IoT Tech Expo

Europe 2019ACCENTURE CASE STUDY

THE PERFECT STORM

SPEED OF MAKEUP WORKFORCE

CHANGES IN THE TECHNOLOGY LANDSCAPE…

6.4 BILLION CONNECTED DEVICES

$12.5 BILLIONGLOBAL SPENDING ON AI

$58 MILLIONGLOBAL FUNDING FOR CHATBOT STARTUPS

672 PETAFLOPS PROCESSING POWER

119 EXABYTES OF DATA

…ARE DRIVING THE DIGITAL RE-INVENTION OF INDUSTRY

AND DIGITIZATION IS ACCELERATING THE SHIFT IN THE INDUSTRY EXPONENTIALLY

Mainframe

Client-server & PCs

Web 1.0 ecommerce

Web 2.0, cloud, mobile

IoT & smart machines

Artificial intelligence

Quantum computing

Big data, analytics, visualization

Tod

ay

1950 1960 1970 1980 1990 2000 2010 2020 2030

A.I

1964: System/360

Server/Host1972: SAP

1977: PC

1991: Public Internet

1994: Amazon

1990: System/360

1999: Saleforce.com

2005: Web 2.0

2006: AWS

2008: iPhone

Public Cloud Mainstream

1950: Turing Test

Quantum

1969: ARPANET 1997: Big Data 1999: IoT, M2M

2010: Self Driving Cars

2007: IBM Deep Blue

2014, IDC: 4.4 Zettabytes of Data

2010: Sales of PC Peak

2016: Pokemon Go

4Copyright © 2019 Accenture All rights reserved.

FIVE ENABLING FACTORS ARE FUELING INCREASING ADOPTION OF IOT AND ANALYTICS

60X decrease in cost of processing

50X decrease in cost of storage

40X decrease in cost of bandwidth0.5X decrease

in cost of sensors

5Copyright © 2019 Accenture All rights reserved.

EVERY PRODUCT, EVERY MACHINE CAN BE EASILY TRANSFORMED IN A CONNECTED DEVICE

Sensor technology is becoming more and more sophisticated, and every object can be equipped with multiple sensors able to collect a lot of useful information on how the object operates, which are the external conditions in which it operates, and so on

Connectivity is no longer an issue. 5G will offer an unprecedented coverage, with high bandwidth and at feasible costs

Smart Products are software defined. Essentially itimplies that new features can be offered to end customers with software update over the air, just one-click away or even without user intervention atall.

Smart Products are controllable remotely, and then end customers using their ownsmartphone or conversation experience can trigger operations at distance.

6Copyright © 2019 Accenture All rights reserved.

WORKERS ARE MORE AND MORE CONNECTED AS WELL

Becoming more and more connected, workers have the opportunity to receive a lot of useful information to make their work even better, taking for instance informed decision at speed and data insights driven.

Virtual Reality and Augmented Reality help creating an immersive environment where Connected Workers are more productive, more precise …

… and also more engaged.

Connected workers generate finally a lot of data. They become a data source like any other thing in the working environment

7Copyright © 2019 Accenture All rights reserved.

EXTERNAL CONTEXTUAL INFORMATION ARE INCREASINGLY AVAILABLE TO ENRICH DATA

There are available today a huge amount of elementary and composite contextual information that have the ability to enrich data collected internally and provide finally a set of data with an incredible untapped value.

Examples are:• Weather conditions and forecast• Traffic conditions and forecast• Demographic information

… and much more

8Copyright © 2019 Accenture All rights reserved.

ARTIFICIAL INTELLIGENCE AND MACHINE LEARNING ARE NOW MATURE ENOUGH TO BE USED AT SCALE

Artificial Intelligence and Machine Learning provide nowadays a large set of tools to analyze our data in real-time and extract value in unprecedented ways, building virtual models able to represent the reality how we couldn’t imagine before

Many organizations are still in descriptive analytics mode, where traditional BI approaches are used to put data together and use visualization tools to get quick views on what has happened.

Diagnostic analytics is about figuring out why did an event happen, using techniques such as drill-down, data discovery, data mining and correlations.

Things become really interesting when predictive analytics help to project what will happen and prescriptive analytics provide suggestions on how to make it happen

9Copyright © 2019 Accenture All rights reserved.

BUT JUST A FEW COMPANIES ARE LEADING IN THE NEW

10Copyright © 2019 Accenture All rights reserved.

COMPANIES THAT DRIVE NEW GROWTH

COMPANIES THAT TRANSFORM THE CORE

34%34%44%44%

ONLY 13% OF COMPANIES SUCCESSFULLY LEAD IN THE NEW—SIMULTANEOUSLY DRIVING BOTH OPERATIONAL EFFICIENCY AND NEW BUSINESS GROWTH. COMPANIES

THAT DO BOTH

13%

CHALLENGES FOR COMPANIES IS ACTUALLY HOW TO USE WHAT IS AVAILABLE …

How all those data can be analyzed to extract value capable to serve better my customers and understand how they use my products?

Which new services can I offer to my customers with this new connected and smart product?

Should I provide my smart product and smart services with a new pricing model to differentiate my company from competitors?

Which is the right ecosystem around my company, my products, my services? Who are the right companies to partner with? And should I find someone out there able to drive me along the journey?

Should we change or adapt our current organization to catch the IoTand Analytics opportunity in the right way? And which talent should I look for out there to be successful?

What about my current IT landscape? What should we do to introduce new digital enablers without disrupt what we built in the past?

11Copyright © 2019 Accenture All rights reserved.

… AND FIND THEIR OWN WAY IN AN ECOSYSTEM THAT IS BECOMING INCREASINLY COMPLEX

12Copyright © 2019 Accenture All rights reserved.

Devices Networks APIs Apps Data

50% Of B2B collaboration

will occur through web

APIs in 2016

4.4BTotal number of app

users by 2017

16EBMobile data traffic per

month by 2018.

50BDevices expected

by 2020

2.5BPeople accessing 4G-

LTE networks by 2020

Sensors

212BSensors expected

by 2020

Mapping

Billing

Social

Search

Marketing

User Data

Transaction

Data

Field Data

Inventory

Data

Performance

Data

Touch

Interfaces

Gesture

Tracking

Augmented

Reality

Voice

Recognition

Motion

Location

Chemical

Light

Sound

Heat

IoT Enablers IoT Value Drivers

THE CAPABILITIES NEEDED TO TRANSFORM TO THE NEW

13Copyright © 2019 Accenture All rights reserved.

Digitize and integrate engineering, production, and support for new efficiencies.

TRANSFORM THE CORE

Create hyper-personalized value to differentiate and lead in the market.

FOCUS ON EXPERIENCES AND OUTCOMES

Assemble and refresh the right partners to drive new innovation and new capabilities.

RE-ARCHITECT THE NEW ECOSYSTEM

Invent new revenue streams for new sources of value.

INNOVATE NEW BUSINESS MODELS

Source, enable, upskill and protectthe next generation of talent.

BUILD THE WORKFORCE

Continually balance investment and resource allocation between the

core and the new.

MANAGE THE WISE PIVOTS

1

2

3

4

5

6

THERE IS NOT A SOLUTION THAT FITS WELL FOR ALL, BUT COUPLE OF RECCOMENDATIONS COULD BE USEFUL FOR EVERYONE

A SPECIFIC OPERATING MODEL AND AN UNDERLYING ORGANIZATION, THE IOT HUB CONCEPT

START SMALL AND SCALE WHAT PROVEN TO WORK

Apps & Portals (Mobility)

Clients & Prospect Employees Partner

Governance

ExecutionAgile IT Factory &

maintenance Data ScientistContact Center e Back Office

Digital marketing & campaign executionProject management

Services

Platforms

Data Management (Data collection, integration & storage)

Industrial IoT Platform Analytics Platform

Sales

Vision & Strategy Planning & control

Operation & Processes

Innovation & business development

Procurement

Data & analytics visioning

Ecosystem management

Line of Business 1 Line of Business 2 Line of Business 3 Other LoBs

Service

Service

… Service

Service

… Service …

Service Service Service

Service

Service

…Service

Service

… …

…

OPERATING MODEL IOT - HUB

People and processes

Tools

1

2

3

5

4

Services & Content

Medical assistance/ health network

Street & Field Assistance

…

Ecosystem

Weather forecasts

Connected car

…Connected Home

Device and TSP

Installation Connectivity

WarehousingProduction

…

7 8

People, processes &

tools

6IOT SUPPLY CHAIN

Care Sharing

IOT Industry Product

IOT Extended ecosystem &

services

§ Traditional industry

applications and services

packaged with IoT component

(technology & services)

Description

IOT Platform Company

§ Set up of business entities

dedicated to the management

and coordination of IoT business

Model

§ Internalization of IoT &

Analytics capabilities to fully

exploit IoT potential and

preserve competitive

advantage

§ Start up new services partnering

with other Industries

§ Product become a platform able

to integrate several different

cross Industry services, fully

exploiting the network effect

(create value by tapping into

resources and capacity Insurers

do not own)

§ Platform business models allow

others to generate profits in the

‘long tail’ of IOT business

§ New growth path are generated

driving the demand of a core

market through complementary

ones, often subsidized (or free to

Customers)

14Copyright © 2019 Accenture All rights reserved.

THANKS

15Copyright © 2019 Accenture All rights reserved.