The four steps of Digital Transformation · Digital Transformation Business Insights Operational...

The four steps of Digital Transformation

Andrew SmithGeneral Manager, Sales Strategy & Operations

IoT Device Partners, Microsoft

Here’s what we’re covering

Four steps of digital

transformation

Differences between

PaaS & SaaS

P&L opportunities

by partner type

Hear from our IoT

Partner of the Year

Digital Disruption and the 4th Industrial Revolution

1780s

Mechanized production Mass production Automated production Digitized production

1870s 1970s 2015+

Digital Transformation

Business Insights Operational Efficiencies

New Business Models

Features and Rev Streams

Sensor proliferation

Data collection, transfer, storage and processing

New insights - understanding product and service more deeply

Process engineering and product engineering improvements

Cost reduction

Time to market reduction

Predictive maintenance

Provision of services alongside devices and hardware.

Devices / hardware / machines delivered “as a service”.

Enablement of ancillary businesses, new businesses and transformed businesses

Market offering

• From “MRI Scanner” to “Remote

diagnostics subscription”

• From “Industrial Machine” to

“Machine uptime subscription”

• From “Thermometer” to

“Temperature Control Service”

Profitability

• From hardware margin to

subscription margin

• From capex to capex+opex

Customer relationships

• From transaction relationship to

annuity relationship

• From procurement relationship to

business owner relationship

Transformation in your…

End Points Security Connectivity Business Consultants

Distributors Developers

IoT Partner Value Chain

Services Regulators

Suitable for more complex solutions requiring high

controllability, high customization, with low endpoint

volume

IoT … “as a service” models

Suitable for less complex solutions and common use

cases requiring low degree of customization, with high

endpoint volume

IoT … “as a service” models… in Microsoft

SaaS

Azure IoT CentralFully managed IoT SaaSNo cloud solution expertise required

Built on the same Azure IoT Platform Services

Azure IoT Solution AcceleratorsSolution accelerators for customers with cloud solution expertise and the need to fully customize

PaaS

Opportunities for P&L transformation by business type


New Insight

opportunities

Insight on how product

is used in the field.

Operational

efficiencies

Decrease manufacturing

downtime by predicting

and resolving issues

before they happen.

Business Model

changes

Product as a service.

New Revenue

opportunities

Attach and monetize

new services.

Device Builder / OEM


New Insight

opportunities

Enhance customer

experience by

understanding how

product features are

used.

Operational

efficiencies

Increase speed to

market and reduce cost

through process

automation.

Business Model

changes

Subscription-based

services.

New Revenue

opportunities

Consumer apps

represent a new channel

for future services.

ISV


New Insight

opportunities

Remote monitoring of

systems and processes.

Operational

efficiencies

Remote troubleshoot

and problem resolution.

Service engineer arrives

with right parts to fix

physical infrastructure.

Business Model

changes

Selling repeatable

solutions and retaining

IP.

New Revenue

opportunities

New services offerings

such as business

consulting, data science

and device lifecycle

management.

System Integrator


New Insight

opportunities

Remote monitoring of

systems and processes.

Operational

efficiencies

Single relationship and

billing for customer

including applications,

infrastructure and cloud.

Business Model

changes

Aggregation of

hardware and software-

based connected device

solutions for specific

verticals.

New Revenue

opportunities

Subscription-based

revenue.

Higher margin for

higher value services

than pure hardware

distribution.

Solution Aggregator

SYNNEX Technology Solutions

What does this mean?

• General Contractor = Solution

aggregation. Architect, validate, support

• Connectivity piece is cornerstone – if we

don’t connect, it’s not IoT

• Cloud Platforms – if we don’t successfully

store/manage/analyze data, it’s not IoT

• Services – increase margin profile

• Building IP – where we can really make

our money

• Edge Devices = Commodity, low margin,

interchangeable

Public Cloud

+ Basic IPGateways

Ed

ge D

evice

s

Data

Analytics

Advanced ISV

Applications

Connectivity

We become a “General Contractor”

for IoT

Connectivity

Dev Ops + Deploy + Managed

Services + Security

Inte

llig

en

t C

lou

d

Bringing Solutions Together with SYNNEXIntelligent Cloud - Transport - Intelligent Edge

How the Channel Makes Money in IoT

Data

Premium Application Features

Base Applications

Gateways

Devices (Connected, Edge)

Data

Data collected from all parts of solution. Identify

new business models, key features, customer

behavior, upsell opportunities

Upsell revenue from high-value features identified

by usage data

Embedded of Cloud applications deployed through

variety of business models. Initial sale + renewals +

maintenance

IoT gateways for interoperability, networking, other

functions. Opportunity to license embedded or

server software

Primarily hardware sale. Any software likely a

perpetual licenseServices revenue opportunity relates to every layer.

Flexera. (Producer). (2018). IoT Monetization: Growing a Healthy IoT Business [Video Webinar]. Retrieved from

https://www.youtube.com/watch?v=qdt4to0RJ_A&feature=youtu.be&elqTrackId=36cbed5c582649c78a5e2d0972e5b3d0&elqaid=4121&elqat=2

SYNNEX Fleet Management Solution

Affordable Tracking

One of the most cost effective solutions on the

market—without sacrificing service or functionality.

Flexible Solutions

A diverse product portfolio with a wide choice in

product size, battery life, and optional add-on

sensors and features.

Tracking for Any Asset

Ideal for any company that has assets that need to

be tracked — whether they’re vehicles, mobile

products, or even fixed goods.

Management

consoleAzure IoT Hub

Simple plug-

and-play edge

devices

SYNNEX Azure IoT Digital Signage Solution

Hosted in Azure, a single

management console

enables users to customize

and publish content.

The Azure IoT Hub

asynchronously pushes

content from Azure to the

edge devices on each

display

Edge devices that plug into

each display automatically

update signage when

required.

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