IOT ADVANTAGES & INCREASING PRODUCTIVITY

IN THE MEDICAL DEVICE INDUSTRY

Smart Connected Products Customer Presentation

Who is ThingWorx?

A business unit of PTC®

800+ employees dedicated to IoT

Thousands of ThingWorx-compatible

partners and solutions

Award-winning technology for the

Internet of Things

$700MM+ invested in acquisitions,

development and integration of

leading IoT technologies

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THE WORLD IS MOVING TO SMART CONNECTED PRODUCTS

#1Healthcare and Manufacturing industries will be

the #1 industry sector by share of global

economic value-add.

– Forecast: The IoT, Worldwide, 2013

Estimated potential economic impact of The Internet of

Things in 2025, range from $2.7 – 6.2 trillion annually

– McKinsey Global Institute

$6.2T

Smart, connected products will give rise to the next era of IT-driven

productivity growth at a time when the impact of earlier waves of IT has

largely played itself out.

– Harvard Business Review, November 2014

Jim Heppelmann

President and CEO, PTC

Prof. Michael Porter

Harvard Business School

44

MEDICAL DEVICE INDUSTRY TRENDS

Smart, connected products address new business climate

Increasing

service

business

competition

Leverage data from

connected products to

improve margins and

customer experience

Transformation

to accountable

care

Improve patient access

to equipment and reduce

cost of care

New information

sharing demands

between hospitals

& patients

Enable access to real-time

data for physicians and

patients

Increasing

regulatory

environment

Maintain compliance

with regulations (e.g.

HIPAA, MDD)

5

MEDICAL DEVICE INDUSTRY IS MOVING TO SMART CONNECTED PRODUCTS

HospitalDoctor’s

OfficeAt Home

Patients monitored

at home with less cost and fewer office

visits

30% fewer service visits with remote

diagnosis and repair

Consumables

inventory tracked

and replenished before supply is depleted

66

VALUE IS CREATED WITH NEW PRODUCT CAPABILITIES

77

Lead Generation

Account Management

Up-sell, Cross-sell

Usage-based Billing

Warranty Management

Point-of-Sale Payments

Remote Service

Predictive Maintenance

Enhanced Customer Service

Connected Manufacturing Intelligence

Consumables

Asset Tracking & Management

Usage-based Product Design

Remote Software Management

Connected Quality

VALUE FROM ENTERPRISE VISIBILITY INTO PRODUCT DATA

IoT

SLM

SCM

ERP

MES

Product Cloud

PLMCRM

Medical Equipment

88

YOUR CHALLENGE

IDENTIFY IOT OPPORTUNITES

Prioritize use-cases with a cross-functional

team

QUICKLY DELIVER IOT SOLUTIONS

Rapidly bring to market solutions that deliver

value

ESTABLISH STRATEGY FOR SUSTAINED IOT LEADERSHIP

Scale efforts to deliver transformative value to your entire

organization & customer base

99

MATURITY MODEL

How companies typically deliver value with the Internet of Things over time

Service

Analyze

Integrate

Innovate

• Proactive monitoring

• Remote delivery of software

updates

• Remote access and repair

• Predictive maintenance

• Identify supplier or mfg. process

issues

• Real-time reporting of product

status and usage

• Closed loop product lifecycle

management

• Configuration and warranty

management

• Knowledge management and

remote diagnostics

• Product quality and risk

management

• Deliver “home-care” offerings

• Provide complementary web

and mobile apps to differentiate

products

• Improve patient care with

greater information sharing

• Enable customer self-service

and personalization of products

• Introduce new business models

and value added services

throughout the lifecycle

1010

VALUE CURVE

How companies deliver increasing value over time

Confidential and Proprietary - Not for Distribution

Service

Analyze

Integrate

Innovate

Cost Benefits

• Decrease field visits with remote

access

• Increase first-time fix rates

• Reduce cost of software updates

Revenue Benefits

• Reduce downtime & mean time

between failure

• Increase customer satisfaction

Cost Benefits

• Reduce part supplier and mfg.

process issues

• Decrease field visits with

preventative actions

Revenue Benefits

• Increase uptime (support premium

SLA)

• Increase market share via better

market analysis

Cost Benefits

• Reduce warranty claims

• Reduce support call time and

number

• Reduce product failures

Revenue Benefits

• Increase market share via superior

design

• Enable upsell and cross-selling

opportunities

Cost Benefits

• Enable self-service support

• Increased employee productivity

with greater information sharing

Revenue Benefits

• Increase market share with greater

competitive differentiation

• Charge price premium

• Expand market with pay-per-usage

offering

• New revenue streams from

expanded portfolio and industry

offerings

1111

The Network

CONVENTIONAL APPLICATION DEVELOPMENT…

Is not designed to work with the unique and evolving requirements of IoT apps

Sensors, Devices &

Equipment

Application

Development

Fixed Applications

Collect, Process

and Manage

CommunicationsInternet Mobile Networks

CLOUD COMMUNICATIONS

ARCHITECT THE DATA MODEL

INTEGRATE OR WRITE SERVICES

CODE BUSINESS LOGIC & EVENTS

USER PERMISSIONS & COLLABORATION

DESIGN AND BUILD INTERFACE

COMMUNICATIONS

ARCHITECT THE DATA MODEL

INTEGRATE OR WRITE SERVICES

CODE BUSINESS LOGIC & EVENTS

USER PERMISSIONS & COLLABORATION

DESIGN AND BUILD INTERFACE

COMMUNICATIONS

ARCHITECT THE DATA MODEL

INTEGRATE OR WRITE SERVICES

CODE BUSINESS LOGIC & EVENTS

USER PERMISSIONS & COLLABORATION

DESIGN AND BUILD INTERFACE • Complex

Programming

• Difficult to

Maintain/Evolve

• High Cost

• Unproven Security &

Scalability

• Long Delivery

Timeframe

• Barrier to Innovation

MA

NA

GE

CH

AN

GE

TRANSFER DATA TRANSFER DATA TRANSFER DATA

1212

THE MOST COMPLETE IOT PLATFORM ON THE MARKET

Connect Build Analyze Experience Collaborate

• Edge Connectivity

• Native Device Cloud

• 3rd Party Device Cloud

Support

• Protocol Adaptors

• Rapid Development Tools

• Mobile App Development

• Enterprise Extensions and

process management

• 3rd Party System Connectors

• “Thing” Management and

Optimization

• 3D “Thing” builder

• Automated Machine Learning

Technology

• Rules, Alerts & Notifications

• Pattern & Anomaly Detection

• Automated Predictive

Modeling & Scoring

• Prescriptive Intelligence

• Digital Twin Experience

• Augmented Reality

• Developer Community

• Developer Zone

• Marketplace

• Industry-Leading IoT Specific

Events

13

CUSTOMERS IN ACTION

1414

MEDICAL DEVICES

Solution

• Expand their service offering dramatically

while significantly lowering costs.

• Direct, real-time connections for delivering

next-generation support applications.

• Rapid problem resolution using enhanced

collaboration and use of remote and

systems data

• Ability to quickly iterate their value-add

applications to take advantage of changing

market and customer demands.

Results

• 5-10x improvement in internal

application development team

utilization.

• Improved equipment uptime

(through faster decision

response time)

• improved labor utilization

through collaborative

information exchange

Sysmex is a global leader in the design and development of high-

quality, reliable, and innovative clinical diagnostic equipment and

information systems (blood and urinalysis equipment). They

generate 10% of their overall revenue through services offerings.

Business Challenge

• The intense competition in the

medical device market, especially

in the US, is demanding a higher

level of customer service at lower

costs.

• With the current technology,

Sysmex had an inability to scale as

their business scaled and deliver

the value-add services that they

need to stay ahead in their market.

"ThingWorx enabled us to build our Next Generation Remote Service Application 3-5x faster than previous tools, allowing us to gain

competitive advantage in the market." - Steve Postma, Director, Remote Service at Sysmex

1515

MEDICAL DEVICES

Solution

• Delivered centralized remote monitoring and

management of devices, providing an

environment to enable proactive and

preventive services.

• Elekta addresses the three significant

challenges faced by healthcare providers:

reducing operational costs, improving

customer service and increasing equipment

uptime.

Results

• >20% of service requests

resolved remotely without the

need for an onsite visit

• Increased system uptime and

patient throughput

• Improved product design

through machine reliability data

analysis

World-leading supplier of radiation oncology and neurosurgery

solutions and services for treating cancer and brain disorders

Business Challenge

• A lack of product performance data

to identify potential machine

problems, led to a reactive support

model with issues not being

identified or resolved before

becoming a system interruption,

and the inevitable downtime to the

customer.

We absolutely rely on PTC to be able to provide us the high level of availability and performance that we need in order to deliver this

critical service to our customer.

– Martin Gilday, Vice President, Services

1616

CAREFUSION

Solution/Results

Subsidiary of Becton Dickinson that helps customers

measurably improve patient care by focusing on

medication errors and hospital-acquired infections

• Installed at > 50% of customer base in 18 months

• Less 5% in 3 years for VPN solution

• >$700K savings on daylight savings software update

• >$2M savings on new software release update

Business Challenge

• Embed automated intelligence for

proactive monitoring and predictive

service

• Automate and audit the delivery of

software updates to 180,000+ devices

spanning 50+ product lines

• Replace VPN-based solution

1717

ABBOTT DIAGNOSTICS

Solution/ResultsBusiness Challenge

$4B provider of blood diagnostic instruments for

immunoassay and chemistry testing and hematology

• Reduce unscheduled service visits

• Increase instrument uptime and

consumable sales

• Lower service costs with proactive,

remote diagnostics

• AbbottLink

• 15% less calls requiring field service

• Instruments proactively notify service

personnel of problems

• Diagnostic files automatically retrieved

when problems occur

• Just-in-time consumable replenishment by

monitoring system parameters

1818

PHILIPS HEALTHCARE (RESPIRONICS)

Solution/ResultsBusiness Challenge

$1.2B provider of respiratory solutions, sleep

diagnostic systems, and critical care products

• Support mobile equipment that is

occasionally connected

• Allow customers to download

software upgrades and product

options to mobile devices with no

patient disruption

• Remotely diagnose instruments by

accessing live and historical data

• Strengthen relationships with

biomedical technicians

• Respi-Link

• $1.2M annual savings

from new software

upgrade process

• 12% increase in service

contract renewals

• 20% reduction in field

service visits

• 15% reduction in overall

service costs

1919

GETINGE

Getinge Group is a leading global provider of equipment and systems

that contribute to quality enhancement and cost efficiency within

healthcare and life sciences

Deployment Results:

• Established a major competitive edge with

complementary productivity applications

• Enabled technical support staff to quickly

identify problems and minimize downtime

• Delivered a consumables management model

for increased revenues

thingworx.com

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QUESTIONS & ANSWERS