industrial internet, should i be interested?
TRANSCRIPT
Industrial Internet,Should I be Interested?
July 30, 2015
Mikko Sainio
ionSign Oy
Things Are Changing…“4.9 billion connected things will be in use in 2015, up 30 percent from 2014, and will reach 25 billion by 2020.”
Gartner, 2014
“Smarter connected devices reach close to 38 billion connections by 2023.”
Machina Research, 2015
“…spending on the IIoT worldwide is at $20 billion in 2012, …expected to reach $500 billion by 2020.”
“…predictions of the value created by the IIoT range as high as $15 trillion by 2030 (global GDP).”
Accenture, 2014
What Industrial Internet?Creating better solutions to needs people encounter(in their work or personal life)
by using the data that things(machines, devices, systems…)
are producing.
Industrial Internet: Pushing the Boundaries of Minds and MachinesPeter Evans and Marco AnnunziataGeneral Electric White Paper, November 2012
What Smart, Connected Products?Physical component+ Smart component+ Connectivity component= Smart, connected product
How Smart, Connected Products Are Transforming CompetitionMichael E. Porter and James E. HeppelmannHarvard Business Review, November 2014
A
BA
B
C
D
E A
B
C
D
E
One-to-One One-to-ManyMany-to-One
Many-to-Many
Why Now?Now it’s possible.
Industries Boundaries ReshapeServices Equal Products – And Go Beyond
How Smart, Connected Products Are Transforming CompetitionMichael E. Porter and James E. HeppelmannHarvard Business Review, November 2014
What Can Smart, Connected Products Do?
How Smart, Connected Products Are Transforming CompetitionMichael E. Porter and James E. HeppelmannHarvard Business Review, November 2014
Four IoT Opportunities Applied Most OftenEmil Berthelsen, Machina Research, March 2015
So You’re Connected.Now What?
Service
Analyze
Integrate
Innovate
• Rethink all company processes
– Production Lifecycle management
– R&D Creating customer value
– Sales and marketing Customer success management
– HR management New key skills
– Data ownership and security, do we need a ”Chief Data Officer”?Four Must-have IoT Capabilities for Manufacturers
PTC Report 2015
• Discover customer value
Michael Porter at PTC LiveWorx 2015
Where Is This New Customer Value?Service
•Service to need, not schedule
•Spare parts to need, not to stock
•Effortless servicing
•Remote diagnosis and repairs
•Only planned shutdowns
Product development
•How is the product used?
•In what conditions is the product used?
•What systems is the product connected to?
•What product features are used?
•Client specific tailoring
New business
•24/7 support to users
•Optimize uptime and capacity
•Energy efficiency
•Maximize investment value
•System optimization•Targeted after sales
Liability
•Prevent failures and performance shortages before they appear
•Dig into causes of claims
•Reveal operational errors
•Reveal dangerous and unwanted operative conditions
10 New Strategic Choices1. Which set of smart, connected features to
pursue?
2. What features to build in the product and what in the cloud?
3. Should we build an open or a closed system?
4. What to do internally and what to outsource to vendors and partners?
5. What data to capture to maximize customer value?
6. How to manage data ownership and security?
7. Keep or kick distribution and service networks?
8. Rethink the business model?
9. Does the data give birth to new business?
10. Should we expand company scope?
How Smart, Connected Products Are Transforming CompetitionMichael E. Porter and James E. HeppelmannHarvard Business Review, November 2014
Avoid the Pitfalls• Only add features, that the client is willing to pay for
• Don’t underestimate security and privacy risks
• Anticipate new competitive threats
• Start early
• Assess internal capabilities realisticallyHow Smart, Connected Products Are Transforming CompetitionMichael E. Porter and James E. HeppelmannHarvard Business Review, November 2014
