Market experts and leading analyst firms predict that we’ll see the number of smart connected things grow from ~2B today to over 50B within the coming decade. The introduction of these new smart, connected things enable functional variability to shift from the physical design to the digital smarts that are being embedded in the “thing”. This explosion of smart, connected things provides both their creators and users (consumers and enterprises) with endless opportunities to continually monetize features, options, usage and data over the lifetime of the “thing’s” operation. Come to this session and see how PTC and Zuora are helping businesses capitalize on these important new revenue streams through a live demo.
3. Agenda
• The Internet of Things
• New Ways to Capture Value
• Driving Commerce with Smart, Connected
Products
• Driving Commerce with Data Brokering
• Start Your Connected Journey with PTC & Zuora
4. 5
The Internet of Things
By 2020, experts predict there will be 50 billion “things” connected to the Internet
Confidential and Proprietary - Not for Distribution
5. 6
THINGS are Changing
Weather Data
System
Irrigation
System
Seed
Optimization
System
Farm
Equipment
System
Farm
Management
System
Platform
Rain, humidity,
temperature
sensorsWeather
maps
Weather
forecasts
Weather data
application
Farm performance
database
Seed database
Seed optimization
application
Field
sensorsIrrigation
nodes
Irrigation
application
System Of Systems
TILLERS PLANTERS
TRACTORS
Farm
Equipment
System
COMBINE
HARVESTERS
Product System
+
+
Smart, Connected
Product
+
Smart
Product
Product
The changing nature of products is disrupting
value chains, forcing companies to rethink and
retool nearly everything they do internally.“
6. 7
Smart Connected Systems
Smart Farms, Smart Cities, etc.
Smart, Connected Products
Remote Service, Ops &
Analytics
Smart, Connected Operations
Brilliant Factory/Industry 4.0
Change is Everywhere
7. 8
Manufacturers are Positioned to Capture the Value
Confidential and Proprietary - Not for Distribution
#1
Manufacturing industry will be the #1
industry sector by share of global economic
value-add.
– Forecast: The IoT, Worldwide, 2013
Estimated potential economic impact of The
Internet 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 next era of
IT-driven productivity growth at a time when the impact of
earlier waves of IT has largely played itself out.
–Harvard Business Review, November 2014
Jim Heppelmann
President and CEO, PTC
Prof. Michael Porter
Harvard Business School
8. 9VALUE
New Ways to Capture Value
Optim ize
Perf orm ance
Im prove Risk
Managem ent
Reduce
Product and
Service Costs
New Revenue
Stream s
Operational
Dif f erentiate
Of f ering
Quickly deliver
compelling,
differentiated
offerings that
meet or
anticipate
customer
demands
Elevate
Custom er
Relationship
Make offerings
smarter, easier to
update, and more
personalized to
elevate customer
experience
Strategic
Combine real-
time data from
assets,
enterprise
systems, and
people to
increase
operational
efficiency
Improve ability to
proactively
identify and
mitigate financial,
safety,
environmental
and regulatory
compliance risk
Implement
proactive service,
limit warranty
costs and risks,
and optimize
service and
product
development
processes
Realize new
value-add
opportunities and
revenue streams
Predictive -
Based
Outcom es
Use predictive
analytics of big
data to launch
business
processes
preemptively
New
Business
Models
Maximize
revenue
opportunities and
value capture
from new
services or
business models
Disruptive
10. 11
Sysmex Innovates Service Offerings with ThingWorx
S o l u t i o n
• ThingWorx Platform is enabling Sysmex to
expand their service offering dramatically
while significantly lowering costs.
• Direct, real-time connections for
delivering next-generation support
applications.
• Rapid problem resolution using
enhanced collaboration and use of
remote and systems data
• Ability to quickly iterate their value-
add applications to take advantage
of changing market and customer
R e s u l t s
• 5-10x improvement in internal
application development team
utilization.
• Improved equipment uptime
(through faster decision
response time)
• improved labor utilization
through collaborative
information exchange
Sysmex is a global leader in the design and development of high-
quality, reliable, and innovative clinical diagnostic equipment and
information systems (blood and urinalysis equipment). They
generate 10% of their overall revenue through services offerings.
I n i t i a t i v e s
• The intense competition in the
medical device market, especially
in the US, is demanding a higher
level of customer service at lower
costs.
• With the current technology,
Sysmex had an inability to scale as
their business scaled and deliver
the value-add services that they
need to stay ahead in their market.
11. 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 & efficiently respond
to problems reducing equipment downtime
• Optimize mining processes with new analytics to
reduce the cost of resources & increase
production
• Manage the overall mining operation on behalf of
the mine owner. Transition from pay per product
to pay per tonnage of earth mined
“The future gains in productivity will come from
system improvements, not just the product
itself. This requires smart connected product
systems that can monitor and optimize the full
system performance.”
– Ted Doheny
CEO, Joy Global
Innovation: Joy Global Transforms Business Model
12. 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 law
enforcement professionals called the TraffiCloud
• Faster time to market
• Rapid development of mobile UI
• Advanced data mining that All Traffic can now
offer its customers
“ThingWorx’s rapid application development
environment and scalable platform allows us to
extend our solution and deliver new services to
our customers in ways that were previously
impossible.”
– Scott Johnson
CEO, All Traffic Solutions
Innovation: All Traffic Captures New Revenue Streams
13. IoT App Store
• Accelerates platform
adoption through global
sharing of IP
• Improve IoT solution time-
to-market through
application “assembly”
• Creating additional
revenue streams for Apps,
Extensions, etc.
14. 15
Start Your Connected
Journey with PTC & Zuora
Create your IoT Strategy using
the IoT Value Roadmap
Select the IoT Platform & Subscription Billing Platform
Creating Value in a Smart,
Connected World
15. 16
26 Key IoT Use Cases Across Business Functions
MARKETING /
SALES
PRODUCT
DEVELOPMENT
OPERATIONS /
MANUFACTURING
SERVICE /
SUPPORT
INFORMATION /
OPERATIONAL
TECHNOLOGY
CUSTOMER
Rapid IoT Application
Development
Customer Insights
and Opportunities
Connected Product
Usage Analysis
Flexible Billing and
Pricing Models
New Value Added
Services
Connected Product
Quality Analysis
Connected Software
Management
Customer
Self-Service
Usage and
Performance
Dashboard
Product
Personalization
Connected
Operations
Intelligence
Unified Key
Performance
Indicators
Real-Time Asset
Health Monitoring
Operations
Management
Improvements
Asset and Material
Tracking
Monitoring and
Diagnostics
Remote Service
Condition-Based
Predictive
Maintenance
Automated Service
Execution
Warranty Cost
Management
Connected Service
Parts Planning
Flexible Product and
Asset Connectivity
Identity and Security
Management
Scalable IoT
Operations
Management
Seamless IoT Data
Integration
Automated Analytics
and Actions
16. 17
Network Communication
Product Data Database
Application Platform
Rules/Analytics Engine
Smart Product Applications
Implications on Technology Requirements
Identity &
Security External
Information
Sources
Digital PRODUCT CLOUD
Product Hardware
Product Software
Physical PRODUCT
Integration
with Business
Systems
COMMUNICATIONS
17. ThingWorx is the 1st Application Platform for the Connected World™ – one
that combines the key functionality of Web 2.0, social media and Connected
Intelligence™, and applies it to any process that involve things.
18
Relationship Business Management
20. 21
About PTC
Transforming how customers…
…smart and connected products, operations and systems
Next-generation technology platforms
and enterprise applications
CREATE CONNECT SERVICEOPERATEANALYZE
21. 22
PTC IoT Leadership
Our Customers: Leading Companies in Many Industries
23
years of helping manufacturers
deliver market winning products &
service
30k
unique manufacturing companies do
business with PTC annually
100s
of production IoT customers fuel our
experience and best practices
Innovation leadership
built on providing
technology solutions
that help transform the
way companies create,
operate and service
products
1000s of IoT engagements driving
22. 23
Visit our web resources
• Read customer success stories
• Gather analyst and academic insights
• Watch videos and interactive demonstrations
Request an Innovation Workshop
• Plan for Growth and Innovation
• Define and Prioritize Use Cases
• Examine Your Customer Value Proposition
• Outline Implementation Options
Contact Your PTC Account Manager
Learn More
25. 26
Manufacturing Leads IoT Transformation
#1
Manufacturing industry will
be the #1 industry sector
by share of global
economic value-add.
– Forecast: The IoT, Worldwide, 2013
Automated Service
Remote Service
Self Service
Predictive Maintenance
Product as a Service
Marketing / Lead Generation
Account Management
Up-sell, Cross-sell
New Offerings / New Markets
Connected Manufacturing Intelligence
Consumables
Asset Tracking & Management
Design for Continuous Innovation
Usage-based Requirements
Analysis
Remote Software Management
Connected Quality
Usages-based Billing
Subscription Services
Warranty Management
Point-of-Sale Payments
26. PTC Technology Platforms &
Enterprise Applications
Technology Platforms
Augmented
Reality*
Digital
Twin*
*Beta
Internet of Things
Predictive Analytics
for Big Data
Connectivity
Device Cloud
Application Enablement
Marketplace
Composer
Converge
Enterprise Applications
27
CAD
PLM
ALM
SLM
Notas del editor
1/3rd view
The easiest way to think about the Internet of Things is to break it down into three fundamental components.
The first component are the smart connected products, sensors and other things.
They are connected via an Internet like communications infrastructure via wired or wireless connectivity
Finally to a computing infrastructure that captures and analyzes the data and creates new forms of value via new business applications
The phrase “Internet of Things” has arisen to describe the growing number of products connected to the Internet and reflects the new opportunities they represent. Yet this phrase is not a very helpful in understanding the phenomenon or its implications. The Internet, whether involving people or things, is simply a mechanism for transmitting information. What makes the third wave transformative is not the Internet, but the changing nature of the “things” – the products themselves. It is the new capabilities of smart, connected products and the data they generate that is ushering in a new era of competition.
Smart, connected products not only impact the competitive intensity and therefore attractiveness of an industry, but also the boundaries of the industry.
The boundaries of competition can shift as functionality expands from one discrete industry to a broader system of products.
In this example, we follow the expansion from the farm tractor industry where the manufacturer is responsible for the performance of the product, to the farm machinery system industry where you're tying together the farm tractor, tiller, and harvester products together to optimize the performance of the planting and harvesting, to the smart farm industry where you're getting weather data feeds, working with the seed companies, commodity future, and all of a sudden the seed companies become part of the industry, and weather tracking becomes part of the industry. The result is that the boundaries of each of these industries are permeable and in a state of flux.
Now I think there's been a tendency in the popular press to jump all the way from, the farm tractor industry to the smart farm industry.
[Widening] boundaries can put a farm tractor company well outside their core competencies, because now there are smart farm companies who look like software companies and don't even build tractors.
That is what will enable you to dramatically transform how you create, operate, and service products.
And that, in turn, will be the basis for your own product and service advantage.
This phenomenon is commonly referred to as the Internet of Things.
And according to global consulting firm McKinsey as much as $6.2 trillion in global economic value will be generated by this trend over the next ten year. As a point of reference, that’s about ten times as much economic value as the firm expects will be created by 3D printing.
According to Gartner the verticals that are leading the adoption and accrual of economic value-add (which represents the aggregate benefits that businesses derive through the sale and usage of IoT technology) are manufacturing (15 percent), healthcare (15 percent) and insurance (11 percent).
According to Cisco we’ll see as many as 50 billion of these things connected to the Internet by the end of this decade and as John Chambers described all of these connected devices and the volumes of data they generate will require a huge volume of new business applications that can deliver the right insights to the right people at the right time.
Axeda ServiceLink enables Diebold to expand the level of its service and support offerings to include predictive maintenance, software version control and remote monitoring and notification. This tool helps Diebold maximize ATM availability and increase customer satisfaction, while aiding product and engineering development with data on hardware and software performance. OpteView can be also used with existing monitoring systems.
Here is the EMC background information.
Questions or clarification contact Bradley Rhoton, brhoton@ptc.com.
EMC’s legacy systems lacked the functionality necessary to maintain the level of service its customers had come to expect. The company was dealing with multiple new product introductions across many different product lines and struggling to strike the balance between keeping costs down and maintaining the service parts inventory needed to support product launches. EMC also struggled with monitoring forecast accuracy and looking for forecast abnormalities for new product introductions. Further complicating the problem was the need to deal with the end of each product life cycle. Accurately planning “last-time buys” of parts, which accomplishes the goal of cost effectively maintaining high service levels, is a challenge that only service-focused companies particularly appreciate.
After evaluating several traditional supply chain solutions, EMC determined that PTC was the only vendor with the expertise and solution developed specifically for service businesses that would support the company’s unique requirements for service parts management.
Scope
The PTC solution was used to manage EMC’s global service parts network, consisting of:
$132 million in service parts inventory spread across more than 50 countries
3,500 unique parts
Real-world Results
The PTC solution was implemented in less than 12 weeks, which included integration into EMC’s Clarify CRM software.
Since implementing the solution, EMC has saved $12 million in excess inventory and eliminated $1.5 million in associated costs. Simultaneously, EMC maintained parts availability rates at an unprecedented 98.5%. More importantly, the company continues to support its expanding product line and global customer base with minimal growth in service parts inventory and no growth in part planner headcount. In fact, planner productivity has increased 40%.
“Preserving a 98.5% field availability rate was critical to maintaining our impeccable customer service reputation and stature as the market leader in storage systems. Fulfilling these objectives, PTC affords EMC the ability to leverage the many global opportunities in the marketplace. In an exceptionally short time frame, PTC has delivered well beyond our expectations. EMC has realized a significant return on investment in only one year, and we expect that number to increase steadily over time.”
Mark Deitemeyer
Director of Global Service Logistics
EMC
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.
Joy Mining’s business challenge came from their inability to conduct field level analytics due to the instability of collecting mass volumes of data. ThingWorx stabilizes the data collection process while providing Joy Mining the ability to innovate with new applications for their customers, resulting in the ability to anticipate failures, efficiently respond to equipment problems, therefore reducing equipment downtime, reduce the cost of mining resources, improve the safety of the site and human capital, and optimize mining production.
By taking operating data, Joy Global move from selling better mining equipment to selling services to optimize the performance of the mine.
All Traffic Solutions is the leading manufacturer of signs used by police departments and local governments to help understand and manage traffic.
Continuous connectivity now allows customer and company to identify useful trends in traffic and product use patterns, benchmark performance against peers, and immediately change settings, messages, and schedules based on that information. Using this data All Traffic creating the TraffiCloud, an interface that bring all of this data together and provides police forces, cities, etc. to monitor, analyze and plan based on real time traffic information.
All Traffic Solutions delivered on their vision of transforming the company from a manufacturer of digital road signs to a critical provider of traffic safety solutions. Their connected product initiative is enabling new revenue opportunities, and ways of doing business for All Traffic solutions, while allowing municipalities to provide higher levels of public safety at reduced costs.
http://www.thingworx.com/2014/06/all-traffics-journey-to-a-connected-device-ecosystem/
You need PTC and Zuora to address this avalanche with IoT
The IoT Value Roadmap is a guide to help organizations create value in a smart connected world.
Avoid long development cycles, complex programming, lots of code writing against APIs, high cost/risk, rigid deployment
ThingWorx is the 1st Application Platform for the Connected World™ – one that combines the key functionality of Web 2.0, social media and Connected Intelligence™, and applies it to any process that involve things.
Smart, connected products require companies to build and support an entirely new technology infrastructure. This “technology stack” is made up of multiple layers, including new product hardware, embedded software, connectivity, a product cloud consisting of software running on remote servers, a suite of security tools, a gateway for external information sources, and integration with enterprise business systems.
Smart, connected products require that companies build an entirely new technology infrastructure, consisting of a series of layers known as a “technology stack” (see the exhibit “The New Technology Stack”). This includes modified hardware, software applications, and an operating system embedded in the product itself; network communications to support connectivity; and a product cloud (software running on the manufacturer’s or a third-party server) containing the product-data database, a platform for building software applications, a rules engine and analytics platform, and smart product applications that are not embedded in the product. Cutting across all the layers is an identity and security structure, a gateway for accessing external data, and tools that connect the data from smart, connected products to other business systems (for example, ERP and CRM systems).
This technology enables not only rapid product application development and operation but the collection, analysis, and sharing of the potentially huge amounts of longitudinal data generated inside and outside the products that has never been available before. Building and supporting the technology stack for smart, connected products requires substantial investment and a range of new skills—such as software development, systems engineering, data analytics, and online security expertise—that are rarely found in manufacturing companies.
Talk Track:
What we are: An RBM Company
We(Zuora) is Relationship Business Management Company
We are designed for Relationship Management from day 1
RBM - “Relationship Business Management gives you the commerce, billing, and finance capabilities you need to design your customer-centric experience with subscribers
Platform:
Zuora is 100% SAAS platform, bringing all the benefits of a Cloud application, so you don't have to worry about managing any hardware, software, data centers, et cetera.
When we look at the elements of a complete IoT solution, its clear to see where the opportunity lies
Sensors, Devices, and Equipment
Connected through various methods, through different device clouds, hybrid networks, environments, etc.
Provisioning platforms and device clouds provide base-level device management functionality
But if real business value is your goal, delivered through applications, it requires integrating those smart things, across hybrid networks,
to business applications and 3rd party services to create complete, vertically integrated apps
Traditionally, this required long development cycles, complex programming, lots of code writing against APIs, high cost/risk, rigid deployment
When we look at the elements of a complete IoT solution, its clear to see where the opportunity lies
Sensors, Devices, and Equipment
Connected through various methods, through different device clouds, hybrid networks, environments, etc.
Provisioning platforms and device clouds provide base-level device management functionality
But if real business value is your goal, delivered through applications, it requires integrating those smart things, across hybrid networks,
to business applications and 3rd party services to create complete, vertically integrated apps
Traditionally, this required long development cycles, complex programming, lots of code writing against APIs, high cost/risk, rigid deployment
CTA: Request an Innovation Workshop
Smart Connected Products are not just enabling new capabilities to change the customer experience.
The data and intelligence from smart connected products can be leveraged to create improved business processes that will transform your businesses and drive improvements in efficiencies and effectiveness throughout all functions in your enterprise – leveraging the enterprise systems you have today.
Let’s take a look at how one piece of information coming off of a Copier “how many pages has it printed”
I’d know when it would require
maintenance
More tonier or new machine replacement
Forecast consumables businesses in the future
Engineering would understand how businesses were use the product
Finance pay per use