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The four steps of Digital Transformation
Andrew SmithGeneral Manager, Sales Strategy & Operations
IoT Device Partners, Microsoft
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Here’s what we’re covering
Four steps of digital
transformation
Differences between
PaaS & SaaS
P&L opportunities
by partner type
Hear from our IoT
Partner of the Year
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Digital Disruption and the 4th Industrial Revolution
1780s
Mechanized production Mass production Automated production Digitized production
1870s 1970s 2015+
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Digital Transformation
Business Insights Operational Efficiencies
New Business Models
Features and Rev Streams
Sensor proliferation
Data collection, transfer, storage and processing
New insights - understanding product and service more deeply
Process engineering and product engineering improvements
Cost reduction
Time to market reduction
Predictive maintenance
Provision of services alongside devices and hardware.
Devices / hardware / machines delivered “as a service”.
Enablement of ancillary businesses, new businesses and transformed businesses
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Digital Transformation
Business Insights Operational Efficiencies
New Business Models
Features and Rev Streams
Sensor proliferation
Data collection, transfer, storage and processing
New insights - understanding product and service more deeply
Process engineering and product engineering improvements
Cost reduction
Time to market reduction
Predictive maintenance
Provision of services alongside devices and hardware.
Devices / hardware / machines delivered “as a service”.
Enablement of ancillary businesses, new businesses and transformed businesses
![Page 6: The four steps of Digital Transformation · Digital Transformation Business Insights Operational Efficiencies New Business Models Features and ... through process automation. Business](https://reader035.vdocuments.site/reader035/viewer/2022062602/5eca73275569543b240c6ffa/html5/thumbnails/6.jpg)
Digital Transformation
Business Insights Operational Efficiencies
New Business Models
Features and Rev Streams
Sensor proliferation
Data collection, transfer, storage and processing
New insights - understanding product and service more deeply
Process engineering and product engineering improvements
Cost reduction
Time to market reduction
Predictive maintenance
Provision of services alongside devices and hardware.
Devices / hardware / machines delivered “as a service”.
Enablement of ancillary businesses, new businesses and transformed businesses
![Page 7: The four steps of Digital Transformation · Digital Transformation Business Insights Operational Efficiencies New Business Models Features and ... through process automation. Business](https://reader035.vdocuments.site/reader035/viewer/2022062602/5eca73275569543b240c6ffa/html5/thumbnails/7.jpg)
Digital Transformation
Business Insights Operational Efficiencies
New Business Models
Features and Rev Streams
Sensor proliferation
Data collection, transfer, storage and processing
New insights - understanding product and service more deeply
Process engineering and product engineering improvements
Cost reduction
Time to market reduction
Predictive maintenance
Provision of services alongside devices and hardware.
Devices / hardware / machines delivered “as a service”.
Enablement of ancillary businesses, new businesses and transformed businesses
![Page 8: The four steps of Digital Transformation · Digital Transformation Business Insights Operational Efficiencies New Business Models Features and ... through process automation. Business](https://reader035.vdocuments.site/reader035/viewer/2022062602/5eca73275569543b240c6ffa/html5/thumbnails/8.jpg)
Digital Transformation
Business Insights Operational Efficiencies
New Business Models
Features and Rev Streams
Sensor proliferation
Data collection, transfer, storage and processing
New insights - understanding product and service more deeply
Process engineering and product engineering improvements
Cost reduction
Time to market reduction
Predictive maintenance
Provision of services alongside devices and hardware.
Devices / hardware / machines delivered “as a service”.
Enablement of ancillary businesses, new businesses and transformed businesses
![Page 9: The four steps of Digital Transformation · Digital Transformation Business Insights Operational Efficiencies New Business Models Features and ... through process automation. Business](https://reader035.vdocuments.site/reader035/viewer/2022062602/5eca73275569543b240c6ffa/html5/thumbnails/9.jpg)
Market offering
• From “MRI Scanner” to “Remote
diagnostics subscription”
• From “Industrial Machine” to
“Machine uptime subscription”
• From “Thermometer” to
“Temperature Control Service”
Profitability
• From hardware margin to
subscription margin
• From capex to capex+opex
Customer relationships
• From transaction relationship to
annuity relationship
• From procurement relationship to
business owner relationship
Transformation in your…
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End Points Security Connectivity Business Consultants
Distributors Developers
IoT Partner Value Chain
Services Regulators
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Suitable for more complex solutions requiring high
controllability, high customization, with low endpoint
volume
IoT … “as a service” models
Suitable for less complex solutions and common use
cases requiring low degree of customization, with high
endpoint volume
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IoT … “as a service” models… in Microsoft
SaaS
Azure IoT CentralFully managed IoT SaaSNo cloud solution expertise required
Built on the same Azure IoT Platform Services
Azure IoT Solution AcceleratorsSolution accelerators for customers with cloud solution expertise and the need to fully customize
PaaS
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Opportunities for P&L transformation by business type
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Opportunities for P&L transformation by business type
New Insight
opportunities
Insight on how product
is used in the field.
Operational
efficiencies
Decrease manufacturing
downtime by predicting
and resolving issues
before they happen.
Business Model
changes
Product as a service.
New Revenue
opportunities
Attach and monetize
new services.
Device Builder / OEM
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Opportunities for P&L transformation by business type
New Insight
opportunities
Enhance customer
experience by
understanding how
product features are
used.
Operational
efficiencies
Increase speed to
market and reduce cost
through process
automation.
Business Model
changes
Subscription-based
services.
New Revenue
opportunities
Consumer apps
represent a new channel
for future services.
ISV
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Opportunities for P&L transformation by business type
New Insight
opportunities
Remote monitoring of
systems and processes.
Operational
efficiencies
Remote troubleshoot
and problem resolution.
Service engineer arrives
with right parts to fix
physical infrastructure.
Business Model
changes
Selling repeatable
solutions and retaining
IP.
New Revenue
opportunities
New services offerings
such as business
consulting, data science
and device lifecycle
management.
System Integrator
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Opportunities for P&L transformation by business type
New Insight
opportunities
Remote monitoring of
systems and processes.
Operational
efficiencies
Single relationship and
billing for customer
including applications,
infrastructure and cloud.
Business Model
changes
Aggregation of
hardware and software-
based connected device
solutions for specific
verticals.
New Revenue
opportunities
Subscription-based
revenue.
Higher margin for
higher value services
than pure hardware
distribution.
Solution Aggregator
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SYNNEX Technology Solutions
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What does this mean?
• General Contractor = Solution
aggregation. Architect, validate, support
• Connectivity piece is cornerstone – if we
don’t connect, it’s not IoT
• Cloud Platforms – if we don’t successfully
store/manage/analyze data, it’s not IoT
• Services – increase margin profile
• Building IP – where we can really make
our money
• Edge Devices = Commodity, low margin,
interchangeable
Public Cloud
+ Basic IPGateways
Ed
ge D
evice
s
Data
Analytics
Advanced ISV
Applications
Connectivity
We become a “General Contractor”
for IoT
Connectivity
Dev Ops + Deploy + Managed
Services + Security
Inte
llig
en
t C
lou
d
Bringing Solutions Together with SYNNEXIntelligent Cloud - Transport - Intelligent Edge
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How the Channel Makes Money in IoT
Data
Premium Application Features
Base Applications
Gateways
Devices (Connected, Edge)
Data
Data collected from all parts of solution. Identify
new business models, key features, customer
behavior, upsell opportunities
Upsell revenue from high-value features identified
by usage data
Embedded of Cloud applications deployed through
variety of business models. Initial sale + renewals +
maintenance
IoT gateways for interoperability, networking, other
functions. Opportunity to license embedded or
server software
Primarily hardware sale. Any software likely a
perpetual licenseServices revenue opportunity relates to every layer.
Flexera. (Producer). (2018). IoT Monetization: Growing a Healthy IoT Business [Video Webinar]. Retrieved from
https://www.youtube.com/watch?v=qdt4to0RJ_A&feature=youtu.be&elqTrackId=36cbed5c582649c78a5e2d0972e5b3d0&elqaid=4121&elqat=2
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SYNNEX Fleet Management Solution
Affordable Tracking
One of the most cost effective solutions on the
market—without sacrificing service or functionality.
Flexible Solutions
A diverse product portfolio with a wide choice in
product size, battery life, and optional add-on
sensors and features.
Tracking for Any Asset
Ideal for any company that has assets that need to
be tracked — whether they’re vehicles, mobile
products, or even fixed goods.
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Management
consoleAzure IoT Hub
Simple plug-
and-play edge
devices
SYNNEX Azure IoT Digital Signage Solution
Hosted in Azure, a single
management console
enables users to customize
and publish content.
The Azure IoT Hub
asynchronously pushes
content from Azure to the
edge devices on each
display
Edge devices that plug into
each display automatically
update signage when
required.
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