1. July 2015, Boeblingen, Germany
Thorsten Schroeer, Director Electronics Industry Europe
Strategy and Business Value
for IoT in Appliance Industry
“A Business Perspective”
www.ibm.com/electronics/iot
#ThorSchroeer

2. © 2015 IBM Corporation2 Electrolux and IBM ConfidentialJune 25th, 2015
View on the IoT Market – It’s a mess

3. © 2015 IBM Corporation
http://www-03.ibm.com/press/us/en/pressrelease/46453.wss
http://www-03.ibm.com/press/us/en/pressrelease/46557.wss
http://www-01.ibm.com/software/info/internet-of-things/iot-prod/iot-announcement.html

4. © 2015 IBM Corporation4
Devices, Data, Cloud, and Insights converge to enable
industry transformation
OperateOperate
Security
MakeMake
EngageEngage
INSIGHTS

5. © 2015 IBM Corporation
Simplified IoT architecture framework
Data Pipeline
Content based message routing, filtering, and transformation, msg monitoring,
Applications
General analytics
Historical reporting, smart
ad-hoc queries
Real time analytics
Streaming
Command &
Control
Actions / feedback to devices
Cloud
Historian
Time series DB, object DB
Connectivity
Messaging, registration, device mgt
Gateway
Edge computing, analytics
Gateway
Edge computing, analytics
Gateway
Edge computing, analytics
Gateway
Edge computing,
analytics
Gateway
Edge computing,
analytics
Devices
Sensors & actuators
Gateway
Edge computing,
analytics
Gateway
Edge computing,
analytics
Devices
Sensors & actuators
Unifiedservicemanagement
Deployment,resourcemgt,orchestration,monitoring,SLAs,
security,metering,servicebasedcharging
Mobile
Mobile apps, connect to mobile web
Visualization
Dashboards, queries, no-code app-gen
Enterprise
Integration
eCommerce
SAP
Content
Data Warehouse
CRM
PLM

6. © 2015 IBM Corporation6
IoT Consortia, Standards and Open Source – Our Experience
Standards and Openness are essential to the growth of IoT
IBM Strategy
• Build on open standards and open source where appropriate
• Participate and lead in relevant initiatives
• Pick carefully, as there are plenty to choose from
The principal groups working on standard interfaces are:
• Smart TV Alliance
• AllSeen
• Open Interconnect Consortium
• Apple Homekit
• Google Weave / Brillo
• Others (HGI, Zigbee)
• Industrial Internet Consortium
• IBM & AT&T
AllSeen Alliance Premier Members

7. © 2015 IBM Corporation7
„Connected Devices should be an
integrated play within manufacturers
digital transformation agenda“
“In IoT what matters most is the data
and insight… not the connected
devices”

8. © 2015 IBM Corporation8
valueConnected Products Maturity Model
Connect to form ecosystem
2. User focus
Extend device function & UI
through connectivity,
commerce, product
extensions, service
transition
Closing the loop: Device
control from the cloud
3. Connected ecosystem
Integrate connected
products into smart home
ecosystems, make platform
available to 3rd parties,
enable P2P relationships
Devices interact with each
other, and with multiple
clouds
4. Intelligent ecosystem
Use cognitive technologies to integrate
connected products into users’ smart
ecosystems, acting intelligently within a
broad device and sensor context
Transform & automate the processes
for which the devices are used.
1. Manufacturer focus
Use analytics to reduce
costs, support R&D,
enhance marketing &
sales, reduce after-sales
service cost
Data flows into cloud for
analytics
Extend product function
Transform & automate living /
business processes
Optimize business operation
leadingexploring
maturity over time
Vision:
Connected intelligent
ecosystem

9. © 2015 IBM Corporation9
9
Connected
Appliance
CA-informed
customer service
Messaging
Platform
Accelerate detection
of production &
quality issues
Diagnostics
& repair
Analytics
Increase first call
complete %
Production
Analytics
Avert unnecessary
part replacement
Partner
Consumables
Warranty Extensions
Replacement
Appliances
Customer
Analytics
•eComm Platform (partner
vendor capable)
•Campaign execution &
management
•Next Best Action
•Price optimization
•Etc.
Customer
Interface
Understand
End Customers
Call Center
Solution
Design based on
extensive use data
Use &
Design
Analytics
Sales to
owners
Portals
Connected Appliances example use cases

10. © 2015 IBM Corporation10
Time to Market
Risk/Complexity/Effort
Low
Long-term Near-term
High
Related Products Sales Legend
Warranty Claims
Reduction
10
Predictive Issue
Detection
First Call Complete
Device as a
Service
Consumables Sales
Service Contracts
Call Center
Efficiency
Unnecessary
Replacement
Size of circle represents
size of opportunity
New Business
Models
Service & Support
Efficiency
Increased Sales
Data as a
Service
Examples of Value Opportunity

11. © 2015 IBM Corporation11
Smart phones and tablets are already the center of our lives
OEM’s connected app can become the center for all home appliances.

12. © 2015 IBM Corporation12
90% of aftersales use cases can be covered in-app
Increased efficiency of all customer communication + added value
Repair &
Maintenance
scheduling
based on
location and
error codes
Proactive
customer Service
based on error
codes
Sensor-based
push
notifications
Equipment &
Replacements
based on error and
usage
Cross- &
Upselling
based on
usage
Remote
control all
devices
View usage
statistics
Marketing
campaigns,
Product
launches

13. © 2015 IBM Corporation13
IBM Strategic Partnerships on consumer domain support IoT
ecosystem

14. TP Vision, what does IBM deliver?
IBM delivers today:
• App Store / Service Portal Development:
– App Store (Legacy / Native Android) development
– Service Portal (Management Portal) development
– Hotel TV Portal development
– OEM Brands: Bang & Olufsen / AOC / Sharp / Gibson
• Platform-as-a-Service App Store - Pay-as-you-Go model, cost per year per
Connected Device (currently running 4M+ Connected Devices)
(=Cloud+Middleware+Application Software+Full Services)
Tomorrow:
– Full Device Management Services with Real Time Data Gathering

15. © 2015 IBM Corporation15
Diehl Controls and IBM extend plattform partnership für device mgt.
www-03.ibm.com/press/de/de/pressrelease/47128.wss

16. © 2015 IBM Corporation16
Big data: unstructured, semi-structured and
structured
Analytics-driven Service & Product Innovation with white goods
manufacturer
Review & rating Click-through Feedbacks via pads/phonesSales records Consumer master
data
Product master
data
Monitoring &
maintenance
logs
Big data: unstructured, semi-structured and
structured
Online data Offline data Connected data
Data Types
Social media…
Call center records…
B2C
e-commerce
Forum,Forum,
Microblog,
Facebook…
ERP CRM
Connected
devices
Data
sourcesSensors
User 360 Product 360
• Demographic
• Geographic
• Socialgraphic
• Behavioral
• Psychological
• R&D
• Production
• Transactional
• In-use
• Maintenance
Indexed
information
FOAK applications
Voice of
Customer
(VoC)
Targeted Marketing
& Sales
Optimization
Preventive
Maintenance
R&D Marketing and Sales After Sales Service

17. © 2015 IBM Corporation17
User data entry to
Chef-Watson for
recipe creation,
using iPad
The Chef-Watson recipe selected
by the user, along with cooking
instructions and the best
appliance settings, is sent by the
IoT Foundation to the Miele range,
via a laptop for protocol
conversion.
Automatic or manual start
of the cooking program
Bluemix
WatsonIoT Foundation
European White Goods OEM - Watson case study

18. © 2015 IBM Corporation18
IBM Research - Connected Home Analytics Service
Hangout H1
Refrigerator
open / closed
3 times in 10 mins.
Kitchen Cabinet
open / closed
7 times in 15 mins.
Toilet flushed
1 time in 10 mins.
Hangout H2
Bathroom Sink used
1 time in 10 mins.
Microwave
open / closed
4 times in 20 mins.
Refrigerator
open / closed
5 times in 20 mins.
Hangout H3
9:00 AM 10:00 AM 11:00 AM 12:00 PM 1:00 PM
Eating Daily Hygiene Eating
Model refinement (ensemble methods: bagging, rule minimization/shadowing)
Auto-Regressive /
Granger Causality
Clustering Frequent Item Set Mining
Random Forests /
Decision Trees

19. © 2015 IBM Corporation19
How should White Goods companies proceed in order to best
capitalize on this opportunity
1. Begin to engage the end consumer in a meaningful
way
2. Figure out how they fit into the emerging smarter
home user experiences
3. Robust systems engineering to enable remote
diagnostics, updates and control of appliances
through “smarts” in the cloud
4. Ensure security to protect brand(s)
5. Select proven partners with IoT breadth and depth

20. © 2015 IBM Corporation
Define architecture, create detailed
designs, conduct testing, and deploy the
platform
IoT Platform Design and
Implementation
Identify key IoT opportunities within
enterprise functions and across the value
chain
IoT Opportunity Assessment
Identify IoT capabilities, assess business
value, and create realization plan
IoT Strategy Accelerator1 2 3
• Core understanding
• Opportunity assessment
• Opportunity prioritization
• Requirements
• High-level architecture
• Detailed design and build
• Testing
• Operations and support
• Industry context
• Current state assessment
• Business value and strategy
• Solutions and technology
• Realization plan
IoT
Assess
ment
IoT
Assess
ment
IoT Strategy
Accelerator
IoT Strategy
Accelerator
IoT Platform Design
and Implementation
IoT Platform Design
and Implementation
Business Value Assessment

21. © 2015 IBM Corporation21
Jump into IoT but watch......
1. Strong IT & Application Plattform
2. Consumer centric and business value driven
3. Openness
4. Standards, Security, Compliance, Integrity,
Governance
5. Global strategy with local deployments
6. Lean and Grow

22. © 2015 IBM Corporation22
My offer @ IFA, 4 - 9 September 2015 in Berlin, Germany.

23. July 2015, Boeblingen, Germany
Thorsten Schroeer, Director Electronics Industry Europe
Strategy and Business Value
for IoT in Appliance Industry
“A Business Perspective”
www.ibm.com/electronics/iot
#ThorSchroeer