Girish AgarwalDirector AiLab : Husqvarna Group

Researcher (KTH): Artificial Intelligence & Business

330 Years of Innovation

Connectivity Hub an virtual organization inside Husqvarna

Group to empower the Digital Transformation

Connectivity Hub, ideation to communicate digital

opportunities and start concept testing

Box concept offers a new business model in

response to evolving end-customer behavior

Flexible, need-

based

availability

Sustainable

consumption

with sharing

economy model

Strengthening

position as

innovation

leader

In line with

strategy to

push battery

products

New customer

groups, incl.

try-before-buy

• Box consists of remote-controlled lockers

• Customers book products via app

• Customer open connected locker via app

for pick-up and return

• Customers get an aggregated invoice

monthly

• Partners service products and manage

daily operations

Digital Strategy : Roadmap

Connectivity

Speed Boats

Advent of Digital Service Platform

NEXTDig i t i za t i on

Trends influencing the industry

New consumer groups, urbanization and change of economic gravity

Battery and electric technology

Digital revolution eg. Big Data, IoT, Robotics

Changing consumer values and purchasing behavior

Environment. Shortage of resources eg. water, raw materials, land etc.

Our response to market trends

SustainabilityDigital

opportunitiesBattery

products

Accelerated Initiatives

We have opportunities to adress customer pain points and

our competitors are active

Strategy: We need to be effective in six key changes to be

relevant until 2020

Software is the

new normal

Direct end

customer interaction

• End-customers expect

personalization

• Enables improved and faster

insights creating new value add

offerings

• Significant adoption of software

driven tools in all markets

• Increased connectivity and data

driven smart software tools

optimizing business

Changing role

of channel

Solutions & services

adopted

• It will be important to build

comprehensive eco-systems to

stay competitive

• Improving offerings to provide

more convenience for the

customers will be important

• The importance of online channels

will increase

• This will change the dynamics

between the channel/OEM/end-

user.

Connected products

New aftermarket models

• Solutions streamlining service and

spare parts will enter the market

• This results in higher transparency

and an increase in service quality

• A significant part of products will

be connected to the internet

• The vast amount of data will be a

key part of doing business

Speedboat initiatives to accelerate digital product and

service journy

1689 Cloud is the digital platformfor co-creating the future of

innovative business ingreen & sustainable

cities and communities

Why?

To enable and continuously enhance all of our digital,

connected and data driven products & service offerings with

added customer value. This so that we can act fast to launch

enhanced and new offerings within our strategic ecosystems to

continuously live up to brand and quality expectations.

Digital Item Master

Big Data Platform

Digital Identity &

Access Management

Item Master

Mobile Application

Framework

Individdual

Product

Registration

Moile

Connectivity

PlatformDelivery

Pipeline Item

Master

Event Bus

API Management

Digital Item Master Registry

EditorialContent

ConsumerContract

Management

Digital SecurityService

EmbeddedSoftware Lifecycle

Management

Dealer Locator

Messaging & Notifications

Online Store

Payment

Service

Tech DocRepository

SubscriptionService

User Product Relationships

ConnectedProduct

Management System

Tool Selector

ConversationalAI

CustomerEngagement

Problem Solving

Husqvarna IoTPlatform

Digital Product Maintenance

Common Services

An Bi-modal IT organization to balance stability and cost with

capability for rapid deploymnet

System Of Innovation

System Of Differentiation

System Of Records

Enterprise IT designed for stability and low cost

DevOps Teams designed for agility, rapid development and short time to market

Competitor advantage

Operational efficiency

Innovation

More than 11 squads

Automower Connect

12 members

Big data

3 members

Fleet services + Fleet mobile

7 + 5 members

Common servicesOmega

9 members

Toolshed

14 members

Common services

Alpha

6 members

Plant library

3 members

Delivery Pipeline

3 members

Uptool

5 members

Cloud ApplDevelopment

2 members

Innovation in ServicesFaster time to Market

contextualize

Digital Item Master

Big Data Platform

Digital Identity &

Access Management

Item Master

Mobile Application

Framework

Individdual

Product

Registration

Moile

Connectivity

PlatformDelivery

Pipeline Item

Master

Event Bus

API Management

Digital Item Master Registry

EditorialContent

ConsumerContract

Management

Digital SecurityService

EmbeddedSoftware Lifecycle

Management

Dealer Locator

Messaging & Notifications

Online Store

Payment

Service

Tech DocRepository

SubscriptionService

User Product Relationships

ConnectedProduct

Management System

Tool Selector

ConversationalAI

CustomerEngagement

Problem Solving

Husqvarna IoTPlatform

Digital Product Maintenance

Common Services

API IoT Data

Cloud Cloud

Our foundational pillars

for digital transformation

Open interfaces that enablinginteroperability and

innovations

Everything to be connected to capturing knowledge and

ability to interact

Analyze & Learn from Data to enhance customer experience

and enable new business models

machine intelligence in action

Hu

sqva

rna

Gro

up

AiL

ab

User Community Universities Start Ups Partners

Branding Framework

- Talent Acquisition &

Retention

Legal Framework

- Terms & Conditions

- Privacy trade-offs

Digital Services Platform

- Artificial Intelligence

- Sandboxes

- Big Data Analytics

- Open APIs

- Developer Portal

Organization

- Operational

- Ideation & Research

- Start-up Team

- COE

- Core Competence

Lab Concept

Modus operandi

Internal Idea capture

Technology evaluation

Academic collaboration

Start up communities

Funnel Management

Scale out

Big Data Lake & Advanced Analytics

Ideation & research

Team structure

AiL

abSe

tup

Funneling

Use Case Design

Business Canvas

Stakeholder Onboarding

Technology solution

Data Pipeline

Sourcing, legal, IP & Compliance

Exploration Qualified Productify

POC Execution

Value Identification

Solution Evaluation

Architecture validation

Multiple Iterations

MVP Iteration

Product Design

Test Group

Industrialization

Service Delivery

Maintenance, Service & Support

▪ Big Data & AI funnel creation through Ideation with all internal & external stakeholders

▪ Ownership for AI Lab Portfolio and Responsible for traction on portfolio and ensuring progress within AI Lab Process

▪ Partnerships proposals w.r.t. Academia & Start-ups communities

▪ Beta Testing with Test Groups.

▪ Internal team coordination with Sourcing / Legal / IP / Compliance

▪MVP Iterations▪ Product / Service Design▪ Industrialization▪ Identity & Access

considerations▪Maintenance, Support &

Service Procedures

▪ Core Data Science & Mining Competence for the Group▪ Big Data & Analytics Technology Platform ownership▪ Solution Architecture for Big Data & AI Common

Services▪ Execution upon the Feature Roadmap as set by AI DBA▪ Process & Framework execution for Data Pipeline▪ Squad Management & execution or Big Data Scrum

Team▪ Sprint Planning & Execution for Big Data & Analytics

Squad▪ Offshore coordinator and management

delivery pillars

governance

platform

resources

maturity framework

AiL

abIn

gred

ien

ts t

o s

ucc

ess

▪ Onboarding New Competencies

▪ GIS BICC Sharing▪ UX Sharing

▪ Data Governance▪ Acceleration Program

Roadmaps▪ Quarterly Momentum

processes

▪ Category Support▪ Prioritization▪ Democratization

▪ Mavenoid▪ DataBricks▪ 20Tree▪ Peltarion

Partnerships

Research

Execution

Go To Market

▪ Growing number of Startups

▪ Platform Functionalities▪ Business Collaboration

▪ AI Value▪ Future Business Models▪ Price Strategies▪ Organizational Readiness

▪ Acceleration Program▪ PoC / PoV▪ Funneling & Pipelining

▪ City Green Index (KPIs)▪ Edge Models on Brushcutter▪ Chatbot on AMC▪ Robotics as a Service

Digital Service Platform

Eco-system strategiesDigital Business Models

Artificial Intelligence Lab

Turning Digital Technology & Innovation

into business opportunities enabling sustainable cities and

communities

Define, Govern and Own a group common digital back-end capabilitiesand architecture, that ensures scalable and maintainable digital services

Actively participate and enable the exploration of eco-systems from a digital perspective as well as empower eco-system thinking and processes

Increase speed of adoption of Artificial Intelligence related technologies as well as being a knowledge center to support and enable the organization to adopt AI

Drive research and business innovation in the area of new and approaching digital enabled business models

Applied Digital Innovation

Use digital to empower customer experience by testing, learning, modifying and scaling out

Way Of Working

Digital Solutions

AiLabs

1689Cloud

Exe

cuti

on

sSp

ear

he

adin

g

Blockchain

RaaS

Green Space Index

Premium Experience

ParkLifeGW/Sensors

Testbench, SmartCity

Ideation/Research

1689Cloud

AI Acceleration Programs

• Conversation AI - Premium Experience

• Predictive & Preventive Analytics

• Geo Surface Intelligence

Factory

Anomaly &

Predictions

Premium

Experience

Geo Surface

IntelligenceEdge AI

ML / Deep

Learning on

Product

Performance

R&D Lab

Support

After Sales

IntelligenceAiL

ab P

roje

ct H

igh

ligh

ts

Geo Surface Intelligence Premium ExperiencePredictive & Preventive

AiL

abG

o T

o M

arke

t

❑Green KPIs✓ Using Satellite Data✓ Identify KPIs & Smart Cities✓ Launch during Silent City

❑City Infrastructure✓ Power Lines✓ Predictive Maintenance✓ Energy Companies

collaboration

❑Park Life✓ Platform for engagement✓ Part Owner✓ CLG✓ Part visitor

❑Brushcutter✓ R15IIAT✓ Edge Model incorporation✓ Startup – Imagimob

❑Drill Feeder✓ Construction✓ Chalmers University✓ ML Model✓ Startup – Ekkono

❑Labs✓ Data Pipeline✓ Regular ML Delivery✓ Engine, Product, Construction,

P&A

❑AMC Chatbot✓ FAQ, troubleshooting

❑Robotics Sales Support✓ Selection & Installation

❑Pepper✓ Internal Use Cases✓ Office Reception✓ Concept Store✓ Dealer Support

❑Robot as a Service✓ Preparation of backend✓ Business Case detailing✓ Concept & Service Design

Why do we

do this

Approach

StartupsNew

Business

Models

Partnerships Resources

Intellectual

Property

Lear

nin

g H

igh

ligh

ts

EXPLORING SMART LIVING

Smart Living centric

Product centric

Garden Smart Garden

Smart Home ecosystems

Husqvarna Connect & Automower Connect

1. Why do we do this (Strategy)

EXPLORING SMART CITIES

Todays Fleet management system could be expanded into a

suite of automated services for Managed Cities, providing an

UBER like service for the “perfect park”.

PRODUCT

CENTRIC

Products only represents

5-7% of total operational

costs

CUSTOMER

CENTRIC

Targeting productivity

improvements services of

total operation cost

TRANSITION

1. Why do we do this (Strategy)

Expanding our Robotic/Smart Systems

Open IoT platform

Expanding into an open and flexible interoperability IoT platforms, will allow consumers

or others to build value by easily integrate the robotic lawnmower or Gardena Smart

devices into Smart ecosystems, and to further expand it by 3rd party solutions.

LOWER BARRIERS

FOR CONSUMERS Delivering an open and

flexible IoT platform, allowing

consumers or partners to

easily build and create value

in their own Smart ECO-

system

RISE BARRIERS

FOR COMPETITORS Become the must-have

Smart garden platform by

unleashing superior values at

an increasing pace thru

+

VISION Creating superior customer

satisfaction to continue to

earn undisputable global

market- and innovation

leadership

=

1. Why do we do this (Strategy)

Autonomous Operation

Today’s robotic and wheeled position can be leverage when

developing the opportunity of autonomous operation, i.e. to take

lead in automating commercial law and park maintenance work.

SERVICE

PLATFORM

Planning, monitoring

and control of

manipulated tasks

AUTONOMOUS

MACHINES

Navigation, automatization

and optimization

of platforms

1. Why do we do this (Strategy)

▪ Knowledge centric, not product centric

▪ No specification to start with!

▪ Based on Continuous learning and improvements

▪ Start small and scale out

▪ Customer in the loop development loop

Way of working: Minimal Viable Products

(MVP) & Multiple Interactions

▪ Research vs Development focus

▪ Models are generated from Data

▪ Mix of Data and Software

▪ Precision and Relevance change over time

2. Different Approach (Learning, Short, Nimble)

3. Startups (Global, Days reaction)

Gradually roll out a series

of AI models on brush

cutters enabling various

functionalities

Automatic, accurate and

timely distribution of insights.

Improving operation

productivity and extending

product longevity

Reducing risks of accidents

• Detect Faults before they occur

• Automatic Alarm for Service

• Usage based on State of the Product

• Measure Cutting equipment Performance

• Number of fell trees

• Fuel & Performance optimization

• Product Misuse tracking

Edge AI Powered Forest Cleaning (Brush cutter)

New Revenue Streams

through Data Driven

Service Offerings

Providing a unique and

strong value proposition to

customers and partners

Strengthening Husqvarna’s

position in pioneering with

emerging technologies

CUSTOMER

4. IP Collaboration (Co-creation)

Smart Cities Green Index

Measurement of “greenness” for cities to build Smart &

sustainable human centric ecosystem.

Motivating and guiding governments, citizens, social

organizations and businesses’ efforts in developing and

maintaining urban green space.

Equivalent to QS

university rankings or

Micheline Star rating

Strengthening Husqvarna’s strategic positioning within the urban

green spaces and sustainable city space

5. Partnership (Eco-System)

Smart City Gothenburg:

Testbed for smart green space maintenance

Starting 2019 we have the opportunity to launch a

unique test environment together with the city of

Gothenburg. The project will run in collaboration with

other external partners aiming to form ways of

working for smart green space management.

• It is a 3 year project

• The project is headed by Göteborgs Stads Rental

• The project is supported by Johanneberg Science Park for

external financing and political guidance

5. Partnership (Eco-System)

Robot-as-a-service

Free up time with Husqvarna Automower® as-a-service taking care of your lawn hazzle free for a monthly fee.As-a-service is our promise to you that the Automower® is always operational.

If it stops or breaks unintentionally we will fix it.

When the season is over we will pick it up, maintain and store it until the grass starts growing again.

With a new offer and business model we can reach new types of customers and by redefining cost structure and financing we can reach new low price points with improved total margin and life time value.

Customer segments:

• Residential garden / Consumers

• Commercial property

• Corporate property

• Municipalities / Infrastructure

• Sports & Golf

• Airports

6. New Business Models

City Infra Planning & Maintenance

Improving decision

confidence thus reducing

risk in infra planning

Improving operational

efficiency thus reducing

cost in infra maintenance

Generating new revenue

streams as a first data-

driven and pure digital

product offering

Making Husqvarna more

relevant within the ”Smart

Cities” space

The vision is to

improve decision

confidence in infra

planning thus manage

risk and enhance

operational

efficiency thus

reduce cost in infra

maintenance.Q4 2019

6. New Business Models

7. New ways of handling Resources

We don’t have all the answers…

… lets find them together!!