Competing for the Future: Iteration vs. Innovation by Brian Solis

1 Towards a new digital paradigm.
Enterprise as a Service:
Towards a new digital paradigm.

Introduction 2
Iteration vs. Innovation 3
Overview: Understanding the EaaS Model 8
The EaaS Wheel 12
EaaS: The New Paradigms
Smart Home 16
Assisted Living 20
Pattern of Life 23
Logistics as a Service 26
Usage-Based Insurance 31
Embedded Banking 36
Connectivity as a Service 40
Transportation and Car Infotainment 42
Carsharing 45
Energy as a Service 47
Demand Forecasting 53
Predictive Maintenance 57
Conclusion 61
Table of Contents

We are living in a unique time that offers enormous
business opportunities. The rapid emergence of
digital technologies, combined with the maturity
of cloud services, is revolutionizing the way
organizations work and do business, and opening
up a universe of possibilities. Indeed, companies
in every industry are focusing on game-changing
digital services.
With that in mind, I am pleased to share this report
on the evolution of today’s technology-enabled
business models. Oracle conducts research into
a variety of topics, and this report was developed
by Account-Based Marketing EMEA in close
collaboration with the Spanish digital agency Evoca.
The report explores some of the new paradigms
being made possible by technology and, especially,
the cloud. It was not that long ago that cloud
computing was just coming onto the scene, and
companies were taking advantage of it to make
storage and server capabilities available over the
network. But today, cloud usage has moved far
beyond that. It is a proven, robust, and cost-effective
technology that is enabling “as-a-service” models
for a wide range of applications and infrastructure—
and organizations are now using the cloud to drive
innovation and increase agility in their businesses.
Today, that evolution is giving rise to the concept of
“enterprise as a service” (EaaS)—that is, delivering
the full range of enterprise IT through a single, cloud-
based service. That in turn provides a foundation for
new business models and, increasingly, the ability to
shift from providing products to services.
Businesses adopting an enterprise-as-a-service
mentality are ready to pivot quickly—much like a
football player nimbly changing direction to disorient
an opponent and score. Companies are in position
to adopt a “fail fast” approach to new ideas. For
example, a company using EaaS can take advantage
of pre-existing toolsets to build and test a new
application. If it’s successful, the company can easily
deploy and scale up the system, either by buying
more capacity from cloud providers or by moving
the application to its on-premises or private cloud
resources, if that is its preference.
With that kind of ability, organizations can adopt
new, more agile mindsets focused on innovating
quickly and frequently. They can constantly test new
approaches to drive ongoing cycles of innovation—
not just in IT but also in the business as a whole.
They can reshape themselves, building new
business models based on repeatable, flexible, and
personalized technology capabilities. Finally, they
can extend their reach, and rethink their traditional
value chain in the context of a larger, more open
ecosystem of partners—and keep finding ways to
disrupt markets and exploit new opportunities.
I hope that you find this report to be inspiring and
helpful, whether you are working to strengthen
your current approaches to business or designing
completely new services that will recast your
relationships with customers and provide a solid
foundation for your business in the future.
Neil Sholay
Vice President of Digital, EMEA
Pivoting to Cloud:
Enterprise as a Service

Iteration
vs Innovation

Competing for the future starts with a shift in
perspective. Without that shift, you will be confined
to cycles of iteration—rather than innovation.
We live in a time of digital Darwinism, an era when
technology’s impact on business and society
involves both evolution and revolution. Digital
Darwinism is real, and it’s driven by changes in
people (your customers, employees, and partners).
How they think, learn, and make decisions is
constantly changing—as are what they expect,
prefer, and value, and how they influence each
other. This is important because research shows
that for many businesses, the centers from which
companies and those people operate are growing
farther apart. Digital Darwinism is at work. The
question is, how well are you coping with it?
New technology is important, but it’s only one
ingredient in the overall recipe for successfully
competing in an era of digital Darwinism. Many
businesses are investing in technology to accelerate
digital transformation. To thrive, however, you also
need a roadmap based on new perspectives and
thinking. You have to see the world differently. You
have to see people, and how they’re changing,
differently. You also have to understand the gap
between where you are and where you need to go
to meet the evolving needs of your markets.
I get that it’s not easy. There’s an old saying that
symbolizes the challenge we all face: “We don’t see
the world as it is, we see the world as we are.”
Indeed, when we see the world through filters
formed through our personal experience and a
legacy perspective, we allow cognitive bias and/
or validation bias to get in the way of objectively
recognizing change, identifying problems, and
discovering new opportunities. But when we pause
to consider what business and engagement even
mean nowadays, and how people are changing, we
can see things we couldn’t see before. And we put
ourselves in position to harness new technology
by drawing on new philosophies and processes to
change how we do...everything.
This isn’t just a time of digital Darwinism, it’s also a
time of great innovation!
Brian Solis
Analyst Altimeter Group.
“We cannot solve our problems with the same thinking we used when we created them.”
Albert Einstein

Oh the Humanities of It All!
“But this is the way it’s always been done!” said no
successful entrepreneur ever.
The future of business relies on the foundation of
innovative and disruptive technologies, but it is
shaped by the dynamics of psychology, philosophy,
sociology, and other social sciences. We are only
human, of course. So to change, to innovate, we
have to operate from a different center. We need
to recognize the ways in which we are and are not
similar to people we are trying to engage. We need
to get better at empathy if we are to have any hope
of keeping up with the way people are changing.
With a new perspective, we get closer to letting go
of legacy assumptions, processes, metrics, and so
forth. We are free to understand how technology
can unlock new value—and, especially, how it
can foster meaningful customer and employee
experiences. But forming a new perspective is one
of those things that sounds easy. Sure, we can all
see how the world is changing. But how does that
change specifically affect our markets, our business,
our way of working?
Seeking these answers is where the road to
innovation begins.
The truth is, everyone is given the same opportunity
to consider the current and future states of their
business and markets, and to decide what they
need to do. The optimist in me believes that we
have a chance to foster new approaches to existing
circumstances, and to invent solutions that stimulate
and develop new possibilities.
It’s clear that business as usual isn’t the answer.
Without a vision that either aligns with or surpasses
the pace of digital Darwinism, businesses will be
susceptible to “the gale of creative destruction.”
Creative destruction is an economic theory
introduced by Joseph Schumpeter in the 1950s. It
describes “the process of industrial mutation that
incessantly revolutionizes the economic structure
from within, incessantly destroying the old one,
incessantly creating a new one.”
Ignorance + Arrogance = Irrelevance
Digital Darwinism occurs because of the impact
that disruptive technology has on pretty much
everything. But whether businesses flourish—or
end up being disrupted—depends to a great extent
on how executives react in moments of truth. For
some, doing nothing is the answer. For others,
reacting to trends once they become mature is
the favored way to move ahead. Only a relative
few will relentlessly pursue market relevance
and leadership, and make innovation part of the
corporate DNA and culture.
The reluctance to embrace disruption has resulted in
a trail of shattered brands:
• Kodak invested in film over digital early on even
though the company was behind some of the
first digital imaging patents and capabilities
• Blockbuster rebuffed an acquisition offered by
Netflix and thus missed the streaming revolution
• The taxi industry at large chose volume over
experience and innovation allowing for Uber,
Lyft and others to offer more attractive and
relevant alternatives
• Borders ended its marketing alliance with
Amazon and instead decided to compete against
it online
With every new technology, we witness the
disruption of vulnerable businesses and even
entire industries. Vulnerability, however, is self-
induced. Successful digital Darwinist strategies
require action, risk, and experimentation focused
on innovation. But all too often, businesses default
to risk aversion and wind up confusing iteration
with innovation—making small changes instead
of taking great leaps. While both approaches are
valuable, they are not the same. In fact, iteration
can at times hinder innovation, which ultimately
limits the extent to which a company can grapple
with digital Darwinism.
So what’s the difference? Iteration is doing the same
things better. Innovation is doing new things that
introduce new value. Disruption is doing new things
that make the old ones obsolete.
When thinking about technology today, it’s useful to
look back at the traditional television remote control.
For starters, do you know anyone who actually
enjoys the remote control experience? Neither do I.
I often say that we have a reluctant relationship with
our remotes.
So, if no one loves the remote, why is it that
we all have them? The answer lies in iteration
versus innovation.

Over the last 60 or so years, each generation
of remote was essentially built on previous
versions. Each generation tended to be better and
more capable than the last. But newer remotes
were never designed to challenge convention,
consider the user experience, or truly mirror
how behaviors, gestures, and preferences/
expectations were changing over time. The result
is a collection of bolted-on technologies stuffed
into dated housing that continues to deliver an
awkward, frustrating experience.
Did you know that, on average, remote controls
have 70 buttons? Also, the first smartphone apps
designed to replace remotes looked and operated
much like the traditional remote. They did not take
advantage of the “pinch, zoom, tap, swipe right”
kind of world we live in these days.
That is iteration.
At the same time, remotes had to control an
increasing array of innovative breakthroughs in
TVs and set-top boxes—the results of significant,
ongoing R&D and innovation. If you think about
it, TV screens today are ultrathin with resolutions
that rival the real world. Yet, the organizations that
design next-generation TVs are not collaborating
with the people cobbling together the next iteration
of remotes. Thus, any product innovation in the
television is immediately compromised by the need
to work with the still-cumbersome remote control.
Executives tend to think about new technology and
possibilities in much the same way that developers
have dealt with remotes. They take the latest
technology and build another layer on top of the
previous layers of technology, often overlooking the
possibility of doing new things and creating new
value. They are iterating, not innovating.
This is a time for innovation.

Digital Transformation Takes Innovation and Iteration
Make no mistake. Change is either going to happen to
you or because of you. The point is that it’s a choice.
But if you’re waiting for someone to tell you what to
do, you’re on the wrong side of innovation.
To compete in an era of digital Darwinism takes
a balance of innovation and iteration. You have
to improve things through incremental change.
At the same time, however, you must do new
things that generate new value. Having a plan that
encompasses both approaches sets the stage for
disruption—something you want to give to your
industry rather than receive. And that starts with
the ability to see what others don’t, and doing what
others can’t—or won’t.
The way I see it, digital Darwinism isn’t a threat—
it’s an opportunity. It’s an invitation to innovate, to
challenge convention, to write new rules, and to build
a new infrastructure for business that makes the old
models obsolete.
Your approach to digital Darwinism is yours to
define. But you can’t adapt if you won’t change. And
your organization can’t move in a new direction if
you don’t lead the way. This is your time to pave the
way for others to follow. It really is.
© Brian Solis

Overview:
Understanding
the EaaS Model

The Shift from Products to Services
In a world that is increasingly globalized in terms of
both production and distribution, consumers have
an almost-infinite variety of products to choose
from—which ultimately reduces the importance
and relative value of a given product. As a result,
the role of products in the on-demand and sharing
global economy has been declining, while the
importance of services has grown—a trend that has
been accelerated with the increasing digitalization of
business. In this environment, a growing number of
companies understands that their growth depends
on transforming their product-based businesses into
businesses that focus more on services.
Today, we are seeing the emergence of new digital
accelerators—technologies such as artificial
intelligence, machine learning, and blockchain—
as well as a growing range of channels for
communicating and collaboration. At the same time,
cloud computing has brought increased accessibility
and flexibility, and as that technology has
matured, its use has extended far beyond its initial
applications. Together, these evolving technologies
are enabling companies to offer more of their
products on an as-a-service basis.
As that happens, we are witnessing a phenomenon that
will gradually spread, change, and disrupt all businesses—
the shift toward more customized, flexible, and dynamic
models known as enterprise as a service (EaaS). Over the
past few years, we have seen the use of cloud computing
to enable the delivery of infrastructure and services—
infrastructure as a service (IaaS), platform as a service
(PaaS), and software as a service (SaaS). Now, with EaaS—
which incorporates cloud-based infrastructure, software,
and platforms—that type of approach is extended to
the company as a whole. This offers a range of benefits,
including the ability to optimize processes and resources,
increased cost savings and agility, reduced time to value,
and, especially, an increased focus on innovation.
Most industries have begun to explore and move to
the EaaS model. This is especially true of those that
are taking advantage of the Internet of Things, such
as the utilities, telecom, insurance, transportation,
logistics, automotive, and healthcare businesses.
Their offerings are increasingly supplied as a service.
The Two Axes of EaaS: New Customer Interactions
and On-Demand Operational Models
Technology has enabled companies to improve their
knowledge of users, personalize customer offers and
services, and find new ways to drive customer loyalty.
This has given rise to a new type of ROI—return on
interactions. Companies can take a more data-driven
approach to customers, and use data-driven insights
to create disruptive services that generate new
avenues of income and growth.
Today’s growing range of EaaS models is also
enabling another source of innovation—new alliances
that reach across boundaries in ways that were
not possible just a few years ago. Cooperation and
partnerships involving players from various industries
can open the door to new, innovative offerings. These
partnerships can draw on the strengths of different
value-chain players to combine physical products and
new approaches to distribution and services—and,
ultimately, drive the shift to a services-focused world.
The EaaS model can be used not only to enable new
approaches to customers, but also to rethink the
organization and internal processes. Indeed, with the
rising expectations of customers and the growth of
competition, such transformational change is critical.
Companies can draw on EaaS models to increase
internal efficiency and responsiveness to changes
in the market. (Later in this report, we examine two
fundamental approaches, or new paradigms, that
focus on this type of internal change: predictive
maintenance and demand forecasting.)

GROW
Services that supplement tra-
ditional business. This requires
an evolution towards new
services related to traditional
ones, but embracing the digi-
tal work and a new orientation
towards the customer.
Development of services in mar-
kets other than the traditional
one, where the company previ-
ously had no presence.
New services by radically in-
novating classic business. This
requires a disruptive vision of
the value chain.
COLONISE INVENT
The three main different areas for business expansion

EaaS Technologies
The EaaS model draws on a number of cloud-based digital technologies, from
sensors and mobility to big data. These can be brought together in various
combinations to create new capabilities and break down barriers between
stakeholders—suppliers, customers, cross-industry partners, and so on—and
enable innovative services. These digital technologies and capabilities include:
• Pay per use, which enables variable costs as companies pay for services
instead of physical products that they acquire
• New devices, such as wearables, thermostats, and smart batteries
• Mobile payments, which simplify and automate the payment process
• Customization, which often uses big data techniques to understand customer
behavior and support tailored offerings
• Real time, with timely information enabling near-instantaneous responses to
changing conditions
• Machine learning, where artificial intelligence enables solutions and systems
to learn from their own “experience,” increasing their ability to adapt, support
customization, and operate efficiently
Designing the EaaS Architecture
Of course, not all of these technologies will be used in every EaaS service—the
appropriate mix will depend on the specific purpose of the service. However,
there are three EaaS fundamental principles that should guide the design of the
digital architectures supporting EaaS:
• End-to-end intelligence: With EaaS, intelligence is no longer centralized.
Instead, it is distributed along the entire value chain, encouraging the
emergence of new players that can contribute new applications and create
local solutions. Data plays a key role in this: It is a core ingredient of effective
EaaS thanks to the use of data-as-a-service ecosystems that are channel-
independent and able to generate intelligent responses and actions adapted
to the ecosystem. The traditional aggregation of separate, disperse, and
underused data gives way to a “smart data” approach, and the integration of
different databases for business purposes.
• Online-offline integration: EaaS essentially enables the integration of
the physical offline world with the digital online world. This integration is
particularly important to customers, who are increasingly interested in using
consolidated, comprehensive online services in their daily lives. Online-offline
integration can have a significant impact on a company’s commercial and
logistics operations, as well as on the nature of competition itself.
• Frictionless experience: Characteristics such as convenience and simplicity of
use should not be forgotten. Customers should be able to interact easily across
channels, and intelligent devices should be used to support a streamlined,
positive customer experience.
PROCESS
REDEFINITION
NEW
RELATIONSHIP
MODEL
NEW
SERVICE
MODEL

EaaS Wheel

The new approaches being made possible by EaaS can be represented in a
diagram, The EaaS Wheel. At the center of the wheel is the technology foundation
of EaaS—the combinations of SaaS, PaaS, and IaaS. That foundation enables 12
new paradigms—embedded banking, demand forecasting, and so on—shown in
the adjacent ring of the wheel. The next ring, in red, represents technology-based
capabilities that can be used in those new paradigms, such as mobile payments
and smart appliances.
Finally, the outer ring shows various industries, with each industry color-coded to
indicate the new paradigms that are most relevant to that industry.
This report offers a number of case studies that illustrate the evolution and
advantages of the EaaS model. As these profiles show, companies are combining
new technologies with new ideas in a variety of ways—and changing the way
they, and their industries, work.

FINTECH AND
INSURTECHS
SPORT
TROPSNART
EVIT
O
M
OTUA
ERACHTLAEH
RE LTAI
LOGISTIC
ANDPOSTAL
SERVICES
BAN
KING
DEVICE
INDUSTRY
EQUIPM
ENT
Pattern
of Life
Logistics
as a Service
Usage Based
Insurance
Embedded
Banking
Connectivity
as a Service
Transport
and Car
Infotainment
Carsharing
Energy
as a Service
Predictive
Maintenance
Demand
Forecasting
Smart
Home
Assisted
Living
CLOUD
“
“Enterprise-as-a-Service is
changing everything and
you need a strong partner to
leverage it to your advantage
Oracle
enables any
company to
excel in the
EaaS model

The new paradigms enabled by EaaS often combine
more than one technology and reach across industry
boundaries. The following pages explore these new
paradigms and the ways that companies are putting
them to work.
EaaS:
The New Paradigms
Pattern
of Life
Logistics
as a Service
Usage Based
Insurance
Embedded
Banking
Connectivity
as a Service
Transport
and Car
Infotainment
Carsharing
Energy
as a Service
Predictive
Maintenance
Demand
Forecasting
Smart
Home
Assisted
Living
CLOUD

INSURANCE
G.A.F.A.
MEDIA
TELCO
DEVICE
MANUFACTURING
UTILITY
Smart
Home
Automated, connected homes take advantage of
devices (such as smart thermostats with learning
algorithms) and services (such as alarms with
machine-to-machine connectivity). These smart
homes aim to increase convenience, efficiency,
security, and comfort in the home. Involving
companies ranging from manufacturers to security
companies, the smart-home paradigm provides a
clear example of the digital economy’s possibilities.
Paradigm 1
Smart Home

Nest Labs was set up by two former Apple
engineers in 2010 and acquired four years later
by Google. Its star product is the Nest Learning
Thermostat, which controls home heating and
cooling systems to increase efficiency.
Using Digital to “Learn”
Drawing on a combination of sensors, learning
algorithms, and cloud computing, the Nest product
is capable of learning the behavior and preferences
of its users. Over a short amount of time in use,
it can gather enough information to operate
autonomously, without any human interaction, to
keep the temperature of the home at the optimal
level. The thermostat also suggests the most
energy-efficient temperature settings. The product’s
success stems from its simple design and ease of
use for consumers, and it typically pays for itself
through energy savings.
An Expanded Lineup
Nest also sells other home products, including a
smoke detector (Nest Protect), which goes beyond
detection by offering information that helps ensure
that the home is secure; and a surveillance camera
(Nest Cam) that makes it possible for homeowners
to obtain visual information from home while
they are away. With all of these products, Nest
offers new services aimed at saving energy in
the home, while at the same time exploring new
business opportunities in partnership with other
organizations, such as insurance companies.
Company: Nest Labs
Country: US
Connected Thermostats in the Home
Nest Labs

The Spanish company Securitas Direct is well
known in the home and business alarm sector,
with operations in European and Latin American
countries. The company has developed an
integrated monitoring platform that enables it
to manage an increasing amount of data and
communications coming from its security teams’
devices. With its platform, Securitas Direct is able to
provide cutting-edge systems with voice and image
verification, connected 24 hours a day to its alarm
reception center. The center is capable of managing
up to 100 million signals per day from a range of
different security devices in homes and facilities.
Keeping Customers in Touch
The platform combines machine-to-machine
networking technology with a web-based app and
control panel, which customers can use to stay in
touch with their home or business, regardless of
their location. For Securitas Direct, the benefits of
the platform include:
• A reduction in the system’s latency by several
seconds, enabling alerts to be managed more
efficiently, and a reduction in response times
when a security alert is received
• Improvements to the customer experience in
services already provided to users, because users
are able to remotely configure security through
mobile apps
• A decrease in time-to-market of products and
services
This security-management innovation has
transformed the company’s customer relationships
and given customers greater control of the security
of their homes.
Company: Securitas Direct
Country: Spain
Enabling Services with an Integrated Platform
Securitas
Direct

Hive is a spin-off of British Gas that focuses on the
connected home business. One of its best-known
products is the Hive Active Heating thermostat, which
is already in more than 250,000 homes in the United
Kingdom. The company has also launched other
products to enable users to control their homes,
regardless of the user’s location. These products include:
• Hive Active Plug, which enables domestic
appliances to be turned off and on manually,
automatically, or using an app
• Hive Motion Sensors, which use passive wireless
infrared sensors to provide remote warnings
when movement is detected in the house
• Window or Door Sensor, which provides alerts to
users when those openings are moved
All of these devices are connected through a
platform hub, which users acquire first. Hive
intends to open this hub up to third parties so that
it can work with other well-known brands and
other partners.
Expanding Uses
Other services are being added to the app to
provide, for example, greater flexibility for planning
the thermostat’s operating times, more preset
operating modes, and the ability to control different
areas of the house in different ways. Other additions
include Hive Active Lights—light bulbs that can be
controlled by the app.
With these innovations, Hive’s strategy is to offer
users new ways of controlling and monitoring their
homes—activities that usually involve a significant
amount of time and concern for people.
Company: British Gas
Country: UK
Connecting Smart Sensors in the Home
British Gas

Assisted living services help improve living
conditions for older people and people with special
needs. These services are especially critical in the
more developed countries, where they can provide
help and care for aging populations.
Paradigm 2
Assited
Living
INSURANCE
HEALTH-CARE
HOME
SECURITY
UTILITY
DEVICE
MANUFACTURING
Assisted
Living

Fuenfría Hospital, part of the Community of Madrid’s
public hospital network, is a medium- and long-
term stay facility that has earned a good reputation
for healthcare and rehabilitation. Along with three
partner organizations, it is part of a consortium that
has developed an “Aging in Balance” R&D project
that aims to design and develop an app to reduce
the risk of falls and augment quality of life among
the elderly.
The project is part of the European Commission’s
Ambient Assisted Living program, which supports
R&D projects focused on improving the quality of
life of elderly people.
Assessment and Prevention
“Aging in Balance” proposes a solution that
addresses two areas: assessments and fall
prevention. Risk-assessment tools take the form
of self-assessments or assessments administered
by healthcare personnel. Prevention tools consist
of physical and intellectual activities designed
to help stop a person’s deterioration, as well as
recommendations about the person’s environment.
The end result is a fully interactive and easy-to-use
app, designed to be used by elderly people.
Company: Fuenfría Hospital
Country: Spain
Improving Quality of
Life for the Elderly
Fuenfría
Hospital

Multinational company Philips has developed the
digital HealthSuite platform, designed to help
people and their healthcare providers obtain a
complete vision of the state of their health, and to
take the steps necessary to remain healthy. The
product is an open platform for services, assistance,
and tools, based on cloud computing. It is capable
of working with other cloud-based technologies
and professional health solutions, personal
coaching apps, and Philips’ consumer devices, as
well as with other open platform devices.
Information for Better Health
The platform can also perform analytics on
population health data, making it possible to give
doctors useful information about, for example,
whether children are meeting key development
milestones, or for use in managing patients with
chronic diseases such as diabetes. For the elderly,
the platform includes solutions for patients
recovering from acute health problems, with the
goal of helping people maintain their independence
and stay in their homes.
Other company solutions enable doctors to monitor
their patients remotely, or let people use a tablet-
based app to ask questions, input information,
and connect with their doctors. Philips has also
developed predictive analytics engines that draw
on historical information and data from wearables,
helping doctors detect problems early on and keep
patients healthy.
Company: Philips
Country: The Netherlands
A Cloud-Based Digital Platform for Health Services
Philips

Today’s healthy-lifestyle services industry includes
companies developing devices, apps, and platforms
that can be used to monitor fitness activities, track
health indicators, and obtain valuable information
through big data analytics and tools.
Paradigm 3
Pattern of Life
G.A.F.A.
SPORT
TELCO
DEVICE
MANUFACTURING
Pattern
of Life
Towards a new digital paradigm. 2323 Towards a new digital paradigm.

Technology manufacturer Samsung has
implemented a broad ehealth initiative supported
by the modular SimBand bracelet device and
the SAMI (Samsung Architecture Multimodal
Interactions) big data cloud platform. Both the
hardware and software are open source, meaning
that third parties can use them.
The SAMI platform facilitates the collection and
storage of information about the user’s vital signs
from different devices. The combined information
offers a more complete perspective of such data.
SimBand is a starting point for the development of
wearables and other health-related devices.
Open for Innovation
The aim of the initiative is to ensure that innovation
in health-related devices is not limited to a single
manufacturer. The effort makes it easier for different
companies and software developers to create
new applications and hardware modules using the
SAMI platform, and even enables all data to be
synchronized with the Samsung cloud. The SimBand
device is modular and can handle various hardware
components, from heart sensors to blood pressure,
CO2, or blood sugar monitors. That means that
various manufacturers using the device can add
their own sensors.
Company: Samsung
Country: Korea
Using Big Data to Support Ehealth Initiative
Samsung

Runkeeper is an app that enables a smartphone
to act as a pocket personal trainer and a tool for
tracking training efforts. The app has multiple
functions that cover a wide range of runner
profiles, from those getting started to more
advanced runners.
Runkeeper uses the smartphone’s GPS to track a
user’s position, log run distances, and facilitate the
calculation of various indicators. Runkeeper enables
users to monitor activities and generate statistics,
share photos taken during training, measure
progress and performance, convert any travel into
a route to be used later, share training sessions and
runs with friends, gain a broader vision of health
issues, and donate to charities.
Millions of Users
With an API open to developers, the app can
integrate data with many different third-party apps,
platforms, and services. There is also a website that
lets users monitor activities completed in the past,
and access a social network to share their running
information with friends. Runkeeper is available in a
basic format that is free, with various payment plans
available for additional services. It is currently one of
the most widely used personal fitness apps, with a
community of 45 million users.
Company: Runkeeper
Country: US
The Personal-Trainer Smartphone
Runkeeper

Postal, parcel, and e-commerce service operators
are using digital technology to improve processes
and facilitate delivery in real time. New solutions
aimed at forecasting demand for products, adjusting
production processes, planning distribution, and
monitoring operations are made possible through
the integration of data analytics, geolocation, and
predictive intelligence.
Paradigm 4
Logistics as a Service
TRANSPORT
AUTOMOTIVE
RETAIL
LOGISTIC
&POSTAL
SERVICES
Logistics
as a Service

Uber, the renowned “collaborative economy”
company that connects passengers with drivers,
has implemented a logistics solution (UberRUSH).
In cities such as Chicago, New York, and San
Francisco, it is used for the delivery of purchases
made through ecommerce platforms and websites,
with the aim of saving time and providing
convenience for customers.
Many companies have automated operations or
complex logistics networks, or need customized
and flexible tools. As a result, Uber has added an API
to the UberRUSH solution that enables companies
to incorporate it into their systems and apps.
Delivering the Goods
A wide variety of companies already use this
logistics-as-a-service solution. It is used for same-
day delivery of clothes and accessories, flowers
and plants, and groceries and meals—deliveries
where time is critical. It is also designed for use by
companies with complex logistics systems, allowing
them to integrate the solution into the value chain of
their business. The cost of UberRUSH depends on
the distance traveled. There are plans to extend the
solution to other cities.
Company: Uber
Country: US
Logistics as a Service for
Ecommerce Companies
Uber

UPS, one of the largest delivery companies in the
world, uses big data algorithms and tools to find
the quickest and most efficient routes, weighing
numerous variables such as traffic volume, number
of traffic lights, speed limits, and physical distance.
The company has developed a system known as
ORION (On-Road Integrated Optimization and
Navigation), based on an algorithm that performs
a real-time analysis of about 200,000 possibilities
for each route. The system makes it possible to
compare the performance of routes and identify the
one with the best delivery efficiency.
Insights for Efficiency
One result of using the system is that the company
has determined that it “should minimize left turns
and follow circular routes with right turns, enabling it
to deliver more packages in less time and with lower
emissions, even if the driver has to driver farther.”
In addition to big data, UPS is using technologies
such as mobile devices (which collect information
and give a direct connection to drivers), sensors and
GPS in vehicles, and cloud computing. For UPS, the
technology is not only tracking what has happened,
it is also helping to determine what should happen
in its operations.
Company: UPS
Country: US
Using Analytics to Increase
Distribution Efficiency
UPS

Car company Audi, in partnership with Amazon
and DHL, has performed tests in Germany of a
new logistics service dubbed “Audi Connect Easy
Delivery.” The service involves delivering online
purchases to customers’ Audi vehicles. Deliveries
are made by DHL, which uses keyless access
technology to open the cars. DHL is given the GPS
coordinates of the recipient car, and the delivery
person has a temporary access code to enable him
or her to open the trunk. The code is valid for a
limited amount of time, which expires as soon as
the trunk is closed.
The Car as Service Platform
This innovative service has the potential to save time
and give customers more convenient and flexible
delivery options. It also contributes to the trend
of turning the automobile into a service platform,
integrating it even more deeply into the daily lives of
consumers. In addition to using the car as a delivery
address, the partner companies plan to explore the
option of letting consumers send mail and packages
from the car as well, and even combining the service
with package deliveries done by drone.
Company: Audi, Amazon, and DHL
Country: Germany, US
Delivering Purchases to Customers’ Cars
Audi, Amazon, and DHL

Shipbeat has developed an API that aggregates
the services of leading parcel delivery companies
such as UPS, FedEx, Royal Mail, Deutsche Post, and
DHL. The goal: Address the delivery challenges of
small to midsize ecommerce businesses and enable
them to give customers a range of delivery options.
Today, it’s not enough to offer only delivery;
customers demand flexibility and high levels of
service, such as next-day delivery, when receiving
and returning goods they’ve purchased.
These smaller businesses often need to integrate
multiple shipping carriers’ systems into their
e-commerce platforms to improve operations
(labels, booking of pickup, and so on). That
can be very time-consuming and complicated.
Shipbeat is replacing that approach with its
logistics-as-a-service API.
Flexible and fast delivery is a critical point for
converting and retaining customers. According to
some studies, 20 to 70 percent of prospective online
customers drop their shopping carts due to a lack
of shipping options. So, in addition to making it
easier for smaller companies to link up with logistics
providers, Shipbeat is also helping those companies
offer an online customer experience that helps them
stay competitive.
Company: Shipbeat
Country: Denmark
Logistics as a Service Helps Smaller Ecommerce Companies Compete with the Big Players
Shipbeat

For the insurance industry, digitalization provides a
key for driving growth through new services. Using
technology, insurance companies can offer various
products and operate with business models based
on the behavior of users. With automobile insurers,
for example, this could involve pricing based
on “pay-as-you-drive” and “usage” insurance.
Sensors, the Internet of Things, connected cars,
and, in the near future, driverless cars offer the
possibility of learning much more about customers,
and using that understanding to provide flexible,
personalized services, adapted to each user, each
moment, and each situation.
Paradigm 5
Usage Based
Insurance
INSURANCE
FINTECH &
INSURTECHS
BANKING
Usage Based
Insurance

Mapfre is one of the largest insurance companies
in the world, with a presence in 49 countries.
The company is embarking on a transformation
process revolving around the digitalization of
customer processes and operations, with the aim
of selling trust and tranquility, as opposed to home
and car insurance.
Mapfre positioned itself in the pay-as-you-drive
insurance market a few years ago, with its YCAR
product aimed at young people, through which
drivers pay premiums based on how they drive.
Using Analytics, Smart Data, and Omnichannel to
Understand Drivers
This product (available in the US as Drive Advisor)
involves the use of telematic devices that transmit
data about acceleration, braking, vehicle speed,
distance traveled, and so forth. Then, data analytics
can be used to determine a customer’s driving style,
which determines the level of payment. At the same
time, customers can receive online information about
their driving behavior and advice about safe driving.
Company: Mapfre
Country: Spain
“Pay-as-You-Drive” Insurance
Models Based on Driver Behavior
Mapfre

Generali and Telefónica have launched pay-as-you-
drive car insurance that incorporates technology
capable of detecting and analyzing the driving habits
of each driver and adjusting their monthly premium
accordingly—automatically.
Not everybody behaves the same way when
behind the wheel, so the Generali premium price is
determined by factors such as driving style, distance
traveled, and other driving conditions. To track
driving habits, Generali installs a Telefónica M2M
device in the customer’s vehicle. Data provided by
the system includes distances traveled, whether
driving is done during the day or at night, freeway
versus city driving, adherence to speed limits,
and so forth. Customers are also able to access
all information about their driving data through a
mobile app and website, along with advice on how
to improve their habits at the wheel.
Personalized Insurance—with Extra Features
In addition, the solution provides customers with
features such as a system that locates the vehicle
in the event of theft or loss, an assistance service in
case of car problems, and an emergency button that
helps speed up responses in the event of an accident.
With this approach, the insurance product is highly
personalized, and the price calculation applies from
the first monthly bill onward, without having to
wait for the policy’s annual renewal.
Company: Generali
Country: Italy
Keeping Track of Driving Habits with M2M Technology
Generali

Multinational consultancy Deloitte has developed
its D-rive platform, designed to enable insurance
companies to learn more about driver behavior
and, as a result, improve risk assessments, increase
income, reduce costs, and put new and innovative
products on the market.
The platform takes data from drivers’ smartphones
rather than relying on sensors fitted to vehicles,
which helps keep costs down. It is also based
on cloud computing technologies, with drivers
participating through a mobile app and a website.
Arming Insurers with Information
The platform provides insurance companies with
data analysis tools and solutions. With it, even
smaller insurance companies can have access to
information that they can use to give driving-based
discounts and offer value-added services, and
ultimately participate in the usage-based insurance
market. Although the platform was initially
designed for individual insurance, it can also be
used with commercial fleets. Millennials are one of
D-rive’s main target groups, largely because of their
digital skills.
Company: Deloitte
Country: US
A Cloud-Based Platform for Usage-Based Insurance
Deloitte

The possibility of automating insurance
management through the use of smart contracts
based on blockchain technology promises to reduce
management costs and fraud levels and increase
customer satisfaction.
For example, InsurETH implemented an insurance
product covering flight delays and cancelations. The
product is based on a smart contract that uses public
information about flights, and whose blockchain
holds the policy conditions. If delays or cancelations
occur, the contract is automatically executed
immediately while eliminating processing costs for
the insurance company.
Company: Insurtech
Country: UK
Blockchain Comes to Insurance
InsurETH
35Towards a new digital paradigm.

In banking, digital transformation is driving the
move to EaaS. In particular, the emergence of the
so-called fintechs—startups offering digital banking
and financial services—is accelerating the process
of change in the sector as a whole. Financial
services organizations are becoming more fluid and
aspire to have an almost-invisible presence in every
transaction. Multidevice models are coming into
use, such as “car banking” that enables payments
to be made from cars. There are also a number
of solutions for integrating financing with home
appliances and smart refrigerators.
Paradigm 6
Embedded Banking
G.A.F.A.
FINTECH &
INSURTECHS
AUTOMOTIVE
TELCO
RETAIL
BANKING
DEVICE
MANUFACTURING
Embedded
Banking

Fidor is a digital bank with no physical branches that
offers banking as a service. Established in Germany
in 2009, it differs from traditional banks in two
fundamental ways. One is its concept of community,
which includes encouraging customers to request
services and offer advice to other customers.
Two, it is designed more like an app store than a
conventional bank.
A Growing Banking Marketplace
Fidor offers APIs and web tools that can be used
by developers and ecommerce platforms to create
payment interfaces. The bank’s managers define it
as a marketplace that holds a banking license. Fidor
has about 100,000 customers in Germany and has
already reached the break-even point. It has also
started to expand internationally.
In addition to offering bank-based services,
Fidor has been a pioneer in working with
virtual currencies. It has also worked with other
companies to offer person-to-person loans,
currency transfers, and precious-metal purchases.
Company: Fidor
Country: Germany
Moving to Banking as a Service
Fidor

The French telecommunications operator Orange is
preparing to break into the banking market by cre-
ating Orange Bank. To do so, it plans to work with
French insurance company Groupama, combining
Groupama Banque’s position as a multichannel
bank and Orange’s knowledge of telephone ser-
vices to develop completely mobile banking.
This move reflects the new ways in which
consumers use technology, and accelerates the
development of innovative banking offers, including
services such as insurance, loans, and savings
instruments, as well as other traditional banking
products, accessed via mobile devices. Furthermore,
the participation of the two companies provides
additional value to consumers, such as security
and reliability. The launch of Orange Bank, which
describes its offer as Banking 4.0, is planned for
early 2017 in France. That will be followed by other
launches in other European markets, such as Spain
and Belgium.
Company: Orange
Country: France
Crossing Industry Boundaries
Orange

Chinese e-commerce company Alibaba has set up
a new bank, MYbank, an online credit company
for small- and midsize enterprises and rural
customers. The organization is partially owned by
Ant Financial, Alibaba’s financial services group,
as well as partners from the investment and
automotive industries.
Confidence in Credit
MYbank’s creation enables Alibaba, which was
already taking preliminary steps into electronic
banking, to offer banking-deposit and loan services
to customers. To support those steps, Alibaba
has entered into partnerships with 25 banks and
financial entities to provide credit services especially
to companies with innovative projects related to
cross-border trade. These partnerships will also
provide information on Chinese companies that are
requesting credit to overseas players purchasing
through Alibaba.com, the B2B ecommerce website
run by the Chinese conglomerate. This credit-
information service will help overseas buyers
identify trustworthy trading partners in China, while
offering Chinese suppliers access to innovative
financing options.
Company: Alibaba
Country: China
Electronic Banking for Smaller Businesses and Rural Customers
Alibaba

Connectivity has become a flexible service that
meets the structural and short-term needs of
different users. New demand-based models enable
consumers (individuals and companies) to use and
pay for only the network service that they require at
any given time.
Paradigm 7
Connectivity
as a Service
TRANSPORT
AUTOMOTIVE
TELCO
Connectivity
as a Service

Working in conjunction with telecommunication
equipment manufacturer Ericsson, the Polish football
team Legia Warszawa has implemented a “small cell-
as-a-service” solution at its Warsaw stadium.
Ericsson provides a managed services solution
including Wi-Fi technology and planning, design,
implementation, integration, optimization, and
maintenance services. About 7,500 devices can con-
nect to the network simultaneously at high speed,
at any time during matches.
Convenience During the Game
For its part, the team has developed a mobile
app that enables spectators to access news and
videos, order food, and purchase team products.
For example, spectators can scan a QR code on
their seats, then select the food and drinks that
they want and have the order delivered to them,
eliminating the need to line up at a food stand and
miss part of the game.
All of this means that visitors to the stadium enjoy
high-speed connectivity and value-added services.
Other services that are being tested include
delivering purchased gifts to a customer’s seat, and
replays of interesting actions on the field. Overall,
the system provides a good customer experience
and increases the use of the team’s services.
Companies: Legia Warszawa
Country: Poland
Using “as a Service” to Improve the Football Fan Experience
Legia
Warszawa

Transportation, particularly automobiles, ranks
third in terms of consumption of digital services,
behind homes and offices. A variety of companies
participate in this field, where industries such as
automotive, telecom, entertainment, and tourism
come together. Exponential growth of the EaaS
model is expected in this area.
Paradigm 8
Transport and
Car Infotainment
G.A.F.A.
AUTOMOTIVE
MEDIA
TELCO
BANKING
Transport and
Car Infotainment

Company: Immfly
Country: Spain
Bring-Your-Own-Device in-Flight Entertainment
Immfly
Immfly is a startup founded in Barcelona in 2013,
with partners such as Atresmedia Televisión,
BBC Worldwide, Unidad Editorial, Sky News, and
TripAdvisor, among others. The company focuses
on the creation of multimedia entertainment
systems for aircraft, using a bring-your-own-device
approach. This allows passengers to view content
on any of their electronic devices (mobile phone,
tablet, or laptop) that can access a web browser.
Focused Content for Passengers
The systems enable passengers to choose from
a range of multimedia content, which is tailored
based on destination, personal preferences, and
age profiles. Content can include newspapers,
magazines, travel guides, television programs,
and offers for services at the destination
(car rental, tickets, hotel and restaurant
recommendations, and so on).
There is also content related to the journey itself,
such as details about connections at the desti-
nation airport, distance traveled, altitude, and so
forth. The platform is available in German, English,
and Spanish, and most content is free. Passengers
can also use the Immfly app to take content down-
loaded during the flight with them when they land.

In the connected-car ecosystem, different platforms
have emerged to facilitate connectivity between
the vehicle’s multimedia system and smartphones.
Today, these platforms include:
• Android Auto, Google’s in-car solution launched
in 2014 and operational in several countries. With
Android Auto, the mobile device is connected
to the car by USB, and the terminal takes over
control of the vehicle’s multimedia system,
facilitating the use of apps such as Google Maps,
Google Now (search assistant and guide), and
various music and messaging solutions.
• CarPlay, which is Apple’s platform. Simply
connecting an iPhone terminal to the vehicle
activates the CarPlay system. This platform’s
strengths include the Siri voice assistant (answers
questions, gives instructions, controls functions,
and so on), as well as a navigation system with
maps and different apps designed for the car,
primarily related to music.
• Mirror Link, which was launched in 2011, enables
both Android and iOS apps to be used, and is
compatible with many smartphones, eliminating
the need to pick one type of phone. This
compatibility makes it possible to use whatever
apps the user likes. When the mobile device is
connected, the app takes control of the car’s
system and can send information to the screen.
Furthermore, Mirror Link is strongly committed
to a two-level app certification system, in the
interest of safety: The first level enables the app
to be used when the car is parked and the second,
more restrictive level enables the app to be used
while driving.
Company: Android Auto, Carplay and Mirror Link
Country: US
Integrating the Smartphone and the Car
Android Auto, CarPlay,
and Mirror Link

When it comes to automobiles, research shows a growing
trend of younger people preferring shared-ownership,
subscription, and usage models, as opposed to car
ownership. This carsharing can take advantage of EaaS.
Paradigm 9
Carsharing
AUTOMOTIVE
TELCO
Carsharing

Car2go, a subsidiary of Daimler AG, offers
carsharing services in more than 30 European and
North American cities, with some 13,000 cars and
about 1 million customers.
Car2go represents a new and environmentally
friendly alternative for mobility in cities. The
company charges a rate per minute of car use, with
automatic discounts if it is used for longer periods
(hours or days). In general, these charges cover all
associated costs—rental, fuel/energy, insurance,
parking, and maintenance.
Accessing Cars Online
The vehicle fleet includes two versions of two-
seater cars: gasoline-powered cars and electric
cars. Customers register on the company’s website
or via a mobile app, which they also use to locate
vehicles. The customer’s driving license is validated
electronically at one of a number of locations car2go
has established in cities. Both the website and the
app indicate the fuel or battery-charge level of the
vehicles, in case the customer needs to make a long
journey. Customers can choose to fill the tank or
recharge the battery before returning the vehicle, in
exchange for free minutes of use.
Company: car2go
Country: Germany
Carsharing in Europe
and North America
car2go

Thanks to digitalization and the convergence of
hardware installed in users’ homes and software in
the cloud, the energy industry is evolving toward
personalized, dynamic, and flexible services. More
than many industries, energy companies are in
position to take advantage of the Internet of Things,
sensors, and connected devices to customize
service for specific users, based on an analysis of
their demands and needs.
Paradigm 10
Energy
as a Service
TELCO
DEVICE
MANUFACTURING
UTILITY
Energy
as a Service

Energy for the Home
Tesla Energy is putting two types of batteries onto
the market: Powerwall, focusing on domestic use,
and Powerpack, focusing on business use. The
Powerwall type, for example, stores energy supplied
by solar panels or other renewable sources in the
home. All units are connected to the internet and
monitored by Tesla Energy.
With this initiative, Tesla plans to change the
energy consumption service model through an
infrastructure revolution. For Tesla, the new battery
could play an equivalent role to that of mobile
telephones in telecom, which largely replaced
landline communications. According to Tesla, the
installation of 2 billion batteries in the world would
be sufficient to generate all of the energy consumed
by the planet. Installation costs, as well as the cost
of solar panels or alternative renewable energy
sources, would have to be added to the price of the
battery itself (US$3,000-US$3,500). Approximate
calculations for use of the batteries in Spain show
average savings of 50 percent on bills for annual
home energy consumption.
The battery is currently available in the
US and Australia.
Auto manufacturer Tesla has put a line of batteries
on the market under the Tesla Energy brand. With
Tesla Energy, the company focuses on renewable
energy sources, some of which are not available
24 hours a day. The batteries are designed to store
the energy accumulated from renewables for later
use—at night, for example, during power outages,
or at times of maximum consumption, when
electricity prices are at their highest.
Company: Tesla
Country: US
Battery Infrastructure for Renewable Energy
Tesla

Since 2010, electricity company Iberdrola has been
developing its Grid Remote Management and
Automation System, with the aim of modernizing
its electric meter assets. In Spain, the initiative
involves the replacement of more than 10.5 mil-
lion meters and the modification of about 80,000
transformation stations. Through digitalization, the
company gains better knowledge of user consump-
tion habits and the smart electricity grid.
Drawing on Big Data
By using big data tools, Iberdrola wants to efficiently
manage information transmitted by smart meters
(around 100 billion records per year) and other
electronic equipment at all levels of its grid
(consumption, distribution, transport, generation,
and so on). Analysis of this data can help Iberdrola
plan, assess, and control electricity consumption, as
well as improve supply quality, meet the electrical
energy needs of the future, and optimize energy
distribution. Furthermore, big data enables new and
more customized services for consumers, based on
analyses of customer consumption patterns and the
launch of segmented tariffs.
Company: Iberdrola
Country: Spain
Digitally Driven Personalized
Services for Electricity Customers
Iberdrola

Lyse Energi is a small energy supply company that
has embarked on an extensive program to improve
its system for reading meters and managing meter
data. Traditionally, analog readers were read
manually once a month. By replacing those devices
with smart meters, the company can obtain far more
data, with an automatic reading every 15 minutes.
Value from Data
Lyse Energi is able to use all of this data on
home energy consumption, and the information
generated by its analysis, to create value. For
example, the company uses it to adjust internal
processes to improve the customer experience
and optimize the allocation of time to different
tasks. It also uses the data to create new services
and income sources, such as those enabled by
the automation of domestic climate control,
ventilation, and lighting systems.
Lyse Energi is also taking advantage of the
Internet of Things in its wind turbines to collect
data about the wind in various locations. This
enables the company to gain greater knowledge
of airflows and increase stability when providing
wind energy to homes.
Company: Lyse Energi
Country: Norway
New Services Enabled by Smart Meters
Lyse Energi

Verizon, the American telecommunications
operator, has created a Grid Wide Utility Solutions
platform to offer smart cloud computing and
machine-to-machine network connectivity
solutions to utility companies that supply
electrical energy. This approach helps those
companies modernize their infrastructure without
having to design their own solutions.
Integrated Tools
The platform offers integrated services in an
as-a-service model. These include remote meter
reading, changes in energy demand, meter data
management, distribution control, and monitoring
of energy quality. Meter data is transmitted via
network and stored in Verizon’s cloud environment.
The platform also offers data-analytics apps and
tools that provide up-to-date information about, for
example, power cuts or abnormal usage patterns.
The company has plans to expand the service to
work with gas and water meters.
Company: Verizon
Country: US
Grid-Management Tools as a Service
Verizon

Trilliant is a California-based company that provides
solutions to help utility and energy companies around
the world overcome the challenges of modernization.
To do this, it offers a dedicated communications
platform, the Trilliant Smart Grid Platform.
This platform integrates and unifies information about
utility company systems, making it possible for those
companies to develop their own approaches to a smart
grid. The platform enables utility companies to create
a broad range of services to help increase energy
efficiency, improve grid reliability, reduce operating
costs, integrate renewable energy resources and
electric vehicles, and provide consumers with tools for
managing energy consumption.
From Smart Grid to Smart City
Trilliant works with an ecosystem of partners—such
as integrators, distributors, automation companies,
and manufacturers of metering systems and in-home
devices—to integrate a variety of technologies and
services in its platform.
Overall, the purpose of the platform is not only to
offer solutions and applications for today’s smart
grids but also to leverage the Internet of Things and
enable “smart city” models.
Company: Trilliant
Country: US
A Dedicated Platform for Unified Smart Grid Information
Trilliant

Many EaaS models are designed to provide
services to external customers. But EaaS is also
revolutionizing internal operations at companies.
These approaches deliver services to internal
“customers,” and can be used in a variety of areas,
such as process redesign and stock management.
The technology is having a particular impact in one
of these internal areas—demand forecasting.
Paradigm 11
Demand Forecasting
INFRASTRUCTURE
RETAIL
DEVICE
MANUFACTURING
INDUSTRY
EQUIPMENT
UTILITY
Demand
Forecasting

The Otto Group retail company has developed big
data analytical tools to help it forecast demand for
its catalog products. This effort stemmed from the
fact that conventional forecasting was not adequate
in an increasingly competitive environment, and
would sometimes deliver inaccurate results. If
demand were overestimated, it could lead to excess
production. If it were underestimated, it could lead
to product shortages and frustrated customers.
Learning to Predict
After assessing different approaches for generating
forecasts, Otto Group developed an analytical
tool/forecasting engine based on particle physics
and neural network techniques, with self-learning
capabilities. Using data about previous campaigns to
“learn” about demand, the tool can draw on current,
daily campaign data to generate forecasts that are
significantly closer to actual demand than those of
previous models.
As a result, Otto Group is better prepared to meet
consumer demand, avoid product shortages, reduce
stocks, simplify logistics, and increase profitability.
Company: Otto Group
Country: Germany
Better Forecasts with Big Data
Otto Group

Textile manufacturer Inditex uses big data
technologies to predict demand levels and peaks for
its products, and to detect consumption patterns in
its physical and online stores.
Thanks to these tools, it can follow the pulse of the
market and is in a position to fine-tune its production
and logistics chain. This lets the company detect
what is working well in the world of fashion, and
manufacture it quickly to meet demand.
Delivering the Right Products
The big data approach helps ensure that the
company’s stores have what the customer
needs at the right time, based on predictions of
the garments and sizes that will be sold at each
store. Digitalization means that the company has
greater control over the entire flow of information
generated by stores (orders, sales, trends, and so
on), enabling it to operate with a basic principle:
Know what customers want so that it can be
manufactured, distributed, and sold. This approach
is further enabled by having RFID chips on products.
This makes it easy to search for items in shops and
reduces the time needed for inventory. Last but
not least, big data is used for quality control and
detection of possible health risks in garments.
These innovations enable Inditex to achieve
significant growth while continuing to maintain
the original essence of its business, and quickly
design, manufacture, and transport products that
customers want.
Company: Inditex
Country: Spain
Using Big Data to Anticipate Customer Needs
Inditex

Ferrovial, a large infrastructure operator and
service provider, uses big data tools to manage
assets, such as airports and toll roads, and provide
better service to the people who use those assets.
These tools are used, for example, to identify
traffic patterns on highways and to predict usage
trends, factoring in real-time information provided
by users through social media, navigation systems,
smartphones, and so on. The aim is to monitor
actual usage and forecast demand to manage
services more efficiently.
Ferrovial also provides drivers with information
about traffic conditions, along with
recommendations for alternate routes to avoid
heavy traffic. All of this information is provided
on an app.
Data-Driven Improvement
The company also uses the data it collects for
future marketing initiatives aimed at attracting
new users. Similarly, by tracking social networks,
forums, and blogs, the company can gauge users’
perceptions of its toll highways, which can be
analyzed to support strategic decisions. Overall,
Ferrovial is developing a growing number of big
data projects—an increasingly important tool for
optimizing operations.
Company: Ferrovial
Country: Spain
Big Data for Beating Traffic
Ferrovial

EaaS can be used for systems that use predictive
modeling and calculations to help organizations
anticipate hazards, faults, or problems in operations.
The goal: to optimize maintenance and logistics.
Paradigm 12
Predictive
Maintenance
Predictive
Maintenance
TRANSPORT
INFRASTRUCTURE
RETAIL
UTILITY
TELCO

Founded in 2012, Compology focuses on the
development of waste management and logistics
systems, taking advantage of the Internet of
Things, big data, and machine learning. Compology
bases its apps on hardware fitted with a camera
and installed inside containers. The camera takes
pictures of waste levels inside the container and
sends them to the company’s servers.
Smarter Collection
Because Compology manages millions of
photographs per month, decision-making
needs to be automated. So the company uses
a pretrained neural network, with machine-
learning algorithms and a classification tree, to
determine when containers will fill up. Armed
with all of that information, the system can
determine which containers need to be emptied
or replaced, and the routes that the trucks should
follow to do so. Overall, the system makes it
possible for service operators to reduce the costs
and time associated with collection.
Company: Compology
Country: US
Streamlining Waste
Management
Compology

Car manufacturer BMW uses big data
technology and data analytics to optimize its
products and maintenance.
The use of predictive analytics helps the company
detect and correct issues before launching new
models, long before problems occur during
production. Analyses are based on global product
data and information about warranties, diagnostics,
and repairs. The resulting insights are incorporated
into vehicle design and production processes.
Looking Ahead
Similarly, these tools play a key role in predictive
maintenance, enabling the discovery of patterns and
anomalies to anticipate maintenance needs, which
potentially helps to reduce repair times and visits to
repair shops.
Analytical tools also help BMW develop strategies
to improve customer relationships by providing
information about what customers like and what
they expect from BMW in the future.
Company: BMW
Country: Gyrman.
Improving Vehicles with Analytics
BMW

The combination of big data and the Internet of
Things is a fundamental tool for German elevator
manufacturer ThyssenKrupp, especially in predictive
maintenance for its products.
A system based on these tools and developed
by the company uses machine learning and data
analytics to identify possible problems in real time,
then offer appropriate solutions for addressing
those problems.
A More Proactive Approach
The technology also lets the company estimate the
lifecycle of elevator components, helping to reduce
equipment downtime. The system connects elevator
equipment to the cloud, compiles data generated
by sensors and devices, and transforms that data
into business intelligence. The aim is to significantly
improve maintenance service and be able to
schedule repairs proactively, before a problem
occurs. Overall, the technology drives efficiency and
reduces downtime while helping to control costs.
Company: ThyssenKrupp
Country: Germany
Thinking Ahead for Maintenance
ThyssenKrupp
60 Towards aa new digital paradigm.

Conclusion

The EaaS model is a key force in the digital
transformation of companies. It supports the shift
from products to services—services that can be
customized for users and configured quickly to
meet changing requirements. It opens the door not
only to transforming relationships with customers
and partners, but also to improving internal
operations for greater efficiency and effectiveness.
In this changing environment, established
companies can pursue any of three strategies
for success: grow, colonize, or invent. Smaller
companies and startups also have tremendous
opportunities, with as-a-service capabilities enabling
the type of radical innovation that can disrupt
markets and industries.
With EaaS, companies can become more fluid
players with a presence in each stage of the
value chain, often invisibly. For example, banks
and their platforms aspire to participate in every
transaction consumers make. We see automotive
companies entering the electrical utilities market by
producing batteries, companies that create weather
services based on data from sensors fitted to wind
turbines, and startups using smart contracts based
on blockchain technology to do business in the
insurance sector. In other words, the most disruptive
companies have understood that services are key to
creating value, and function is far more important
than the product.
EaaS is also having a disruptive impact on
competition. Traditional boundaries and models
become blurred. What was previously a customer-
supplier relationship can quickly become
competition, as the supplier becomes a new player
in the market. Conversely, major competitors
can become partners to adapt to new market
requirement. Boundaries between industries break
down as well, and companies providing a certain
type of service can start to offer different solutions,
previously unrelated to their mission—witness,
for example, a telecommunications company that
jumps with ease into the energy or financial services
markets. Cloud technologies and the as-a-service
model make this possible.
Finally, companies can use digital transformation
to become an enterprise as a service that takes
advantage of intelligence embedded into products,
networks, and activities, for the creation of new
concepts and models.
As we have seen in this report, EaaS is enabling
12 new paradigms that are reshaping business.
What is also evident is that these paradigms are
not just a distant possibility. As the case studies
show, they are already being embraced by a
number of companies—from the insurance firm
using blockchain-enabled smart contracts to the
company using the Internet of Things to streamline
waste management.
These new paradigms are themselves evolving,
and we will no doubt see new ones emerge
as the world gains more and more experience
with EaaS. To succeed in the coming years,
companies will need to determine where they fit
in the as-a-service world—while keeping an eye
on the horizon for new paradigms that they can
exploit for competitive advantage.

Analysis Methodology
All information concerning the aforementioned
companies, analysed by Evoca’s researchers for the
case study, is in the public domain on the Internet
and has been selected from corporate websites,
press releases and other communications made
public by those companies.
Oracle Digital
isabel.fernandez.penuelas@oracle.com
Account Based Marketing
marieta.proenca@oracle.com

Competing for the Future: Iteration vs. Innovation by Brian Solis

Competing for the Future: Iteration vs. Innovation by Brian Solis

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