Connected Service: Leveraging M2M and IoT Data to Create Proactive 1:1 Customer Engagements

Connected Service Leveraging M2M and IoT Data to Create Proactive 1:1 Customer Engagements

in Sales, Customer Care, and Field Service Prof. Dr. Michael J. Capone Principal Business Analyst, DCX [email protected] +49 151 4025 2836

Status Quo -‐ Reactive

The common post-‐purchase practice today in many sectors is to respond (react) to inquires and requests from the customer or consumer. Academically speaking, it´s too late.

Status Quo M2M and IoT Systems are Immature

Copyright © Capgemini 2013. All Rights Reserved

3 Connected World DF14.pptx

Only 19% of manufacturers can acquire data from their products and 15% actually do. 9% analyze product data periodically and 5% use the analysis to trigger follow-‐up activities. Only 3% of manufacturers acquire, analyze and act in near-‐time.

Connected Service Principles

1.  Products do not suddenly fail.

2.  The data generated by connected products can be used to create a competitive advantage. It´s “internal data”. The product can report faster and more accurately than it´s human operator.

3.  The full value of internal data is realized when the data is analyzed and used in near-‐time to trigger specific one-‐to-‐one customer interactions in sales, service, and customer care.

4.  Anything can be a connected product. Cars, machines, wind turbines, street lamps, trees...

Connected Service | Full Circle IoT

Performance and usage data is acquired and transmitted every x seconds.

Data from many connected devices is aggregated and stored. 1 MB new data per day.

When the data indicates an issue that can cause a problem, a case is created and assigned to the proper skill.

Interventions are performed to resolve the issue: 1.  Customer Care provides the

operator tips and instructions,

2.  Sales proactively sends the customer offers and orders, and/or

3.  Technical Service is dispatched to perform maintenance or repair.

Connected Service uses M2M and IoT data in real-‐time to trigger a

1:1 post-‐purchase, proactive dialog with the customer.

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The resolution is recorded. Outages and accidents are prevented, sales captured, and customer dissatisfaction eliminated

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Data is analyzed in real-‐time to identify issues.

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Solution Layer Description Technology Partners

A1. Acquisition Sensor modules extract system logs or operating data from machines or vehicles and transmit wirelessly.

A2. Aggregation The data from muiltiple machines or vehicles collected and stored. Up to 1 TB / day / machine.

A3. Analysis Data is interpreted. Data that indicates a sales opportunity or service issue/problem are synchronized to SFDC.

A4. Assignment A case is created and assigned to a representative in sales or service.

A5. Action The assigned representative in sales, service or customer center receives an alert to take certain action. The representative records activities.

Connected Service | Reference Architecture



Connected Service | Combine Use Cases

Business Case Manu Auto Trans Energy

Predictive Maintenance Improve Uptime !!!!! !!!!! !!!!! !!!!!

Improve Customer Satisfaction !!! !!!! !!! !!

Improve Efficiency !!!! !! !!!!! !!!!!

Enable Predictive Ordering/Selling !!!!! !!!!! !! !!

Optimize Resources !!!! !! !!!!! !!!!!

Enhance Safety !!!!! !!!! !!!!! !

Lower Environmental Impact !!! !!!!! !! !!!

Steer Product Development !! !!! !

Enable New Revenue Models !!!! !! !! !!!

Business Cases | Automotive



Productivity „Change the fan belt in 6 days to prevent A/C from

failing.“

Enviroment. „Improve your fuel efficiency by shifting before 2.200

RPMs.“

Performance. „Extend the life of

your vehicle and get more power by using higher octane fuel.“

Performance. „Deactivate ECO Mode to get more power for

passing.“

Safety. „Avoid another accident by maintaining a

5 meter distance.“

Service. „Stop ahead. Roadside

assistance is behind you.“

Sales. „Upgrade to a 5 series to get the

performance you need.“

Economy. „Save money by down-

shifting instead of breaking.“

Sales. „Change your tires in 2 weeks to get improve performance and ensure safety.“

Service. „Add coolant to prevent

over-heating.“



Performance. „Improve output 2% by opening air

vent „A.“

Sales. „You need a new A27 fuse in 96

hours.“

Safety. „Avoid accidents by closing

the lid before activating the

machine.“

Environment & Sales „Decrease emissions

by using our new synthetic lubircant.“

Productivity. „This module will fail in 7

hours. A service technician is already

on the way.“

Productivity & Sales. „Your hopper will be empty in 3 hours.“

Efficency. „“Combine parts in trays to reduce

tray inventory and reduce conveyor

usage.“

Service & Sales. „Order parts or schedule service. This module has not been

turned on in 2 days.“ Safety & Productivity.

„The unit will over-heat in 3 hours. Add coolant or turn-off.“

Safety. „Schedule training. This unit is not

being operated properly.“



Safety. „Propeller B is oscilatting and

requires re-balancing.“

Productivity. „Service required. Unit is

outputting 3% less energy than comps.“

Efficiency. „Service required. This unit

outputting 7% less energy than comps.“

„Safety. Beacon light will fail in 64 hours.“

Service. „Ventillation required. Nacell

temperature increasing.“

Connected Service | New Revenue Models

•  Priority SLAs. The SLA or guaranty of the future will be pre-‐emptive. Instead of a 24 hour response time, the manufacturer will offer to service a product before it breaks and before the customer repotrs an issue. This service level will have a price.

•  Personalized Rates. Companies will offer pay-‐for-‐use, where price or rates reflect actual usage and behavior. Customers will opt-‐in to save money.

•  Factory-‐as-‐a-‐Service or Product-‐as-‐a-‐Service. Products will be free. The company will replace (or complement) the one-‐time sale of a product with recurring revenue to support the customer. Customers will subscribe to services in order to get tips to save fuel, improve performance, lower operating costs, and prevent accidents.

•  Data Remarketing. Products will be free. The data generated by the product will be packaged, sold and re-‐sold to third-‐parties. This revenue will more than offset the cost of the product, because it is recurring, and the marginal cost of the data is almost zero.

Connected Service | Live Demonstrations



Presence of BING indicators

triggers an intervention, i.e. assignment and action.

Presence of BING indicators triggers an

intervention, i.e. assignment and action.

Data is aggregated and analyzed in real-‐time to identify BING indicators.

Consumer behavior is monitored, i.e.

acquired.

Connected Store | SmartPOS

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The information contained in this presentation is proprietary. Copyright © 2013 Capgemini. All rights reserved.