#BCW19 - Talking with Nik Scharmann, Project Director, Economy Of Things, Bosch

I'm here in Berlin I have the pleasure being part of Bosch connected world 2019 we're at the end of day one I have a pleasure being joined by Nick Sharma now nick is the project lead for Bosh's economy of things project which I guess is a cousin of DLT or distributor ledger technology in some cases that people talk about blockchain Nick thanks the caching it would be great to see you thanks for firstly congratulations on a really exciting event you know we hear this concept of the event doubling year-on-year but it literally does that at so much interest in this space particularly the whole topic of Internet of Things and all things related firstly maybe just tell us a little about yourself in your role and what is the economy of things yeah well I'm Nicola and I am the project director of the project you mentioned become your things it's a advanced engineering project so it's between research and product development the name economy of things comes from from the idea there's the Internet of Things where things communicate between each other and we want to drive it one step further that things not only communicate but really exchange values and strike contracts right and the analogy for economy our free market economy works in a decentralized way so there's no soviet-style central authority who does the link between demand and supply but in our economy there's it's there are rules there are contracts and everything is decentralized and this idea is also reflected in the setup of the economy of things project so we use distributed ledger technologies and multi-party computation to achieve this decentralized matching of demand and supply so you've got a couple of exciting projects I'd like to delve into one in particular we worked on a project where there was a car that negotiated it's a relationship with charging station so particularly the pricing of charging stations what can you tell us about that project yeah so obviously we are here this is an electric car and these cars need frequent least charging stations and there's a large amount of different charging pole operators Araya and this car needs to if you think about that these cars will become autonomous in the future these things need to talk to the charging stations but not only taught but really to do contracts with them about charging right so you could do it in two ways you could either have a centralized platform by one company where all the cars connect to and all the charging poles connect to so you have this classic platform monopoly thing which is good for the company that operates this charge this the short form but it's a problem for all the other righties in the ecosystem so we want to have this central platform which is a good thing because you don't want to connect to numerous different small platforms but we don't want to have this one entity that controls everything and here comes this decentralized ledger technology into place so we have this car here this car is equipped with an agent so it's a piece of software with an attitude basically so I can tell this piece of software I don't want to pay more than 50 cent per kilowatt hour and I have this range anxiety and then this car can communicate and also negotiate with charging poles on the contract and if the charging pole and the contract agrees then this contract is deployed in a distributed ledger in a blockchain so right and then the settlement starts and this energy flows a lava it's almost like the inverse of bias and artificial intelligence it's now working towards the consumer in the car versus the other way where it's advertising on social media platforms convinced me to buy things I don't want yeah one of the things that comes up in these sorts of conversations how do we monetize this technology how do we put it into not just an exciting project like this but you've proven that the case actually works in the business model works but what other conversations should people be having inside their boardrooms and through the rest of the organizations about where they start just getting a compensation technology so I think there are two parts to this answer I think from the monetization point of view it's strikingly simple that's good news it's good news because in the platform business and data business business models tend to be quite complex with service driven data-driven run as models and so forth or the other part is try to get a monopolistic platform and then expect rents from right and in this approach in this economy of things approach and this platform will be run in the co-operative way so it will be cost driven it's a bit like an infrastructure okay and and people can build service and product business on top of this in mimic in the case of the Bosch product that would be a a vehicle control unit in the car which already is so it by Bosch and equipped with a agent-based software and a crypto walnut that then can do its thing so from a business point of view it's super simple you don't you just continue product based business more right and you can try to focus on good products yeah and do not have to focus on building a platform which locks everybody in so that's the strategic point and if you talk about what the bots need to talk about and think about I think there's one nice phrase that really wraps it up it's called co-opetition yeah so it's a a mixture between cooperation and competition so you have cooperation on this infrastructure layer we build it together with DRT technology for example and but you can still have competition on top of right right it reminds me of the the the journey we've been through with I guess the transition to handheld phones and smart phones and applications from its phones and then different types of services on those applications right and and now we're sort of taking two big moving things like cars and other massive pieces of infrastructure so I would love to then ask you one last question if we don't mind next 12 to 18 months so let's you know the events over it's been an exciting event Bosch connected well 2019 a lot being here but everyone's boxed up they've gone home – told 18 months what are you working on what's your team gonna be focusing on and I guess what is the ecosystem around that need to be thinking about it – where do we go what's over the horizon in your yeah so recently we achieved a a great success that we were able to talk and cooperate with other the companies on this approach okay because I mean it's it's a huge shift from from trying to fight each other to buy a write form – well let's think about doing something in a cooperative way okay so in the past we built these proof-of-concept systems like this car where we have Seamans for example built this infrastructure access or parking lot access and with en PW a German utility the AV charging right so but these were a proof of concepts that ran for a few hours and and the next month will be focused on building systems that run longer not yet operative systems that really can work for four years or so really going one step further into the reality I guess that's the you know taking a lot of what we've seen in the enterprise world around fell and fell fast and learning from that process and then transitioning angel' models with continuous development continuous improvement is and it's like you got to get a version one and under one well Nick thank you so much for making time to catch up he's been great to see you and congratulations and exciting project in a great event and we really look forward to what's coming out of you and your team and the rest of our show globally the next old in eighteen months and beyond yeah thank you for talking to thanks very much Cheers

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