cwin17 san francisco-shawn kelly-iot business value

DRIVING BUSINESS VALUE WITH THE INTERNET OF THINGS

Shawn KellyVice President, Corporate Strategy

December 7, 2017

2PTC Proprietary and Confidential – Not for Distribution

Title: Driving Business Value with the IoT

Abstract

• According to analyst firm IDC, consensus is in – over 90% of global manufacturers report that IoT is 'strategic' or 'transformational' to their business and have deployed or plan to deploy connected systems in the next 12-24 months. With endless opportunities to innovate using the IoT, where do you start? In this session, PTC will share top IoT use cases based on hundreds of customer interactions to showcase the creative ways manufacturers are capitalizing on the IoT opportunity to drive business value across the enterprise.

• In this session you will hear about:– Insight into the current state of IoT adoption in Manufacturing– Use cases that drive value across marketing and sales, product development,

manufacturing, service, IT, and end customers– How and where Augmented Reality experiences are emerging with the IoT in

Manufacturing– How PTC can help you unlock value from the convergence of the physical and digital

worlds

SESSION TITLE AND ABSTRACT


PERSONAL INTRODUCTION

Shawn Kelly, PTC Vice President of Corporate Strategy

• Responsible for leading projects focused on key strategic

initiatives for PTC

• Inclusive of primary and secondary research to better

understand markets, trends, technologies, end user needs, etc.

• Over 15 years of professional experience in Corporate Strategy

and Finance for Technology, Life Sciences, and Financial

Services companies

• MBA from the Tuck School of Business at Dartmouth College and

a BS in Finance from The College of New Jersey


Over 90% of global manufacturers report that IoT

is ‘strategic’ or ‘transformational’ to their business

and have deployed or plan to within the next

12 to 24 months– IDC


PTC IS A $1.2B GLOBAL TECHNOLOGY COMPANY

REVENUE BY VERTICAL

Life Sciences

5%

Industrial Products

32%

Federal, Aerospace & Defense

15%

Electronics & High Tech

16%

Automotive

14%

Retail & Consumer

8%

Other

10%

REVENUE BY REGION

Americas

43%

Europe

37%

Asia Pacific

20%

FAST FACTS

6Kemployees

300Kecosystem developers

$1.16BFY17 total revenue

29Kcustomers

Need resized image

Fundamentally the PHYSICAL and DIGITAL worlds have converged

Video

https://www.youtube.com/watch?v=CaGb6AQ90sE

77

Smart Manufacturing/

Industry 4.0

BROAD IMPACT OF PHYSICAL & DIGITAL CONVERGENCE

7

IoT/Smart,

Connected Products

Connected Service/

Maintenance

Smart Cities, Fields, &

Worksites


• € 2.43 bn in FY2014

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

• Approximately 50% market share in printing presses

• 12,500 employees

• 170 countries

HEIDELBERG EMBRACES DIGITAL TRANSFORMATION


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


“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


OPERATIONAL EFFECTIVENESS IS KEY DRIVER OF IOT

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 cases today are for ‘improvement of manufacturing processes’ (61.3%),

followed closely by ‘product testing and quality control’ (58.2%).


STRATEGIC DIFFERENTIATION BRINGS IOT TO CUSTOMERS

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.


“Data now stands on par with people, technology, and

capital as a core asset of the corporation.”

– Prof. Michael Porter &

Jim Heppelmann


IOT OPPORTUNITIES ACROSS THE ENTERPRISE

Product

Development

Operations /

Manufacturing

Marketing

/ Sales

Service /

Support

Information /

Operational

Technology

Customer

Usage Based Requirements

Design for

Connectivity

Connected

Operational

Intelligence

Real-Time Asset

Monitoring

Real Time Market Insights

New / Flexible

Business Models

Remote

Monitoring

Predictive

Maintenance /

Service

Rapid IOT &

AR/VR App

Development

Data Integration

& Analytics

Remote

Operation

Usage &

Performance

Benchmarking

Digital Service

Instructions

Digital Design

Review Digital

Instructions

Remote Service

Product and

Asset

Connectivity

Customer Self

Service

Connected

Consumable

Resupply

Inventory &

Material Tracking


USE CASE EXAMPLE: PRODUCT DEVELOPMENT

ProductDevelopment

Operations / Manufacturing

Marketing / Sales

Service / Support

Information / Operational Technology

Customer

• Company: Manufacturer of fluid motion

control solutions serving power, oil,

chemical, gas industries

• Use Case: Usage Based Requirements -

use real-time operational data from

industrial pumps to improve design of the

impeller and other elements of the pump

systems

• Benefits: Automated root cause analysis,

reduced warranty claims, higher quality

design, reduced number of returns,

reduced development and service costs,

improved customer satisfaction


USE CASE EXAMPLE: OPERATIONS AND MANUFACTURING

ProductDevelopment


Marketing / Sales

Service / Support


Customer

• Company: Grove City facility connected

its locomotive manufacturing plant to

optimize the efficiency of the operation

• Use Case: Connected Operational

Intelligence - gain real-time visibility into

the plant’s condition in areas such as

labor efficiency, machine health, and

production attainment

• Benefits: Increased visibility led to simple

changes such as staggering work orders

to avoid unnecessary downtime, leading

to a 10-20% improvement in efficiency


AR USE CASE: OPERATIONS AND MANUFACTURING

ProductDevelopment


Marketing / Sales

Service / Support


Customer

• Company: Bosch Rexroth CytroPac

hydraulic power unit is a revolutionary

Industry 4.0 enabled solution for machine

tool design

• Use Case: Performance Dashboards &

Alerts – ability to monitor the smart,

connected product and product systems

with KPI’s in real time

• Benefits: Visualizing digital insights in the

context of the physical environment

leads to increased operator efficiency

and ability to proactively problem solve

before issues arise


USE CASE EXAMPLE: SERVICE AND SUPPORT

ProductDevelopment


Marketing / Sales

Service / Support


Customer

• Company: Manufacturer of construction

and mining equipment, diesel and

natural gas engines, industrial gas

turbines, etc.; provides support and

service to network of dealers worldwide

• Use Case: Remote Monitoring & Service,

Digital Service Instructions - remote

service and administration of equipment;

combine service documentation with

sensor data to deliver service instructions.

• Benefits: Drastically increased technician

efficiency and first-time-fix rates, reduced

costs for service organization


PHYSICALWORLD

DIGITALWORLD

30 year heritage in the

DIGITAL definition,

software, and lifecycle

management of things

~$1B technology

investment connects to

the PHYSICAL world and

enables new experiences

PTC UNIQUELY POSITIONED TO ENABLE OUR CUSTOMERS


OPPOSITE FORCES MAKE THE STORY COMPLETE


PRODUCT

LIFECYCLE

MANAGEMENT

PARTNER

SOLUTIONS

CLOUD| HYBRID| ON-PREM

INDUSTRIAL

INNOVATION

PLATFORM

PTC’S FIELD-PROVEN PRODUCTS & TECHNOLOGIES


THOUGHT LEADERSHIP ON INDUSTRIAL DIGITAL INNOVATION

“Smart, connected products

raise a new set of strategicchoices about how value

is created and captured, and how companies secure

competitive advantage as the new capabilities reshape industry

boundaries.”

“Smart connected products are not only redefining competition

but how we run companies across

the value chain. New kinds of cross functional integration and coordination are necessary, and

whole new organizational units are being created.”

“There is a fundamental disconnect between the

wealth of digital data available

to us and the physical world in which we apply it. AR solves this problem by putting information

directly into the context in which we’ll apply it.”

November 2014 October 2015 November 2017


• IoT is happening, with over 90% of manufacturers

using IoT within the next 12-24 months

• Companies should understand whether they are

looking to optimize their current offering or truly

transform and differentiate their business

• It is important to identify a specific set of use

cases to solve for based on what you’re looking

to achieve

• Find new ways to innovate in your organization

by collaborating across teams and exploring new

technologies and use cases

SUMMARY

cwin17 san francisco-shawn kelly-iot business value

Presentations & Public Speaking