iot value roadmap

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IoT Value Roadmap A framework to define the scope & qualify IoT Use Cases Luiz Bautzer 16/09/2015

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Page 1: IoT Value Roadmap

IoT Value Roadmap

A framework to define the

scope & qualify IoT Use Cases

Luiz Bautzer

16/09/2015

Page 2: IoT Value Roadmap

2 2

Agenda

• What makes smart, connected products

fundamentally different… – How Smart, Connected Products are transforming

competition

• Moving up the IoT Value curve – From Value opportunities to operational Capabilities

• Qualifying main USE CASES – How to use the IoT Value Roadmap

Comment font

les autres ?

Comment aller

plus vite?

Rupture ou pas

dans la création

de valeur ?

Questions soulevées lors

de la première séance

Page 3: IoT Value Roadmap

3

How Smart, Connected Products are transforming competition

What makes smart, connected products

fundamentally different…

Rupture ou pas

dans la création

de valeur ?

Page 4: IoT Value Roadmap

4

• Things are changing – What makes smart, connected products fundamentally

different is not the internet, but the changing nature of

“things”

• Sensors are useless if you don't have the

applications to manage the information

generated by connected devices

• Sustainable competitive advantage requires

both

– a distinctive strategic positioning

(products) and

– operational effectiveness

Main Takeaways

Page 5: IoT Value Roadmap

5

From Value opportunities to operational Capabilities

Moving up the IoT Value curve

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Page 6: IoT Value Roadmap

6

The Value creation opportunities

Moving up the IoT Value Curve

Do not reproduce or distribute without permission

Improve

Connection

to Customer

Experience

Leverage data from

connected products

for improved service,

support and usability

Optimize

Business

Processes

Combine real-time

data with existing

systems to increase

efficiency

Differentiate

Offering

Increase pace of

product and service

innovation

New

Revenue

Streams

Unlock new business

models and realize

new value-add

opportunities

Page 7: IoT Value Roadmap

7

Capabilities to address Value Opportunities

Intelligence and connectivity enable an entirely new set of product functions

and capabilities with each capability building on the preceding one

ANALYZE

INTEGRATE

MONITOR

INNOVATE

Page 8: IoT Value Roadmap

8

IoT Capabilities Maturity Model

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

Do not reproduce or distribute without permission

Monitor

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

• Provide complementary web and mobile apps to differentiate products

• Enable customer self-service and personalization of products

• Introduce new business models and value added services throughout the lifecycle

Operational Strategic Disruptive

Page 9: IoT Value Roadmap

9

IoT Capabilities Maturity Model

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

Do not reproduce or distribute without permission

Monitor

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

• Provide complementary web and mobile apps to differentiate products

• Enable customer self-service and personalization of products

• Introduce new business models and value added services throughout the lifecycle

Operational Strategic Disruptive

Page 10: IoT Value Roadmap

10

Diebold Reduces Downtime by 15%

Diebold is a $2.9B provider of integrated

self-service delivery and security systems,

including ATMs

Deployment results:

• Average problem resolution time reduced from

3 hours to minutes

• 17% of total issues resolved remotely without

a field service visit

• Overall Opteva ATM downtime reduced

by 15%

“With OpteView, I can achieve world-class ATM

availability by making the most out of a close

relationship with a trusted vendor – Diebold .”

– Chad Lynch Services Manager, America First Credit Union

Page 11: IoT Value Roadmap

11

From ANALYZE to INTEGRATE

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

Do not reproduce or distribute without permission

Monitor

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

• Provide complementary web and mobile apps to differentiate products

• Enable customer self-service and personalization of products

• Introduce new business models and value added services throughout the lifecycle

Page 12: IoT Value Roadmap

12

GE Power & Water / Jenbacher Gas Engines

GE Power & Water is a world leader in power generation and

water technologies for utilities, independent power producers

and industrial applications.

Searching for the unusual

Page 13: IoT Value Roadmap

13

GE Power & Water Optimizes 7 Processes

Do not reproduce or distribute without permission

GE Power & Water is a world leader in

power generation and water technologies

for utilities, independent power producers

and industrial applications.

1. Commissioning - Sales Efficiency

2. Contractual SLAs – Higher profitability

3. Training – Employee productivity

4. Remote Monitor, Diagnostics and Service –

Fewer truck rolls, less downtime

5. Field Service – higher first time fix rate,

faster time to repair

6. Spare Parts – Optimized inventory levels

7. Upgrades and Repair – predictive maintenance

“We are using machine data to build algorithms

to predict issues or changes. Often we see ‘this

is different from the majority of engines’ and that

will help us develop an appropriate procedure.”

– Audi Lucas GE Power & Water

Page 14: IoT Value Roadmap

14

From INTEGRATE to INOVATE

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

Do not reproduce or distribute without permission

Monitor

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

• Provide complementary web and mobile apps to differentiate products

• Enable customer self-service and personalization of products

• Introduce new business models and value added services throughout the lifecycle

Page 15: IoT Value Roadmap

15

Taking advantage of Preventative Maintenance

Elekta is a $750 million company with

approximately 3,500 employees worldwide.

The company develops sophisticated,

state-of-the-art tools and treatment

planning systems for radiation therapy,

radiosurgery and brachytherapy.

Deployment 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

“By harvesting machine data and using predictive

analytics on the usage patterns and life-cycle of

the systems, we can pre-position spares closer

to machines where we know that a part is coming

to the end of its duty cycle. This predictive

support model truly maximizes the availability of

the systems, providing an enhanced service

experience for the customer and enabling them

to deliver improved patient care .”

– Martin Gilday VP of Service, Elekta

Page 16: IoT Value Roadmap

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• Monitoring – “Always-on” Geo-localization of

devices

• Analyzing – Access to historical data (ERP)

– Identifying Patterns

• Integrating – Dispatch & Diagnostics

– Tech pubs & Spare parts (ERP)

• Innovating – Dashboards to support more reliable

Service Level Agreements (SLA)

From INTEGRATE to INOVATE

Confidential and Proprietary - Not for Distribution

Page 17: IoT Value Roadmap

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How to use the IoT Value Roadmap

Qualifying main USE CASES

Comment aller

plus vite?

Page 18: IoT Value Roadmap

18

How to quality USE CASES

Identity &

Security

External

Information

Sources

Integration

with Business

Systems

Product Hardware

Product Software

Physical PRODUCT

Network Communication

COMMUNICATIONS

Product Data Database

Application Platform

Rules/Analytics Engine

Smart Product Applications

Digital PRODUCT CLOUD

Page 19: IoT Value Roadmap

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How to rapidly quality USE CASES?

Identity &

Security

External

Information

Sources

Integration

with Business

Systems

Product Hardware

Product Software

Physical PRODUCT

Network Communication

COMMUNICATIONS

Product Data Database

Application Platform

Rules/Analytics Engine

Smart Product Applications

Digital PRODUCT CLOUD

BUILD

MANAGE

CONNECT

Page 20: IoT Value Roadmap

20

Network Communication

Product Data Database

Application Platform

Rules/Analytics Engine

Smart Product Applications

Turning product data into insight generates new

collaboration needs

Identity &

Security

External

Information

Sources

Digital PRODUCT CLOUD

Product Hardware

Product Software

Physical PRODUCT

Integration

with Business

Systems

COMMUNICATIONS

Page 21: IoT Value Roadmap

21

Challenges emerge from new collaboration needs

Ongoing collaboration between R&D , IT and Customer Support is required to embed new features

and functionality into a product through software, sensors, and connectivity

Page 22: IoT Value Roadmap

22

• Select a product/asset to focus the

discussion

• Have the group identify key

stakeholders – Internal/external

– Direct and indirect

– Be specific as to their role as a

stakeholder

Exercise #1 – Identify Stakeholders strategy

Who are all the people and processes that are impacted by & depend on the

CONNECTED asset?

Connected Asset

Service

R&D

User

Sales

User Manager

MARKETING /

SALES

PRODUCT

DEVELOPMENT

OPERATIONS /

MANUFACTURING

SERVICE /

SUPPORT

INFORMATION /

OPERATIONAL

TECHNOLOGY

CUSTOMER

Page 23: IoT Value Roadmap

23

• For each Stakeholder – What does the stakeholder care about?

– How is he/she impacted by remote connectivity?

• Constraints to manage the impact of remote connectivity?

• Resources to manage the impact of remote connectivity?

Exercise #1 – Identify Stakeholders strategy

Do not reproduce or distribute without permission

Connected Asset

Service

R&D

User

Sales

User Manager

Page 24: IoT Value Roadmap

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Strategy / Objectives

Exercise #1 – Identify Stakeholders strategy

MARKETING /

SALES

PRODUCT

DEVELOPMENT

OPERATIONS /

MANUFACTURING

SERVICE /

SUPPORT

INFORMATION /

OPERATIONAL

TECHNOLOGY

CUSTOMER

Page 25: IoT Value Roadmap

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Exercise #2 helps defining which are the relevant

USE CASES to be addressed

Review proposed USE CASES

per Stakeholder

Page 26: IoT Value Roadmap

26

Exercise #2/ We provide you with a definition of 26

USE CASES

MARKETING /

SALES

PRODUCT

DEVELOPMENT

OPERATIONS /

MANUFACTURING

SERVICE /

SUPPORT

INFORMATION /

OPERATIONAL

TECHNOLOGY

CUSTOMER

Rapid IoT Application

Development

Customer Insights

and Opportunities

Connected Product

Usage Analysis

Flexible Billing and

Pricing Models

New Value Added

Services

Connected Product

Quality Analysis

Connected Software

Management

Customer

Self-Service

Usage and

Performance

Dashboard

Product

Personalization

Connected

Operations

Intelligence

Unified Key

Performance

Indicators

Real-Time Asset

Health Monitoring

Operations

Management

Improvements

Asset and Material

Tracking

Monitoring and

Diagnostics

Remote Service

Condition-Based

Predictive

Maintenance

Automated Service

Execution

Warranty Cost

Management

Connected Service

Parts Planning

Flexible Product and

Asset Connectivity

Identity and Security

Management

Scalable IoT

Operations

Management

Seamless IoT Data

Integration

Automated Analytics

and Actions

Capture YOUR LIST

amongst the proposed IoT use cases

Page 27: IoT Value Roadmap

27

• Priorities (per Stakeholder)

• Supplementary

• Other

Exercice # 2/ Select within the proposed 26 UCs, the

top priority USE CASES

MARKETING /

SALES

PRODUCT

DEVELOPMENT

OPERATIONS /

MANUFACTURING

SERVICE /

SUPPORT

INFORMATION /

OPERATIONAL

TECHNOLOGY

CUSTOMER

(Assureur &

Gestionnaire de

biens)

Page 28: IoT Value Roadmap

28

• Expected Output

Based on your list of priority USE

CASES define where you want to be

in:

• 1 Month

• 6 Months

• 12 Months

• Discuss as a group about

the goals of the next phase

• Should you start by

identifying “quick wins” or

“strategic value”?

Exercise # 3/ Qualify the goals of the next phase

Phase #1 Phase #2 Phase #3

Page 29: IoT Value Roadmap

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Summing-up

Page 30: IoT Value Roadmap

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• Smart, connected products create

fundamentally new types of product data

– This allows far greater insight and control over product

functionality as well as customer needs

• Collecting data is just a starting point

– There is no value if information from connected machines

is not enabling business transformation

• Turning product data into insight generates

new collaboration needs

– IoT is more than a mechanism for transmitting information

– It’s all about rapidly building Apps…

Summing-up

Delivering Innovation with Smart, Connected Products

Digital Twin

Page 31: IoT Value Roadmap

31

• Smart, connected products create

fundamentally new types of product data

– This allows far greater insight and control over product

functionality as well as customer needs

• Collecting data is just a starting point

– There is no value if information from connected machines

is not enabling business transformation

• Turning product data into insight generates

new collaboration needs

– IoT is more than a mechanism for transmitting information

– It’s all about rapidly building Apps…

Summing-up

Delivering Innovation with Smart, Connected Products

Digital Twin

Comment font

les autres ?

Comment aller

plus vite?

Rupture ou pas

dans la création

de valeur ?

Page 32: IoT Value Roadmap
Page 33: IoT Value Roadmap

33

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Transforming how customers…

…smart and connected products, operations and systems

Next-generation technology platforms and enterprise applications