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High tech #LikeABosch – how we’re delivering better quality of life with connect ...

04.01.2022

Presentations

Business/economy

High tech #LikeABosch – how we’re delivering better quality of life with connect ...

Dr. Tanja Rückert, chief digital officer of Robert Bosch GmbH, and Mike Mansuetti, president of Bosch in North America, at the Consumer Electronics Show on January 4, 2022 Check against delivery. Good morning everyone, and welcome to the Bosch press conference! We’re delighted to have you with us digitally today. Although we regret that the pandemic has once again prevented us from meeting face to face, of course everyone’s health has top priority. The good news is that we can safely come together in a virtual manner, all thanks to technology. And that fits in perfectly with what we want to talk to you about today. Specifically, we want to talk about the benefits and opportunities offered by technology, and the positive impact it can have. Technology for a better world – today and tomorrow You’ve just seen the premiere of the latest installment of our #LikeABosch” campaign: “high tech #LikeABosch.” “High tech” may be a familiar term here at CES, but we at Bosch have a slightly different take on things. Today, we want to tell you about how our approach to high tech is not just about pushing the envelope on what’s possible. Instead, it’s about using cutting-edge technology as a means to improve people’s lives wherever they are: at home, at work, on the road, in a hospital, or even in orbit! As a company committed to delivering life-enhancing innovations, we center our development around people. But especially at a time of such profound technological change, it’s not enough for companies to assume we have all the answers. To truly give people what they need and want, we have to understand what these are – and what hesitations and concerns are attached to them. And so we did exactly this: we conducted a comprehensive international survey to gauge opinions on a wide range of technology-related topics. We asked a representative sample of people in five countries – China, Germany, India, the U.K., and the U.S. – to tell us how technological progress looks from their point of view, what they want most from technology, and where they see both the most promise and the most risk. The inaugural Bosch Tech Compass is having its global debut right here at CES. Over the course of our press conference we’ll be sharing with you some of our most interesting and relevant findings. To start with, let’s look at what for us is perhaps the most significant finding of all. As the survey showed, confidence in technology and enthusiasm about its impact are high across the globe. A full 72 percent of respondents worldwide believe that technology is making the world a better place. Above all, they believe technology is bringing them increased comfort and safety, and that it’s making work easier. And they’re optimistic about its potential, too: most significantly, 76 percent of people globally are convinced that technology holds the key to combating climate change. At Bosch, we agree wholeheartedly. After all, we’re also firmly convinced that technology has the potential to make all our lives better – that’s why “Invented for life” is not just our claim, it’s our strategic imperative. We only need to look at our portfolio for proof: think of beneficial and even lifesaving innovations such as our vehicle electronic stability program ESP, airbag control units, our digital guardian angel Help Connect, or the rapid coronavirus PCR test we developed for our Vivalytic device last year. When it comes to climate change, we at Bosch take the fight against it very seriously: we were the first global industrial enterprise to achieve carbon neutrality at all our international locations. We’re working now on reducing emissions generated along our supply chains and during the lifecycle of our products by 15 percent by 2030. In terms of volume, this is 67 million metric tons, a figure roughly twenty times greater than what our locations emitted in our baseline year of 2018. We’re also sharing our experiences and supporting other companies’ carbon neutrality efforts via our consulting company Bosch Climate Solutions. We’re driving sustainability with our products as well, enabling those who use them to reduce their carbon footprint. For example, our U.S.-based building technology subsidiary Climatec won a 35 million-dollar contract from the City of Ontario in California to boost its energy efficiency, safety, and connectivity. Within the framework of the “Smart Ontario” project, we’ll be retrofitting the city’s infrastructure with smart, connected solutions such as building automation and LED streetlights that should reduce local greenhouse gas emissions by over 10,000 tons annually. And to pursue our longstanding vision of climate-friendly mobility, we supply a full range of components and systems solutions for electromobility – in fact, no other company offers as wide a range as Bosch: from battery-electric powertrains to regenerative braking systems to fuel cells, powering everything from e-bikes to commercial vehicles. Speaking of e-bikes, they’re at the intersection of two major drivers for our business: electrification and connectivity. It wasn’t too long ago that an e-bike was a niche product. Now it has become one of the most popular forms of personal transport worldwide. But what does connectivity have to do with an e-bike? It’s the basis for a personalized e-bike experience like never before. This is exactly what our new system generation – called the eBike Smart System – offers its users. This innovation, which is a 2022 CES ® Innovation Award Honoree, was first introduced late last year and will be available for a mass audience to see and demo for the first time in the U.S. here at CES. With this entirely new system consisting of our eBike Flow app, control unit, display, battery, and drive unit, we’re merging the physical experience of riding an e-bike with digital conveniences like connectivity, personalization, and services. For example, in the future, your e-bike will be able to adapt to your riding style, suggest routes you enjoy, and guide you safely to your destination while learning your preferences and interests. Thanks to connectivity, the bike is not a static product, but one that can continually evolve after purchase. The experience can be constantly enriched with new digital experiences thanks to over-the-air updates. This is just one example of how connectivity is at the heart of all our products. In fact, we’re delighted to announce that we reached an important goal set several years ago: 100 percent of all our electronic product classes are now web-enabled. This means that for nearly everything we produce, we can now realize functions such as wireless updates and web-based services. Just think of the beneficial services we’ve already realized by putting cars online: our emergency notification service eCall, for instance, or our wrong-way driver warning. Bosch is an IoT and software company This milestone is a key proof point for how Bosch has evolved into a software and IoT company. We currently employ approximately 35,000 software developers. Overall, our annual investments in building up software competence amount to more than four and a half billion dollars. This means that we understand both sides of the coin better than most other companies – particularly when it comes to connecting things to the internet. Just let me give you an idea of what we’ve achieved recently in two of our key domains: home and mobility. When it comes to technology for the home, Bosch sold 4 million web-enabled power tools, home appliances, and heating systems in 2020; in 2021 this number increased to over 6 million – which is 50 percent growth! In the mobility sector as well, software is paramount – cars are becoming internet nodes. This has been a Bosch vision for quite a while, and we’re ideally positioned to play a major role in creating the software-defined car. In our Mobility Solutions business sector, we’re investing nearly three and a half billion dollars annually in building up our software competence in this domain. At the beginning of last year, our new Cross-Domain Computing Solutions division started operations, bringing together hardware and software development for new automotive electronics architectures. This year we’re taking the additional step of pooling our work on application-independent vehicle software for cars and the cloud at our subsidiary ETAS GmbH. This means that we’ll be able to provide solutions to manufacturers and other suppliers more quickly, securely, and efficiently in the future. In addition to optimizing our organization and building up our expertise, we’re engaging in partnerships to propel our technology leadership in the mobility sector forward. For example, together with Microsoft we’re strengthening our position in software development for all domains – from the car to the cloud. It’s also enabling us to speed up feature development to bring new software functions to vehicles faster. In this collaboration we’re making great progress toward developing an open technology platform that will enable the acceleration of automotive development cycles. Last but not least, increasing demand for software comes along with an increasing need for software integration. Here, given our domain knowledge, Bosch is at home and can provide the necessary integration know-how. Take automated driving, for example. An automated vehicle must be able to do everything a human driver can do: perceive its surrounding, make decisions, and accelerate, brake, and steer. Bosch has all the different building blocks for automated driving in our portfolio and, step by step, we’re laying the technical groundwork. With our driver assistance systems, we’re already paving the way for all levels of automation. And this is paying off: to give you an example, over the past five years, Bosch made more than 10 billion dollars in sales with driver assistance systems. From components to systems, and from software to services – when it comes to tomorrow’s mobility, all roads lead to Bosch. To give you a sense of the range of technologies we offer, and how they’ll be seamlessly integrated in future vehicles, we are showing a glimpse in our booth of how software, personalization, automation, connectivity, and electrification will unlock infinite possibilities to shape the way we get from points A to B in the future. Bosch on its way to becoming a leading data-driven AI company Speaking of the future, when asked what they think the most influential technology will be in ten years, Bosch Tech Compass respondents across the globe agreed that it will be AI and 5G. At Bosch, we’ve made AI a major strategic focus. We want to use connectivity and data collected over the IoT combined with artificial intelligence – AIoT for short – to continuously improve our products and services. A milestone on our path to become a leading data-driven AI company was the establishment of the Bosch Center for Artificial Intelligence in 2017. The BCAI currently operates at 7 locations in the U.S., Germany, India, Israel, and China. So far it has worked on more than 200 projects in the mobility, manufacturing, agriculture, and smart-home domains, and has already contributed nearly 350 million dollars to our global result. In systematically building up our expertise in AI, we’re also working toward a concrete goal: by 2025, every Bosch product will either be equipped with AI or manufactured with its help. One new product featuring AI that we’re showcasing here is our latest Home Connect fridge, which can identify its contents and suggest recipes based on what’s inside – which might not only get you out of a dinnertime rut, but can also help you use up what might otherwise go to waste. Another very special example which demonstrates how we continue to develop solutions for maximum benefit is our SoundSee technology. This acoustic technology had its debut aboard the International Space Station, where it uses AI to help monitor the health of critical systems on the ISS, such as the space station’s environmental control and life-support systems. And today we’re announcing for the first time a new use case for audio AI based on the same technology currently aboard the ISS. Together with Highmark Health in Pittsburgh, Pennsylvania, we’re exploring the use of audio AI as a diagnostic tool in pediatric medicine. Specifically, we’re working on adapting these experimental sensors to detect pulmonary conditions such as asthma at an early age, just by listening to children’s breathing patterns. Our hypothesis is that each child has a sort of audio fingerprint, and that the use of audio AI can be used to learn a child’s normal pulmonary sounds. Should something change, then the idea is that the AI will pick this up, which will potentially lead to early therapy and better outcomes. Ideally this technology will enable us to monitor kids in a non-invasive manner and alert the parents at a far earlier stage when there is a variation from the child’s baseline. Ultimately, we see the combination of AI and the IoT as holding the key to leveraging the most user benefit from both of these technologies. Think of it as a continuous improvement loop. Connected products transmit data, which is then processed with the help of AI algorithms. Optimizations are identified, then fed back to the products in the form of software updates, and the cycle starts again. In effect, this allows customers to be an integral part of the development process, and for solutions to be tailored precisely to their needs. The result is better solutions for our customers – as well as new revenue streams for us, since it will enable us to turn the sale of every digital product into services-based revenue as well. Trust and responsibility are decisive for success Like the Bosch Tech Compass respondents, we also believe that the impact of artificial intelligence and next-generation connectivity will be huge. In order to realize the full potential of these new technologies, however, they must gain widespread acceptance. For this, we must not only make the benefits comprehensible for people, we need to build trust in the technology and in the companies that create it. In fact, the same is true of all new digital technologies: trust must be established, not taken for granted. Going back to the results of the survey, this was one of the strongest points of agreement among all the respondents. Four out of five people across the globe believe that a company’s success will ultimately depend on its ability to build digital trust with its customers. To gain trust, of course, companies must act responsibly: in dealing with sensitive data, in balancing economic and ecological considerations, and in leveraging innovation for the common good. Respondents to our survey agree on this as well: a whopping 83 percent of respondents think that technological progress should be more focused on confronting society’s challenges rather than on serving individual needs. Above all, what emerges from the Bosch Tech Compass is that people are more aware than ever of both the potential and the pitfalls offered by technology, and that they want those who create it as well as those who legislate its use – in other words, companies and policymakers – to take responsibility for steering its development in the right direction. At Bosch, we’ve always prioritized trust and responsibility in our pursuit of technological advancement. This was true for the analog world, and it’s even more true for the digital world, where trust is in short supply. Above all, we want to lead by example when it comes to using innovation as a force for good, not just for profit. That’s why we’ve published an AI code of ethics for our own developers, and why we’re explicitly and exclusively committed to AI that is safe, robust, and explainable. It’s also why we are the driving force behind the Digital Trust Forum, a global consortium of representatives from different stakeholder groups whose aim is to foster a high level of trust in AI and IoT-based solutions. In particular, we’re working with our partners to develop trust policy frameworks and eventual certification and conformity labels. The plan is that products that meet certain criteria will bear a Digital Trust seal – along the lines of the energy-efficiency labels you see on home appliances, for instance. Of course, trust and acceptance also depend on people seeing the concrete benefits a new technology can deliver. Here I’d like to highlight a Bosch innovation that again demonstrates the incredible potential of AI. It’s a gas sensor – the first one on the market equipped with artificial intelligence – and it’s being used in a truly revolutionary new product. Dryad’s Silvanet Wildfire Sensor is a pioneering new solution for ultra-early wildfire detection, and our gas sensor is its digital nose. Apart from the unfathomable devastation wildfires cause, did you know that they account for up to 20 percent of annual global carbon emissions? That’s as much as the entire transportation sector combined – in other words all the cars, ships, and planes on the planet. Dryad’s sensors are mounted on trees, where they continuously monitor the local microclimate in order to detect flames early – and wirelessly notify local authorities long before camera or satellite-based systems can. These sensors are going to help save lives, homes, and tons of CO 2 from entering the atmosphere – all thanks to AI and connectivity. Solutions for a better world At Bosch, our aim is and always has been to improve people’s daily lives with our products and solutions. The Bosch Tech Compass respondents are optimistic about the beneficial potential of technology, and so are we: that’s why we continue to work on cutting-edge innovations that are designed to make life better for everyone across the globe. This is light years beyond high tech, it’s “high tech #LikeABosch”! Thank you.

Beneficial AI – building trust together in the digital world

06.01.2020

Presentations

Business/economy

Beneficial AI – building trust together in the digital world

Dr. Michael Bolle, member of the board of management of Robert Bosch GmbH, and Mike Mansuetti, president of Bosch in North America, at the Consumer Electronics Show in Las Vegas on January 6, 2020Check against delivery.2001: A Space Odyssey. The Terminator. The Matrix. Ex Machina. It sounds like we’re sharinga list of our favorite movies. But actually, all these movies have something in common.They all depict a future in which machines have learned to think for themselves – with disastrous consequencesfor humanity. Whether the machines manipulate, enslave, or replace us, the message in the movies is the same: by developing artificial intelligence, we’re opening Pandora’s box. I like science fiction as much as anyone, and portraying AI as the villain has kept audiences entertained for decades. But the time has come to talk about the technology’s true potential – the potential to provide real value, for real people. “How can we make artificial intelligence beneficial? How can it be used to complement human intelligence?” These are some of the big questions at CES this year. So what’s our answer? Artificial intelligence is not science fiction anymore – it’s already an integral part of our daily lives. It’s fundamentally changing how we drive, how we work, how we learn, how we shop, how we travel. At Bosch, it’s also becoming part of the products we make – products that will assist and support us, and make life easier overall. Whether it’s being used in manufacturing, in smart homes, or in self-driving cars, one thing is for sure – in line with our “Invented for life” ethos, we want to make AI safe, robust, and explainable. Where the world of work is concerned, we’re not just facing a technological shift, we’re also facing a critical shortage of skilled workers. So it’s also against this backdrop that it will be essential for humans and machines to work together. At Bosch, we believe this is self-evident. And with this in mind, we’re trying to shape the digital transformation by educating and upskilling our workforce, and investing in our associates as well as in the intelligence of our products and machines. As a society, we must learn to accept a technology that is capable of learning itself. One way to do this is to invest more in our own learning – and that’s exactly what we’re doing. Over the next two years, we will be introducing wide-ranging training programs aimed at making nearly 20,000 of our associates AI-savvy. I’ll tell you more about that later. But the societal benefits of AI go far beyond our daily lives and work. It also holds tremendous potential to benefit our planet and its climate. We intend to use this potential to realize our goal to maintain a balance between our economic, ecological, and social responsibilities. At the end of 2019, we achieved carbon neutrality for all our locations in Germany. By the end of this year, all 400 Bosch locations worldwide will be completely carbon neutral. When this happens, we will be the first major industrial enterprise to have achieved this ambitious goal, all within a little over a year. And to do this, we will be making use of our own solutions as well: our energy platform, for example, already uses intelligent algorithms to monitor consumption in manufacturing. It quickly identifies deviations in individual machines’ energy use and offsets load peaks. This alone has reduced CO2 emissions at individual plants by more than ten percent over the last two years. For a company that has 270 manufacturing sites, that’s some significant savings potential! Our success here has prompted us to market the energy platform externally. And it won’t end there: AI means we’ll be able to forecast and reduce energy consumption over the long term as well.AI is creating markets, but digital trust is indispensable This example underlines that artificial intelligence also offers considerable business potential. A number of different studies support this notion. For example, AI is expected to boost GDP substantially in major economies across the globe by the end of this decade – PWC estimates a 15 percent boost in North America alone. At the same time, global AI software revenue is projected to reach nearly 120 billion dollars by 2025, a twelve-fold increase compared to 2018. And the World Economic Forum predicts that global job losses as a result of AI will actually be offset by the creation of new ones, resulting in a net gain of nearly 60 million new jobs by 2022. As mentioned earlier, these jobs will require significantly new competency profiles, which will necessitate a strong push to reskill and upskill people. It’s indisputable that the impact of artificial intelligence will be huge. However, we must make the benefits of AI comprehensible for people, and even more importantly, establish trust in the digital world. Our CES slogan captures our approach here nicely: “Beneficial AI – building trust together.” In this endeavor, Bosch is pursuing a two-pronged approach. On the one hand, we’re doing the technical groundwork, developing solutions, and using our innovations to open up new areas of business. On the other hand, we will use AI to realize our strategic imperative of creating technology that is “Invented for life,” and in doing so, convince society of the benefits of AI. Remember, it was our engineers that developed lifesaving inventions such as electronic stability control, airbag control units, and anti-lock braking systems for vehicles ranging from passenger cars to motorcycles to e-bikes. This is what we mean by technology “Invented for life” – and our work with AI is no exception. By putting it to use in automated vehicles, for example, it too will be a technology that saves lives, as we will explain in more detail later on.Trust, responsibility, and ethics in AI We take entrepreneurial responsibility seriously, and it defines our approach to new technologies like artificial intelligence. The decisive factor for responsibility in the digital world is trust. This trust will be just as important for our digital business as product quality is for our traditional business. We have to work on developing both AI and trust in AI – without the latter, the former will not be successful in the long run. But how can we establish this trust? By creating AI that is transparent, safe, secure, and robust. When it comes to building trust, another key aspect is data security and data privacy – especially where personal data is concerned. At Bosch, our approach is simple: when it comes to all our smart products and services, users have full transparency and control over the data collected and who gets to use it. Moreover, in order to build trust among our customers and partners, as early as 2015 we established guiding principles for data protection in our IoT business. This was several years before the GDPR regulatory framework was introduced as European standard. We’re now working on a similar set of principles for our future use of artificial intelligence: an AI code which sets out ethical guidelines for the development and usage of AI, especially in cases of doubt and dilemma. Going forward, it will be essential that people remain in control of systems that use AI. Take the example of driver assistance: here, we want to integrate AI in such a way that it can always be overridden by the driver. We don’t want to lock the algorithms from our AI models in a little black box. The rules and parameters behind decisions must remain comprehensible, at the very least for specialists. That said, Bosch and the big tech players differ in our approaches to AI in one fundamentally important way: our focus is on the application of AI for physical objects. Whether it’s deployed in an automotive emergency braking system or in factory production, our AI explains the physical world to machines. Our latest camera for automated driving uses AI to understand what it sees – to infer, say, whether a pedestrianis going to step out into the road or not. This will improve object recognition and make automatic emergency braking more reliable, thereby increasing safety. At Bosch, we want to harness the power of artificial intelligence to improve technology and the performance of our products and machines. We call this industrial AI, and we’re using it to develop smartsolutions in three key domains: mobility, residential, and manufacturing. It’s no coincidence that we emphasize the “things” when talking about IoT. We’re bringing connectivity and intelligence to our own products and machines. We know cars and traffic, factories and buildings, inside and out – no other tech company can match the breadth and depth of our cross-domain expertise. Our own sensors provide us with a massive amount of data. And if we apply AI methods to that data, we can create new services and applications. By the middle of this decade at the latest, each and everyone of our products will either have artificial intelligence itself, or have been developed or manufactured with its help. Ultimately, we plan to teach our products to function as assistants – for our customers, and for our own developers.Investing in AI research and development To achieve this, we want to become one of the global leaders in AI innovation as well. Our research and development activities are all geared toward this goal. Bosch currently invests more than 4 billion dollars annually in software development, and employs around 30,000 software engineers. Established in 2017, the Bosch Center for Artificial Intelligence is already working on more than 150 projects. It employs some 250 AI specialists at seven locations around the globe including two here in the U.S. – in Pittsburgh, Pennsylvania, and Sunnyvale, California. Our U.S. research teams play a key role in our AI development activities, above all in robotics and automated driving. But we’re not working in a vacuum here. Especially where AI is concerned, a technology company like Bosch sees itself as part of the larger scientific community. In Germany, for example, we’re a founding member of the “Cyber Valley” initiative – an AI research alliance between academia and industry. Among other things, as part of this we’re investing more than 110 million dollars in an AI campus, which from late 2022 will be home to 700 AI experts from Bosch as well as from external startups and research groups. Here in the U.S., we’re collaborating closely with Carnegie Mellon University on AI research. Carnegie Mellon has been working on artificial intelligence for 60 years, since the technology’s earliest days. They have been responsible for pioneering innovations in areas like self-driving cars, facial recognition, and language processing. As we see it, industry and academia each have an essential contribution to make. And we highly value the transfer of knowledge between our developers on both sides of the Atlantic.SoundSee hears what’s broken in space – with AI from Bosch A great example of an exciting collaboration with one of our U.S. partners is currently deployed about 240 miles above the Earth’s surface. It’s an innovative AI-based sensor system called SoundSee. This little device will be playing quite a big role in outer space. The SoundSee technology will be used to perform deep audio analytics on the ISS. Using highly-sensitive microphones, it will capture ambient noise emitted from the station’s systems and equipment, and then use AI to spot potential anomalies from the audio patterns. Basically, SoundSee will hear if something on the station is broken – and can tell whether it needs to be repaired or replaced. We developed this system together with the aerospace company Astrobotic Technology Inc. In November, it was sent into orbit and will be integrated into the Astrobee robot shortly. Of course, the new sensor system will also be very useful down here on earth. In manufacturing, for example, it can improve predictions about machine downtimes, thus helping to reduce maintenance costs and increase productivity. But on board the ISS, this technology could even be lifesaving.Virtual visor – a U.S. idea is a “Best of Innovation” award winner We’re showcasing another example of the ingenuity of our American workforce here at CES – and this world premiere also underlines their lateral thinking. Some of our engineers came up with a digital solution for a common and often dangerous hazard that drivers frequently face. It’s an innovation that replaces a nearly 100-year-old automotive product: the sun visor. According to a study by NHTSA, sun glare causes nearly twice as many accidents as any other type of weather-related condition. But we now have a solution: our “virtual visor.” At first glance, it looks like a see-through LCD display mounted at eye level. The special thing about it, though, is that it’s connected with a driver-facing camera equipped with AI facial detection and analysis. Its software calculates both the driver’s line of sight and the angle of the sun in order to strategically darken individual sections of the display. Everything else remains transparent. We think the Virtual Visor is another great example of technology “Invented for life,” and the CTA apparently thought so too. The product was honored with a prestigious CES 2020 Best of Innovation Award – you can test it out for yourself at our booth.3D vehicle display – our second Best of Innovation Award Our new 3D vehicle display also won a CES Best of Innovation Award – and I’ve been told it’s no small feat to win two of those. Vehicle displays in general offer huge business potential – after all, the global market volume is set to more than double by 2025, to 30 billiondollars. Our award-winning display uses a multi-view 3D technology which is especially affordable, since it works without the need for eye tracking and 3D glasses. To describe how it works, let’s go back to the movies for a moment. We’ve all seen 3D films, where the technology makes our experience more vivid and entertaining. Inside a vehicle, 3D performs a similar but more useful function: it helps people understand information more quickly. The display’s depth of field means drivers can grasp important visual information faster, whether it’s an alert from an assistance system or a hazard warning. Alerts seem to jump out of the display and are much more obvious and urgent, as well as far harder to overlook. I don’t know about you, Michael, but anything that tells me what I really need to be paying attention to is a win in my book.Interior monitoring – technology that can help keep children safe Think of the dangers posed by fatigue and distraction – the longer we’re behind the wheel and the more technology is present in the cockpit, the greater they are. Here, our driver monitoring system uses artificial intelligence to identify these distractions through cameras which recognize the driver’s line of sight, head position, and blink rate. When it determines a critical point has been reached, it reacts by sounding an alarm or providing driving assistance, depending on the automaker’s wishes, and also legal requirements. In the EU, this kind of system is set to be standard in new vehicles from 2022. This technology will also play an important role in automated driving. After all, the next few development stages will still require drivers to remain alert and ready to take over in critical or tricky situations. To ensure drivers are able to do this, the monitoring system calculates how ready they are to respond at any given time, and the transfer of driving responsibility is then timed accordingly. Depending on the design, some systems can also monitor the car’s other occupants and enhance their safety, for example by detecting changes in passengers’ sitting positions and adjusting their airbags and seatbelt tensioners for optimal crash protection. Or by identifying the presence of children inside parked cars. In 2018, parked cars claimed the lives of more than 50 children in the United States, either because they had been left inside for longer than intended or had climbed in unnoticed. Bosch’s new system can recognize the presence of children and warn parents in a flash by sending a message to their smartphone. In a critical situation, it can also alert the emergency services. As the Hot Cars Act currently being debated in Congress shows, there is considerable interest in solutions to prevent these tragedies. Once again, our technology doesn’t just make life better, it can help to save lives. Looking ahead, we plan to extend our interior monitoring systems to encompass in-vehicle sensing and deploy this inridesharing fleets. In-vehicle sensing will allow us to detect when a passenger leaves something behind in a shared car, for example, or if they need help in a critical situation. For us, offering real benefits is what it’s all about. Nearly all our driver assistance systems enhance both safety and convenience. We are one of the automotive industry’s leading suppliers in this field. In 2019, our sales rose by 12 percent to some 2.3 billion dollars. From a technical point of view, we’re using driver assistance as a stepping stone to automated driving. By 2022, we will have invested some 4.7 billion dollars in developing this technology and increased our workforce of dedicated engineers to 5,000. To this end, we’re working on making lidar sensors production-ready. Alongside our new video camera with AI and radar and ultrasonic sensors, Bosch will soon offer the complete sensor portfolio needed for automated driving. Few automotive suppliers worldwide have as much expertise in this area as Bosch. Our lidar will be the first of its kind that is suitable for use in automotive applications, since it’s scalable and can be manufactured in large volumes. It’s also the first lidar technology to be suitable for automated driving functions at SAE levels 3-5, offering long-range sensing capabilities in combination with a wide field of view and an exceptionally high resolution. Working together, our multiple sensor types will help to ensure extremely reliable environment recognition. To surmount the many challenges on the road to fully-automated driving, Bosch is bringing together its profound expertise in sensors and systems and that’s the type of expertise that only an automotive company can have. We’re already testing automated driving in a range of environments, including one that is widely regarded as the final frontier: city streets. I’m happy to report that our pilot project with Mercedes-Benz for an on-demand ride-hailing service with automated vehicles is now up and running. Automated S-Class vehicles are now providing an app-based shuttle service in California between West San José and downtown for selected users. Ultimately, the aim of this project is to gain valuable insights for the development of automated driving, and to answer the question of how self-driving cars can best be integrated into a multimodal mobility system. Our development work on this project encompasses both the use of AI as well as simulations and tests designed to address the kind of driving situations that occur very rarely in road traffic. We’re not just using our mobility solutions to teach cars how to drive. We’re also using them to make electric and connected driving a reality. This is enabling us to open up new areas of business and forge partnerships with new customers. For example, we’re developing a hydrogen powertrain for the heavy-duty trucks made by U.S. startup Nikola Motor Company. We’re also suppling our solutions to mobility service providers such as DiDi and Lyft. For DiDi, we’ll soon be providing a cloud service that helps to extend the service life of car batteries. When it comes to urban mobility for the future, you can experience our vision in an IoT concept shuttle at our booth. This year we’re showcasing what we offer mobility service providers to help them operate safe and efficient automated ridesharing and ride-hailing businesses.Bosch MEMS technology – for smart glasses without the sci-fi look Beyond this, we’re also using our expertise in everything related to mobility as the basis for innovation in other domains. The best example of this is sensors based on micromechanical systems – called MEMS for short. We’re the market leader for these sensors, which are used for automotive applications as well as smartphones. Our latest development in this area is being showcased here at CES: our light drive system for smart glasses. The smallest of its kind, it’s nearly a third slimmer than existing ones on the market and can be integrated into nearly any type of frame, becoming part of your everyday glasses. It uses a MEMS-based laser scanner and holographic mirror to project an image on the wearer’s retina. This image can contain any kind of text message – for example from the navigation system or your personal calendar. And you, in turn, can be kept constantly up to date – without looking like you’re on the way to a Star Trek convention every time you put them on. Another domain where AI has the potential to deliver enormous benefits is healthcare. Here, our Indian engineers have developed a cutting-edge innovation called Vivalution (brand name was changed) which is a CES® innovation award honoree. In a nutshell, it’s a smart pathology platform for medical diagnostics powered with advanced machine learning algorithms. With the help of AI, it analyzes human cells’ form, shape, and structure for deviations, thus providing physicians with information on possible diseases. And it does so in minutes, which dramatically shortens the testing process. Helping people diagnose health issues quicker and more accurately – this is also what we mean by technology “Invented for life.”AIoT to benefit everyone – training for tomorrow’s work As we see it, the IoT and AI should benefit everyone. To do this, they must be more than technological gimmicks and actually make people’s daily life and work easier. This is true for all our domains: connected mobility, connected homes, and also connected industry. Especially in the world of manufacturing, artificial intelligence can supplement human creativity, and more crucially, relieve workers of routine tasks. On every new path we tread, we take our workforce with us. On our way to creating the factories of the future, we want to prepare our associates for the work they’ll be doing in the future. This brings us full circle to our AI training program, which I mentioned earlier. It consists of three parts: First, we’re training roughly 16,000 executives on the business aspects of AI. Our digital transformation is enabling us to master a balancing act: on the one hand, remaining an industrial enterprise, and on the other, becoming a leading IoT and AI provider. For this, our leadership will have to be capable of making the right decisions, which is why we’re building up their AI expertise. Second, we’re expanding our AI learning platform. This platform is similar to an online university, but uses examples and exercises from real-life operations at Bosch. More than 1,500 of our engineers are already using the platform, a number that will likely double by next year. Some of its notable features are the exchange of experience our AI learning platform facilitates, as well as the use of best-practice examples and competitions. Third, we’re training nearly 500 experienced engineers in AI development methodology. This is the highest level of our training program, what is effectively a supplemental course of study in things like data engineering and data analysis. We’re not just increasing the number of AI engineers by hiring dedicated specialists; we’re also doing it by reskilling our existing people. All told, this will get 20,000 of our associates up to speed on the technology. As we see it, it’s not only part of our corporate responsibility to offer this kind of training, it’s also in our strategic interest.Conclusion Ladies and gentlemen, it’s clear that developing artificial intelligence will require us to focus on more than just technological innovation. On one hand, we need to invest heavily in human intelligence, and on the other, we need to convince people of the true potential of this technology. “Beneficial AI: building trust together” – it’s more than just a nice catchphrase we’re using here at CES. We truly believe that AI holds the key to making our lives safer, easier, and more eco-friendly. Please come visit our booth in the Central Hall to see some examples of this in action. And together, let’s work to dispel any doubts and usher in a new era of real-life science fiction, where AI is the hero.

07.01.2019

Presentations

Smart Home

IoT “Like A Bosch”: How we’re turning our vision of a better tomorrow into reali ...

Dr. Markus Heyn, Member of the board of management of the Robert Bosch GmbH, and Mike Mansuetti, President of Bosch in North America at the Bosch Press Conference, CES 2019, Las Vegas, Nevada (USA), January 7, 2019 Check against delivery. Good morning, everyone. Thank you for joining us! It’s great to see so many seats filled at this, our seventh press conference here at CES! Today actually marks the global premiere of our new IoT campaign “Like A Bosch”. We’re very excited to be able to launch it here, since what better platform could there be than our press conference at CES, the beating heart of the IoT universe? I can imagine, though, that a few of you are scratching your heads about one thing. What exactly is IoT “Like A Bosch”? Well, it’s simple, really. These days, a lot of companies are trying to position themselves as an IoT leader, an IoT expert. And with good reason: by next year, IoT market volume is forecast to reach 250 billion dollars, an annual increase of 35 percent. And by 2025, it’s estimated that there will be 55 billion IoT devices globally, and an aggregate IoT investment of nearly 15 trillion dollars. Still, when you look closely, you’ll see that not all IoT companies are created equal. “Like A Bosch” refers to what sets us apart – to how we do things differently. It refers, for example, to the emphasis we place on the beneficial aspects of our innovations – after all, we put humans at the heart of our solutions, not technology. Behind every solution we develop is the question: “How is this going to improve someone’s life?” For us, that’s not a nice-to-have, it’s non-negotiable. Here at CES, we’re showcasing some of our latest technological answers to this very question in two key domains: mobility and the home. “Like A Bosch” also refers to the sense of responsibility we demonstrate to our customers, our communities, and the environment that drives our innovation. And just as important, it refers to our unwavering commitment to treating our customers’ data with care, and giving them full control over how it’s used. Essentially, “Like A Bosch” is how we translate our “Invented for life” ethos into our IoT activities. We want to enable people to live more easily, efficiently, and safely in a connected world. And that’s exactly what we offer with our solutions – solutions that reflect our unique perspective on the IoT. IoT is firmly rooted at Bosch Over the past few years, Bosch has evolved from an industrial enterprise into a leading global IoT company. Of Bosch’s more than 400,000 associates worldwide, 27,000 are software engineers, nearly 20 percent of whom are working exclusively on the IoT. We have technical expertise across the entire spectrum: in addition to having more than 130 years’ experience with hardware and manufacturing, today we are a leading provider on all three levels of the IoT – sensors, software, and services. For example, our Bosch IoT Suite now connects 8.5 million sensors, devices, and machines with users and company applications – an increase of nearly 40 percent over last year. Among these are four million cars, whose connectivity and over-the-air updates are enabled by our software platform. We also have our own IoT cloud, which hosts more than 270 IoT projects in various areas, such as mobility, smart cities, and agriculture. You could even say that where Silicon Valley connects the digital world, Bosch connects the real world. But not only that: we also enable connectivity at the most fundamental level. We’re the leading global producer of micro-electro-mechanical sensors, or MEMS. Since 1995, Bosch has produced more than ten billion of them. Semiconductors in general are an extremely fast-growing market and reached some 450 billion dollars in global sales last year. After all, no vehicle can drive without them these days. These sensors supply a vehicle with important information regarding its handling, such as if the vehicle is braking, accelerating, or skidding. The electronic stability program then uses this information to keep cars, trucks, and even motorcycles safely on track and in their lanes. And as a key technology for the IoT, sensor applications extend far beyond mobility. Bosch MEMS sensors appear in more than half of all smartphones worldwide, as well as in millions of health, fitness, and smart-home devices. To open up even more possibilities for these tiny wonders, we’re working with various partners like California-based SiTime Corporation to develop next-generation MEMS timing technology. Stable, reliable MEMS timing devices are needed for the successful operation of next-generation electronics, and will enable things like the higher speeds of 5G communications, longer battery life for IoT devices, and increased reliability for driver assistance systems. The IoT is opening up one of the newest technological frontiers: artificial intelligence. We see tremendous potential in this technology and we believe that AI solutions hold the key to bringing down the number of road deaths worldwide, reducing energy costs in factories, making agriculture greener, and keeping ourselves and our living spaces safe, secure, and healthy, to name just a few examples. This is why we’re on the forefront of AI research. Our center for artificial intelligence employs 170 experts at four locations: Renningen, near our headquarters in Stuttgart, Germany; Bangalore, India; Pittsburgh, Pennsylvania, and Sunnyvale in Silicon Valley. We plan to increase the number of experts to at least 400. Our aim is that within ten years, all Bosch products will either have AI integrated into them, or will have been produced or developed using it. For example, we’re currently applying AI to video-based fire detection. Here, security cameras use smart image analysis to identify fires within a few seconds. This is far faster than conventional fire or smoke-detection systems, in which precious minutes are often lost before heat or smoke reaches the system’s sensor. It’s a great example of what we mean by technology “Invented for life.” We’re also pursuing numerous partnerships in this field. For example, we’re partnering with Pittsburgh-based Astrobotic Technology Inc. to send experimental sensor technology to the International Space Station as early as May of this year. Onboard the ISS, we’ll be using machine learning to analyze the noises emitted by machinery, with the goal of identifying whether something needs to be repaired or replaced before it breaks. Now let’s take a look at some of the specific innovations we’re showcasing in the domains of connected mobility and connected living. Connected mobility – Move “like a Bosch” First, let’s look at mobility. Or as we would now say, moving “like a Bosch.” Around the globe, how we get from A to B is changing on a fundamental level. At Bosch, we’re working toward a vision of mobility that is as accident-free, stress-free, and emissions-free as possible. We also want to make it accessible and affordable. To achieve this, we’re harnessing our innovation leadership in the automotive domain to develop pioneering technologies and business models for the mobility of the future. Let me tell you how we see it. Imagine this: it’s a few years from now. You want to head downtown to do some shopping, so you pull out your smartphone and bring up the app to call a shuttle. With the press of a button, you’ve booked one and paid for the trip; a couple minutes later the shuttle pulls up outside your door. With the press of another button, the car unlocks and you step inside. You’re alone, but an automated voice greets you by name and informs you of your journey time – it’s just enough time to check your email and catch up on the news. Thanks to its electric drive, the shuttle is whisper-silent at full speed. Despite the number of vehicles on the road – many of them shuttles like yours – there is no congestion anywhere. That’s because they’re all in constant communication with one another and with the infrastructure, which keeps traffic flowing like clockwork. Before you know it, you’ve reached your destination. The car lets you out in a drop-off zone at the shopping center’s entrance. In years past, a similar journey in downtown traffic would have left you frazzled, on-edge, and probably running late. Today, though, you’re relaxed and caught up on the day’s news as you head inside to do your shopping. This scenario is just around the corner. In the U.S., Europe, and China alone, some one million on-demand shuttles are expected to be in service by 2020. By 2025, that number is forecast to rise to 2.5 million, and many of those will also be fully electric and self-driving. This new kind of transportation will bring numerous benefits: not only will city-dwellers of all ages enjoy increased freedom of movement, but everyone will benefit from the shuttles’ reduced ecological footprint, increased safety for all road users, and improved traffic flow. And as it happens, Bosch already has most of the technologies needed to realize such shared, self-driving urban shuttles. And we’re working to put them on city streets tomorrow. What’s more, we want to make them completely electric and fully connected to the internet. And to prove it to you, we’re showing you what this kind of mobility could look like in an actual concept shuttle at our booth. Every square inch of this concept shuttle contains existing Bosch solutions – from our e-axle , an electric powertrain that’s compact, efficient, and affordable, to 360-degree surround sensors for automated driving, to our connectivity control unit for full V2X connectivity and state-of-the-art vehicle computers. It also features the system we call Perfectly keyless. This CTA honoree can gain or grant access to your car with the touch of a button on your phone. With our system, user identification happens via a digital fingerprint on each individual smartphone. Compared with keyless entry systems already on the market, this offers a major advantage in terms of security. Here at CES, we’re also offering a separate demo of Perfectly keyless in a Ford Mustang – come by and try it out for yourself! Importance of mobility services Bringing this vision to life will take more than just developing sophisticated hardware and systems. When it comes to getting around in the future, services are going to be a central element of the mobility landscape. Worldwide, their market volume is projected to grow to 160 billion dollars by 2022 – an annual increase of more than 25 percent. At Bosch, we’re so convinced of the importance of digital mobility services that we set up a division dedicated to developing and selling them. Our current portfolio encompasses everything from road condition services, which notify automated cars in real time about conditions along the route, to predictive diagnostics, which help minimize servicing time and breakdowns in fleet vehicles, to automated valet parking, to over-the-air software update s that enhance vehicles’ capabilities and keep them secure. Worth a special mention is our new suite of convenience charging services for electric vehicles, which offer real-time information on range and recommendations for recharging. With these, we’re ensuring it will be as easy to recharge the shared electric shuttles of the future as it is to refuel a conventional car today. Another example of our service offerings is a web-based ridesharing service, thanks to our acquisition of the U.S. startup SPLT. This service offers a platform for employers to coordinate ridesharing offers for their employees. We’re also exploring its potential to benefit other groups as well. For instance, the startup was recently awarded a grant from the state of Michigan to develop a pilot project focused on transporting the elderly in rural areas. We’re also pleased to announce the first service resulting from our partnership with Mojio, which provides a cloud platform and software solutions for connected cars. By combining our advanced crash-detection algorithm and emergency call services with Mojio’s cloud platform service, we can connect any type of vehicle directly with the cloud. This means help will arrive quicker in case of an accident. Looking ahead, there is of course one final obstacle that still needs to be surmounted before shuttles like the one we’re showcasing can become reality. That’s the self-driving technology to cope with complex urban environments. Well, we’re getting awfully close to overcoming this challenge, too. We’re partnering with Daimler to bring driverless vehicles to urban streets within the next decade. As soon as the second half of this year, we plan to launch a pilot on-demand ride-hailing service with automated vehicles on selected routes in San José, California. The field testing of this project will take us one step closer to improving traffic flow and road safety in cities. These partnerships demonstrate the value of collaboration . Only by pooling our expertise will we succeed in bringing about a true revolution in mobility. And this is true for how we work with traditional car manufacturers, as well as with newer players, such as Tesla, Rivian, and Byton and even completely new mobility customers, such as service providers and cities. In order to better harness the huge business potential here, Bosch just established a dedicated unit in Silicon Valley. Via this new unit, we will be stepping up our partnership activities with new mobility players across the globe. And also on the topic of partnerships, we recently entered into a promising one with U.K.-based Ceres Power, a leading player in the development of solid-oxide fuel-cell technology (SOFC). Together, we’re exploring the use of next-generation fuel cells as the basis of connected, decentralized, low-emissions power supply. In the mobility sphere, applications for these cells include large-scale facilities like vehicle charging stations. Beyond that, they could be used to power commercial buildings, industrial applications, and data centers. The IoT needs a resilient energy supply, and we believe that fuel cells will play a key role in facilitating this, while also contributing to a CO 2 reduction in energy systems overall. For example, data centers alone account for about two percent of U.S. electricity use [source: U.S. Department of Energy’s Lawrence Berkeley National Laboratory], and this technology could allow them to someday unplug from the power grid entirely. Connected living – Live “like a Bosch” And just as exciting are the changes coming to life within our own four walls:connected living – or in other words, living “like a Bosch.” Did you know that by 2020, some 230 million households worldwide are expected to feature intelligent connectivity? That’s approximately 15 percent of all households. At Bosch, we’re working toward a vision of homes that can think for themselves, that get to know their occupants, and can anticipate what they want. What if your home could make you an extra-strong cup of coffee in the morning when you’ve had a restless night, help you reduce food waste by reminding you of what’s about to expire in your fridge, or recognize when you’re not at home and automatically close any doors or windows left open? In this domain as well, our solutions are designed to measurably improve life by meeting real needs and offering real benefits. For one, our smart home technologies help maximize energy efficiency and minimize resource consumption. And we’re constantly getting better: since the beginning of this century, we’ve improved the energy efficiency of our household appliances by up to 68 percent. For another, our solutions take over many of our most monotonous and time-consuming household chores, helping you reclaim your time for the things that matter. And just as important, they provide peace of mind that your property is secure and your loved ones are healthy and safe from harm. In developing all these solutions, we make it as easy and intuitive as possible to integrate them into your daily life, and we also design them to be future-proof. That means we build them to remain on the technological cutting edge: by harnessing their connectivity, we can send security and functional upgrades as well as innovative new features to the products you already own. Our motto here is “smart today, smart tomorrow.” For example, we’re regularly rolling out new features for our expanding range of Home Connect appliances –features that save you even more time and resources. Take our smart fridges with internal cameras. They now offer what we call smart food storage, where your fridge automatically identifies dozens of different food items and helps you store them properly so they stay fresh longer. And since we’re in the kitchen already, let’s talk about cooking. Whether you enjoy doing it or not, cooking is a messy affair. Well, you’ll never have to worry about sauce splatter on your phone or tablet again thanks to our solution called PAI. Essentially, it’s a projector mounted over any work surface which turns your countertop into a touchscreen. It registers your hand movements and lets you look up recipes, watch videos, or even have a Skype call while you cook. And it doesn’t take up any space on your counter, so you have more room for cooking equipment! As I mentioned, our household solutions are also designed to relieve you of time-consuming housework. One way we’re enabling this is by equipping them with artificial intelligence. For example, the latest model of our Indego robot lawnmower incorporates AI for improved obstacle recognition. With every cut, Indego collects and analyzes sensor-based data until it knows every square inch of your lawn – so you can spend your free time enjoying your perfectly-mowed grass rather than tending to it. Of course, no discussion about smart-home solutions would be complete without addressing what for many people is the elephant in the room – namely, what happens to all the information they collect. Your information. Before we wrap up, I want to say a few words about our approach to data protection and privacy. Unlike many companies, we’ve put this issue at the top of our agenda in all our IoT activities. In a nutshell, making responsible use of people's personal data is a top priority for Bosch. That includes being open about what information we store and process, and what we use it for. When it comes to all of our smart solutions, you as the user have full transparency and control over the data they collect – if you don’t want it leaving your premises, it won’t. Conclusion Ladies and gentlemen, we live in exciting times. Thanks to connectivity, the world we live in and the way we interact with it is changing on a fundamental level. At Bosch, we believe connectivity holds the key to a safer, more efficient, and less stressful life for everyone. As you can see, we’re working hard on translating this belief into solutions that enable people to move and live better than ever before. Or as you could also say, to move and live “Like A Bosch.” Please stop by our booth in Central Hall this week and see for yourself how we’re already turning our vision of a better tomorrow into reality today. Thank you.

Simply.Connected. in your neighborhood: How Bosch is boosting the IQ of cities t ...

08.01.2018

Presentations

Business/economy

Simply.Connected. in your neighborhood: How Bosch is boosting the IQ of cities t ...

Introduction [Stefan Hartung] Good morning, everyone. A very warm welcome to all of you, and thank you for joining our press conference. This is the first time I have the honor of representing Bosch at CES. I’m thrilled to finally have this opportunity because I’m probably one of the biggest techies on the Bosch board of management and have been following this event for several years. When we entered the smart home business, I made a point of personally trying out as much of our technology as I could in my own house. Some of my neighbors thought I had gone off the deep end when they saw me installing cameras everywhere and sensors in the doors and windows. [Mike Mansuetti] For all of us, the quality of the environment we live in is very important. And this is particularly true for those who live in cities. That’s why we want to show you today how we’re using our technical strengths to make a mark on cities around the globe. Let me start with a question – what do you imagine when you hear the term “connected” or “smart” cities? [Stefan Hartung] For my part, I think of cities in which we as citizens are more engaged and empowered, thanks to technologies that take care of things for us and save us time, and allow us to move, breathe, and actually LIVE better. Cities that utilize connectivity to help optimize traffic and reduce congestion. Cities in which we can minimize our ecological footprint because energy needs are met primarily by renewable sources. Cities that are full of smart homes that we can operate from anywhere, and buildings that arrange their own maintenance and repair before we even need to care. Cities that employ technology to reduce pollution and fight crime. In short, cities that are intelligent and sustainable, and offer us a safe, energy-efficient, and all-around great place to live. Sounds almost too good to be true, right? You might even say utopian. But it’s not. In fact, technologies to create this kind of urban environment exist, and many are already in use – perhaps even in your neighborhood. Step by step, cities and communities around the world are boosting their IQ. And we know this because we at Bosch are helping them do it. As one of the companies with the broadest and most comprehensive portfolios of smart-city solutions, as well as decades of cross-domain expertise, there’s no one better equipped for this job. [Mike Mansuetti] Market potential of smart cities Globally, the smart city market is booming. Sales are expected to grow by 19 percent each year, reaching as much as 800 billion dollars worldwide by 2020. By 2025, at least 80 urban areas worldwide will be smart. Some places are already synonymous with smart-city initiatives: Barcelona, Seoul, London… or Columbus, Ohio, which as you may know, was the winner of the U.S. Department of Transportation Smart City Challenge. Around the globe, cities of all sizes are investing in and reaping the benefits of these technologies. In fact, the city of Las Vegas recently announced a 500 million dollar investment in smart city infrastructure over the next seven years. [Stefan Hartung] About the smart city market: one reason it’s taking off now is because we have the right technology. The arrival of the IoT a few years ago, with its innovations in sensors, artificial intelligence, big data, and predictive analytics, means that many smart city initiatives are for the first time not only possible, but also economically viable. Perhaps more importantly, though, cities are realizing that technological solutions could hold the key to solving many of today’s pressing urban problems – as well as tomorrow’s. The fact is that our world is becoming increasingly urbanized: by 2025, 34 cities worldwide will have a population of more than 10 million people. By 2050 at the latest, two-thirds of the world’s population will be living in these megacities, putting a tremendous amount of pressure on local infrastructure and the environment – and ultimately on our quality of life, whether the air we breathe, the time we waste in traffic, the energy we consume, or our safety. Smart city technologies offer a way of confronting these challenges, and of mitigating their impact. Above all, they help make cities – and towns, and neighborhoods – better places to live. We’re pursuing exactly this aim in 14 smart-city beacon projects around the world, for example in Tianjin, China, Berlin, Germany, and San Francisco, California. Sensors, software, and services Smart cities begin and end with connectivity. Our solutions not only encompass connected mobility, energy, building, and industrial technology, they enable connectivity at the most fundamental level. Nearly 50 years ago, we introduced semiconductor technology for automotive applications. Today we’re the leading global producer of micromechanical sensors, shipping more than four million a day. [Mike Mansuetti] You could say that our sensors are the eyes and ears of the connected city. In this case, its brain is our software. Of Bosch’s nearly 400,000 associates worldwide, more than 20,000 are software engineers, nearly 20 percent of whom are working exclusively on the IoT. We supply an open software platform called the Bosch IoT Suite, which offers all the functions necessary to connect devices, users, and companies. And we’re increasingly bringing artificial intelligence into play here as well – at the start of last year we even opened a dedicated AI research center, which employs some 100 experts at three locations, one of them in Silicon Valley. Since 2016, we’ve been operating our own IoT cloud in Germany. Over the past 18 months, we have implemented some 100 IoT projects and connected one-point-five million vehicles with our IoT software. Later this spring, we plan to launch the Bosch cloud on this side of the Atlantic. In fact, we intend to make all the electronic products in our portfolio web-enabled by 2020, and offer them with a corresponding service package. Sensors, software, services – these three S’s are not only the building blocks of smart cities, at Bosch they are our core competencies. [Stefan Hartung] And they’re also the basis of our smart city solutions, which I’d like to tell you about now in more detail. What’s important to understand here is that there is no switch that gets flipped to make a city smart. Instead, intelligence comes in stages, as cities start implementing technology to overcome the four major challenges they face, one step at a time. Challenge 1: air quality The first challenge, and one of the biggest currently faced by cities around the globe, is air quality. The importance of this cannot be overstated – it’s fundamental to our mental and physical well-being, wherever in the world we live. We at Bosch believe that there is no single magic bullet that will solve this problem. Instead, what will have a lasting impact on air quality is an array of measures working in parallel. Where mobility is concerned, these include state-of-the-art combustion engines, hybrid solutions, and pure electromobility, as well as connectivity that goes beyond individual vehicles. Another key piece of the puzzle is climate monitoring systems. These gather data about air quality in a particular region which can be used to develop targeted measures for reducing pollution. Here at CES, we’re presenting our innovative new microclimate monitoring system which is flexible, affordable, and easy to deploy. [Mike Mansuetti] And it has a name you can easily remember – Climo. To give you some context, most microclimate monitoring stations are usually roughly the size of shipping containers – not to mention expensive. We’ve packaged ours into this little box, 1/100th of the conventional size, and 1/10th of the cost. In addition to pollution, it also measures humidity and pollen levels in real time – a great advantage for local residents. For cities, the data provided can be utilized in a variety of ways, such as for traffic flow management and as the basis for future policy and planning decisions. The Consumer Technology Association was so impressed with Climo that they gave it one of the coveted CES Innovation Awards in the smart city category – one of three awards we received this year. We recently provided the city of Las Vegas with several Climo systems. During CES, Bosch will be monitoring the local air quality in real time. [Stefan Hartung] Challenge 2: mobility Let’s move on to the second challenge, and another major focus of smart city initiatives – mobility. It’s no wonder: growing populations mean more traffic. In fact, urban traffic is predicted to triple by 2050. To help cities and their inhabitants cope with this, Bosch is developing a wide variety of solutions for the transportation of people and goods. Our vision is to create an urban environment that is free of emissions, stress, and accidents. This is tied to three technological developments: automation, electrification, and connectivity. Today, half of our 14 smart city projects include urban mobility solutions such as connected parking, automated driving, fleet management, multimodal transport, and electromobility. Let’s start with parking, one of the most common frustrations of city life. [Mike Mansuetti] In the U.S., we currently spend over 40 hours a year stuck in traffic, wasting more than 160 billion dollars in time and fuel. The search for parking accounts for more than a third of this wasted time. You have personal experience with this, right? I know I certainly do. Our solutions for connected and automated parking save fuel and time while reducing stress. In one of these solutions, community-based parking, we at Bosch are taking over the search for a parking spot. It works by cars automatically reporting vacant spaces to the cloud as they drive past. After a successful pilot phase, we’re currently planning to launch community-based parking in 20 U.S. cities this year. In places such as L.A., Miami, and Boston, we’ll make real-time information about on-street parking available to car manufacturers. Drivers will be able to see on their navigation systems where there’s a free space and drive directly to it – which will save them time, fuel, and stress, while reducing congestion and pollution in downtown areas. [Stefan Hartung] Our latest innovation is called automated valet parking. We recently won a Frost & Sullivan's 2017 Technology Innovation Award for this solution. It works like this: cars drive themselves into parking garages and find their own spaces at the touch of a button – while you, the driver, can attend to more important things. In cooperation with Daimler, we recently demonstrated this futuristic solution live at the Mercedes-Benz museum in Stuttgart. Speaking about automated mobility, Bosch has over 3,000 engineers worldwide working to make this a reality. In one of our projects, we’re again collaborating with Daimler to bring self-driving robocabs to city streets by the start of the next decade. This will open up new horizons in particular for people with limited mobility – such as the elderly, or those with disabilities. We’re also taking steps to realize another requirement for self-driving cars, namely high definition maps. To this end, we recently acquired a stake in the map provider HERE Technologies, and together with them, we’re working on a manufacturer-independent solution for cars to share traffic information collected by their sensors, which can be used to update maps in real time. We’ll also be working together on applications for this technology beyond the automotive domain – for example in connected industry, where high-definition indoor maps could be used to automate and streamline flows of goods all the way to the production line. [Mike Mansuetti] But to return to mobility: smart cities will also rely heavily on multimodal transportation – in other words, getting from A to B on four wheels, two wheels, or by rail. One way Bosch is facilitating this is with innovative shared mobility services. A great example is our Coup e-scooter sharing service, which we’ve so far successfully launched in Berlin and Paris. We know there is an increasing population of people who want to remain mobile without owning a car, and this kind of service offers them that opportunity. According to Gartner, 250 million cars around the world will be connected by 2020. Along with this development, automotive services are also gaining in importance. Come to our booth to see what we call our connected vehicle platform – it brings together the numerous vehicle services we now offer. From wrong-way driver alert and preventive diagnostics to stolen vehicle tracking and smart-home control from behind the wheel, we’re not only making driving easier, safer, and more convenient than it’s ever been before, we’re turning the car into a new, fully-connected living environment. Our new Telematics eCall Plug is enabling another kind of service that combines safety with savings. The device itself is a plug which fits into a standard 12 volt outlet in any passenger vehicle. In addition to offering our lifesaving eCall emergency accident notification, the plug now also has a sensor that monitors driving behavior. An insurance company could use this information to offer you lower rates when you’re a careful driver. [Stefan Hartung] Challenge 3: energy Energy use presents the third major challenge for cities. Cities already account for some 75 percent of power consumption around the world, with 40 percent going to buildings alone. Smart city technology can not only help reduce consumption, but also make the use of renewables a more viable prospect. This means that ultimately it can help people save money and reduce their ecological footprint – good for cities, and good for their inhabitants. At Bosch, our energy solutions include virtual power plants, which store power or feed it into the grid as needed, and stationary energy storage systems – essentially massive batteries that can store enough energy to power dozens of homes. [Mike Mansuetti] We’re also at the forefront of microgrid technology. Without getting too technical, microgrids are relatively small, independently controlled energy-management systems. Think of them as miniature versions of municipal grids, generating and distributing electricity on a much smaller scale. Their ability to run on a variety of fuel sources, including renewables, means they have excellent ecological credentials. Another major advantage is increased self-sufficiency – microgrids can provide power for local residents and critical facilities if an outage affects the larger grid. In 2015, we outfitted a facility at Fort Bragg in North Carolina with a solar-based microgrid solution that supplies cost-effective, eco-friendly electricity. [Stefan Hartung] Challenge 4: safety and security That brings me to the final challenge, safety and security. Anyone who lives in a city knows that these are already major concerns, and growing populations will only make the situation more acute. At Bosch, we also have a full portfolio of solutions designed to keep individuals and communities safe. For example, our connected surveillance cameras can be used to fight crime, and they can also identify where help is needed in the event of a catastrophe. Another security solution we’re debuting here is our new flood monitoring system. This provides early warning about potential flooding by digitally monitoring water levels in real time. Up to now, such measurements have been made using mechanical means, which means several hours can pass before a warning is issued. Our system uses a combination of ultrasonic sensor probes and cameras to monitor changes to water level, speed, and throughput, and immediately sends out notifications when critical thresholds have been surpassed. A local municipality could install our system on bridges and allow residents to access data and receive alarms, for instance, or a business owner could set up a private system to protect their premises. We currently have a test system in place on the Neckar river near the Bosch headquarters in Stuttgart. Smart homes and buildings will unlock potential of smart cities Looking beyond these major challenges, we believe that in order to unlock the full potential of smart cities, the homes and buildings inside them will need to be intelligent as well. Smart home technologies offer countless benefits: they can take care of time-consuming chores for us, enable us to save energy and money, and make our living spaces more secure. At Bosch, we have been on the forefront of smart-home technology for years. In addition to our ever-growing range of connected appliances, lighting, and indoor climate systems, which by the way, can now be controlled with Amazon’s Alexa, we’re constantly expanding the scope of the smart home’s capabilities. For instance, we have a new robotic vacuum cleaner equipped with AI that can memorize your floor plan, and save you up to 40 hours of work each year. We also received a CES Innovation Award this year for a new acceleration sensor that is small and powerful, yet extremely energy-efficient. Among other things, the sensor can recognize whether windows are open or closed, and automatically adapt heating and cooling systems accordingly. Isn’t that smart? This saves money and power. [Mike Mansuetti] On a public scale, we’re helping to make all types of buildings smart – among them hospitals. For example, sensor-based video technology, lighting, and motion detectors can be used in hospitals to boost safety and security. Connected solutions also provide greater convenience and efficiency for both patients and administrators. Our U.S. subsidiary Climatec is a longstanding partner of the nonprofit provider Banner Health. We currently supply building automation, security, and fire detection equipment for 15 Banner facilities. In the years ahead, we expect continued growth with our global building technology business, and plan to increase our revenue in this sector by more than 20 percent. Beacon projects: SF Shipyard and San Leandro Before we wrap up, I’d like to tell you about a couple of the smart-city projects we’re involved in. Two of them are, in fact, right next door in California. The first is a partnership with the city of San Leandro, in the Bay Area. There, we’ve outfitted 5,000 streetlights with smart LED lighting that will switch on only when needed. The city estimates that this alone will save them more than 8 million dollars over the next 15 years. We’ve also equipped the streetlights with sensors that measure air quality and intelligent cameras that monitor traffic and automatically redirect cars in case of congestion. So besides enhancing quality of life, smart city technology can also save you – and cities – money. The other partnership is in San Francisco. This waterfront site is comprised of two neighborhoods – the former Hunters Point Navy Shipyard and Candlestick Park, where the 49ers used to play. Together, The SF Shipyard and Candlestick are entitled for up to 12,000 homes, five million sf of commercial space and one million sf of retail, all of which are being developed by FivePoint. At The SF Shipyard, we’re providing residents with a state-of-the-art surveillance system. We do this with our intelligent cameras and on-site monitoring systems. Both of these are connected to our smart community app. This app contributes to creating a sense of community and enhances the quality of the neighborhood by helping residents find local business information, check real-time transportation schedules and share information with other community members. A number of other cost-effective and eco-friendly solutions, including a DC microgrid powered by solar energy, are currently being explored. [Stefan Hartung] Conclusion: focusing on the bigger picture As you can see, we have no shortage of cutting-edge solutions for smart cities. With all this talk about technology, though, we shouldn’t lose sight of the bigger picture. We at Bosch are committed to helping make cities smart not just because it makes good business sense, but because it actually improves people’s lives. Smart cities facilitate civic engagement. They allow the use of finite resources to be reduced and renewables to be increased. They enable the elderly and people with disabilities to enjoy more independence. They help protect people’s health and make streets safer. And they take the stress out of many everyday activities. This is what we mean when we say our technology is “Invented for life.” Ladies and gentlemen, in closing let me repeat that the smart city of the future is no utopian vision: it’s already here, and communities around the globe are reaping the benefits. At the same time, though, the challenges faced by cities are formidable. Overcoming them will require pulling out all the stops, both technologically and politically. This is exactly where Bosch has the advantage: not only do we have a truly comprehensive portfolio and cross-domain expertise, we have experience working with municipalities to supply exactly the solutions they need. Solutions that will make life tangibly better for you, me, and everyone living in our neighborhoods. But don’t just take our word for it. Come and visit our booth in Central Hall this week, and experience for yourself Bosch’s connected and life-enhancing solutions for the smart cities of tomorrow – and today. Thank you.