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Subscribed 2015: The Explosion of Smart Connected Things
The document discusses the transformative impact of the Internet of Things (IoT) on manufacturing companies, highlighting new monetization opportunities through smart, connected products and data-driven business models. It emphasizes that by 2025, IoT could contribute up to $6.2 trillion annually, reshaping productivity and operational efficiency in the industry. Additionally, case studies illustrate how companies like Sysmex and Joy Global are successfully innovating their service offerings and business models through IoT technologies.
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Subscribed 2015: The Explosion of Smart Connected Things
- 1. IoT Transforms Monetization Opportunitiesfor Manufacturing Companies
- 2. Victor Gerdes Victor Gerdes VP,Connected Product Management vgerdes@ptc.com
- 3. Agenda • The Internetof Things • New Ways to Capture Value • Driving Commerce with Smart, Connected Products • Driving Commerce with Data Brokering • Start Your Connected Journey with PTC & Zuora
- 4. 5 The Internet ofThings By 2020, experts predict there will be 50 billion “things” connected to the Internet Confidential and Proprietary - Not for Distribution
- 5. 6 THINGS are Changing WeatherData System Irrigation System Seed Optimization System Farm Equipment System Farm Management System Platform Rain, humidity, temperature sensorsWeather maps Weather forecasts Weather data application Farm performance database Seed database Seed optimization application Field sensorsIrrigation nodes Irrigation application System Of Systems TILLERS PLANTERS TRACTORS Farm Equipment System COMBINE HARVESTERS Product System + + Smart, Connected Product + Smart Product Product The changing nature of products is disrupting value chains, forcing companies to rethink and retool nearly everything they do internally.“
- 6. 7 Smart Connected Systems SmartFarms, Smart Cities, etc. Smart, Connected Products Remote Service, Ops & Analytics Smart, Connected Operations Brilliant Factory/Industry 4.0 Change is Everywhere
- 7. 8 Manufacturers are Positionedto Capture the Value Confidential and Proprietary - Not for Distribution #1 Manufacturing industry 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
- 8. 9VALUE New Ways toCapture Value Optim ize Perf orm ance Im prove Risk Managem ent Reduce Product and Service Costs New Revenue Stream s Operational Dif f erentiate Of f ering Quickly deliver compelling, differentiated offerings that meet or anticipate customer demands Elevate Custom er Relationship Make offerings smarter, easier to update, and more personalized to elevate customer experience Strategic Combine real- time data from assets, enterprise systems, and people to increase operational efficiency Improve ability to proactively identify and mitigate financial, safety, environmental and regulatory compliance risk Implement proactive service, limit warranty costs and risks, and optimize service and product development processes Realize new value-add opportunities and revenue streams Predictive - Based Outcom es Use predictive analytics of big data to launch business processes preemptively New Business Models Maximize revenue opportunities and value capture from new services or business models Disruptive
- 9. 10 Driving Commerce with Smart, Connected Products warranty management premiumsupport offerings (e.g. predictive maintenance) consumables management usage-based billing upsell / cross sell (e.g. pay-per-feature) remote service elevated customer experiences compliance management
- 10. 11 Sysmex Innovates ServiceOfferings with ThingWorx S o l u t i o n • ThingWorx Platform is enabling Sysmex to 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 R e s u l t s • 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. I n i t i a t i v e s • 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.
- 11. Joy Mining isa worldwide leader in high- productivity mining solutions that manufactures and markets original equipment and aftermarket parts and services for the mining industries. Deployment results: • Anticipate equipment failures & efficiently respond to problems reducing equipment downtime • Optimize mining processes with new analytics to reduce the cost of resources & increase production • Manage the overall mining operation on behalf of the mine owner. Transition from pay per product to pay per tonnage of earth mined “The future gains in productivity will come from system improvements, not just the product itself. This requires smart connected product systems that can monitor and optimize the full system performance.” – Ted Doheny CEO, Joy Global Innovation: Joy Global Transforms Business Model
- 12. All Traffic Solutionsis the leading manufacturer of signs used by police departments and local governments to help understand and manage traffic. Results: • Delivered an innovative solution for law enforcement professionals called the TraffiCloud • Faster time to market • Rapid development of mobile UI • Advanced data mining that All Traffic can now offer its customers “ThingWorx’s rapid application development environment and scalable platform allows us to extend our solution and deliver new services to our customers in ways that were previously impossible.” – Scott Johnson CEO, All Traffic Solutions Innovation: All Traffic Captures New Revenue Streams
- 13. IoT App Store •Accelerates platform adoption through global sharing of IP • Improve IoT solution time- to-market through application “assembly” • Creating additional revenue streams for Apps, Extensions, etc.
- 14. 15 Start Your Connected Journeywith PTC & Zuora Create your IoT Strategy using the IoT Value Roadmap Select the IoT Platform & Subscription Billing Platform Creating Value in a Smart, Connected World
- 15. 16 26 Key IoTUse Cases Across Business Functions 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
- 16. 17 Network Communication Product DataDatabase Application Platform Rules/Analytics Engine Smart Product Applications Implications on Technology Requirements Identity & Security External Information Sources Digital PRODUCT CLOUD Product Hardware Product Software Physical PRODUCT Integration with Business Systems COMMUNICATIONS
- 17. ThingWorx is the1st Application Platform for the Connected World™ – one that combines the key functionality of Web 2.0, social media and Connected Intelligence™, and applies it to any process that involve things. 18 Relationship Business Management
- 18. © 2014 ThingWorx Communications Elements Internet MobileNetworks Device Clouds Wireless Provisioning The Network Connect Application Enablement BUSINESS LOGIC 3D STORAGE ENGINE REST APIs SERVICE INTEGRATION COMMUNICATIONS MASHUP BUILDER SQUEAL 3RD PARTY TOOLS Sensors, Devices & Smart ProductsEnable Apply Applications Cloud Services Business Systems Value IoT Solution Framework
- 19. © 2014 ThingWorx Communications Elements Internet MobileNetworks Device Clouds Wireless Provisioning The Network Connect Application Enablement Subscriptions Selling a Service Usage-based Billing Service Contracts Cloud Services Business Systems BUSINESS LOGIC 3D STORAGE ENGINE REST APIs SERVICE INTEGRATION COMMUNICATIONS MASHUP BUILDER SQUEAL 3RD PARTY TOOLS Sensors, Devices & Smart ProductsEnable Apply Monetize Zuora: Subscription Billing Platform
- 20. 21 About PTC Transforming howcustomers… …smart and connected products, operations and systems Next-generation technology platforms and enterprise applications CREATE CONNECT SERVICEOPERATEANALYZE
- 21. 22 PTC IoT Leadership OurCustomers: Leading Companies in Many Industries 23 years of helping manufacturers deliver market winning products & service 30k unique manufacturing companies do business with PTC annually 100s of production IoT customers fuel our experience and best practices Innovation leadership built on providing technology solutions that help transform the way companies create, operate and service products 1000s of IoT engagements driving
- 22. 23 Visit our webresources • Read customer success stories • Gather analyst and academic insights • Watch videos and interactive demonstrations Request an Innovation Workshop • Plan for Growth and Innovation • Define and Prioritize Use Cases • Examine Your Customer Value Proposition • Outline Implementation Options Contact Your PTC Account Manager Learn More
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- 25. 26 Manufacturing Leads IoTTransformation #1 Manufacturing industry will be the #1 industry sector by share of global economic value-add. – Forecast: The IoT, Worldwide, 2013 Automated Service Remote Service Self Service Predictive Maintenance Product as a Service Marketing / Lead Generation Account Management Up-sell, Cross-sell New Offerings / New Markets Connected Manufacturing Intelligence Consumables Asset Tracking & Management Design for Continuous Innovation Usage-based Requirements Analysis Remote Software Management Connected Quality Usages-based Billing Subscription Services Warranty Management Point-of-Sale Payments
- 26. PTC Technology Platforms& Enterprise Applications Technology Platforms Augmented Reality* Digital Twin* *Beta Internet of Things Predictive Analytics for Big Data Connectivity Device Cloud Application Enablement Marketplace Composer Converge Enterprise Applications 27 CAD PLM ALM SLM
Editor's Notes
- #3 1/3rd view
- #5 The easiest way to think about the Internet of Things is to break it down into three fundamental components. The first component are the smart connected products, sensors and other things. They are connected via an Internet like communications infrastructure via wired or wireless connectivity Finally to a computing infrastructure that captures and analyzes the data and creates new forms of value via new business applications The phrase “Internet of Things” has arisen to describe the growing number of products connected to the Internet and reflects the new opportunities they represent. Yet this phrase is not a very helpful in understanding the phenomenon or its implications. The Internet, whether involving people or things, is simply a mechanism for transmitting information. What makes the third wave transformative is not the Internet, but the changing nature of the “things” – the products themselves. It is the new capabilities of smart, connected products and the data they generate that is ushering in a new era of competition.
- #6 Smart, connected products not only impact the competitive intensity and therefore attractiveness of an industry, but also the boundaries of the industry. The boundaries of competition can shift as functionality expands from one discrete industry to a broader system of products. In this example, we follow the expansion from the farm tractor industry where the manufacturer is responsible for the performance of the product, to the farm machinery system industry where you're tying together the farm tractor, tiller, and harvester products together to optimize the performance of the planting and harvesting, to the smart farm industry where you're getting weather data feeds, working with the seed companies, commodity future, and all of a sudden the seed companies become part of the industry, and weather tracking becomes part of the industry. The result is that the boundaries of each of these industries are permeable and in a state of flux. Now I think there's been a tendency in the popular press to jump all the way from, the farm tractor industry to the smart farm industry. [Widening] boundaries can put a farm tractor company well outside their core competencies, because now there are smart farm companies who look like software companies and don't even build tractors.
- #7 That is what will enable you to dramatically transform how you create, operate, and service products. And that, in turn, will be the basis for your own product and service advantage.
- #8 This phenomenon is commonly referred to as the Internet of Things. And according to global consulting firm McKinsey as much as $6.2 trillion in global economic value will be generated by this trend over the next ten year. As a point of reference, that’s about ten times as much economic value as the firm expects will be created by 3D printing. According to Gartner the verticals that are leading the adoption and accrual of economic value-add (which represents the aggregate benefits that businesses derive through the sale and usage of IoT technology) are manufacturing (15 percent), healthcare (15 percent) and insurance (11 percent). According to Cisco we’ll see as many as 50 billion of these things connected to the Internet by the end of this decade and as John Chambers described all of these connected devices and the volumes of data they generate will require a huge volume of new business applications that can deliver the right insights to the right people at the right time.
- #10 Axeda ServiceLink enables Diebold to expand the level of its service and support offerings to include predictive maintenance, software version control and remote monitoring and notification. This tool helps Diebold maximize ATM availability and increase customer satisfaction, while aiding product and engineering development with data on hardware and software performance. OpteView can be also used with existing monitoring systems.
- #11 Here is the EMC background information. Questions or clarification contact Bradley Rhoton, brhoton@ptc.com. EMC’s legacy systems lacked the functionality necessary to maintain the level of service its customers had come to expect. The company was dealing with multiple new product introductions across many different product lines and struggling to strike the balance between keeping costs down and maintaining the service parts inventory needed to support product launches. EMC also struggled with monitoring forecast accuracy and looking for forecast abnormalities for new product introductions. Further complicating the problem was the need to deal with the end of each product life cycle. Accurately planning “last-time buys” of parts, which accomplishes the goal of cost effectively maintaining high service levels, is a challenge that only service-focused companies particularly appreciate. After evaluating several traditional supply chain solutions, EMC determined that PTC was the only vendor with the expertise and solution developed specifically for service businesses that would support the company’s unique requirements for service parts management. Scope The PTC solution was used to manage EMC’s global service parts network, consisting of: $132 million in service parts inventory spread across more than 50 countries 3,500 unique parts Real-world Results The PTC solution was implemented in less than 12 weeks, which included integration into EMC’s Clarify CRM software. Since implementing the solution, EMC has saved $12 million in excess inventory and eliminated $1.5 million in associated costs. Simultaneously, EMC maintained parts availability rates at an unprecedented 98.5%. More importantly, the company continues to support its expanding product line and global customer base with minimal growth in service parts inventory and no growth in part planner headcount. In fact, planner productivity has increased 40%. “Preserving a 98.5% field availability rate was critical to maintaining our impeccable customer service reputation and stature as the market leader in storage systems. Fulfilling these objectives, PTC affords EMC the ability to leverage the many global opportunities in the marketplace. In an exceptionally short time frame, PTC has delivered well beyond our expectations. EMC has realized a significant return on investment in only one year, and we expect that number to increase steadily over time.” Mark Deitemeyer Director of Global Service Logistics EMC
- #12 Joy Mining is a worldwide leader in high-productivity mining solutions that manufactures and markets original equipment and aftermarket parts and services for the mining industries. Joy Mining’s business challenge came from their inability to conduct field level analytics due to the instability of collecting mass volumes of data. ThingWorx stabilizes the data collection process while providing Joy Mining the ability to innovate with new applications for their customers, resulting in the ability to anticipate failures, efficiently respond to equipment problems, therefore reducing equipment downtime, reduce the cost of mining resources, improve the safety of the site and human capital, and optimize mining production. By taking operating data, Joy Global move from selling better mining equipment to selling services to optimize the performance of the mine.
- #13 All Traffic Solutions is the leading manufacturer of signs used by police departments and local governments to help understand and manage traffic. Continuous connectivity now allows customer and company to identify useful trends in traffic and product use patterns, benchmark performance against peers, and immediately change settings, messages, and schedules based on that information. Using this data All Traffic creating the TraffiCloud, an interface that bring all of this data together and provides police forces, cities, etc. to monitor, analyze and plan based on real time traffic information. All Traffic Solutions delivered on their vision of transforming the company from a manufacturer of digital road signs to a critical provider of traffic safety solutions. Their connected product initiative is enabling new revenue opportunities, and ways of doing business for All Traffic solutions, while allowing municipalities to provide higher levels of public safety at reduced costs. http://www.thingworx.com/2014/06/all-traffics-journey-to-a-connected-device-ecosystem/
- #15 You need PTC and Zuora to address this avalanche with IoT The IoT Value Roadmap is a guide to help organizations create value in a smart connected world. Avoid long development cycles, complex programming, lots of code writing against APIs, high cost/risk, rigid deployment ThingWorx is the 1st Application Platform for the Connected World™ – one that combines the key functionality of Web 2.0, social media and Connected Intelligence™, and applies it to any process that involve things.
- #17 Smart, connected products require companies to build and support an entirely new technology infrastructure. This “technology stack” is made up of multiple layers, including new product hardware, embedded software, connectivity, a product cloud consisting of software running on remote servers, a suite of security tools, a gateway for external information sources, and integration with enterprise business systems. Smart, connected products require that companies build an entirely new technology infrastructure, consisting of a series of layers known as a “technology stack” (see the exhibit “The New Technology Stack”). This includes modified hardware, software applications, and an operating system embedded in the product itself; network communications to support connectivity; and a product cloud (software running on the manufacturer’s or a third-party server) containing the product-data database, a platform for building software applications, a rules engine and analytics platform, and smart product applications that are not embedded in the product. Cutting across all the layers is an identity and security structure, a gateway for accessing external data, and tools that connect the data from smart, connected products to other business systems (for example, ERP and CRM systems). This technology enables not only rapid product application development and operation but the collection, analysis, and sharing of the potentially huge amounts of longitudinal data generated inside and outside the products that has never been available before. Building and supporting the technology stack for smart, connected products requires substantial investment and a range of new skills—such as software development, systems engineering, data analytics, and online security expertise—that are rarely found in manufacturing companies.
- #18 Talk Track: What we are: An RBM Company We(Zuora) is Relationship Business Management Company We are designed for Relationship Management from day 1 RBM - “Relationship Business Management gives you the commerce, billing, and finance capabilities you need to design your customer-centric experience with subscribers Platform: Zuora is 100% SAAS platform, bringing all the benefits of a Cloud application, so you don't have to worry about managing any hardware, software, data centers, et cetera.
- #19 When we look at the elements of a complete IoT solution, its clear to see where the opportunity lies Sensors, Devices, and Equipment Connected through various methods, through different device clouds, hybrid networks, environments, etc. Provisioning platforms and device clouds provide base-level device management functionality But if real business value is your goal, delivered through applications, it requires integrating those smart things, across hybrid networks, to business applications and 3rd party services to create complete, vertically integrated apps Traditionally, this required long development cycles, complex programming, lots of code writing against APIs, high cost/risk, rigid deployment
- #20 When we look at the elements of a complete IoT solution, its clear to see where the opportunity lies Sensors, Devices, and Equipment Connected through various methods, through different device clouds, hybrid networks, environments, etc. Provisioning platforms and device clouds provide base-level device management functionality But if real business value is your goal, delivered through applications, it requires integrating those smart things, across hybrid networks, to business applications and 3rd party services to create complete, vertically integrated apps Traditionally, this required long development cycles, complex programming, lots of code writing against APIs, high cost/risk, rigid deployment
- #23 CTA: Request an Innovation Workshop
- #26 Smart Connected Products are not just enabling new capabilities to change the customer experience. The data and intelligence from smart connected products can be leveraged to create improved business processes that will transform your businesses and drive improvements in efficiencies and effectiveness throughout all functions in your enterprise – leveraging the enterprise systems you have today. Let’s take a look at how one piece of information coming off of a Copier “how many pages has it printed” I’d know when it would require maintenance More tonier or new machine replacement Forecast consumables businesses in the future Engineering would understand how businesses were use the product Finance pay per use