March 13, 2015 Proprietary and Confidential - 0 -

Warranty Fraud Detection How connection, sensors and data can revolutionize detection & much more

Abhay Mahagaokar Manufacturing Business Unit Head & Senior Vice President

March 13, 2015

March 13, 2015 Proprietary and Confidential - 1 -

Happenings in our world

The Economy continues to be Robust

Focus on costs continue to be robust

Manufacturers seek to improve products & experiences

Newer business models are sprouting

$

Tech disruption underway

Sensor sales growing at 70% annually since 2010

Pervasive connectivity

High power, in-memory computing enabling Analytics

Tech

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Warranty evolution..

Manual Claim process

Administratively Intense

Cost focused

Higher focus on Product Reliability

Warranty Management Platforms

Data Analysis & KPI’s

Process specialization

Reactive to Proactive…Hunch to data driven ’Cross the Chasm’

Reactive

Automated

Integrated

Improved Efficiency

Product reliability emphasized

Repair Database

Smart Products – embedded sensors

Connected infrastructure

Bring together multiple data Sources – claims, social, Machine

Predictive Analytics

‘Smart’ Warranty

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Implications & opportunities

Warehouse & Distribution

Factory

Stores Market

Sense experience & Usage

Reduce Manufacturing Variances

Control Supply chain conditions

Talk to the Product

Data Security & Privacy

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Taking the audit route to fraud

Case study – auto OEM

Manual… Qualitative… Time Consuming

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Addressing fraud

Traditional Business Rules

Pattern identification

Valid Claim Warranty Claims

Claim Engine

Machine data

Fraud Analysis

Auto validated Claim

Pattern based learning

Past

Future

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Addressing Fraud

Data extracted from devices, enterprise systems &

Real Time Platform for processing sensor data

Scalable & Flexible Platform

Historical Intelligence

Automate product registration and warranty period management

Device Provisioning

Streaming Analytics Platform

Clustering Algorithms to evaluate unstructured text

Text Analysis

Traditional Rule Mining for standard anomaly detection

Segmentation of historical event detection

Sequential Rule Mining for Pattern Detection & fraud detection

Machine Learning

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The new warranty approach

Claims Customers Products Policy Campaign RMA Early Warning

Product Engineers

Analysts & Auditors

Service Engineers

Moving From Traditional Warranty Management Solution to an Approach Based on Real

“Product Data”

Infrastructure

Claim Contact Center

Processing Center

Settlements

End User | Retailer | Distributor

Reverse Logistics Provider

Client’s Back-end Intelligence Systems:

CRM, ERP, etc. Service Centers

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The technology construct

Monitoring & Action

Visualization, Alerting

Sensor data analysis and Processing

Sensor Data storage and management Se

curi

ty

Sensor Data Acquisition

Sensors & hardware interfaces

Se

nso

r M

anag

em

en

t

Bil

lin

g

Pro

visi

on

ing

Business Architecture

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The technology construct

Technical Architecture

IoT Gateway Layer IoT Middleware

MQTT-SN

TCP

Service Orchestration

MQ

TT

Me

ssag

e B

rok

er

Stream Analytics

Rule Engine

Data store Management

Event Filter

Middleware Gateway Agent

Data Aggregator

Dashboards

Security

Things/Device Management

Fraud

CAPA

Things DB Alarms/Rules

Machine Stream

Data warehouse

APIs

Apps

Enterprise system

Warranty system

Sensor

(Managed) End Node

Device

End Node 2

Co

nn

ect

or

Ag

en

t

Co

nn

ect

or

Ag

en

t

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Going beyond fraud

Shareholder Value

Remote fixes

Early warning

Improved MTTF

Product Analytics

Add on Services

Supplier Quality & Chargeback

Operating Margin Market Position Revenue Growth

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Call to Action

Sensor requirements

Sensor selection

Connectivity & data infrastructure

Data Analytics approaches

Base Use case e.g. Fraud

Extend Use case – e.g. RCA

Mechanical Modelling

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Reaping the benefits

Ear

ly W

arn

ing

s

Frau

d

Pre

ven

tive

re

solu

tio

n

Qu

alit

y Im

pro

vem

en

t

Inve

stm

en

ts

War

ran

ty C

ost

Indicative Savings

20%

Cu

rre

nt

Co

st

Sta

ck

Imp

rove

d

War

ran

ty C

ost

S

tack

Topline Improvements

Pro

du

ct A

nal

ytic

s

Ad

d o

n

serv

ice

s

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THANK YOU!

www.igate.com

For further details, please email us at marketing@igate.com