gain business value from iot: a case-based perspective

0 Copyright 2016 FUJITSU

Fujitsu Forum 2016

#FujitsuForum


Gain Business Value from IoT: A Case-based Perspective

Nabil Lodey

Head of GlobeRanger

@nlodey


Digital Disruption is happening in waves…

1st Wave

The Internet Connected, Online / 1B in 2000 The number of Users or Devices

2nd Wave

The Mobile Internet Real-time, Anywhere / 10B in 2010

3rd Wave

The Internet of Things Convergence of Physical and Digital / 50B+ by 2020

4th Wave

AI and Robotics Knowledge and Automation


IoT: Creating reality through value

What do you need to run your business successfully?

Visibility and insights to enable proactive decision making

Quality Data

And in the future…

Analytics and automated decision making (machine learning)


IoT: Creating reality through value

Enabled by…

Sensors, Connectivity, Middleware IoT Platform, Analytics, Cloud, Services

As is a need to understand your business e.g.

Warehouse Management / Logistics

Aviation

Manufacturing


Example: Business benefit through visibility

Warehouse Management System

Tracks items into a warehouse and the date/time that occurred

Where is every item at any one point in time? Why is that important?

3 case studies all driving real business value

50% reduction in warehouse staff

75% reduction in time to locate an item. Reduce load time for outbound trucks or repair line waiting for a part from warehouse

95% reduction in inventory write offs

Reduction in double stock ordering


Understanding the Business: Process Steps 1 – 4


Process Steps 5 – 7 (Repair and Transport)


Steps 8 – 9 (Warehouse and Environmental)


Building a Business Case

Start with the current process

Where are the problems and what is the impact

What are the variables for that

problem - how do they contribute to the cost

Calculate the cost of this problem per annum – and potential savings

In one example we could make £1m labor savings over 2 years.

We then created a solution where the ROI was within 12 months

There are much simple scenarios at the lower end of the scale with roll out less than $100k.

POST POC Annual Operational Savings

Current Labor Costs

Future Labor Costs

Labor Savings

Cumulative Savings

WITHOUT COST OF MONEY

Monthly Solution Costs POC

Hardware

Software Licenses

Labor (Development, Config, Installation, Implementation and Support)

Initial Tags

CAPEX- Fujitsu Solution

Ongoing Tags

Stock Change

Maintenance and Support

OPEX - Fujitsu Support and Maintenance

Total Fujitsu Solution

3rd Party Implementation Costs

CUST Resource (20 months)

CUST Implementation Costs

CUST Support Costs

Total Roll Out Fujitsu/CUST/3rd Party Solution Costs

Total Monthly Savings

Total Cumulative Savings

Variable Manual Individual Item In Scan Time (secs)

Manual Individual Item Out Scan Time (secs)

RFID Trolley Draw In Scan Time (secs)

RFID Canister Draw In Scan (secs)

RFID Trolley Draw Out Scan Time (secs)

RFID Canister Draw Out Scan (secs)

Hourly Labor rate (£/hour)

Average number of items per 6 draw

Stock sales

&age carts that do not require an out scan

Average 6 draw Trolley Carts/ day

Average 7 draw Trolley Carts / day


Aviation Case Study

Twin Deck 8 hours to

15 Min

Twin Aisle 4 hours to

5 – 10 Mins

IoT and Aviation Emergency Equipment

Management (EEM) Calculating the value

to the airline Maintaining regulatory

process and standards Approach to the market –

comfortable with technology


Making it possible

Industry and process focused solutions Co-created customer solutions

You can leverage Fujitsu’s End-to-End IoT Technology and Services in a number of ways:


Making it possible

Co-created customer solutions

■ Co-created with customers

■ Built to address unique business and societal problems

■ Leveraging proven IP and a best of breed partner ecosystem

■ Designed to deliver discrete business or social outcomes

■ Based on innovative commercial models (e.g. Risk/Reward)


Why Fujitsu

1. Trusted IoT Integrator partner who can make it happen

2. Ability to accelerate time to market of IoT solutions

3. Bridging IT and Operational Technology

4. Safeguarding your business

5. Relentless focus on delivering business value


Become a Hyperconnected Business

See More ■ Knowing what’s really going on – in real-time

Predict Don’t React

■ Anticipate problems and be first to spot new opportunities

Power Innovation

■ Unlock new ways to create value for customers – and enable new business models

Act Fast ■ Make the right decisions, quicker

Optimize Everything

■ Streamline and automate key progresses – and ways of working


MetaArc Digitalize with Confidence

MetaArc delivers Digital Transformation.

MetaArc comprises a comprehensive set of Solutions, Services, Cutting Edge Technologies and Engages our Eco-system of Partners.