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The Four Steps of Digital Transformation Morgan Riley Senior Principal Solution Specialist IoT Device Partners, Microsoft

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Page 1: The Four Steps of Digital Transformation · Embedded of Cloud applications deployed through variety of business models. Initial sale + renewals + ... mobile products, or even

The Four Steps of Digital Transformation

Morgan RileySenior Principal Solution Specialist

IoT Device Partners, Microsoft

Page 2: The Four Steps of Digital Transformation · Embedded of Cloud applications deployed through variety of business models. Initial sale + renewals + ... mobile products, or even

Here’s what we’re covering

Four steps of digital

transformation

Differences between

PaaS & SaaS

P&L opportunities

by partner type

Hear from one our

IoT Partners

Page 3: The Four Steps of Digital Transformation · Embedded of Cloud applications deployed through variety of business models. Initial sale + renewals + ... mobile products, or even

Digital Disruption and the 4th Industrial Revolution

1780s

Mechanized production Mass production Automated production Digitized production

1870s 1970s 2015+

Page 4: The Four Steps of Digital Transformation · Embedded of Cloud applications deployed through variety of business models. Initial sale + renewals + ... mobile products, or even

Digital Transformation

Business Insights Operational Efficiencies

New Business Models

Features and Rev Streams

Sensor proliferation

Data collection, transfer, storage and processing

New insights - understanding product and service more deeply

Process engineering and product engineering improvements

Cost reduction

Time to market reduction

Predictive maintenance

Provision of services alongside devices and hardware.

Devices / hardware / machines delivered “as a service”.

Enablement of ancillary businesses, new businesses and transformed businesses

Page 5: The Four Steps of Digital Transformation · Embedded of Cloud applications deployed through variety of business models. Initial sale + renewals + ... mobile products, or even

Digital Transformation

Business Insights Operational Efficiencies

New Business Models

Features and Rev Streams

Sensor proliferation

Data collection, transfer, storage and processing

New insights - understanding product and service more deeply

Process engineering and product engineering improvements

Cost reduction

Time to market reduction

Predictive maintenance

Provision of services alongside devices and hardware.

Devices / hardware / machines delivered “as a service”.

Enablement of ancillary businesses, new businesses and transformed businesses

Page 6: The Four Steps of Digital Transformation · Embedded of Cloud applications deployed through variety of business models. Initial sale + renewals + ... mobile products, or even

Digital Transformation

Business Insights Operational Efficiencies

New Business Models

Features and Rev Streams

Sensor proliferation

Data collection, transfer, storage and processing

New insights - understanding product and service more deeply

Process engineering and product engineering improvements

Cost reduction

Time to market reduction

Predictive maintenance

Provision of services alongside devices and hardware.

Devices / hardware / machines delivered “as a service”.

Enablement of ancillary businesses, new businesses and transformed businesses

Page 7: The Four Steps of Digital Transformation · Embedded of Cloud applications deployed through variety of business models. Initial sale + renewals + ... mobile products, or even

Digital Transformation

Business Insights Operational Efficiencies

New Business Models

Features and Rev Streams

Sensor proliferation

Data collection, transfer, storage and processing

New insights - understanding product and service more deeply

Process engineering and product engineering improvements

Cost reduction

Time to market reduction

Predictive maintenance

Provision of services alongside devices and hardware.

Devices / hardware / machines delivered “as a service”.

Enablement of ancillary businesses, new businesses and transformed businesses

Page 8: The Four Steps of Digital Transformation · Embedded of Cloud applications deployed through variety of business models. Initial sale + renewals + ... mobile products, or even

Digital Transformation

Business Insights Operational Efficiencies

New Business Models

Features and Rev Streams

Sensor proliferation

Data collection, transfer, storage and processing

New insights - understanding product and service more deeply

Process engineering and product engineering improvements

Cost reduction

Time to market reduction

Predictive maintenance

Provision of services alongside devices and hardware.

Devices / hardware / machines delivered “as a service”.

Enablement of ancillary businesses, new businesses and transformed businesses

Page 9: The Four Steps of Digital Transformation · Embedded of Cloud applications deployed through variety of business models. Initial sale + renewals + ... mobile products, or even

Market offering

• From “MRI Scanner” to “Remote

diagnostics subscription”

• From “Industrial Machine” to

“Machine uptime subscription”

• From “Thermometer” to

“Temperature Control Service”

Profitability

• From hardware margin to

subscription margin

• From capex to capex+opex

Customer relationships

• From transaction relationship to

annuity relationship

• From procurement relationship to

business owner relationship

Transformation in your…

Page 10: The Four Steps of Digital Transformation · Embedded of Cloud applications deployed through variety of business models. Initial sale + renewals + ... mobile products, or even

End Points Security Connectivity Business Consultants

Distributors Developers

IoT Partner Value Chain

Services Regulators

Page 11: The Four Steps of Digital Transformation · Embedded of Cloud applications deployed through variety of business models. Initial sale + renewals + ... mobile products, or even

Suitable for more complex solutions requiring high

controllability, high customization, with low endpoint

volume

IoT … “as a service” models

Suitable for less complex solutions and common

use cases requiring low degree of customization,

with high endpoint volume

Page 12: The Four Steps of Digital Transformation · Embedded of Cloud applications deployed through variety of business models. Initial sale + renewals + ... mobile products, or even

IoT … “as a service” models… in Microsoft

SaaS

Azure IoT CentralFully managed IoT SaaSNo cloud solution expertise required

Built on the same Azure IoT Platform Services

Azure IoT Solution AcceleratorsSolution accelerators for customers with cloud solution expertise and the need to fully customize

PaaS

Page 13: The Four Steps of Digital Transformation · Embedded of Cloud applications deployed through variety of business models. Initial sale + renewals + ... mobile products, or even
Page 14: The Four Steps of Digital Transformation · Embedded of Cloud applications deployed through variety of business models. Initial sale + renewals + ... mobile products, or even

SYNNEX Technology Solutions

Page 15: The Four Steps of Digital Transformation · Embedded of Cloud applications deployed through variety of business models. Initial sale + renewals + ... mobile products, or even

What does this mean?

• General Contractor = Solution

aggregation. Architect, validate, support

• Connectivity piece is cornerstone – if we

don’t connect, it’s not IoT

• Cloud Platforms – if we don’t successfully

store/manage/analyze data, it’s not IoT

• Services – increase margin profile

• Building IP – where we can really make

our money

• Edge Devices = Commodity, low margin,

interchangeable

Public Cloud

+ Basic IPGateways

Ed

ge D

evice

s

Data

Analytics

Advanced ISV

Applications

Connectivity

We become a “General Contractor”

for IoT

Connectivity

Dev Ops + Deploy + Managed

Services + Security

Inte

llig

en

t C

lou

d

Bringing Solutions Together with SYNNEXIntelligent Cloud - Transport - Intelligent Edge

Page 16: The Four Steps of Digital Transformation · Embedded of Cloud applications deployed through variety of business models. Initial sale + renewals + ... mobile products, or even

How the Channel Makes Money in IoT

Data

Premium Application Features

Base Applications

Gateways

Devices (Connected, Edge)

Data

Data collected from all parts of solution. Identify

new business models, key features, customer

behavior, upsell opportunities

Upsell revenue from high-value features identified

by usage data

Embedded of Cloud applications deployed through

variety of business models. Initial sale + renewals +

maintenance

IoT gateways for interoperability, networking, other

functions. Opportunity to license embedded or

server software

Primarily hardware sale. Any software likely a

perpetual licenseServices revenue opportunity relates to every layer.

Flexera. (Producer). (2018). IoT Monetization: Growing a Healthy IoT Business [Video Webinar]. Retrieved from

https://www.youtube.com/watch?v=qdt4to0RJ_A&feature=youtu.be&elqTrackId=36cbed5c582649c78a5e2d0972e5b3d0&elqaid=4121&elqat=2

Page 17: The Four Steps of Digital Transformation · Embedded of Cloud applications deployed through variety of business models. Initial sale + renewals + ... mobile products, or even

SYNNEX Fleet Management Solution

Affordable Tracking

One of the most cost effective solutions on the

market—without sacrificing service or functionality.

Flexible Solutions

A diverse product portfolio with a wide choice in

product size, battery life, and optional add-on

sensors and features.

Tracking for Any Asset

Ideal for any company that has assets that need to

be tracked — whether they’re vehicles, mobile

products, or even fixed goods.

Page 18: The Four Steps of Digital Transformation · Embedded of Cloud applications deployed through variety of business models. Initial sale + renewals + ... mobile products, or even

Management

consoleAzure IoT Hub

Simple plug-

and-play edge

devices

SYNNEX Azure IoT Digital Signage Solution

Hosted in Azure, a single

management console

enables users to customize

and publish content.

The Azure IoT Hub

asynchronously pushes

content from Azure to the

edge devices on each

display

Edge devices that plug into

each display automatically

update signage when

required.

Page 19: The Four Steps of Digital Transformation · Embedded of Cloud applications deployed through variety of business models. Initial sale + renewals + ... mobile products, or even
Page 20: The Four Steps of Digital Transformation · Embedded of Cloud applications deployed through variety of business models. Initial sale + renewals + ... mobile products, or even
Page 21: The Four Steps of Digital Transformation · Embedded of Cloud applications deployed through variety of business models. Initial sale + renewals + ... mobile products, or even

© 2019 Microsoft Corporation. All rights reserved.

Thank you