driving business value with the iot · 44% of current iot adopters say that iot has enhanced their...

DRIVING BUSINESS VALUE WITH THE IOT

Steve DertienSVP Technology Solutions and Platforms, PTC

9/14/16

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Over 90% of global manufacturers report that IoT is ‘strategic’ or ‘transformational’ to their business and have deployed or plan to within12-24 months

CURRENT STATE

“Through 2018, 80% of IoT implementations will squander transformational opportunities by focusing on narrow use cases and analytics.”

IIoT and EAM continue to have the same primary driver: reduced machine downtime

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• € 2.43 bn in 2013/2014 yr

– 60% new machinery, 40% parts, services, and consumables

• Approximately 50% market share in printing presses

• 12,500 employees

• 170 countries

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HEIDELBERG

Evolution of real-time asset monitoring

Dial-up technician diagnostics

Remote Diagnosis

service

eCallService

Predictive Monitoring

service

Late 1990’s

Bu

sin

ess

Va

lue

2004 2008 2012

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“The only way you survive is you continuously transform into something else. It's this idea of continuous transformation that makes you an innovation company.”

– Ginni Rometty, CEO of IBM

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OPERATIONAL EFFECTIVENESS

Optimize Operational Performance

• Availability; uptime

• Throughput; cycle time; lead time

• Production quality; defects and rework

Improve Risk Management

• Non-compliance events per year

• Product quality; returns

• Recalls; warning letters; audits

Reduce Costs

• R&D Expense; total development cost

• Manufacturing cost; energy usage; scrap

• Service cost; warranty cost; first time fix rate

Increasing productivity is cited as the top influencing factor in decision to create IoT Strategy In manufacturing according to recent IDC survey data. The leading use case today is in the improvement of manufacturing processes (61.3%), followed closely by product testing and quality control (58.2%).

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STRATEGIC DIFFERENTIATION

Improve Customer Experience

• Retention rate; utilization rate

• Customer satisfaction; net promoter score

• Complaints; response time; resolution time

Differentiate Product or Service Offerings

• Time to market

• Product-as-a-Service models

• Customer lifetime value

Enable New Revenue Streams

• Percent profit from new products/services

• Attach rate; up-sell/cross-sell revenue

• Market share; growth

44% of current IoT adopters say that IoT has enhanced their customer or user experience, making it the most popular benefit seen according to Vodafone’s 2016 IoT Barometer cross-industry study.

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A. Optimize Operational Performance

B. Improve Risk Management

C. Reduce Costs

D. Improve Customer Experience

E. Differentiate Product or Service Offerings

F. Enable New Revenue Streams

G. Don’t know

WHAT IS OR WILL BE DRIVING YOUR IOT INITIATIVE?

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CONSIDER VALUE DRIVERS ACROSS FUNCTIONS

“Data now stands on par with people,

technology, and capital as a core asset of the corporation.”

Prof. Michael Porter & Jim Heppelmann

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MARKETING/SALES

Connected Consumable

Resupply

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PRODUCT DEVELOPMENT

Connected Product

Quality Analysis

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OPERATIONS AND MANUFACTURING

Connected Operational Intelligence

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SERVICE AND SUPPORT

Connected Field Service

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INFORMATION AND OPERATIONAL TECHNOLOGY

DataIntegration

and Analytics

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END CUSTOMER

Usage and Performance

Benchmarking

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CHOOSE ONE:

� Marketing/Sales

� Product Development

� Operations/Manufacturing

� Service/Support

� Information/Operational Technology

� End Customer / Operator

� Other

WHO WILL PRIMARILY CAPTURE VALUE FROM YOUR IOT INITIATIVE?

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Operations / ManufacturingCustomer

Information / Operational Technology Service / Support

Marketing / Sales

• Flexible Business Models• Real-Time Market Insights • Immersive Product Demonstration

• Connected Consumable Resupply

• Product Customization

• Usage and Performance Benchmarking• Remote Operation • Customer Self-Service

• Product and Asset Connectivity • Secure IoT Operations Management

• Data Integration and Analytics • Rapid IoT and AR/VR App Development

• Predictive Monitoring and Service • Remote Service • Connected Service Parts Management

• Connected Field Service

• Inventory and Material Tracking • Single Screen Operator View • Real-time Asset Monitoring

• Connected Operational Intelligence

Product Development

• Usage-Based Requirements • Immersive Product Review

• Connected Product Quality Analysis• Product Configuration Management

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• IoT is happening, with over 90% of manufacturers using IoT within the next 24 months

• Start with your business value drivers to leverage the data you’re collecting across the enterprise

• Find new ways to innovate in your organization by collaborating across teams and exploring new technologies and use cases

SUMMARY