Showcasing the future at CODE_n To find out more about the CODE_n conference program, visit code-n-ey.com. For more information on CeBIT, go to cebit.com. The Internet of Things will take center stage at this year’s CODE_n conference and contest at CeBIT, with pioneering young digital entrepreneurs, established businesses, investors and leading thinkers meeting to discuss and showcase their ideas on how new digital technologies and pervasive networking and analytics capabilities will transform the way we organize our infrastructure, how we source, produce, manufacture and sell, and how we as consumers, patients and citizens are likely to benefit. From wearable devices and autonomous vehicles to entire factories and cityscapes, the networking capabilities of machines, sensors and even products of all scales are growing at a rapid pace. This exciting development of cyberspace, where objects and systems are embedded with computing power and are able to communicate with each other, in essence constitutes the Internet of Things (IoT). This new world of technological possibilities will be explored at this year’s CODE_n conference and contest, part of the CeBIT trade show taking place in Hanover, Germany, from 16–20 March 2015. “Into the Internet of Things” is the theme for the CODE_n contest this year, which is supported by EY. The contest will give 50 finalists, chosen from around 400 young companies worldwide, the chance to present their business models and solutions to industry experts, investors and the international media. Adding to so much pioneering talent available on site, EY will convene an extensive conference program, allowing visitors to raise their questions and to seek answers in discussion with leading industry experts and think tanks. “We pick up where big data left off: with a globally relevant theme that is massively shifting the fields of economics and science,” says Ulrich Dietz, initiator of CODE_n and CEO of the GFT Group.1 “The Internet of Things is pushing 1. L. Gaede, “CODE_n delves ‘Into the Internet of Things,” CODE_n blog, July 2014, http://blog.code-n.org/2014/07/31/ code_n-delves-into-the-internet-of-things/, accessed February 2015. Box 1 Things will change forever Paul van Kessel, Global Digital Leader at EY, explains how the Internet of Things will transform all our lives Dubbed by many as nothing less than the “third industrial revolution,” the Internet of Things (IoT) is a digital game changer. We believe that, when everyone and everything is connected within seamless information networks, when the resulting data is evaluated by intelligent and predictive big data analytics, and with robust cybersecurity measures in place, we will see positive changes in the way we all conduct business; how we operate our factories, supply chains and logistics networks; how we manage our infrastructure; and last but not least, how we as consumers, patients and citizens interact with suppliers, retailers, health care providers and government agencies. The changes will be massive and they will be disruptive. The necessary transformation of businesses and infrastructures will last for decades and will create substantial new employment opportunities. More personal, more efficient and more nimble processes will replace massive industrial-sized processes and present growth opportunities for smaller and medium-sized businesses. And the efficiency gains will allow organizations to secure their long-term growth while ensuring a more sustainable use of our natural resources and environment. 2 companies to fundamentally rethink the way they do business. Groundbreaking ideas from the highly energetic startup scene are essential to take this vast, interconnected network to the next level and unlock possibilities yet unseen.” Digital themes The finalists will present ideas based on four subthemes: Industry 4.0, future mobility, smart city and digital life. With recent data suggesting that one in six of the world’s software developers is already working on Internet of Things projects, it’s possible to predict the type of pioneering solutions likely to be presented to judges at CODE_n this year. For Industry 4.0 (or the “smart factory”) nothing less than the age-old contradiction between the scale efficiencies of standardized industrial manufacturing and the customers’ desire for individual products finally sees serious challenge. And with a vast amount of sensors and highly powered, real-time and predictive analytics in place, a whole new level of efficiency gains increasingly opens up, i.e., in production and supply chain planning and in predictive maintenance. Future proof Future mobility is also transforming the way we work and live. Many solutions are simultaneously autonomous and connected yet still allow for individual mobility within an environment that incorporates larger and seamlessly integrated urban mobility systems. Some of the solutions that the CODE_n applicants are working on include new applications that tackle major transportation issues, including optimizing the use of existing road infrastructure and addressing the lack of parking space in major cities. Other solutions use e-mobility — which involves using vehicle and communication technologies and in-vehicle information — to manage a battery-charging infrastructure or even to put electric vehicles to use as distributed energy storage — thus helping to make alternative energy sources a more robust and reliable alternative for energy generation. CODE_n also will see visionary Frank Rinderknecht explain and demonstrate his vision for a future car that not only is capable of autonomous driving but that will learn to adapt to the very habits and to predict the individual transportation needs of its owner. The main focus on the smart city topic lies with technologies that allow the planning and managing of ever-growing urban regions while, at the same time, generating considerably less congestion, waste, pollution and resource usage. Looking at our individual homes, sensor and operating solutions are being developed for everything from the measurement of domestic air quality to controlling the temperature of a home’s wine cellar. Intelligent energy usage in the individual home as well as in large urban infrastructures is sure to feature too when finalists present smart city-themed solutions at CODE_n. Many start-ups are also working on solutions for connected devices in our personal lives — integrating, for instance, electronic toothbrushes and sports equipment into game apps aimed at raising motivation for brushing teeth or exercising for health benefits. These solutions are likely to be part of the digital life subtheme, where the maxim “everything that can be connected will be connected” very much applies. Solutions from fintech companies, meanwhile, demonstrate how personal sensors and data can be used to further drive the personalization of insurance contracts and to provide for behavioral incentives, ranging from a more healthy lifestyle to less aggressive driving behaviors. Encouragingly, a growing number of startups are focusing on cybersecurity and data privacy to help keep our digital lives as private as possible (or at least as private as we elect them to be). Showcasing the future at CODE_n Box 2 Springboard for success Last year’s CODE_n winner and runner-up have been working with strategic partners to further develop their innovative solutions and grow their businesses. “How many customers visit my store, when and for how long? What route do they take through the store and where do they stop? Which areas do they frequent most? How often do they come back?” These are questions that last year’s CODE_n Award winner Viewsy is helping retailers to answer through its intelligent retail data software. Sensors that receive the radio signals from customers’ smartphones are installed in stores. The Viewsy software then analyzes these signals and provides retailers with information on the path customers take through the store, where they stop and when they move on. This enables retailers to determine whether, for instance, product displays are effective in enticing customers to buy products or whether a change in store layout might lead to more purchases. Data protection has been taken into consideration too. Viewsy says the data its software gathers is secure and anonymous, and if customers don’t want their data captured while they’re shopping, all they have to do is deactivate their smartphone’s WLAN connection before they enter the store. Back to the future The UK-based start-up is one of a growing number of companies adopting structures and methods that already exist online for use in the offline world. From Amazon’s e-commerce platform to Google’s product suite, the rapid growth of the technology economy has been built on analytics — an approach now being applied to the physical world in location services such as FourSquare, a local search-and-discovery mobile app. Odera Ume-Ezeoke, who cofounded Viewsy, explains: “I got the idea for my solution from internet stores, which today are more closely tailored to the personal likes of customers than conventional stores. Cookies give e-retailers a better knowledge of their customers than bricksand-mortar retailers, enabling them to tailor their web stores to their precise needs. I wanted to give this advantage back to traditional retailers.” Winning the CODE_n competition has enabled Viewsy to form partnerships with larger companies to promote and sell its software. Viewsy has been working with a large events operator that has already used the software to increase advertising revenue by 15%, while the start-up has also secured a contract to help a global fashion brand understand the return on investment from its offline marketing. Smart solution CODE_n has also proved the perfect springboard for business growth for the runner-up in last year’s contest, Autogrid. The Autogrid solution, which collects energy data and analyzes it to identify opportunities for saving energy, has attracted US$12m of investment from E.ON, one of the world’s largest energy providers. E.ON, which has around 35 million customers and access to 12 different European markets, partners with startups that have a product or a business model that the energy provider can use to better serve its customers. One of the sparks for inventing Autogrid came from the company’s CEO and founder Amit Naryan, who led a team that developed 8 of the 10 chips in the first iPhone when he was Vice President of Product Development at Magma Design Automation.2 Narayan realized that, under certain conditions, these mobile communications chips could be deployed in power grids for smart analysis of power usage. The Autogrid solution has seen the company work with customers including City of Palo Alto Utilities in California, managing its energy supply with its Demand Response Optimization and Management System (DROMS). Autogrid has also formed major strategic partnerships with companies including Schneider Electric, integrating DROMS into its Wiser home energy management system to better manage and control electricity use.3 It’s another example of how the stars of CODE_n can make a difference to the way the world works. 2. D . Nippes, “Autogrid — Turning big data into power,” Dataconomy, May 2014, dataconomy.com/turning-big-data-powerautogrid/, accessed February 2015. 3. “ AutoGrid, Schneider partner on demand response and analytics services,” Renew Grid, September 2013, www.renew-grid. com/e107_plugins/content/content.php?content.10276, accessed February 2015. Showcasing the future at CODE_n 3 Providing a platform The main goal of CODE_n is to support outstanding business talents and provide them with the platform they need to develop their digital business models. For the winners, the contest can provide a springboard for success (see Box 2). CODE_n also offers young companies with great ideas the chance to present to and gain attention from larger, more established businesses. This might help secure not only additional funding for their ventures but — more importantly for many — the access to world markets that, in an industrial and business to business (B2B) context, still remains the prerogative of larger and established organizations and systems integrators. For bigger businesses, it is an invaluable opportunity to tap into innovative ideas quickly, to partner with and to secure the digital talent they likely are struggling to identify and attract right now. EY, which is once again supporting CODE_n as a global partner, has long recognized the importance of helping start-ups realize their ambitions and the value of connecting a pioneering start-up culture with the larger capabilities of established businesses. “Companies all around the world are seeking to tap into the new possibilities presented by digital and IoT. And many realize that understanding new technological possibilities — and disrupting what are, more often than not, long-established processes and thinking — is not easily achievable,” says Paul van Kessel, Global Digital Leader at EY. “Added to this, digital talent in many organizations, when put to the test, may prove rather scarce.” He adds: “At EY, we have been witnessing the emergence of pioneering entrepreneurs and start-ups all over the world, and we believe that innovation platforms such as CODE_n can help by making connections: providing established organizations with access to the digital talent they desire and young start-up pioneers with the access to funding, infrastructure and market access that too often can be out of reach. For us, CODE_n again proves an important building block as we work toward connecting the old and the new, for innovation, for better business, for sustainable growth and for a better working world for all of us.” Leading event Widespread digitalization of the physical world will be reflected across the entire CeBIT expo, which attracted more than 300,000 professional visitors last year. The theme for this year’s show is d!conomy, reflecting the megatrend toward digitalization and its impact on the economy and society as a whole. Besides supporting CODE_n, CeBIT will feature an exhibition showcasing the latest trends in IT, with major companies participating and exhibiting their latest developments, as befits a show that has become the world’s leading event for a digital industry that is changing the way we live and work. EY | Assurance | Tax | Transactions | Advisory About EY EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities. EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com. © 2015 EYGM Limited. All Rights Reserved. EYG no. AU2914 BMC Agency BACS 1001957 ED None In line with EY’s commitment to minimize its impact on the environment, this document has been printed on paper with a high recycled content. 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