THE EVOLUTION OF NEW DIGITAL SERVICE MODELS IN THE MANUFACTURING INDUSTRY

IoT Tech Expo Europe 2019

Jürgen Brixel - Senior Director Industry GTM, EMEA

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Statement under the Private Securities Litigation Reform Act of 1995

Forward-Looking Statement

4th Industrial Revolution

3rd Industrial Revolution2nd Industrial

Revolution1st Industrial Revolution

SteamElectricity

Computing

Connected

We Live in a Connected WorldDriving increased customer expectations

Gartner estimates that there will be

more than 20b connected “things”

by 2020 20B

Source: Gartner, “Hype Cycle for the Connected Home, 2018,” 30 July 2018

IOT - Where Investments will be made

Increase customer satisfaction Improve qualitySupport new business models

(e.g. data-driven services) Reduce costs

Companies likely to spend some €250bn in IoTBCG Study: Winning-in-IoT

Services and IoT Applications and Analytics will capture some 60% of IoT Spending

Business leaders will use IoT to solve business challenges:

IoT Investments Business Applications

There is no easy way to connect IoT infrastructure to business applications

The Challenge with Most IoT Strategies Today

Any IoT Platform

Internal Data Silo

IoT Data with Customer Context Powers Proactive ServiceAgents and mobile workers easily take action on key product data

Any IoT Platform

Agents and Mobile Workers

Customer Experience

Connected Devices

Proactiveservices Usage

analytics

24x7Diagnostics

Efficiencyupdates

- Engagement Platform -

Empower Teams to Deliver Proactive Service

Lightning Service Console

Field Service Lightning

Anticipate and Remotely Diagnose Issues

Identify problems before the customer and dispatch the right mobile worker

Foresee Problems and Fix Devices Onsite

Arrive in the field with the right tools and knowledge, reducing downtime

Automate Case and Work Order Creation

Easily connect IoT and customer context and create rules with the #1 service platform

Customer Satisfaction+32%

Source: Salesforce Customer Success Metrics Survey conducted 2015-2017 among 7,000+ customers randomly selected. Response sizes per question vary.

Event Insights

Success Story I

Multinational Elevator Manufacturer

“Keep People on the Move“

KONE Keeps People on the Move with Salesforce

Global leader in manufacturing and servicing elevators, escalators and building doors

Wanted improve sales efficiency and productivity by automating workflows

Needed a single, unified platform for delivering field service to customers globally

“Salesforce has been a guiding light, showing us what is possible when you model everything around the customer.”Henrik Ehrnrooth, President & CEO

360-degree customer view helps KONE provide a consistent customer experience

Automated workflows drive sales productivity

Service teams help improve equipment safety and reliability with Field Service Lightning

KONE will drive better customer outcomes with more predictive service powered by insights from Einstein and IBM Watson

Challenge Solution

P Sales Cloud

Service Cloud

Marketing Cloud

Community Cloud

Platform

450kcustomers served by KONE globally

Monitoring 1.1m Elevators & Escalators

Challenge

Global monitoring needs to get enriched by a single, unified platform to deliver field service to customers globally

Service Innovation

Customer Call Centre, Help Desk and Technicians will receive theinformation from analytics - to provide the right service

STANDARD SERVICE NEEDS (DIRECTLY TO TECHNICIAN, TO BE DONE DURING NEXT MAINTENANCE)

URGENT SERVICE NEEDS (HELP DESK ANALYSES & DISPATCHES DURING OFFICE HOURS)

STOPPED EQUIPMENT IMMEDIATE SERVICE NEEDS (CALL CENTRE DISPATCHES 24/7)

Extra check

needed

Fast action might

be needed

Immediate action

needed

Service needs

are additional

information for

Technicians

enabling them

to address the

specific needs

of each

customer’s

equipment

Success Story II

Global Sensor Manufacturer

”From Disconnected to Connected Products & Customers”

Use of IoT data to create great customer experiences

Traditional Sensor BusinessTurning Disconnected to Connected Products

Netilion ServicesPlug and play connectivity and productive usage with ease

Netilion ServicesAsset overview and integrate After Sales Support

New Digital Services

IIoT Architecture & Technologies All Used in a PaaS Model

Success Story III

International Printing Machine Manufacturer

“New digital services and predictive maintenancecapabilities“

PROACTIVE SERVICE

Predict failure & reduce unplanned downtime

UNLOCK UPSELL/CROSS-SELL

Turn every customer interaction into more value

NEW BUSINESS MODELS

Providing product-driven services to grow the business

PRODUCT 2.0

Improved product development based on usage

Monetize new digital services by bringing the power of CRM to every ABB productSmart Services - Monetize on Data

The Future Manufacturing Customer Experience

Customer Community

Asset Performance & Case Management

Customer Community

Installed Base and Performance Reports (Press)

OEM View

Predictive Maintenance - Industrial Analytics

End-2-End, IoT based Service ProcessIncrease availability and eliminate unplanned downtime of our customers’ devices

Service Agent Field Technician Customer

Get a complete view of the Case and device situation

Fix problem remotely or create a Work Order and schedule a

field technician

Reliable productionPerformance improvement

Pro-actively care for the assets before they fail

Perform guided repair during planned downtime

Failure detection prior to its occurrence

Automatic root cause analysis to derive necessary spare parts

and tools

Press

How to get started

Customer

Success

Platformfor Manufacturing

Connected Products and

OperationsIndustrial Back Office

Customer 360

Introducing

IoT Apps on the AppExchangeGet started quicker with IoT

Subtitle text

Turn Connected Devices Into Proactive Service

Case, Work Order, Lead

(Flow, Process Builder) + Einstein

OUTPUTSTake Action in Salesforce

INPUTS Ingest data from

anywhere

EVENTSBuild 360° views of

customers and devices

FLOWTranslate business goals into action

State MachineRules Engine

Platform Event

Salesforce ObjectContextual Data

IoT PLATFORMS

PlatformAgnostic

CONNECTED DEVICES

Application EnablementDevice ManagementEdge Infrastructure

ConnectivitySensors

Assist Employees with Intelligence

Lightning Flow

for Service

Einstein Case

Classification & Article

Recommendation

Einstein Next

Best Action

Service Cloud Einstein & Lightning Flow for Service

Raul Haynes

Corporate VP, Enterprise CRM

New York Life Insurance

+32%agent productivity

Source: Salesforce Customer Success Metrics Study, 2017

Industry Use Cases

Engage Customers With IoT Use Cases Tailored To Your Industry

IoT Solutions For Industry

Preventative maintenance of field assets

Smart metering, inspection and measurement

Fleet management

Medical device maintenance and service

User onboarding and experience engagement

Schedule and delivery of in home healthcare services

Manufacturing

Proactive customer care and field service response

Recommend sales and replenishment of consumables

Monetize products as a subscription service based on uptime/usage

Energy & Utilities Health/Life Sciences

500,000 customers

x 1.2 calls per customer annually

x $10 processing costs per service call

x 25% reduction in service calls

$1,500,000 cost savings

500,000 customers with 80% retention

x $300 per customer

x 10% improvement in retention

x 30% gross margin

$900,000 cost savings

Proactive Service

Sample Value Calculation

Reduce Customer Attrition Reduce Costs to Serve

↑ Customer Experience

↑ Service Revenue

↓ Service Cost

Modernize Support & Field Service tools

Transform Your Business with IoT

Do More TodayReactive Service

Reshape TomorrowProactive Service

Transform the FuturePredictive Service

Deploy IoT

Deliver Preventative Maintenance

Get Smarter with Artificial Intelligence

Deliver Predictive Maintenance

Explore AR, Prescriptive Service, Etc

Deliver Contextual Service