•
Top 5 Priorities For a
Successful IoT Initiative
Today’s Presenters
Dan Murphy
VP Marketing
ThingWorx a PTC Business
Scott Johnson
MBA, CEO & Co-Founder
Devicify
Robin Duke-Woolley
Founder and CEO
Beecham Research Ltd
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Agenda:
• Trends Developing in M2M/IoT Today
• 5 Priorities For IoT
• End-to-End Solution for IoT
• Q&A
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Planning a Successful IoT Initiative
January 14, 2015
Robin Duke-Woolley
Founder and CEO
Beecham Research Ltd.
1.
The need for closer integration of Connected Device data with enterprise IT
systems – sharing data across the enterprise
2.
Greater emphasis on creating new services from Connected Device data, not
just traditional operational cost savings
3.
These new services are essential for revenue generation for the business, so
are more likely to be mission critical. M2M solutions overall are becoming
more mission critical, even for service support as reliance on these increases
4.
M2M solutions are moving from being tactical “nice to have” to strategic
necessity. They are now visible to Executive Boards internally and to
customers and public externally.
5.
At a service level, M2M solutions have always been about improving the
break/fix time. In future they will be more about optimization of operations –
moving from monitoring to control, requiring much larger amounts of real
time data, processed and acted upon rapidly.
6.
With data capacity increasing, there is a growing trend for richer applications
associated with connected devices, also requiring more data, more frequently
MARKETTRENDS
Some important trends developing now in the M2M/IoT market
•
In response to need, M2M solutions are becoming increasingly sophisticated.
•
This means that the platforms that support them are necessarily becoming
more complex
•
At the same time, such solutions are now increasingly visible and mission
critical – whether supporting customer services, manufacturing processes or
new sales opportunities
•
Growing awareness within enterprises of the key importance of connected
assets and products for their future and the need for such solutions
•
In the past, many enterprises have been tempted to create these solutions
in-house: “How hard can it be?”, “We have the technical resources and know
our business better than anyone else . . .”
•
Most often, this has not worked out with much resource and time being
wasted, with constant new development required and greater complexity
becoming the norm.
•
Greater use of externally – managed platform services to support solution
creation is becoming the way forward
CONCLUSIONS
Some conclusions – what this means in practice
Transforming business for the
connected products world.
© 2014 Intuitive Control Systems, LLC.
Maturing of an IoT Strategy
Product is just a start
• Build, store data,
communicate
Device Platform
Value
• Communicate, share data,
permission, build
applications
Business Processes
Product/
Service
Device
Platform
Business
Process
• Align permissions and
systems, monetization
processes, automate,
innovate
Sophistication
© 2014 Intuitive Control Systems, LLC.
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Connectivity is a Business Process™
Design
Contracts
&
Collection
Production
Connectivity is NOT a technology
It’s a fundamental business
process uniting companies,
products & stakeholders
Sales &
Marketing
Order
Fulfillment
Support
© 2014 Intuitive Control Systems, LLC.
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#1 Focus on Returns: Return on Connectivity™
Traditional ROI focused on cost savings
• Easier to quantify but limiting
Cost savings, revenue growth, doing differently
• Maximize your Return on Connectivity™
Look broadly for improvement metrics
Value Derived
• Will vary by industry, use case and company
Cost Reduction
Revenue Creation
Do Differently
Yesterday
© 2014 Intuitive Control Systems, LLC.
Today
Tomorrow
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#2 Operational Efficiencies
Traditional Cost Savings
• Easier to quantify but limiting
New visibility
• Move from guessing to knowing
New automation
• Rule-based behaviors needed to support massive quantities
© 2014 Intuitive Control Systems, LLC.
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#3 Real-time Data-driven Actions
Traditional Alerts and Condition Monitoring
• M2M, passive dashboards, emails or texts
© 2014 Intuitive Control Systems, LLC.
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#3 Real-time Data-driven Actions
Feedback from devices to business systems
• Device conditions or data can initiate business actions
© 2014 Intuitive Control Systems, LLC.
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#3 Real-time Data-driven Actions
Feedback from business systems to devices
• Process actions can initiate device updates
© 2014 Intuitive Control Systems, LLC.
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#3 Real-time Data-driven Actions
Traditional Alerts and Condition Monitoring
• M2M, passive dashboards, emails or texts
Feedback from devices to business systems
• Device conditions or data can initiate business actions
Feedback from business systems to devices
• Process actions can initiate device updates
© 2014 Intuitive Control Systems, LLC.
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#4 Enhanced Customer Experience
No longer about the best physical products
• Value shifting to data and experiences
Determine the information potential of your products
• Product usage, ambient information, 3rd party sources
Build solutions that complement product, leverage data
• Fuse process, product and application building; ThingWorx
Technical
Users
Business
Users
© 2014 Intuitive Control Systems, LLC.
Customer
Users
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Maturing of an IoT Strategy
Allow for learning
• Plan to adapt
Let yourself start small
Value
• Shouldn’t be an all or
nothing proposition
Seek Scalability
• Don’t build in limitations
and obstacles, process
support will become a
requirement
Product/
Service
Device
Platform
Business
Process
Sophistication
© 2014 Intuitive Control Systems, LLC.
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Maturing of an IoT Strategy
Allow for learning
• Plan to adapt
Let yourself start small
Value
• Shouldn’t be an all or
nothing proposition
Startup Accessible,
Enterprise Capable
Seek Scalability
• Don’t build in limitations
and obstacles, process
support will become a
requirement
Product/
Service
Device
Platform
Business
Process
Sophistication
© 2014 Intuitive Control Systems, LLC.
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#5 Business Model Innovation
Technical achievements will pressure current models
• Position to adapt and unleash value or suffer limitations
Hardest, most vulnerable, most valuable
• Product achievements are a pre-requisite, this is the payoff
Disruption is coming
• Change management will differentiate, process agility will be key
© 2014 Intuitive Control Systems, LLC.
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Devicify Radically Simplifies, Accelerates
•
•
•
•
•
Defines a new software category; Connected Products Management (CPM)
Interoperability between business and products without needing API’s
Embeds a device platform inside a business application
Allows the enterprise system to interact with products
Includes the tools to extend our model into custom applications
Energy
PLM
Other
Traffic
CRM
CPM
CPM
Business
ERP
Customers
Sports
Products
SLM
Health
Connected
Product
Home
© 2014 Intuitive Control Systems, LLC.
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Top 5 Priorities for a Successful IoT Initiative
#1 Focus on Returns
• Return on Connectivity™
#2 Operational Efficiencies
• Beware possible inefficiencies
#3 Real-time Date-driven Actions
• From any point to any point
#4 Enhanced Customer Experience
• Value is shifting to data and experiences
#5 Business Model Innovation
• Most vulnerable and valuable step
© 2014 Intuitive Control Systems, LLC.
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Build a smarter business,
not just smart products.
Maximize Your Return on Connectivity™
© 2014 Intuitive Control Systems, LLC.
www.devicify.net
Dan Murphy
VP of Marketing
The World is Moving to Smart Connected Products
Every Industry is Experiencing Major Transformation
30% fewer truck rolls with
remote diagnosis and
repair
Higher uptime and more
output of equipment with
remote monitoring
Lower energy bills
with smart grid aware
appliances
Auto
Commercial
Equipment
Insurance
premium reduced
by $400 w/
Usage Based
Insurance
solution
Video transmitted to
remote security
personnel
Road congestion
reduced via analysis
of traffic data from
signs
Inventory
tracked and
replenished
before supply is
depleted
Content delivered
on demand
Software updates safely
delivered without field
service visit
Patients monitored at home
w/ less cost and fewer office
visits
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Internet of Things- Value Curve
New Business Models
Setting the Strategy for NextGeneration Business Models
Differentiate Offering
Level 6+
Optimize Business Processes
Innovate
Business Insight
World Class Service
Level 1
Unconnected

Fight fires

Limited product
feedback

High cost of
service
Connect



Service

Remote access
as allowed

Fragmented
information

Reactive
response to
issues

Remote access
as needed
Some proactive
monitoring
Service cost
avoidance
Electronic
software
delivery
Integrate
Level 4
Level 3
Level 2
Level 5
Analyze




Predictive
maintenance
Monitor/report
on services
View/analyze
product data
Leverage usage
data for new
product
enhancements

Enterprise
integration

Configuration
and warranty
management


Pay-per-use
models/billing
integration
Track and
locate
/inventory
management

New revenuegenerating
capabilities

Cloud-delivered,
customer
applications

Replenishment
management

Remotely
control products

Compliance and
audit reporting

Mobile
integration

Cloud-to-cloudto-mobile
mashups
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Connected Enterprise
Data from Connected Products Enables Optimized Processes
Product Cloud
SLM
 Usage-based Billing
 Warranty Management
 Point-of-Sale Payments
PLM
CRM
ERP
MES
SCM
Remote Service
Predictive
Maintenance
Enhanced
Customer Service
Lead Generation
Account Management
Up-sell, Cross-sell
Usage-based Product Design
Remote Software Management
Connected Quality
Connected Manufacturing Intelligence
Consumables
Asset Tracking & Management
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Conventional Application Development is Challenging
Not designed to work with the unique and evolving requirements of IoT apps
Fixed
Applications
Communications
Elements
DESIGN AND BUILD
INTERFACE
DESIGN AND BUILD
INTERFACE
• Complex
Programming
DEVELOP EVENT TRAPS
AND QUERIES
DEVELOP EVENT TRAPS
AND QUERIES
DEVELOP EVENT TRAPS
AND QUERIES
DEVELOP DATA
RELATIONSHIPS
DEVELOP DATA
RELATIONSHIPS
DEVELOP DATA
RELATIONSHIPS
• Build Platform
Services on a
Project
INTEGRATE OR WRITE
SERVICES
INTEGRATE OR WRITE
SERVICES
INTEGRATE OR WRITE
SERVICES
ARCHITECT THE DATA
MODEL
ARCHITECT THE DATA
MODEL
ARCHITECT THE DATA
MODEL
COMMUNICATIONS
COMMUNICATIONS
Internet
COMMUNICATIONS
MANAGE CHANGE
Application
Development
DESIGN AND BUILD
INTERFACE
• Difficult to
Maintain/Evolve
• High Risk, High
Cost
• Barrier to
Innovation
Mobile
Networks
The Network
Sensors, Devices
& Equipment
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ThingWorx – Purpose Built for IoT App Enablement
Dynamic
Applications
CLOUD SERVICES
Application
Enablement
MASHUP
BUILDER
SQUEAL
External System
& Services
REST APIs
BUSINESS ENTERPRISE
SYSTEMS
SYSTEM
SERVICE
INTEGRATION
Communications
Elements
Develop and Deploy
BUSINESS LOGIC
IoT Applications
3D STORAGE
ENGINE
COMMUNICATIONS
Internet
10X Faster
Mobile
Networks
BIG DATA
ANALYTICS
The Network
Sensors,
Devices &
Equipment
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Expertise in Multiple Vertical Markets
Electronics
& High Tech
Industrial
Commercial
Equipment
Life Sciences
Medical
Devices
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May 4 – 7, 2015
Boston, Massachusetts
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Questions?
Visit www.thingworx.com for a list of upcoming webinars and events
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