48 Business
Poland 2.0 Poland might not have been the first to adopt the concept of the Internet of Things, nor be its most fervent implementer, but the it is certain to become a part of everyday life
Imagine getting
Global juggernaut
Globally, the market for internet of things will continue to grow exponentially. According to EY, " the number of connected devices [will] exceed 50 billion by the year 2020". However, as more and more objects become connected to the internet, EY fears there could be problems, since "there is a deeply rooted security problem with the possibility of impersonation, identity theft, hacking and, in general, cyber threats".
an SMS on your smartphone from your fridge. It’s writing to tell you that the milk is about to expire, but it also informs you that it has already made an order at your favourite online shop and a fresh supply will be delivered later today. Sound a bit farfetched? It might be closer than you think, as more and more items which we consider to be decidedly low tech are getting connected to the internet. Although the penetration of internetcontrolled gadgets in Poland is not yet on par with world leaders such as South Korea, the country is already a hotspot in the production of Internet of Things (IoT), according to Ludovic Subran, Group Chief Economist at Euler Hermes, who explained that, unlike other countries which “don't have the sheer need to move beyond the technological frontier, Poland could experiment with IoT in real life, with a clear business incentive.” Tomasz Kowalczyk, Innovation Manager of HardGamma Ventures, a Warsaw-based VC firm, declares that there are some companies from Poland making waves on the international stage, but that there is still plenty of room for growth.
Keeping a tab on the kids Kowalczyk cited Blastlab - in which HardGamma Ventures is an investor - as a company which has received positive
responses from overseas. The Gdańsk- Communications (UKE), only three based firm specialises in beacons, percent of Polish companies use techdevices which are constantly aware nology which is connected to the interof where they are due to a number of net (apart from computers). Meanwhile, receivers, and can relay different types only six percent intend to expand into of information to users. It produces IoT in the near future. Of these companies, most are in the a device which essentially consists of two armbands. One is worn around field of transport and logistics, using the wrist of a child, the other around that it for measuring fuel consumption, of the parent. The parent's armband for example, or to notify of road accivibrates whenever the child gets too dents. Around a third of companies far away. Think of it as a baby monitor use it in trade, and merely one percent for the new age. use IoT solutions to monitor vehicles Meanwhile, Oort, another Polish and buildings. “The Internet of Things is still a relacompany specialising in home automation equipment, is producing items such tively young solution which the market as smart lightbulbs and smart power is only just getting used to,” says Adam sockets which you can turn off and on Stańczyk, Business Analyst at BPSC, through your mobile device. Do you a Chorzów-based IT solutions company. want your meal to be warm when you “This is evident even in large companies, get home from work? These products particularly in production plants, where, allow you to turn on your slowcooker despite large investments in recent years in progressive automation and from your phone or tablet. Oort CEO Radek Tadajewski says robotics, machines practically do not that start-ups from Poland often communicate with the software.” find barriers in realising their potenAccording to Cisco, which analysed tial abroad. “In Western Europe, I feel the attitude of Polish entrepreneurs - and sometimes hear - that the fact to such new solutions, the most comthat we are Polish means that we don’t mon barriers to IoT are lack of funds make ideal partners for cooperation. (21 percent) and not seeing its imporThis is quite different from the United tance for their business (20 percent). States or Asia. There's no such prob- As many as 15 percent blamed a lack lem there,” Tadajewski told Polish Radio of knowledge about IoT. in a recent interview HardGamma's Kowalczyk said that Consumer solutions what is missing for Polish start-ups While IoT might still seem like someoperating in the IoT ecosystem and thing far off, the price point of many beyond, is to establish a strong relation- products like smart TVs, internetship between the level of technology connected lightbulbs and location – which in his opinion is quite high – and beacons is dropping, becoming ever the management capabilities which will more within the range of an increasing allow these companies to grow. number of people. A total of 40 percent of Poles own products running on Buying in bulk the IoT ecosystem, while 50 percent But Polish companies are clearly still claim that they will buy such devices in new to the trend towards IoT. According the near future, according to a recent to Poland’s Office of Electronic poll by IAB Poland. “As Poles become wealthier, they will purchase more and more of this technology,” said HardGamma's Kowalczyk, The market for IoT will double between 2014 and 2018, according to IDC, a global advisory firm, from $1.5 bln in 2014 to $3.1 bln by 2018. As more households and businesses recognise the potential for IoT to not only make their lives easier, but also safer and more productive, the domestic sector will continue to grow impressively.
‘The Internet of Things is still a relatively young solution.’