Short report 2016 International IoT Industry Development Trend Forum Agenda, July 15,20168:50-17:00,Bougainvilleahall,Shenzhen,byRobvanKranenburg(info@theinernetofthings.eu)P.R.ChinafoundagoldenformulainthecooperationofWuxiandShenzhen;itisawinningcombination.SohereIsitinChengduwithagreentealatteandIworry.Iworryforthedevelopmentof#IoTinEuropeandtherestoftheworld.Ihavenoworriesaboutthedevelopmentof#IoTinP.R.China.EUhasa lotofbuildingblocks,suchastheEstoniane-card,but itstillhasnotgraspedthefundamentalpolitical nature of the digital transition.With every step it takes out a gatekeeper and itwill not stopbecausepoliticianswouldwantitorthinktheycanregulateit.Itwilltakeoutpoliticiansanddemocracyfull stop so you better prepare with some kind of cybernetic structure to bridge the moment ofbreakdown.Itisanewpoliticalreality,andP.R.Chinahasgraspedthatessentialfactquiteawhileago.Ithastobethespearheadforeveryinvestment,thelensthroughwhicheverydecisionisevaluated.The 2016 International IoT Industry Development Trend Forum was held on Friday July 15, 2016, inShenzhen.Thisforumonthethemeof“leadIoTeraandsharetheworldwidewisdom”wasoneofthreemajorsectorsduringThe9thAPECSmallandMediumEnterprisesTechnologyConferenceandExhibition.To promote the development of global emerging industry and explore a new way of internationalresources integration, the National Ministry of Civil Affairs started experiments in internationalassociations launched by non-governmental organizations. Under this trend, Shenzhen IOT joined theWuxi IOTIndustryResearch Institute launchtheShenzhenQianhaiFreeTradeZoneAIOT.Asoneofthepilotcities,Shenzhenhasaprofoundindustrialbaseandresearchabilityinthesensing,transmissionandapplicationoftheIOTtechnology.IOTisseenasatechnology-intensiveindustry,whichcanbeestablishedmainlytoplevelthroughbasicstandardmaking,productcodingandinformationsecurity.

Itwasnosurprisethattheopeningofthe2016InternationalIoTIndustryDevelopmentTrendForumwasbyleadersoftheSmallandMedium-sizedEnterprisesBureauoftheMinistryofIndustryandInformationTechnology,theGuangdongSmallandMedium-sizedEnterprisesBureau,andthePresidentofIoTServicesharingallianceAlliance.ChinahasgraspedthatifitdoesnotmanagetobringthevastnumberofSMEintothethirdindustrialrevolution,IOTorInternetPlusplan,byprovidingacommondeveloperplatform,andpublicandservicesharingplatformsitwillbehardtomanagenationwidesafetyandsecurity.ThediscussiononwhetherIoTisanewinstitutionalstructurehasalreadypassed.Theengineers,leadingtheP.R.ChinaIoTdevelopments,arefullyawarethatasatechnicaloperationitisbasicautomationplusthenatureofthetcp/ipprotocol(justbuildforspeedandresilience)andtherock-bottomcheapnessofhardwareanddatastoragethatmakesIoTdifferentfromubicomp,pervasivecomputing,andambientintelligence.Technicallyitisnotrocketscience.Theintegrationintotheeconomyandsocietyasacyberneticsystemisthehardpart.VitaltotheunderstandingoftheChineseengineeringmind-setisthatitdiffersfundamentallyintheontologicaloutlookontheworld.Thetechnicaldrivers,protocols,circuitsandsensorsmaybethesamebutwhereasitisdifficultforEuropeanstonottakethemotto'wisdomoftheearth'metaphorically,totheChinesemind-setthisisapurehardfact.ThroughoutanumberofkeypresentationsitisstressedthatdataandinformationfromhumansissubjectiveandthatIoT,datacollectedbysensorsinrealtimeisobjective.Assuchittrulyisamirror,acopyifyouwill,ofwhatisreallyhappening.Thusitisabetterbasisfordecision-making.ThisradicaltransparencythatisoperatingintheheartofIoTisthuswelcomedasitbringstruthandexposesirregularities,overhead,fraudanddeceit.Inotherplacesintheworlditis

preciselystalledforthesereasons.Philosophicallyspeakingwecanquestiontheverynatureofthisobjectivitybecauseonlycertainparametersinnatural,machineandhumanbehaviourarebeingmeasuredandothersnot.Apartfromthiscoreissue,theveryquestionastowhomorwhatisdoingthecalibrationalsobecomesafactorinadebatewhether'trueobjectivity'canbereached.Butitisessentialtounderstandatthispointthattothecurrentmind-setthesequestionswillbeaskedafterthesystemhasbeenputintoplace.InEuropetheseveryquestionshavebeenaddressedinforexampletheOnlifeManifesto,butthesequestionsandtheirtentativeanswersarenotdirectlyusedforinputinrealpolicyframeworks.'Newability'describeshowoneisabletoconfrontthe'new'with'agency',asyousimplycannotaffordtobetakenbysurpriseorhavenooriginal,readoriginatingfromyourownexperience-response.Twospecialcaseswereforegrounded,bothaskingforattentiontopressingsocio-economicissues,theruralcommunitiesandthedisabled,peoplewithspecialneeds.P.R.Chinahasaround300millionpeoplewithspecialneeds,theblind,deaf,thepeopleinwheelchairs,theageingpopulation,iscurrentlybeingoverlooked.Ofcoursethereisequalityinprincipleandtherearespecialgovernmentprograms,butIoTenablesthatspecificequipmentcanbe(3Dprinted)tailoredtoeachindividual.Imaginea300millionnetworkwithitsowncloud,applications,andspecialservices;thisisanamalgamofexpertsthatcanbecomeabusinesspropositionandsocialecosystem.Threehundred(300)villagesadayaredisappearinginP.R.China.Thecountryiscurrentlyat54,3percenturbanization.Inordertogoto70%still450millionpeoplehavetobe'urbanized'.Alotoffarmersareover60,farmingfromexperience.Weneedopen,genericandquicksimpleIoTsolutionstoharvesttheirwisdomandexplaintheadvantagesofaddingsensordatatotheirwaysofworking,notonlyinharvestingandreapingbutalsointrackingqualitythroughthesupplychain.IoTthushasbecomethenewpoliticalreality.Itisofferinganidealmirrorofarealworldorganizationagainstwhichactualsocialorganizationwillbejudgedandmeasured.Thisisattheheartofthesocialcreditsystemthatgivescitizensreportsaboutbehaviourandactionsandguidelinesashowtoactpotentially.FromaEuropeanperspective,stillfocusedontheindividualanditspotentialtobegainedpurelythroughandbyitsownactions,suchaschemeisseenaspaternalistic.AssuchitforgetsthatthroughouttheEnlightenmentithassetupschemestobringparticularsectionsofsocietyintoaparticularethicsandeverydayactivities.ButifyouhavemadetheleapintotheDigitalTransition,thennotonlycollaborationbecomesakeydriverforallmatters,youaretrainingeverysection,everydomain,andeveryaspectofhumanlifeinconvergenceasamind-set.SotosaythatIoTwillreconstructthepoliticalsystemandcreateabrandnewmutuallybenefitingorganizationonapolicyframeworklevel,istosaythatIoTisreallyaboutsocialorganizationonthelevelofsociologyortospeakasZhencongHan,GeneralManagerofGovernmentandCorporateClientDivisionofChinaTelecommunicationsCorporationinhisKeynoteReconstructionofServiceCapabilitytoPromoteRapidDevelopmentofIoTIndustrythatintermsofservicecapability,AIisthenumber1challenge,closelyfollowedbyspeechrecognitionandnumber3:thehumanfactordevelopment.IhavelongarguedthatIdentityManagement-ofpeople,machinesandprocesses-isattheheartofany21thcenturystablesociety.ThisrequiresboldthinkingthatisonlyfoundcurrentlyinP.R.China.Intermsoffinance,thereareplanstothenotionofthe'bank'intotheheartofthesystem.DeepintotheheartoftheChineseuneaseistheobsessionwiththe'fake',the'copy',afraudulentobjectthatisnotwhatitclaimstobe.Insuchavastcountryandurbanizationhappeningsofast-33yearsagoShenzhenwasabeach-itisvitalthatthings,processesandpeoplecanbetrustedasthereisnomoreorganicwaytoknowthemforwhattheyare.Buildingsocialcreditsystemsforpersonal,machineandprocessbehaviourthenbecomesaprogressiveandpositiveact,andwillbringtrustintoeconomicactivities.

Mostimportantthoughitwilldealdecisivelywithinformationasymmetry(youhavedatathatIdon't)andinformationopaqueness.TherehavebeenanumberofInternethoaxesandscams,peoplelostalotofmoney.Whispersandrumoursbecomelikewhirlwindstoriesthroughsocialmedia.Allthisinformationmanipulationindustrycanbedisrupted.Theinterestonloansiscurrentlytoohighbecausealotofpeoplegivefalseinformationandcannotrepaytheirloans.Whyshoulda'centralbank'beinbetweenthematchofwhowantsandwhohasmoney?Thiscanbeself-organizedifonatypeofblockchainallpartieshaveaccesstothesame,truthful,realtimedata.Disruptionisreal,onlyafundamentalchangeoftheverynotionofwhatis'credit'inthesystem,canbringstabilitytoazoneofonebillionpeople(notforgettingthatwhenthisisdoneright,themodelcanandwillbeexportedtotherestoftheworld).Inthecaseofinsurance,accidentscannotonlybeprevented,butitcouldalsoseeifyouwereangryinthecarordistracted.Thereforenewbusinessmodelscanonlybedevisedwithinsystemthatredistributesinsecurity(notsecurity)acrossallcurrentstakeholders,otherwisenewgatekeepersandpowerfulconglomerateswillarise(OverTheTopPlayers)thataretooinfluencedbyoldfashionedcapitalistindicatorslikeego,superficialsocialcapital(Iimpressyouwithmysizeofmycar,house,boat,company...)ormoney(thatpeoplecaninheritandcollectdishonestly,orifyouareagovernmentsimplyprintyourself).ThenewIoTrealityisactuallyabletoorganizenotaround'money'butaround'value'.Itcanfirstformvaluesettlements,thenitfindwaysofsharingschemes.Assuchitcanimpactanddisruptfourhundredyearsofcapitalism,asitcutsoutthemiddlementhengrowsolidandrichandthenstarttoprotecttheirownpositionsforgettingtheirconnecting,transitorynature.Afasterandmoreprecisemodelofvaluereformationcansolvethecurrentdiscrepanciesinthisequation.Itwillbethenpossibletoreceivealoannotonlandoronassetsbutontherealmotivation,talent,behaviour,anddemonstratedactivities;verydifferentbutmuchmoretunedtothetimesparameters.CitizensarekeepingRMB140trillioninthebank,savingastheyareunsurewheretoinvest.Putting#IoTattheheartoftheeconomicsystemreplacessubjectivityinpricing,bringsrealtimedatatoinvestmentsandthusrestoresconfidenceandtrust.Peoplewhohavemoneytoinvestcanenterintomeaningfulrelationswithfellowcitizenswhoneedmoneytomakenewinfrastructure,services,andapplications.ThereisonemorereasontoworryasaEuropean.NewbusinesswillhavenomoreHQ,butarestructuredinsmallteams.Therewasaveryopenmind-setattheConference.Peoplehonestlyaddressedtherealissues.Therewasapanelandgood,tough,questionsbytheaudience.ItlookslikethecreativeanddesignfocusofShenzhenisreallymeetingtheIndustrialInternetWuxiandthatshouldbealoudwakeupcalltotherestoftheworld.But,inallhonesty,Idon'tseewhereelsetheintelligenceresides.NotinEurope,notintheUS.TheoldDARPAveteransoftcp/iparesilentandfailtotakefullresponsibilityforthedeepflawsintheInternetarchitecturethatrendersitinepttodealwithIoT.TheEU#IoTmandarinsstillthinkin'projects',notin'survival'.Therest(Brazilians,Russians,Malaysians...)allhavegreatplansonpaperinvestingandburningalotof(everybody'senergy),thanendupbuyingCiscoastheycannotorganize.TheDutchstubbornlyrefusetosimplyconnectthefewdatabasesthatkeepthemfrombecomingasmartcitythesizeofaChinesesuburb.Ahwell,theonlyseriouspeopleImeetareChinese,and,OKyes,fromSingapore.Apartfromthecomplacentandplayfulnatureofthepolicyofficersandchosenpoliticians,themainreasonisthegapbetweenacquiredknowledgeandaninnateembodiedknowingfosteringadeepintegrationbetweentheoreticalmodellingandeverydaypraxis.Sayingsomethinglike:#IoTinter-connectivityisnotsimplyafeedbackloop,butstrongmutualdependenceandreallyknowing,feeling-thistobetruearetwoverydifferentthings.Stating:

ü "Everythingcanbecomeanodeonthenetwork",ü "Businessmodelwillbehubsonthemaininterlinks",ü "Whenthingsareconnected,unkownsetsofqualitiescanbecomeattributedtotheirvirtual

identities"

andknowing,again,feelingwhatthismeansforthequalityofdata,systemsandlife,thesearetwoverydifferentthings.ForCouncil,aloosenetworkofindividualIoTprofessionals,wehopetobeactiveverysoonintheChinesemarketasoneofthekeytakeawaysisthatmostcompaniescannotaffordtostrategicallychangethemselves.Thatiswherewecomein.Weknowwhatitisallabout,FounderofCouncil,theinternetofthings.eu@robvankTokeepupwithournewssignupforournewsletter:http://www.theinternetofthings.eu/what-is-the-internet-of-things#iotcouncil-contact