[Europe merge world tour] PAC Importance of Embedded Software

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Software is a Core Competence for Manufacturing in Germany 14.05.2013 – Merge World Tour 2013

2013

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PAC’s Portfolio Framework

CORPORATE PLANNING Strategy Definition

Scenario Planning

Business Planning

MERGERS & ACQUISITIONS M&A Support

M&A Preparation

PORTFOLIO MANAGEMENT Portfolio Activation

Portfolio Redesign

MARKETING & COMMUNICATION Marketing Positioning

Speaker Engagements

Influencing Communication Services

BUSINESS PARTNER SERVICES Partner Ecosystem Management

Sourcing Advisory

Creating & Expanding a Partner Ecosystem

SALES SUPPORT SERVICES Analysis of Customer Attractiveness

Deal Support

Sales Battle Cards & Share of Wallet Analysis

ICT MARKET KPIS & BENCHMARKING Market Sizing & Market Attractiveness Index (MAI)

Price Model Assessment & Rates Analysis

CUSTOMIZED MARKET ANALYSIS & CONSULTING SITSI® Extensions

Consulting, Analysis & Evaluation

MARKET ANALYSIS

VENDOR ANALYSIS

CONSULTING & SERVICES The PAC service catalog

SITSI® RESEARCH PLATFORM The centralized knowledge pool of all PAC standard analyses

SUBSCRIPTIONS ON DEMAND

ANALYST ACCESS OUTTASKING PROJECTS

Market Perception Analysis

Vendor Positionings

Vendor Rankings

PAC RADAR Vendor Profiles

Portfolio Analysis

Market Figures & Contract Database

Market Views & Market Insights

Research Notes

Market InBriefs

For the ICT Industry

For Public Institutions

For Financial Institutions &

Investors

For ICT Users

BY GEOGRAPHY! BY INDUSTRY SECTOR! BY SOFTWARE & IT SERVICES! BY HORIZONTAL TOPIC!

For the Management

For Market

Intelligence

For Marketing & Sales

For IT Sourcing

STRATEGY DEFINITION STRATEGY IMPLEMENTATION OPERATIONAL EXECUTION

Software in the manufacturing industry in Germany 2013 2 2013

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Local Insight on a Global Basis PAC's expertise today encompasses more than 30 countries – covering 93 percent of worldwide IT spending. Our close partnerships enable PAC’s presence on all continents.

3 Software in the manufacturing industry in Germany 2013 2013

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The IT Market in Germany

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SITS Market – Germany Segmentation 2012

5 Software in the manufacturing industry in Germany 2013

3.3%

4.4%

Global Germany

44.7%

3.0%

45.4%

3.7%

16.9%

3.1%

21.2%

3.4%

26.7%

7.4%

23.1%

6.0%

11.7%

2.6%

10.3%

3.4%

13.7%

15.5%

13.4%

13.2%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Germany

Global

Ger

man

y G

loba

l

SITS Expenditure Hardware Personnel Misc.

Software IT Services

IT Expenditure and SITS Market, Shares of Segments IT Expenditure in Percent of GDP

2013

System Infrastructure Software

Tools

Application Software Products

Hardware Maintenance

Project Services

Outsourcing

Lege

nd

© PAC

SITS Market – Germany CAGR 2012/16

6 Software in the manufacturing industry in Germany 2013

3.4%

4.5%

2.3%

5.3%

5.1%

4.1%

Software Products

IT Services

IT Expenditure

1.1%

4.5%

3.7%

-3.1%

4.4%

5.8%

1.3%

-0.6%

4.1%

1.2%

SIS

Tools



Project Services

Outsourcing

Personnel

Hardware Expenditure

SITS Expenditure

Miscellaneous

Compound Annual Growth Rates 2012/16 by Segments - in Germany and compared to World

3.4%

4.5%

2.3%

5.3%

5.1%

4.1%

Software Products

IT Services

IT Expenditure

1.1%

4.5%

3.7%

-3.1%

4.4%

5.8%

1.3%

-0.6%

4.1%

1.2%

SIS

Tools



Project Services

Outsourcing

Personnel


SITS Expenditure

Miscellaneous

3.4%

4.5%

2.3%

5.3%

5.1%

4.1%

Software Products

IT Services

IT Expenditure

1.1%

4.5%

3.7%

-3.1%

4.4%

5.8%

1.3%

-0.6%

4.1%

1.2%

SIS

Tools



Project Services

Outsourcing

Personnel


SITS Expenditure

Miscellaneous

3.4%

4.5%

2.3%

5.3%

5.1%

4.1%

Software Products

IT Services

IT Expenditure

1.1%

4.5%

3.7%

-3.1%

4.4%

5.8%

1.3%

-0.6%

4.1%

1.2%

SIS

Tools



Project Services

Outsourcing

Personnel


SITS Expenditure

Miscellaneous

2013

© PAC

IT Maturity

7

Definitions: Maturity of IT •  Share of IT spending in GDP •  IT spending per employee Maturity of IT-driven processes: Share of business software-related services in total software-related services

Maturity of IT-driven processes Maturity of IT

Software in the manufacturing industry in Germany 2013

World

Austria

Germany

Switzerland

2013

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Major Business Trends & Challenges

•  Currently strong innovation phase in IT •  Driven by mobility, big data, cloud computing and social media •  Driven by the need to become more agile and flexible regarding market conditions

•  High, and increasing, level of standardization •  Standards and best practices are applied whenever possible •  Lower operational IT costs, deliver better value to lines of business

•  Increasing influence of business units on IT decisions •  New role of CIO •  Considering alternative sourcing options such as cloud computing

•  Comprehensive standardization & industrialization •  Lack of resources on both sides, IT users and IT suppliers •  Global delivery networks

•  High price pressure on standard software products and IT services •  Process consulting is one of the very few areas with less pressure •  Niche expertise is a high-value service

•  Increase value-add of IT •  Increase IT efficiency •  More cost flexibility (CAPEX to OPEX)

Innovation

IT strategy

Decision-making

IT delivery

Prices

CIO agenda

2013 8 Software in the manufacturing industry in Germany 2013

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Today 2016 Influencing factors

Cloud/ Software as a Service

Time to value, less complex, CAPEX/OPEX security, maturity of offerings

Enterprise Mobility

Consumerization of IT, productivity gains, new user experience for business IT, new processes, merging of web, communications & collaboration

Enterprise Social Media

Collaboration, inter-/intra-company, integration into business process context

Big Data Structured data, unstructured data, growing data volumes, formats & structures, “fast data” – real-time processing

Security

Mobility of personal data, new business models, IT relevance in economic processes, global business

Internet of Things

Ubiquitous intelligence, software as key to new business scenarios, new supplier landscapes

very weak weak

average

strong

very strong

Relevance of IT Trends


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IT Trends in the Manufacturing Industry

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Global Mega Trends

Business ecosystems!

New work environments"

Climate change & environmental pollution"

Convergence of technologies"

Cul

tura

l div

ersi

ty"

Digital life"

Demographic change"

Globalization 2.0"

Knowledge society"

Healthcare boom"

Lear

n fr

om n

atur

e"

New consumption patterns"

New

mob

ility

pat

tern

s"

New degree of individualization"New political world order"

Modern energy & resources management"

Global (cyber) security risks"

Ubiquitous intelligence"

Urbanization"

Internet of Things

Debt crisis


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Impact of Mega Trends on IT

Cloud computing!

Collaboration!Mobile devices"

Enterprise app stores"M

obile

ope

ratin

g sy

stem

s an

d pl

atfo

rms"

Enterprise social media"

Mobile applications!

Uni

fied

mes

sagi

ng"

Virtualization!

Glo

bal I

T in

fras

truc

ture

s"

Personal information management"Machine-2-machine communication"

Communication-enabled business processes!

Device and security management"

Software as a Service"

Infrastructure as a Service"

Smartphones"

Communication as a Service"

On

dem

and"

Enterprise 2.0"

Business Process as a Service"

Public - Private"


Embedded systems"


© PAC

Major IT Topics in Manufacturing

After-sales services!

Business intelligence!CRM"

Product lifecycle management"ERP consolidation"

SAP C&SI!

MR

P"

Inte

grat

ion

tech

nica

l/adm

inis

trat

ive

IT"

Multi-channel integration"

Machine-2-machine communication"

Small and medium-sized businesses"

MRO"

SCM"

Industry 4.0"

Manufacturing execution systems"

App

licat

ion

cons

olid

atio

n"

Plant management"

Integration wholesale/retailers"

PDM"

Industry-specific regulation"

Embedded systems"


© PAC





SAP C&SI!

MR

P"

Inte

grat

ion

tech

nica

l/adm

inis

trat

ive

IT"




MRO"

SCM"

Industry 4.0"


App

licat

ion

cons

olid

atio

n"

Plant management"


PDM"


Embedded systems"


© PAC






SAP C&SI!

MR

P"

Inte

grat

ion

tech

nica

l/adm

inis

trat

ive

IT"




MRO"

SCM"

Industry 4.0"


App

licat

ion

cons

olid

atio

n"

Plant management"


PDM"


Embedded systems"

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Importance of Embedded Software

© PAC

Impact of Mega Trends on IT

Cloud computing!

Collaboration!Mobile devices"

Enterprise app stores"M

obile

ope

ratin

g sy

stem

s an

d pl

atfo

rms"

Enterprise social media"

Mobile applications!

Uni

fied

mes

sagi

ng"

Virtualization!

Glo

bal I

T in

fras

truc

ture

s"

Personal information management"Machine-2-machine communication"

Communication-enabled business processes!

Device and security management"

Software as a Service"

Infrastructure as a a Service"

Smartphones"

Communication as a Service"

On

dem

and"

Enterprise 2.0"

Business Process as a Service"

Public - Private"


Embedded systems"


© PAC

Ubiquitous Intelligence

high low average

Maturity of topic!

high low average

Willingness to invest externally!

WAIT!

CHECK!

GO!

Major Industries!

Software in the manufacturing industry in Germany 2013 19

high low average

Business impact!

Diversified Homogeneous average

Supplier landscape!

high low average

Macro-economic significance!

high low average

Software relevance!

2013

© PAC

Cyber-Physical Systems

Smart Grid Illustration; Source: http://powertown.no/?page_id=10 Industry 4.0 Illustration; Source: http://www.plmportal.org/nachrichten-details/items/kommentar-zu-industrie-40-strategieempfehlung-der-forschungsunion-greift-zu-kurz.html


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Machine-to-Machine

Healthcare M2M; Source: http://www.vitaphone.de/telemedizin/

Automotive M2M; Source: http://www.car-it.com/projekt-simtd-der-fahrer-lenkt-das-auto-denkt/id-0033741


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Real-time Analytics in Production

Predictive Maintenance; Source: http://www.bosch-si.com/media/bosch_software_innovations/stage_3/internet_of_things/Industry-of-the-Future_w734.jpg


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Mobility

Mobile Workforce; Source: http://siliconangle.com/blog/2012/01/27/byod-mobile-workers-and-virtual-offices-cause-headaches/mobile-at-work/

Mobile Collaboration; Source: https://www.languagestudio.com/solutions.aspx


© PAC

Conclusion

I.  IT-driven processes have reached a very high level of maturity in Germany. II.  CIOs are entering a new role with the need to increase the value-add of IT as

well as IT efficiency on their agendas. III.  Process consulting is one of the very few areas where price pressure is not as

intense as in other service domains. IV.   Business intelligence, ERP consolidation and the integration of technical and

administrative IT are on top of the IT agendas in the manufacturing industry. V.  Ubiquitous intelligence represents the big-picture scenario that drives the

development and sales of embedded software. VI.  Cyber-physical systems are the next evolutionary step in the development of

embedded systems and pave the way for efficient machine-to-machine (M2M) communication.

VII. The supplier landscape in embedded software development is highly diversified, from small engineering offices to large, international software vendors and service providers.

VIII. Ubiquitous intelligence carries a large macro-economic significance that can already be seen in topics such as smart grids, smart cities, industry 4.0, or tele-health.


[Europe merge world tour] PAC Importance of Embedded Software

Technology

Transcript of [Europe merge world tour] PAC Importance of Embedded Software