Mahbubul Alam

1. 10/31/16 www.movimentogroup.com 1

2. 2
Mahbubul Alam
CTO/CMO Movimento Group
www.mahbubulalam.com
https://www.linkedin.com/in/maalam
@mahbubulalam
Background

3. 10/31/16 www.mahbubulalam.com 3
The world is moving towards trillions of connected devices that in a
few years will be not smartphones, but virtually anything – most of
which have never been connected before. The authors evaluate
the opportunities that emerge as a result of the Internet of Things
focusing on the impact to individuals, industries and societies
along with the challenges ahead to harvest the full value of this
ongoing evolution. Volume 1 ‘The Rise of Internet of Things’ is
the debut of the ‘The Age of the Software Defined Vehicle’
series and it showcases the vision towards connected
devices paving the road towards the Internet of Things. The
volume will also talk about five key areas – smarter spectrum,
smarter workforce, smarter investments, smarter security and
smarter regulations. This Volume 1 of the series lays the foundation
for understanding today’s connected car and points in the
direction of the Software Defined Vehicle of the future.
Publication Date: 1st Jan 2017
Format: eBook

4. Agenda
• Paradigm Shift
• Hype Cycle vs. Tech Trends
• Identifying Opportunity
• Value Proposition & ROI Impact
• Business Model
• Insights into LaaS and Automotive
• Key Takeaways
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5. Paradigm Shift
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• Product: Physical Digital Virtual Assets
• Technology: Trend vs. Fashion
• Regulatory: Constrains Freedom
• Monetization: Direct Indirect
• Business Model: OEM CO-X
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6. Hype Cycle
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7. Tech Trends
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Disruptive Logarithmic
Bleeding Edge
Early Adopters
Smart IoT
services
Virtual Reality
Flexible DisplayUniversal
Digital ID
Stem Cells
Cognitive
Technologies
Blockchain
Tech
Bio Batteries
Autonomous
Vehicle
Collaborative
Monetization
Predictive
Analytics
RoboticsAugmented
Reality
3D Printing
Autonomous
Drone
ML based
Cyber Security
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8. Identifying Opportunity
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Investment
Societal
Challenge
ROI Time
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9. Value Proposition
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Existing
Business as usual
HR Dept.
Employer Based
Evolution
Enhance the role
and value chain
Online HR
Employer Based
Disruption
Reverse the role and
new value chain
TBD
Employee Based
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10. Impact on ROI
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Operational
Efficiency
Time
New Value
Creation
Business Impact
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11. Business Model
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12. Key
Resources
Cost
Structure
Company Business Model
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Customer
Relationships
Sales
Channels
Key
Partnership
Company
Culture
Customer
Segments
Value
Propositions
Revenue
Streams
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13. Business Model: Building Blocks
• Customer Relationship: Establish and maintain customer relationship
for focus customer segment – it is about customer acquisition,
retention, upsell & cross-sell
• Sales Channels: Delivery to customer through go-to-market and sales
channel - rising awareness among customers
• Customers Segments: Several customer segments or focus
• Key Partnership: Strategic alliances and partnership, co-operation,
joint venture and buyer-supplier relationship
• Company Culture: Set of collective beliefs, value & attitudes -
corporate culture influences management, decisions and all business
functions from accounting to production
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14. Business Model: Building Blocks
• Value Propositions: Solve customer problems which satisfy needs
• Revenue Streams: Business models for different types of revenue
streams, transactions vs returning revenues
• Key resources: Most important assets “physical, financial, intellectual
or human” required to make a business model work
• Cost Structure: Influenced by key resources, key activities & key
partnership
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15. Street Lighting
Lighting-as-a-Service (LaaS)
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16. 10/31/16 16
Street Lighting: Challenges
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17. Transformation of Experience & Product
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18. 10/31/16 18
LaaS to XaaS
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Smart Street Lighting-as-a-Service
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20. Financial: 150 Street Lightings
CAPEX
• 150 Street Light incl. Installation ($10K/Pole) $1,500,000
OPEX
• Utility Bill for 10 yrs ($10/mth)
• Bulb Replacement for 10 yrs ($250/bulb)
• Maintenance Vehicle Service for 10 yrs
• Project Management for 10 yrs ($100K/yr)
• Total OPEX
$180,000
$ 375,000
$ 375,000
$1,000,000
$1,930,000
TOTAL INVESTMENT $3,430,000
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21. Financial: 150 LaaS
CAPEX (10 yrs contract)
OPEX (LaaS per 10 yrs - $100/mth)
SLA (Avg. Downtime 43 min per month)
$0
$1,800,000
99.9%
------ OR -----
50% CAPEX (10 yrs contract)
50% OPEX Saving
Total
SLA
$750,000
$965,000
$1,715,000
99.9%
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22. Economics: LaaS vs. XaaS
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$1,500,000
$130,000
CAPEX
Saving
OPEX
Saving
$1,630,000
TOTAL
Benefit
$1,800,000Lighting
LaaS Provider: Revenue OpportunitiesCity: Savings from LaaS
WiFi AP
Cell Tower
Video Surv
Gunshot Det
$900,000
$900,000
$900,000
$180,000
$4,680,000
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23. Automotive
A Software Platform
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24. Automotive Software
24
F-22 Raptor Fighter Jet
~1,500,000 lines of code
Boeing 787
~13,000,000 lines of code
Facebook
~61,000,000 lines of code
Modern High-End Vehicle
100,000,000+linesofcode
Engine
16%
Body &
Structural
15
Electronics
& Electrical
12%
Transmission
9%
Interior
8%
Axles, Driveshafts
& Components
5%
Climate Control &
Engine Cooling
5%
Suspension 3%
Steering 2%
Other
14%
Today
Software
40%
Hardware
40%
Content
20%
The “Future”
Change in vehicle value from
hardware to software
10/31/16 www.mahbubulalam.com

25. Era of the Software Defined Car
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Vehicle
as a Software Platform
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26. Cybersecurity Challenges
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27. Software-Related Vehicle Recalls
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0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
0
10
20
30
40
50
60
70
80
2011 2012 2013 2014 2015 2016
Number of Recalls Number of Affected Vehicles
NumberofRecalls
NumberofAffectedVehicles
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28. Automotive Over-The-Air Platform
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Select & Target
Customers
Domain Expertise
& Knowledge
Platform
OEM and Tier-1 supplier relationships
and integration know-how
Future
opportunity
AUTOMOTIVE
OTA PLATFORM
Robust platform with FOTA / SOTA updates, securitybest practices,
bidirectional dataflow and data analytics
Notes:
FOTA: Firmware Over-the-Air
SOTA: Software Over-the-Air
Transportation Energy Manufacturing Agriculture/
Construction
Trucks
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29. Key Takeaways
1. Keep Focus – Be as Specific as Possible
– Understand ROI vs. Timeline
2. Define Strategy – Structure – Resource
3. Formulate Corporate Culture
4. Keep an Open Mind Towards Business Model
– Focus on Frugal Innovation
5. Timing is Key
10/31/16 29www.mahbubulalam.com

30. 10/31/16 30
Mahbubul Alam
CTO and CMO, Movimento Group
www.mahbubulalam.com
https://www.linkedin.com/in/maalam
@mahbubulalam
www.mahbubulalam.com