The Return on Invest in the Internet of Things. Mastering the Digital Transformation with Connected...

Der ROI von IoTMit Connected Service den digitalen Wandel meistern

Prof. Dr. Michael J. CaponePrincipal Analyst, Capgemini Digital

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Copyright © Capgemini 2013. All Rights Reserved

75,000,000,000 connected devices by 2020.

McKinsey forecasts companies to invest more than $2.7 billion in IoT through 2020.Driver

sEnablers

Consumerization of Corporate

ITconsumer habits influencing

workplace

Mobile90%+ adoption rate

Cloud & In-Memory

scaleable, low cost, fast

Analyticspowerful and real-time

Competitionglobal competition forcing new USPs

Converting device data into a business impact is a transformational process.

M2MMachine-to-machine involves the communication between machines to improve productivity and safety. Connected devices is a pre-requisite for M2M.

IoTInternet-of-Things involves making the data from connected devices available in the cloud for monitoring and reporting. Connected THINGS are a pre-requisite for IoT.

Connected ServicesConnected Service eXperience involves using the data from connected devices in real-time to identify a „Next Best Action“ and trigger 1:1 interactions between the sales, customer care, service and the customer. Connected evices, internet, and a predictive analytics platform are pre-requisite for CSX..

1

23

Control Tower Applications

New Value-added Services

Production Automation


Converting device data into action requires the integration of multiple technologies.


IoT Maturity Assessment, Architecture Framework & Project Plan

Functional Layer Description Technology

Action (A5)A task is automatically created for sales, contact center, or service.

ERP Integration, Contact Center, Field Service Management, Mobile Apps

Assignment (A4) A „Next Best Action“ is automatically generated.

Knowledge Base, Expert System, Product Information System

Analysis (A3)Reports and dashboards are produced, predictive and prescriptive analytics.

Analytic Tools

Aggregation (A2)Data from mutliple, different sources are consolidated.

Big Data, Data Lake, In-Memory Database

Acquisition (A1) Data is created, collected, and transmitted.

Sensors, Gateway, Connectivity


Prescriptive analytics is changing the nature of CRM – from reactive to proactive.


t1 Issue t2 Problem t3 Recognition t4 Report t5 Record t6 Response t7 Resolution

Dis

sati

sfact

ion

Sati

sfact

ion

1. An anomoly in operating data is identified that has a high-probability of impacting performance. 2. The issue manifests itself as a performance problem, failure

or outage.

3. The customer is aware of the problem. Dissatisfaction is sensed, but not yet expressed.

4. The customer contacts the manufacturer. Dissatisfaction is expressed.

5. The manufacturer logs and reviews the case.

6. The manufacturer plans action. 7. The resolution

is complete.

1 2

3

4

5

6

7

Recovery

When service processes are sucessfully executed, recovery is achieved. Recovery means the cause of dissatisfaction is resolved. Satisfaction is theoretically restored.

A combination of use cases yields a greater ROI

Machines

Assets

Shipments

Products

Decrease Energy CostsDecrease Loss & TheftDecrease Misuse & AccidentsImprove Efficiency & ProductivityDecrease AssetsDecrease Unplanned DowntimeDecrease Inventory CostsDecrease Labor CostsDecrease Cost of WasteDecrease Costs for Parts & SuppliesDecrease Early RetirementDecrease Shipping CostsExtend Machine LifeImprove ProductivityDecrease AccidentsDecrease Energy CostsDecrease Mishandling & LossImprove On-time DeliveryGrow After-Market SalesDecrease Misuse & Warranty CostsDecrease AccidentsOffer Value-Added ServicesImprove First-Call Resolution RateDecrease Rearly RetirementImprove Product Development

Reduce Undesired Side EffectsReduce AccidentsReduce Trial and Treatment PeriodsImprove Efficacy

INTER

NA

LEX

TER

NA

L

People

OP

TIM

IZE

TR

AN

FO

RM

ATIO

NA

L

New Revenue Models for Machine Data

• Mobility Guarantees, Uptime Guarantees & Pre-emptive SLAs. Instead of a 24-hour response time, the manufacturer will offer to service a product before it breaks and before the customer repotrs an issue. Example: Mobility Concierge.

• Pay-as-you-Use. Companies will offer pay-for-use, where price or rates reflect actual usage and behavior. Customers will opt-in to save money. Example: Pay-as-you-Drive.

• New Subscription Services. Companies are developing new subscription services for customers. Customers will subscribe to services in order to get tips to save fuel, improve performance, lower operating costs, and prevent accidents. Example: Car Net.

• Factory-as-a-Service or Product-as-a-Service. Products will be free. The company will replace the one-time sale of a product with a recurring revenue model or subscription. Example: Grocery Services.

• Data Remarketing. Products will be free. The data generated by the product will be packaged and sold to third-parties. This revenue will more than offset the cost of the product, because it is recurring, and the marginal cost of the data is almost zero. Example: Smart Lights.


Business Cases | Automotive


Productivity „Change the fan belt in 6 days to prevent A/C from

failing.“

Environment. „Improve your fuel

efficiency by shifting before 2.200 RPMs.“

Performance. „Extend the life of your vehicle and get more

power by using higher octane

fuel.“

Performance. „Deactivate ECO

Mode to get more power for passing.“

Safety. „Avoid another accident by

maintaining a 5 meter distance.“

Service. „Stop ahead.

Roadside assistance is behind you.“

Sales. „Upgrade to a 5 series to get the performance you

need.“

Economy. „Save money

by down-shifting

instead of breaking.“

Sales. „Change your tires in 2 weeks to

get improve performance and ensure safety.“

Service. „Add coolant to

prevent over-heating.“



Performance. „Improve output 2% by opening air vent

„A.“

Sales. „You need a new A27 fuse in 96 hours.“

Safety. „Avoid accidents by

closing the lid before activating

the machine.“

Environment & Sales „Decrease

emissions by using our new synthetic

lubircant.“

Productivity. „This module will fail in 7 hours. A service

technician is already on the

way.“

Productivity & Sales. „Your

hopper will be empty in 3 hours.“

Efficency. „“Combine parts in trays to reduce tray

inventory and reduce conveyor

usage.“

Service & Sales. „Order parts or

schedule service. This module has not been turned on in 2 days.“

Safety & Productivity. „The unit will over-heat

in 3 hours. Add coolant or turn-

off.“

Safety. „Schedule training. This unit is not being operated

properly.“

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Safety. „Propeller B is oscilatting and

requires re-balancing.“

Productivity. „Service required. Unit is outputting 3% less energy than comps.“

Efficiency. „Service required. This unit outputting 7% less

energy than comps.“

„Safety. Beacon light will fail in 64

hours.“

Service. „Ventillation required. Nacell

temperature increasing.“

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Capgemini Datalympics_presentation.pptx

30 Measurable Business Cases for IoT


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www.capgemini.com

About CapgeminiWith more than 120,000 people in 40 countries, Capgemini is one of the world's foremost providers of consulting, technology and outsourcing services. The Group reported 2011 global revenues of EUR 9.7 billion.Together with its clients, Capgemini creates and delivers business and technology solutions that fit their needs and drive the results they want. A deeply multicultural organization, Capgemini has developed its own way of working, the Collaborative Business ExperienceTM, and draws on Rightshore ®, its worldwide delivery model.

Rightshore® is a trademark belonging to Capgemini

The information contained in this presentation is proprietary.Copyright © 2013 Capgemini. All rights reserved.

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The Return on Invest in the Internet of Things. Mastering the Digital Transformation with Connected...

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