Ericsson-LG in confidence October 2016 Ericsson-LG Page 2 October 2016 Page 2

3 The INTERNET OF THINGS TRANSFORMING THE WORLD WE LIVE IN Networked Society Day 2016 Commercial Ericsson-LG in confidence October 2016 Ericsson-LG Page 3 October 2016 Page 3

4 Connected Devices in BILLION 9 billion MOBILE PHONES 10 billion CONSUMER ELECTRONICS 7 billion M2M DEVICES Source: Ericsson Mobility Report Networked Society Day 2016 Commercial Ericsson-LG in confidence October 2016 Ericsson-LG Page 4 October 2016 Page 4

5 we are at the beginning of something big Smart Cities Agriculture & Environment Process Industries Retail Banking Automotive Transport $1.9 TRILLION Consumer Electronics Utilities Wellness Infrastructures Predicted value-add of IoT across sectors in 2020 CONNECTIVITY Networked Society Day 2016 Commercial Ericsson-LG in confidence October 2016 Ericsson-LG Page 5 October 2016 Page 5 Source: Gartner Group

6 ICT Driven Transformation INSTALLATION DEPLOYMENT INDUSTRY TRANSFORMATION CHANGING LIFESTYLE NEW BUSINESSES NEW BUSINESS MODELS NEW SERVICES NEW CUSTOMER SEGMENTS Networked Society Day 2016 Commercial Ericsson-LG in confidence October 2016 Ericsson-LG Page 6 October 2016 Page 6

7 Connected industries Cloud Control & Analytics e.g. Supply chain, Robots and processes Connected Logistics Data f(x ) Actions Connected Logistics connected warehouse Automated connected transportation Sensors Automated connected assembly Automated connected transportation Automated connected packing Networked Society Day 2016 Commercial Ericsson-LG in confidence October 2016 Ericsson-LG Page 7 October 2016 Page 7

8 Real-time automation 5G Criticalities Infrastructure costs and upgrade Real-time automation Safety critical systems No need of cabling and minimal infrastructure adaptations Ultra low latency communications Ultra-high availability and reliability Mobile Capabilities Networked Society Day 2016 Commercial Ericsson-LG in confidence October 2016 Ericsson-LG Page 8 October 2016 Page 8

9 E2E IoT Transformation Partner SECURITY Connectivity Platforms Data Customization ECOSYSTEM Networked Society Day 2016 Commercial Ericsson-LG in confidence October 2016 Ericsson-LG Page 9 October 2016 Page 9

10 Enabling new business opportunities CONSUMER ELECTRONICS AUTOMOTIVE TRANSPORT AGRICULTURE ENVIRONMENTAL INFRASTRUCTURES Connected gadgets Appliances Wearables Robotics Participatory sensing Social Web of Things Autonomous vehicles Multimodal transport Forestry Crops and farming Urban agriculture Livestock, Fisheries Pollution Air, Water, Soil Weather, Climate Noise Buildings, Homes Roads, Rail UTILITIES Water management Gas, Oil, Renewables Waste management Heating, Cooling HEALTH, WELL-BEING Remote monitoring Assisted living Behavioral change Treatment compliance Sports, Fitness SMART CITIES Integrated environments Optimized operations Convenience Socioeconomics Sustainability PROCESS INDUSTRIES? Robotics Manufacturing Natural resources Remote operations Automation Heavy machinery Networked Society Day 2016 Commercial Ericsson-LG in confidence October 2016 Ericsson-LG Page 10 October 2016 Page 10

11 Industrial collaborations Networked Society Day 2016 Commercial in confidence Ericsson-LG October 2016 Page 11

12 what s next Industry Transformation and Sustainable Development of Society Networked Society Day 2016 Commercial Ericsson-LG in confidence October 2016 Ericsson-LG Page 12 October 2016 Page 12

13 Networked Society Day 2016 Commercial in confidence Ericsson-LG October 2016 Page 13

14 다양한요구, 하나의네트워크 정우철실장 Networked Society Day 2016

15 Connections (billion) Everything that would benefit will be connected Our vision 50 billion connected devices 15 years 26 billion connected devices years 5 billion connected people years 1 billion connected places 1900 Networked Society Day 2016 Commercial Ericsson-LG in confidence October 2016 Ericsson-LG Page 15 October 2016 Page 15

16 5G classes of use cases Massive MTC Critical MTC SMART BUILDING LOGISTICS, TRACKING AND FLEET MANAGEMENT TRAFFIC SAFETY & CONTROL SMART METER SMART AGRICULTURE CAPILLARY NETWORKS INDUSTRIAL APPLICATION & CONTROL REMOTE MANUFACTURING, TRAINING, SURGERY Enhanced Broadband LOW COST, LOW ENERGY SMALL DATA VOLUMES MASSIVE NUMBERS Smartphones Home, Enterprise, Venues, Mobile/Wireless/Fixed ULTRA RELIABLE VERY LOW LATENCY VERY HIGH AVAILABILITY SIM less devices 4k/8k UHD, Broadcasting, VR/AR, Networked Society Day 2016 Commercial Ericsson-LG in confidence October 2016 Ericsson-LG Page 16 October 2016 Page 16

17 5G for the Networked Society 5G will enable organizations to move into new markets and build new revenue streams with radically new business models and use cases, including Internet of Things (IoT) applications. Networked Society Day 2016 Commercial Ericsson-LG in confidence October 2016 Ericsson-LG Page 17 October 2016 Page 17

18 access complexities Use Case Technical Requirements Vary Widely Use Cases Technical Requirements Broadband and Media Everywhere Smart Vehicles, Transport Infrastructure, Monitor and Control Critical Control of Remote Devices Interaction Human-IoT Sensors Everywhere High User Density High Capacity Low Device Energy Consumption Good Cell Edge Performance Reduced Signaling Low Latency Access to New Spectrum Faster Data Throughput High Availability Quality Uplink Networked Society Day 2016 Commercial Ericsson-LG in confidence October 2016 Ericsson-LG Page 18 October 2016 Page 18

19 ONE Network Architecture Management & Control Radio Access Applications Cloud Infrastructure Transport Networked Society Day 2016 Commercial Ericsson-LG in confidence October 2016 Ericsson-LG Page 19 October 2016 Page 19

20 5G radio access 5G LTE + 5G Plug-Ins Backwards compatible Interworking 5G NR New Radio interface Networked Society Day 2016 Commercial Ericsson-LG in confidence October 2016 Ericsson-LG Page 20 October 2016 Page 20

21 Ericsson 5G plug-ins MASSIVE MIMO MULTI-USER MIMO RAN VIRTUALIZATION LATENCY REDUCTION Today s commercial Baseband units support 5G Plug-ins and are 5G NR capable INTELLIGENT CONNECTIVITY Networked Society Day 2016 Commercial Ericsson-LG in confidence October 2016 Ericsson-LG Page 21 October 2016 Page 21

22 Massive MIMO Beamforming and beam steering for best user experience and network capacity Single-User Massive MIMO One user per time-frequency resource User specific beam form provides array gain SINR increases as number of antennas increase Benefits regardless of load Supports legacy devices Networked Society Day 2016 Commercial Ericsson-LG in confidence October 2016 Ericsson-LG Page 22 October 2016 Page 22

23 Multi-User MIMO Increases capacity & improves end user experience Multi-User MIMO Multiple users on the same resource User specific beam form to spatially separate users Requires sufficiently high load to show benefits Dynamic switching to Single-User MIMO crucial for good performance Networked Society Day 2016 Commercial Ericsson-LG in confidence October 2016 Ericsson-LG Page 23 October 2016 Page 23

24 Download Speed Mbps 100 KB File 1 MB File Latency Reduction Enables real-time communications & reduces time to content Increase in download speed (%) for different latency reduction techniques 170% 60 63% 81% 40 Baseline 20 0 Enables instantaneous channel access Modified frame structure reduces signaling 3GPP Release 14 & Release 15 Software-only solution Baseline 78% 92% 256% Key latency reduction LTE Baseline IUA.5 ms TTI.5 ms TTI & IUA Source: RP Single user, 150Mbit/s link, 30% BLEP, Default TCP (3 initial segments), Transport/Internet delay neglected Networked Society Day 2016 Commercial Ericsson-LG in confidence October 2016 Ericsson-LG Page 24 October 2016 Page 24

25 V-RAN with LTE and NR Reuse installed base for 4G traffic RRC Control plane opportunity Anchor 5G devices in 5G CN via V-RAN RRC PDCP Enables fast switching 4G/5G PDCP RLC MAC PHY RLC MAC PHY RLC MAC PHY RLC MAC PHY User plane opportunity Coverage based routing 4G/5G Dual Connectivity ( Intelligent Connectivity ) Networked Society Day 2016 Commercial Ericsson-LG in confidence October 2016 Ericsson-LG Page 25 October 2016 Page 25

26 Intelligent Connectivity Enables 4G / 5G interworking & single network operation New High Bands NR/NX ~30 GHz 4G / 5G Asymmetries Coverage Bearer Data NR/NX ~Sub 6 GHz LTE mid bands Bit Rates 5G 4G LTE low bands Networked Society Day 2016 Commercial Ericsson-LG in confidence October 2016 Ericsson-LG Page 26 October 2016 Page 26

27 First 5G NR RADIO: AIR 6468 AIR G NR Radio FIRST COMMERCIAL 5G NR MASSIVE MIMO RADIO 64T / 64R active antenna system LTE and 5G NR going forward Supports 5G plug-ins: Massive MIMO and Multi-user MIMO Beamforming as part of Cloud RAN split baseband architecture Works with today s Ericsson Radio System Baseband 5 6 times capacity compared to 8T / 8R configuration First deployments mid 2017 Networked Society Day 2016 Commercial Ericsson-LG in confidence October 2016 Ericsson-LG Page 27 October 2016 Page 27

28 One NW Ready Core Common network platform enabling ICT transformation Management & Orchestration & Analytics & Exposure Virtualization VNF VNF Software Defined Networking (SDN) Distributed Cloud CORE Network Addressing wide range of use cases, segments and industries Networked Society Day 2016 Commercial Ericsson-LG in confidence October 2016 Ericsson-LG Page 28 October 2016 Page 28

29 Our end-to-end proposition Business & Network Governance Including Network Slice Blueprints: Mobile Broadband Network Slices Industry Automation Media Enterprise Comm. Massive Sensors Network Resources Access Nw Function OSS/BSS Physical Resources Transport Cloud Networked Society Day 2016 Commercial Ericsson-LG in confidence October 2016 Ericsson-LG Page 29 October 2016 Page 29

30 Reference case for Towards a One NW Ready core Network slice 1 (MBB) Network slice 2 (No mobility) Network slice 3 (Local breakout) Network slice n Slice Management Function Dynamic slice selection based on network conditions and service requirements Service-slice mapping Network slice 1 (MBB) Network slice 2 (No mobility) Network slice 3 (Local breakout) Network slice n Virtualization Layer Broadband service (e.g. Movie) IoT service (e.g. sensor) Low latency service (e.g. AR/VR) other new services SDN transport equipment COTs servers UE-based slice selection Static allocation policy Service-based slice selection Dynamic allocation policy In collaboration with: Networked Society Day 2016 Commercial Ericsson-LG in confidence October 2016 Ericsson-LG Page 30 October 2016 Page 30

31 Ericsson 5G Roadmap Moving 5G technology from test to commercial deployment Ericsson 5G Radio Test Bed Win! Biggest Contribution to 5G Development LTE Asia Awards October st 5 Gbps throughput June st Dual Connectivity LTE-5G 1 st Multipoint Connectivity with distributed MIMO 2014 PHASE 1 Key technology features testing System level evaluation Four 5G Radio Testbeds (US, Japan, Korea, Sweden) 5G Radio Prototype field trials in 2016 Ericsson 5G field trial gear achieves peak downlink throughput over 25 Gbps with MU-MIMO PHASE PHASE 3 Test application of 5G for key use cases Advance technology development 5G Plug-Ins Complete trial network Form factor for pre-commercial deployment Networked Society Day 2016 Commercial Ericsson-LG in confidence October 2016 Ericsson-LG Page 31 October 2016 Page 31

32 Networked Society Day 2016 Commercial in confidence Ericsson-LG October 2016 Page 32

33 통합 IOT 인프라구축방향 임옥희실장 Networked Society Day 2016

34 contents > Iot TREND - MARKET, INDURSTRY/ECONOMY, VENDORS > IOT AND BIG DATA/ANALYTICS > IOT VLAUE FOR BUSINESS > MUST HAVE ON IOT INFRA > ERICSSON IOT OFFERING/REFERENCE CASES > IOT BUSINESS STAGE > FURTHER FOCUS AREA Networked Society Day 2016 Commercial Ericsson-LG in confidence October 2016 Ericsson-LG Page 34 October 2016 Page 34

35 Connected Devices in 2020 Keys to accelerate Iot 25b AVAILABILITY AFFORDABILITY SCALABILITY ITU, GSMA, gartner 26B Ericsson -> 35%, Mobile phones BATTERY LIFE COST VIRUALIZATION cloud 38%, Consumer electronics 27% M2m devices Networked Society Day 2016 Commercial Ericsson-LG in confidence October 2016 Ericsson-LG Page 35 October 2016 Page 35 COVERAGE QUALITY OF SERVICE

36 Iot in industry and economy WORLD BANK 2016 세계개발보고서 - JUN 2016 GLOBAL DEVELOPMENT REPORT EARTH INSITUTE & ERICSSON - JUN 2016 ICT & SDGS 5G 이동통신 (5G Mobile Broad Band) 자율주행자동차 (Autonomous Car) 5G 이동통신 (5G Mobile Broad Band) 자율주행자동차 (Autonomous Car) 인공지능 (Artificial Intelligent, AI) 사물인터넷 (Internet of Things, IoT) 인공지능 (Artificial Intelligent, AI) 사물인터넷 (Internet of Things, IoT) 로보틱스 (Robotics) 3D 프린팅 (3D Printing) 클라우드모빌리티소셜네트워크 빅데이터 & 애널리틱스 인공지능 / 인지컴퓨팅 로보틱스 IoT Networked Society Day 2016 Commercial Ericsson-LG in confidence October 2016 Ericsson-LG Page 36 October 2016 Page 36

37 vendor trend HOW IOT IMPACTS VENDOR PORTFOLIOS > 9 개업체 (Aeris, Bsquare, Cisco, Covisint, Ericsson, Intel, Jasper, KORE, Oracle) > 평균현재 70% 이상의솔루션이 IoT 비즈니스를서포트 > 향후 18 개월내그비율이급성장및기존플랫폼의진화 How IoT impacts vendors portfolios Aeris Bsquare Cisco Covisint Ericsson Intel Jasper KORE Oracle IoT Non-Iot Networked Society Day 2016 Commercial Ericsson-LG in confidence October 2016 Ericsson-LG Page 37 October 2016 Page 37 * Future of virtualization : Focus on IoT Platform, Heavy reading, May 2016

38 Iot and big data/analytics Man Power Automation M2M IoT HEURISTIC CODIFY ANALYTICS ANALYTICS File System DBMS Data warehouse Internal Data Big Data / External Data Networked Society Day 2016 Commercial Ericsson-LG in confidence October 2016 Ericsson-LG Page 38 October 2016 Page 38

39 IOT business Drivers Optimization of Existing business process Enabling New business model and Area Networked Society Day 2016 Commercial Ericsson-LG in confidence October 2016 Ericsson-LG Page 39 October 2016 Page 39

40 Key differentiator 효용성있는비즈니스 정보를제공할수있는가? Networked Society Day 2016 Commercial Ericsson-LG in confidence October 2016 Ericsson-LG Page 40 October 2016 Page 40

41 Key factors for iot infrastructure APPs / IoT MARKET PLACE PROTOTYPING TESTING INFO SYSTEMS ANALYTICS APIs SDKs GWs SECURITY CLOUD MOBILITY STANDARDS PARTNERSHIP ORGANIZATIONS Enablement Platforms NETWORKS APPLICATIONS AND EXPOSURE ANALYTICS AND BUSINESS LOGIC DATA COLLECTION/PROCESS CONNECTIVITY DEVICES / SENSORS Networked Society Day 2016 Commercial Ericsson-LG in confidence October 2016 Ericsson-LG Page 41 October 2016 Page 41

42 ENABLEMENT PLATFORM Ericsson IoT Offerings Spanning the Value Chain ERICSSON INDUSTRY SOLUTIONS ERICSSON PROFESSIONAL SERVICES IoT APP MARKETPLACE SERVICE ENABLEMENT PLATFORM NETWORK AND CONNECTIVITY Networked Society Day 2016 Commercial in confidence Ericsson-LG October 2016 Page 42

43 Smart Sustainable Cities ENABLEMENT PLATFORM Ericsson IoT Offerings Spanning the Value Chain ERICSSON INDUSTRY SOLUTIONS Ericsson apps Customer apps Partner apps ERICSSON PROFESSIONAL SERVICES Transport IoT APP MARKETPLACE App Dev Tools App Hosting Collaboration Environment Go To Market Operate & Manage Utilities Public Safety Other Industries SERVICE ENABLEMENT PLATFORM Monetization Analytics Data Mgmt Device Mgmt Service Enablement Cloud Infrastructure NETWORK AND CONNECTIVITY Cellular Non-Cellular Connectivity Mgmt Core Networks Customize & Integrate App Maintenance Device & App Verification Consulting Design & Build Networked Society Day 2016 Commercial in confidence Ericsson-LG October 2016 Page 43

44 Reference cases S U S TA I N A B L E U R B A N I Z AT I O N Case: Stockholm Royal Seaport. Support Stockholm Royal Seaport to reach its vision for A world class environmental urban district. P U B L I C S A F E T Y Case: San Jose Dos Campos. Develop real-time observation, dispatch and information sharing for multiple agencies. C O N N E C T E D B U S E S Case: Curitiba s 1,928 buses. Fleet management system where 3.2 million citizens benefit from electronic ticketing and a range of services. Global expertise on optimal smart grid operation 5 year managed services commitment ICT solution, M2M 3G connectivity and ecosystem applications Networked Society Day 2016 Commercial Ericsson-LG in confidence October 2016 Ericsson-LG Page 44 October 2016 Page 44

45 Iot business stage Typical IoT today 3 4 Customer Journey and Monetization 1 Node Centric Normal operator Monitoring and reporting Network Operations Centers (NOCs) in siloes Off-line and batch mode Data warehouses for BSS data 2 Service Centric Advanced operator Adding probes Building service models Creating Service Operations Centers (SOCs) Expanding to data-lakes Ad hoc analysis, relying on data scientists Subscriber Centric Best in class Real-time e2e subscriber and app experience VIP/Enterprise management Proactive collaboration between Care, NOC/SOC & Engineering Using advanced analytics for root-cause analysis and next best action Future operator Customer Journey Optimization across all touch-points Personalization, transparency, self-service and dynamic experience of choice Self-learning systems and networks driving automation Internal data monetization driving innovation and ARPU while reducing churn External data monetization of anonymized insights Efficiency Customer Experience Revenue growth Networked Society Day 2016 Commercial Ericsson-LG in confidence October 2016 Ericsson-LG Page 45 October 2016 Page 45

46 Further focus area INFORMATION INTEGRITY DATA QUALITY INTER- OPERABILITY REAL TIME COMPLIANCE BIG DATA (ANALY TICS) PRIVACY CYBER SECURITY BILLING & RATING for IoT INFORMATION MANAGEMENT DIGITAL FORENSICS OPEN DATA CONNECTIVITY Networked Society Day 2016 Commercial Ericsson-LG in confidence October 2016 Ericsson-LG Page 46 October 2016 Page 46

47 Networked Society Day 2016 Commercial in confidence Ericsson-LG October 2016 Page 47

48 제 4 차산업혁명과 디지털팩토리 배철민팀장 Networked Society Day 2016

49 제 4 차산업혁명 1 차 2 차 3 차 4 차 Quality of Life Engineering Sciences Steam Engine Mobility Conveyor Belt Micro-electronics Computer,NC,PLC ICT Cyber Physical Systems 가상물리시스템으로연결된스마트 / 디지털팩토리 > 인공지능 > 로봇공학 > 나노기술 > 생명공학 1782 Power generation Mechanical automation Industrialization Electric automation Smart automation > 사물인터넷 > 자율주행자동차 > 3D 프린팅 > 신소재 > 에너지저장기술 > 퀀텀컴퓨팅 증기엔진 / 산업화 전기, 컨베어벨트 / 대량생산 반도체, 컴퓨터 / 자동화 인공지능, 네트웍 / 지능화 Networked Society Day 2016 Commercial Ericsson-LG in confidence October 2016 Ericsson-LG Page 49 October 2016 Page 49

50 제 4 차산업혁명 Networked Society Day 2016 Commercial Ericsson-LG in confidence October 2016 Ericsson-LG Page 50 October 2016 Page 50

51 Digital Industrialization using Cloud Industry & Society Telecom Media Utilities Trans port Public Other Safety industries Utilities Trans port Public safety Other Services IoT Applications Networks Internet of Things Digital Business critical systems, incl. Security IT application, modernization & Cloud Infrastructure IT Infrastructure and Services Devices Network Infrastructure and Services Networked Society Day 2016 Commercial Ericsson-LG in confidence October 2016 Ericsson-LG Page 51 October 2016 Page 51

52 Powering the digital industrialization Transform businesses Operate with efficiency Industrialize cloud infrastructure Networked Society Day 2016 Commercial Ericsson-LG in confidence October 2016 Ericsson-LG Page 52 October 2016 Page 52

53 digital factory Journeys Transition to NFV Datacenter & Infrastructure Consolidation and Modernization Workload Migration & Automation Cloud Platforms - Automation & Orchestration Enable Digital Business Networked Society Day 2016 Commercial Ericsson-LG in confidence October 2016 Ericsson-LG Page 53 October 2016 Page 53

54 digital factory Journeys Transition to NFV Datacenter & Infrastructure Consolidation and Modernization Workload Migration & Automation Cloud Platforms - Automation & Orchestration Enable Digital Business Networked Society Day 2016 Commercial Ericsson-LG in confidence October 2016 Ericsson-LG Page 54 October 2016 Page 54

55 digital factory Journeys Transition to NFV Datacenter & Infrastructure Consolidation and Modernization Workload Migration & Automation Cloud Platforms - Automation & Orchestration Enable Digital Business Networked Society Day 2016 Commercial Ericsson-LG in confidence October 2016 Ericsson-LG Page 55 October 2016 Page 55

56 digital factory Journeys Transition to NFV Datacenter & Infrastructure Consolidation and Modernization Workload Migration & Automation Cloud Platforms - Automation & Orchestration Enable Digital Business Networked Society Day 2016 Commercial Ericsson-LG in confidence October 2016 Ericsson-LG Page 56 October 2016 Page 56

57 digital factory Journeys Transition to NFV Datacenter & Infrastructure Consolidation and Modernization Workload Migration & Automation Cloud Platforms - Automation & Orchestration Enable Digital Business Networked Society Day 2016 Commercial Ericsson-LG in confidence October 2016 Ericsson-LG Page 57 October 2016 Page 57

58 digital factory Journeys Transition to NFV Datacenter & Infrastructure Consolidation and Modernization Workload Migration & Automation Cloud Platforms - Automation & Orchestration Enable Digital Business Networked Society Day 2016 Commercial Ericsson-LG in confidence October 2016 Ericsson-LG Page 58 October 2016 Page 58

59 The complete solution is The industrialized digital factory Dynamic demand Dynamic supply Digital Factory Software-defined Infrastructure Learning, analytics, automation and governance Information Security and integrity HDS 8000 DAP Apcera DCS Intel inspired RSD Networked Society Day 2016 Commercial Ericsson-LG in confidence October 2016 Ericsson-LG Page 59 October 2016 Page 59

60 Networked Society Day 2016 Commercial in confidence Ericsson-LG October 2016 Page 60

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