Presenter: Simon Floyd, Microsoft As intelligent, connected products become pervasive and data are streaming back from the field, there will be profound implications for product design and development across industries. Hear the vision of how these changes will affect the business of engineering and transform the way manufacturing companies deliver value utilizing a combination of cloud, analytics and PLM technologies.

2. Agenda
Impact of the IoT
IoT in PLM
IoT in Aras
Innovator
Microsoft Azure
Next
Steps

3. WHAT IS
THE INTERNET
OF THINGS?

4. Qoros 3. Connected Vehicle
Example “thing”
Joinable with other
devices
Collaborative
Work with other ‘things’
Lifestyle integration
Solve problems
Upgradable
Continuous improvements
Connected services
and capabilities
Services
Predictive maintenance
Fuel efficiency
Trip planning
Safety
Technical Attributes
• Firmware, operating system,
applications
• Telemetry (OBD2, CAN bus),
sensor data
• WiFi, 4G/LTE connection
• Remote computing
Computing
Platform
© 2016 Microsoft Corporation. All rights reserved.

5. The Internet of Things
Circa 2010
© 2016 Microsoft Corporation. All rights reserved.

6. The Internet of Things
Circa 2016
© 2016 Microsoft Corporation. All rights reserved.

7. 25 BILLION
Connected “things”
will be in use by 20201
1. Gartner
2. United Nations
3 things/person

8. BEST SOLUTION
industries:
IoTwill reshape product to
service modelsand transform
customer engagement6
100%
Digital
experiences
accelerate
revenue and
profit8
Revenue Profit
higher than
industry average
20%
-30%
higher than
industry average
10%
Embedded digital functions
will account for half or more
of the product’svalue7
1 2
With IoT, product
development becomesservice
development, where value is
co-created with customers14
Almost three-quarters
say smart products
allow them to interact
directly with customers
for the first time13
74%
CEOs expect
digital revenue
to double over
5 years3
$
41%22%
of CEOs see
agility as a
growing source
of competitive
advantage4
77%
77%
of business
leaders believe that
speed in IT is important
to their ability to enter
new markets and launch
new products quickly5
IT
CxOs see technology
as a way to enable
growth and
differentiation in 20162
Only
manufacturers ready
for new forms of
human-machine
interaction1
48%
This infographic is based on Microsoft analysis of third-party data. Sources include: 1 Cornelius Baur et al. Manufacturing's Next Act. McKinsey. June 1, 2015. 2 Microsoft Corporation. 2015. 3 Mark Raskino. 2015 CEO Survey: Committing to Digital. Gartner. April 10, 2015. 4 CFO Research. The Future of Financial Planning and Analysis: CFO.com. July 14, 2015.
5 Jessica Twentyman. Adaptive IT: Reshaping IT for Competitive Advantage. Corporate Executive Board (CEB). July 10, 2015. 6 Frank E. Gillett. Brief: The Internet Of Things Will Transform Customer Engagement. Forrester Research, Inc.. May 11, 2015. 7 Mark Raskino. CEOs and CIOs Must Assume That Every Industry Will Be Digitally Remastered. Gartner.
August 20, 2014. 8 Tanguy Caitlin et al. Raising Your Digital Quotient. McKinsey. June 1, 2015. 13 EIU. Developing smart products. EIU. June 11, 2015. 14 Jacques Bughin. An executive’s guide to the Internet of Things. McKinsey. August 1, 2015.

9. THE BIG SHIFT
TO INCREASE QUALITY OF LIFE
AND OVERCOME CHALLENGES
SOLUTIONS

10. Data is the
fuel for
innovation

11. Rolls-Royce RB211 (1977)
15 x EHM Sensors, 200 Parameters
2MB/hour/engine
96MB 12 hour flight, <800MB fleet wide/day
High latency manual data acquisition
Rolls-Royce Trent 1000 (2011)
30 x EHM Sensors, 1000 Parameters
15MB/engine/hour
360MB 12 hour flight, >8GB fleet wide/day
Low latency connected aircraft
Images © Rolls-Royce plc https://www.flickr.com/photos/rolls-royceplc/
© 2016 Microsoft Corporation. All rights reserved.

12. © 2016 Microsoft Corporation. All rights reserved.

13. IoT
PRODUCT LIFECYCLE?

14. Microsoft AzureINNOVATOR®
a r a s

15. Testing/
Certification
AssemblyManufacturing/
Supply Chain
Design Delivery Revenue Flight Maintenance
Design data informs production processes
Performance data influences design decisions
Test and certification data for validation or change
Design data used to create maintenance instructions
Maintenance data improves testing procedures
Maintenance data influences design decisions
Predictive maintenance
Flight optimization
End of life
Civil Aviation Product Lifecycle
Data reuse opportunity
© 2016 Microsoft Corporation. All rights reserved.

16. Aircraft (On-board) Data Systems
Aircraft Quick Access Recorder (QAR) data
Aircraft Computerized Maintenance System (ACMS) reports
Enterprise Data
Flight schedule
Maintenance schedule
Detailed flight plans
Technical maintenance logs
Aircraft delay records
Data
Services
Weather
Maps
Aircraft Data for Product Design
Raw data into insights, and action
Data Ingress,
Egress
Data Storage,
Security
Event Processing Analytics Platform
Microsoft Azure
ANOMALY DETECTION
REMAINING USEFUL LIFE
PERFORMANCE
MAINTENANCE EVENTS
IMPACT
AS DESIGNED
AS PLANNED
AS BUILT
AS MAINTAINED
ECR/ECO, MCO
REQUIREMENTS
BOM
© 2016 Microsoft Corporation. All rights reserved.

17. AS DESIGNED
AS PLANNED
AS BUILT
AS MAINTAINED
ECR/ECO, MCO
REQUIREMENTS
BOM
Use Case Airframe Fuel Pump
Performance and prediction leads to change
A SN #6
C
I SN #6
L SN #94
J
N
H
M
IOT1
© 2016 Microsoft Corporation. All rights reserved.

18. Solution Architecture
Connecting data from IoT and Aras Innovator
Azure IoT Suite
Gateway Hotpath Analytics &
Business Logic
Batch Analytics & Visualizations
Things
Web browser
Microsoft cloud
On-premises data
Mobile appsAnalyst tools
© 2016 Microsoft Corporation. All rights reserved.

19. © 2016 Microsoft Corporation. All rights reserved.

20. The big challenge: Design for IoT
Create differentiation and value from the start
In a solution centric world IoT can
• Foster innovation, drive enhancements, increase
quality and reliability via insights
• Solve more problems through function and
feature upgrades
• Increase customer loyalty
© 2016 Microsoft Corporation. All rights reserved.

21. Devices Device Connectivity Storage Analytics Presentation & Action
Event Hubs SQL Database
Machine
Learning
App Service
Service Bus
Table/Blob
Storage
Stream
Analytics
Power BI
External Data
Sources
DocumentDB HDInsight
Notification
Hubs
External Data
Sources
Data Factory Mobile Services
BizTalk Services
{ }
Azure IoT Suite
Capabilities
© 2016 Microsoft Corporation. All rights reserved.

22. Finish with your Internet of
Things application
Start quickly with
preconfigured solutions
Modify existing rules and alerts
Fine-tuned to specific assets and processes
Integrate with back-end systems
Highly visual for your real-time operational data
Get started in minutes
Add your devices and begin tailor to your needs
Tailor Azure IoT Suite
Use preconfigured solutions to get started quickly
© 2016 Microsoft Corporation. All rights reserved.

23. Businesses benefiting from Azure for IoT
Accelerating growth through digital transformation
© 2016 Microsoft Corporation. All rights reserved.

24. http://www.microsoft.com/en-us/server-cloud/internet-of-things/azure-iot-suite.aspx
http://www.microsoft.com/en-us/server-cloud/cortana-analytics-suite/Overview.aspx
https://dev.windows.com/en-US/iot

25. Simon Floyd
@floydinnovation
http://aka.ms/mfgblog
http://www.microsoft.com/industry
THANK YOU!