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ENHANCING THE“HAPPINESS QUOTIENT” OF PARTNERS

Praveen BhadadaPartner & Practice Head – Digital, Zinnov@bhadada

June 10, 2019

Prankur SharmaEngagement Lead – Digital, Zinnov@prankur26

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$500 B MARKET OPPORTUNITY FOR IOT

2018 - $201B

2023E - $500B

IOT Technology Products

$94B

IOT Technology Services

• IOT strategy & consulting

• IOT engineering

• IOT system integration & deployment

• Managed services & support

• Sensor, MEMS, actuators, chipsets

• Connectivity hardware including gateways, data aggregators

• Network bandwidth

• Storage & server infrastructure

• IOT Platforms

$106B

$230B $270B

USD 500 Billion2018 2023E

USD 201 BillionCAGR: 20%

CAGR: 20

% CAGR: 21%

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KEY BARRIERS TO PARTNER HAPPINESS..

“Happiness Quotient" = f (Opportunity, Growth, Profitability)

IOT SI & Deployment

IOT Managed Services & Support

USD 0.9 BillionUSD 1.1 Billion

IOT Strategy & Consulting

USD 0.7 Billion

IOT Engineering

USD 2.2 Billion

USD

4.9Billion

28% Y-o-Y growth

Tremendous Market Hype; Few Large Scale IOT Deals1

IOT is one of the Many Competing Priorities for Partners2

Me-too Value Proposition; Lack of Partner Capabilities (IT + OT)3

Distributed Decision Making; Lack of Buy Center Access4

Lack of Clarity on Viable Engagement Models & ROI5

IOT Service Provider Addressed Market Challenges being Faced by SP Partners

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• Deploying the playbook of best practices

• Signals of IOT related investements

• Use cases that can deliver core business outcomes

• Evaluating distributed decision making process

• Enabling visibility into investments and ROI

• Roadmap to drive accelearted adoption

Assess Readiness

Prioritize Use-cases

Identify Buy Centers

Build Business Case

POC to Scale

1

2

3

4

5 Replicate Success

6

ELEVATING THE “HAPPINESS QUOTIENT”

Opportunity Creation

Growth Mindset

Profitability Oriented

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BUILD DEEP UNDERSTANDING OF THE MARKET

AutoIndustrial

Retail

CPGTravel

HospitalityHealthcare

PharmaMedical DevicesOil & Gas

BFSI Telecom

0

1

2

3

4

5

0 0.5 1 1.5 2 2.5

Industry 4.0/ Smart Factory (20-25%) Connected Products (15-20%) Connected Assets (20-25%)

Connected Logistics (15-20%) Connected Worker (5-6%)

Use-

case

Pen

etra

tion

Investment Intensity

Auto

Industrial

CPG

Pharma

Medical Devices Telecom

00.20.40.60.8

11.21.41.6

0 0.5 1 1.5 2

Use-

case

Pen

etra

tion

Investment Intensity

Auto

Industrial

CPG

PharmaMedical DevicesOil & Gas

0

0.2

0.4

0.6

0.8

1

0 0.5 1 1.5 2

Use-

case

Pen

etra

tion

Investment Intensity

Auto

IndustrialCPG

Healthcare

PharmaOil & Gas

Telecom

00.20.40.60.8

11.21.41.6

0 0.2 0.4 0.6 0.8 1Us

e-ca

se P

enet

ratio

nInvestment Intensity

AutoIndustrial

Retail

CPG

TravelHealthcare Pharma

Oil & Gas

00.20.40.60.8

11.21.41.6

0 0.5 1 1.5

Use-

case

Pen

etra

tion

Investment Intensity

OPPORTUNITY CREATION GROWTH MINDSET PROFITABILITY ORIENTED

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IN-DEPTH ASSESSMENT OF CUSTOMER ADOPTIONCONNECTED

ASSETSCONNECTED PRODUCTS

CONNECTED LOGISTICS

CONNECTED WORKERS

INDUSTRY 4.0/ SMART MFG.

Aut

o

Volkswagen GroupDaimler AGToyota MotorFord Motor CompanyGeneral Motors

Ind

ustri

al ABB

GERobert Bosch GmbHEaton CorporationSchneider Electric

Reta

il

Wal-MartCostcoKroger CompanyTarget CorporationLowe's Companies

CPG

Procter & GambleNestleUnileverL'OréalPepsiCo

Tra

vel

American AirlinesCarnival CorporationDelta Air LinesEmirates GroupSouthwest Airlines

Hos

pita

lity Hilton

Marriott InternationalInterContinental HotelsHyatt HotelsMeliá Hotels

CONNECTED ASSETS

CONNECTED PRODUCTS

CONNECTED LOGISTICS

CONNECTED WORKERS

INDUSTRY 4.0/ SMART MFG.

Hea

lthca

re Johns HopkinsMayo ClinicIHHKaiserCleveland

Pha

rma

NovartisPfizer Inc.Bristol-Myers SquibbGlaxoSmithKlineSanofi S.A.

Med

ica

l D

evic

es

MedtronicPhilips.Becton DickinsonThermo FisherBoston Scientific

Oil &

Ga

s BPChevronExxonMobilRoyal Dutch ShellTotal S.A.

BFSI

CitibankJP Morgan ChaseINGVisaAIG

Tele

com

NokiaCisco SystemsEricssonAT&TT-Mobile

Use-case Focus Intensity Use-case Focus Intensity

OPPORTUNITY CREATION GROWTH MINDSET PROFITABILITY ORIENTED

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CATCH SIGNALS TO ASSESS NEW OPPORTUNITY

Investment Commit Renewed Leadership Dedicated Unit Setup1 2 3

Greenfield Expansion M&A or Joint Venture Talent Acquisition4 5 6

Strategic realignment, investment plan announcements, etc.

New CXOs focused on IOT, creation of new roles with IOT-related charters, etc.

Setup of IOT divisions, COEs, R&D labs, start-up accelerators, etc.

Building new smart, connected, efficient factories, hotels, facilities, etc.

IOT-focused strategic investments, M&A, JVs, spin-offs, etc.

Talent related initiatives for IOT such as training, intensive hiring, etc.

OPPORTUNITY CREATION GROWTH MINDSET PROFITABILITY ORIENTED

Announced investment of $5B in IOT over 4 years for building connected solutions

Former VMware CTO Ray O’Farell brought in to head Dell’s new IOT division

New IOT Division focused on offering smart and connected devices to customers

Announced new portfolio of hotels, Signia Hilton leveraging new-age digital tech

Spun-off Dayu, to focus on R&D for AI-based IOT chips for connected gadgets

70+ IOT-related job openings (mobility engineering, autonomous vehicles, etc.)

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MARRIOTT: ASSESSING IOT READINESSOPPORTUNITY CREATION GROWTH MINDSET PROFITABILITY ORIENTED

Growth & Expansion Customer Loyalty Transformation of Sheraton

Innovating for Future of Travel Doing Good

I II III IV V

Global expansion and growth with increase in revenue and number of properties/ rooms

Enhance customer loyalty by offering superior experience and rewarding customers

Improve performance of Sheraton, one of the largest brands globally

Innovate at every level to meet the needs of increasingly demanding and sophisticated travelers

Prioritizing communities and environments with initiatives focused on sustainable and positive impact

Strategic Priorities of Marriott

New Hotels Opening Revamped Loyalty Program Brand Strategy Tech & Regional Partners Sustainability Platform

Development Pipe Co-Branded Cards Portfolio Optimization Traveler Digital ID Training

Geo Expansion Smart Key Cards & Mobile Apps Design Revamp Enhanced Room Exp. Carbon Reduction

Legend: IOT-related Initiatives

Top Focus Segments/ Initiatives

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MARRIOTT: IOT USE CASES CATALOGUE

Adopted use-cases Limited focus use-casesLegend Planned use-case adoption

OPPORTUNITY CREATION GROWTH MINDSET PROFITABILITY ORIENTED

• Smart self check-in kiosks

• Proactive location based services• Voice assistance services

• Chatbot and concierge kiosk’s

• Guest mobile app for in-room controls (thermostats, window coverings, etc.)

• One-way video-based guest services • NFC-enabled payments

• Hyper-Personalization and automation

Guest Intelligence

Asset Performance Management

• Predictive analytics on asset performance & utilization

• Proactive asset maintenance, certification & ageing tracking• Improve operational efficiency by optimizing asset utilization

• Real time maintenance notifications and analytics

• Remote/mobile management of machinery/equipment• Intelligent sprinkler systems

• Staff tracking

• Real-time human safety and hazardous environment alerts• Child tracking and safety

People Tracking

Security

• Smart-phone door-locks

• Access to restricted facilities/services• Paging services

• Access-control systems and security alarms

• Fire/other hazard detection system• Cyber-security surveillance

Asset Tracking

• Guest room asset tracking

• Linen tracking• Track meal carts/trays

• Spare parts tracking and reconciliation to guest rooms

Energy Management

• Energy management with guest location monitoring

• LED light and blinds monitoring by location• HVAC and vending monitoring

Robotics• Room-delivery carts

• Laundry pickup & delivery

• Perishable shelf-life monitor and management

• Automated JIT fresh-produce replenishment • Hotel fleet tracking and optimization

Logistics Intelligence

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MARRIOTT: POTENTIAL BUY CENTERS FOR IOT

Guest Intelligence

Energy Management

Robotics

Security

Stephanie LinnartzChief Commercial Officer

Global leader in the hospitality sector, contributing significantly to the Marriott IoT Guestlab

Sandra Schulze-PotgieterVP, Premium & Select Brands, Middle East & Africa

Prominent contributor to the Marriott TestBed Accelerator, seeking promising start-ups for innovation across Marriott hotels

Lionel SussmanVP, Global Design Strategies

Initiatives for connected rooms design and development; Promotes the concept of personalized experience

Deborah HuguelyVP, Design

Responsible for personalized customer experience with technological innovation with new age designs for Marriott rooms

Jennifer HsiehVP, Customer Experience Innovation

Working towards achieving global innovation; Active in the IoT Guestlab space

Douglas RathSr. Director Energy & Environment, Americas

Promoted adoption of smart energy management solutions to reduce costs across multiple Marriott brands

Lenny JachimowiczGlobal VP, Operations

Focused on various operational aspects including engineering/ facilities management and guest experience

Thomas LongGM, Westin Hotels & Resorts

Leads the robot butler initiative at the Westin Buffalo hotel and responsible for gauging guest feedback

Toni StoecklGlobal Brand Leader & VP

Initiatives for connected rooms design and development; Promotes the concept of personalized experience

Michael WangSr. Continent Head, Global Design APAC

Active contributor to the Schneider-Marriott partnership aimed towards smarter and safer rooms across the globe

Kristin HardingVP, IT Security Delivery & Operations

Responsible for multiple test stage rollout of the Botlr- the Relay robot across Aloft hotels

C. Scott HansenSr. Director Guest Technology

Tested Alexa and Siri for voice controlled smart rooms. Active contributor to guest intelligence advancement across Marriott

Richard WagnerTechnical Consultant – Emerging Technologies

Managing initiative to optimize connectivity architecture of Marriott properties including security infrastructure

Rob BahlGlobal VP, Engineering & Facilities

Active participant in Marriott’s investment in energy management platforms

Tina EdmundsonGlobal Brand Officer

Driving enhancement of Marriott’s brand, innovation and technology-led upliftment of guest experience

OPPORTUNITY CREATION GROWTH MINDSET PROFITABILITY ORIENTED

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BUILDING PROACTIVE BUSINESS CASE

1. Select Use Case(s)• Industry/ Peer Insights• Insights from Tech Partners• Prior Experiences• Customer Priority/ Skill Sets

2. Measurable Objectives• Reduced Downtime• Process Monitoring• Increased Automation• Customer Servicing

3. POC Planning• Executive Sponsor• Technology Evaluation• Data Readiness

4. POC Design• Customer SPOC• Expected Outcomes/ KPIs• POC Timelines

5. Conduct POC• Tap BIF funds of Tech Partner• Measure “From - to” Scenarios• Identify Gaps• Reporting & Dashboards

1

2

3

4

5

IOT Business Case

OPPORTUNITY CREATION GROWTH MINDSET PROFITABILITY ORIENTED

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ENABLE CUSTOMER JOURNEY TO SCALE OUT

OPTIMIZATION RESOURCES SCALE OUTCOMMUNICATION

• Data backed findings from the POC stage

• Communication to relevant customer stakeholders

• Process optimization for better outcomes

• Technology finetuning for ease of enablement

• Technology & talent pool requirements

• Budget creation & governance

• Outcomes driven roadmap creation

• Convert to managed services program

OPPORTUNITY CREATION GROWTH MINDSET PROFITABILITY ORIENTED

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DEFINE LONG TERM TRANSFORMATIONAL IMPACT

VISIBILITY

PRODUCTIVITY

PREDICTABILITY

TRANSFORMATION

§ Item Track & Trace (Shop Floor)

§ Asset Track & Trace (Shop Floor)

§ Order Tracking (Shop Floor)

§ Production Monitoring§ Compliance Adherence

(Workers)§ Performance

Monitoring/Utilization§ Worker safety§ Worker attendance &

monitoring§ Fleet tracking & optimization§ Item level goods tracking

(smart logistics)

§ Remote Operations Monitoring/Management

§ Energy Management§ Field Service/ Operations§ Predictive

Maintenance/Condition based monitoring

§ Demand Forecast & Management

§ Integrated Supply chain§ Digital Twin§ E2E Traceability

Customer Reference

Creating value for the future

Enabling effective decision making to do the right things

Enhancing utilization by doing things right

Insight via digital footprint

Level of Complexity

Leve

l of B

usin

ess I

mpa

ct

IPs/ Solution

Partnerships

Function Specific Plant Wide Enterprise Level

Incremental

Exponential

AUTOMATION

§ Sensors & Actuators§ Digital Data§ Controls

Plant Processes

OPPORTUNITY CREATION GROWTH MINDSET PROFITABILITY ORIENTED

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DESIGN NON-LINEAR GROWTH MOTIONS

Connected Car Platforms

Predictive Maintenance

Solutions

• Acquired by Verizon for $2.4 B

• Partnered with Volkswagen on connected car platform

• Ford is working with Autonomic to build Transport Mobility Cloud

• Harman Ignite Platform; deployed at 29 global auto OEMs

• Startup valued at $ 2.3 B providing APM platform

• Released predictive maintenance solution built on Azure IOT platform

• ABB Ability™ Ellipse APM solution to predict failure of mission critical equipment

• Built the Intelligent Pipeline Solution (TransCanada first customer)

START-UPS TECH GIANTS ENTERPRISES SERVICE PROVIDERSIllustrative Productized Offerings

Technology & Compute Platforms Data & Insights Asset Management Service Delivery

Four Key Categories of IOT IPs

• Industrial IOT Platforms• Central Compute

Platforms

• Personalization Engines• Visualization Tools

• Fraud Detection

• Workflow Automation• Asset Tracking & APM

• Digital Workplace

• OTA (Over-the-air)• Usage Based Insurance

OPPORTUNITY CREATION GROWTH MINDSET PROFITABILITY ORIENTED

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ACCELERATION THROUGH ENTERPRISE IOT COEYe

arss

ince

Setu

p

Repeatability

Developing Repeatable IPs

Platform Approach

Building the Platform

Independent Selling

Selling Products Independently

Use-case Support

Supporting Enterprise Use-cases

Setup a joint COE in Chennai , India to work on NissanConnect – the connected car platform

>60% >40%Top Forbes companies have built significant IOT talent

Top Forbes companies have setup IOT COEs

Functional Maturity (IOT)

Global CoE focused on cocreating new solutions with service providers, industrial & technology companies

Set up a CoE for building IIOT solutions across Indian Enterprises

Way Forward??

OPPORTUNITY CREATION GROWTH MINDSET PROFITABILITY ORIENTED

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Digital Business as a Separate PnLCompanies such as TCS have created separate Digital business with its own PnL, sales, delivery & operating structure

2-in-a-Box GTMAccount teams are joined by Digital Solutions

& Services experts (could be horizontal or vertical) – e.g. Accenture, Wipro etc.

Delivery Team LedAccount mining for digital is the core responsibility of the delivery team sitting in the account for a certain duration –e.g. TCS

Consulting Partner LedCompanies such as Tech Mahindra work

with 3rd party consulting partners to jointly go to the top accounts for digital

1 2

3 4

5

DESIGN THE “BEST FIT” SALES MODELS

Customers as ChannelCompanies such as Tech Mahindra, leverage existing customers, such as Telcos, as channel to sell to their enterprise customers

Key IOT GTM Models -Services

OPPORTUNITY CREATION GROWTH MINDSET PROFITABILITY ORIENTED

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NEW-AGE MODELS TO ENSURE VALUE DELIVERY

Business Model

Key Industries

Ideal Category

Pricing Model

Success Criterion

Maturity

Platformization

Consumer IOTHi Tech

Enterprises with vast range of products

1

Fixed fee, transaction based fee, revenue sharing, subscription

Value to all ecosystem players

Engagement: HComplexity: H

Outcomes Led

Consumer IOTIndustrial

Retail

Enterprises that sell product or services

through a transaction to provide an outcome

2

Subscription, Shared Risk & Reward

Reduced risk and ability to transact for

outcomes

Engagement: HComplexity: M

As-a-Service

IndustrialRetail

Automotive

Enterprises that have products with high levels of customer

engagement

3

Subscription, Pay Per Use

Ability to offer multiple subscription models with tiered pricing

Engagement: MComplexity: L

Data Monetization

RetailTelecom

Automotive

Enterprises that are in possession of

significant customer data

4

Subscription, Pay Per Use

Managing customer privacy and ensuring

regulatory compliance

Engagement: MComplexity: M

Asset Based

IndustrialAerospace

Energy

Asset heavy enterprises with

residual capacity

5

Usage based fee, Subscription

Maximizes capacity utilization

Engagement: MComplexity: M

OPPORTUNITY CREATION GROWTH MINDSET PROFITABILITY ORIENTED

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IOT SERVICES LEADERS ARE NOT YET DECIDED

Tier 1 Services Companies

Product Engineering

Mid Tiers

Platform Companies

Technology Distributors

OEMs/ End User Organizations/ OT Players

Tier 1 Suppliers

BPO Companies

Advisory & Management Consulting

Regional/ National System Integrators

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TIME TO ACT IS NOW

Speed is the new currency of business- Marc R. Benioff

Chairman and CEO, Salesforce

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