Jon Hill InVMA - Real Industrial Case Studies creating Value with IoT

© 2015 InVMA and ThingWorx

As advertised

• Provide an everyday way of thinking about the Internet of Things inIndustry

• Share a simple way of describing the technology stack required forsmart, connected products and some of the issues that are nowbeing overcome by the Tech Industry.

• Propose potential new ways that value will be created by thingscommunicating with people and each other

• He will bring this to life with real examples of additional and“unintended” value created from connecting to a Combined Heatand Power plant in a School.

Example Live ClientsOur Mission is to

“Connect the World for Good”

Founded in 2012 by directors of InControl

True End to End Capability through

Hardware, Software, Process and People

Design, Development and Integration

“The quality of the work they have carried outfor us is reflected in the low call out ratios,minimal warranty costs and satisfied end userson each of the projects for which they providedassistance”

3


Definition

• The Internet of Things (IoT)

• A network of physical objects or "things“

• Embedded with electronics, software, sensors, and connectivity

• Enable objects to exchange data with people, systems or other objects

• The term was coined by British entrepreneur Kevin Ashton in 1999when he was at MIT.

5

PHYSICALWORLD

Traditional Reality: Distinct and Separate

DIGITALWORLD

6

New Reality: Distinct but Inseparable

Digital World Physical World

INTERNET OF THINGS

6

7

Digital Twin Video


What is IoT?

RULES / ANALYTICSENGINE

SMART PRODUCTAPPLICATIONS

IDENTITY ANDSECURITY

PRODUCT DATADATABASE

BUSINESS SYSTEMSINTEGRATION

APPLICATIONPLATFORM

NETWORKCOMMUNICATION

010000101000001110001100100101001100101010110001010000101000001110001100

EXTERNAL INFORMATIONSOURCES

110110010011001011001101001100101000110101000011110110101011100011001000011000010100001010000011100 SOFTWARE

HARDWARE


What does that mean for a product?

Electronics and ControlsAbility to Process

Smart Product

Product CloudDatabase, Application Platform,

Rules / Analytics Engine, Smart Product Applications

SensorsAbility to Sense

SoftwareAbility to Instruct

Enhanced UIAbility to Interact

Mechanical

Smart,Connected

Product

Physical ProductElectrical

ConnectivityOne to One, One to Many, Many to Many

011010101110001100100001100001010000101000001110001101010111000110010000110000101000010100000111001101100100110010110011010011001010001101010000111101101010111000110010000110000101000010100000111000110101011100011001000011000010100001

111000110010000110000101000010100000111000110101011100011001000011000010100001010000011100110110010011001011001101001100101000110101000011110100110010110011010011001010001101010000111101101010111000110010000110000101000010100000111000


#1

Manufacturing industry will be the #1industry sector by share of global economicvalue-add.

– Forecast: The IoT, Worldwide, 2013

Estimated potential economic impact of TheInternet of Things in 2025, range from $2.7 –6.2 trillion annually

– McKinsey Global Institute

$6.2T

Smart, connected products will give rise to the nextera of IT-driven productivity growth at a time whenthe impact of earlier waves of IT has largely playeditself out.

–Harvard Business Review, November 2014

Jim HeppelmannPresident and CEO, PTC

Prof. Michael PorterHarvard Business School

Hype


What conversations would you have?

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Morepeople…I

need cleaning

Morepeople…I

need cleaning

I needrepairI needrepair

I’m at fullcapacityI’m at fullcapacity

I’m using moreenergy than

expected

I’m using moreenergy than

expected

I needrefillingI needrefilling

My water iscorrosive

My water iscorrosive

I detect abio-hazardI detect a

bio-hazard

I’ll raise thebill forusage

I’ll raise thebill forusage

I’vearrivedon site

I’vearrivedon site

Bearingvibration is

rising

Bearingvibration is

rising


What does this enable?Smart, connected products enable new categories ofcapabilities, with each building on the preceding one

1. Monitoring

2. Control

3. Optimization

4. Autonomy

Sensors and externaldata sources monitorthe product condition,environment, andoperation, andalert/notify of changes

Software embedded inthe product or in theproduct cloud controlsproduct operation andpersonalizes the userexperience

Monitoring and controlcapabilities enablealgorithms that optimizeproduct performanceand perform diagnostic,service, and repair

Combining monitoring,control, andoptimization allowsautonomous productoperation, service, andcoordination with otherproduct systems


WeatherSystem

IrrigationSystem

SeedOptimization

System

FarmEquipment

System

FarmManagement

SystemPlatform

Tillers Planters

Tractors

FarmEquipment

System

CombineHarvester

+

++

Product iscomprised ofphysical (i.e.,mechanical,

electrical) andother materialcomponents

Productincorporates

software, sensors,electronics andcontrols, and anenhanced user

interface

Product incorporateswired or wireless

connectivity to exchangedata remotely and

enable new capabilitiesoutside the physical

product

Smart, ConnectedProduct integrates into aproduct system, usuallywithin the same industry,to optimize product and

system performance

Smart, Connected Product iscoordinated across other

products systems, outsidetraditional partners, suppliers,

and industry, to optimizeproduct and system

performance

SYSTEM OFSYSTEMS

PRODUCTSYSTEM

SMART,CONNECTED

PRODUCT

SMARTPRODUCT

PHYSICALPRODUCT

What does this enable?

© 2014 Harvard Business Review, November 2014

14VALUE

New Ways to Capture Value

Opt im izePer formance

Improve R iskManagem en t

ReduceProduc t andServ i ceCos ts

NewRevenueSt reams

Operational

Di f f e ren t i a teOf fer ing

Quickly delivercompelling,differentiatedofferings thatmeet oranticipatecustomerdemands

ElevateCus tom erRela t i onsh i p

Make offeringssmarter, easier toupdate, and morepersonalized toelevate customerexperience

Strategic

Combine real-time data fromassets,enterprisesystems, andpeople toincreaseoperationalefficiency

Improve ability toproactivelyidentify andmitigate financial,safety,environmentaland regulatorycompliance risk

Implementproactive service,limit warrantycosts and risks,and optimizeservice andproductdevelopmentprocesses

Realize newvalue-addopportunities andrevenue streams

Pred ic t i v e-BasedOutcomes

Use predictiveanalytics of bigdata to launchbusinessprocessespreemptively

NewBus inessModels

Maximizerevenueopportunities andvalue capturefrom newservices orbusiness models

Disruptive


New Business Models - Accenture

Source: Driving Unconventional Growth through the Industrial Internet of Things

Copyright © 2014 Accenture All rights reserved.

Single InvoiceTransactional

Subscription BasedOngoing Relationship

Michelin Example





General Electric Example

Client OEM Example

InformationServices

Benchmarking,Analytics, Training

Needs

Demand or ImpactManagement

EquipmentServices

Breakdown andScheduled

Maintenance

PreventativeMaintenance

Air as a Service

Products Compressor Connected Pump

Pre-DigitalProduct Line

Digital Product-Line

New Market

Client OEM Example

Client is moving model from scheduledmaintenance to using predictiveanalytics to manage preventativemaintenance. Next step operatortraining and moving to connecteddemand management with energysuppliers

Auto Example

InformationServices

Share LocationData and Traffic

Conditions

EquipmentServices

Breakdown andScheduled

Maintenance

PreventativeMaintenance

Car as a Service

Products Car Connected Car

Pre-DigitalProduct Line

Digital Product-Line

New Market

Auto Example

Daimler experimenting with Car2Go.Uber in Taxi market, Waze, Mercedesand BMW with connected services

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Service: Diebold Reduces Downtime by 15%

Diebold is a $2.9B provider of integrated

self-service delivery and security systems,

including ATMs

Deployment results:

• Average problem resolution time reduced from3 hours to minutes

• 17% of total issues resolved remotely withouta field service visit

• Overall Opteva ATM downtime reducedby 15%

“With OpteView, I can achieve world-class ATM availability bymaking the most out of a close relationship with a trusted vendor– Diebold .”

– Chad LynchServices Manager, America First Credit Union

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Analyze: Elekta Delivers Preventative Maintenance

Elekta is a $750 million company with

approximately 3,500 employees worldwide.

The company develops sophisticated,

state-of-the-art tools and treatment

planning systems for radiation therapy,

radiosurgery and brachytherapy.

Deployment results:

• >20% of service requests resolved remotelywithout the need for an onsite visit

• Increased system uptime and patientthroughput

• Improved product design through machinereliability data analysis

“By harvesting machine data and using predictive analytics on theusage patterns and life-cycle of the systems, we can pre-positionspares closer to machines where we know that a part is coming tothe end of its duty cycle. This predictive support model trulymaximizes the availability of the systems, providing an enhancedservice experience for the customer and enabling them to deliverimproved patient care .”

– Martin GildayVP of Service, Elekta

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Integrate: GE Power & Water Optimizes 7 Processes

GE Power & Water is a world leader in

power generation and water technologies

for utilities, independent power producers

and industrial applications.

1. Commissioning - Sales Efficiency

2. Contractual SLAs – Higher profitability

3. Training – Employee productivity

4. Remote Monitor, Diagnostics and Service –Fewer truck rolls, less downtime

5. Field Service – higher first time fix rate,faster time to repair

6. Spare Parts – Optimized inventory levels

7. Upgrades and Repair – predictive maintenance

“We are using machine data to build algorithms to predict issuesor changes. Often we see ‘this is different from the majority ofengines’ and that will help us develop an appropriate procedure.”

– Audi LucasGE Power & Water

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Innovate: Joy Global Transforms Business Model

Joy Mining is a worldwide leader in high-

productivity mining solutions that manufactures

and markets original equipment and aftermarket

parts and services for the mining industries.

Deployment results:

• Anticipate equipment failures & efficientlyrespond to problems reducing equipmentdowntime

• Optimize mining processes with new analyticsto reduce the cost of resources & increaseproduction

• Manage the overall mining operation on behalfof the mine owner. Transition from pay perproduct to pay per tonnage of earth mined

“The future gains in productivity will come from systemimprovements, not just the product itself. This requires smartconnected product systems that can monitor and optimize the fullsystem performance.”

– Ted DohenyCEO, Joy Global

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Innovate: All Traffic Captures New Revenue Streams

All Traffic Solutions is the leading

manufacturer of signs used by police

departments and local governments to help

understand and manage traffic.

Results:

• Delivered an innovative solution for lawenforcement professionals called theTraffiCloud

• Faster time to market

• Rapid development of mobile UI

• Advanced data mining that All Traffic can nowoffer its customers

“ThingWorx’s rapid application development environment andscalable platform allows us to extend our solution and deliver newservices to our customers in ways that were previouslyimpossible.”

– Scott JohnsonCEO, All Traffic Solutions


If you don’t move you don’t win

Technology

Jon Hill InVMA - Real Industrial Case Studies creating Value with IoT