The document discusses the digitization and digital transformation of industry. It notes that all businesses will become digital businesses and focuses on how manufacturing can transition to a software industry with product-as-a-service models. It also discusses how applying Internet of Things technologies has been difficult. The document outlines how digitization can move companies from traditional functions to more digital collaboration between departments. It provides an example of KONE's approach to digitization and how it is using technologies like connectivity, cloud, and analytics to improve customer experience and operations.

1. Teollisuuden digitransformaatio –
hypeä vai totta?
Affecto Forum
28.10.2015 Korjaamo, Helsinki
Kati Hagros, SVP Development, KONE

2. Business model
perspective:
All businesses will be
digital businesses

3. Source: World Economic Forum Jan 2015

4. FROM MANUFACTURING
TO SOFTWARE INDUSTRY
• Shorter, evolving development
cycles
• Product-as-a-service business
models – different path to profit
• Focus on customer experience and
lifetime value
• Data & Analytics as control points
and competitive advantage
• Products part of broader ecosystem

6. Technology perspective:
Applying IoT technologies
has proven to be difficult

7. Source: Cisco IoE Study

8. Source: Prof Martti Mäntylä April 2015

9. FROM PRODUCTS
TO TECHNOLOGY STACK
• Physical components
• Smart components
• Connectivity
• Data and analytics
• Applications
• Ecosystems

10. Organization perspective:
The dilemma of CxO

12. FROM TRADITIONAL FUNCTIONS
TO DIGITAL COLLABORATION
• R&D and IT integration for holistic
user experience
• Continuous product/service
operations
• Data aggregation and analytics
• Customer value mgmt
• Partnering and ecosystem
collaboration

13. Case KONE:
Digitalization approach

14. 14
Mobility
Connectivity
Cloud
Analytics
Sensors
Data storage
and integration
Everything becomes mobile and connected
Customers have full real-time transparency
Users demand increased convenience,
efficiency and enjoyment
New ”ecosystems” emerging around
smart buildings and cities
Case KONE: Development of technological enablers
changes our industry

15. 15
Case KONE: BIM is changing how buildings are
designed, constructed and operated
Before Today

16. Field operations
productivity
Sales management
efficiency
New business
models
New services
and solutions
Customer experience and user engagement
Digital way of working & culture
Systems and platforms – Technology enablers
Productivity Growth
Case KONE: Digitalization enables delivery of
new value added services to our customers and
an improved quality and productivity of our operations

17. 1. Get your existing customers and products connected
2. Ask yourself what space are we going to own in our digital
ecosystem
3. Establish cross-functional innovation and change model
4. Be open and collaborate for competence

18. Digitransformaatio
– pää pilvissä ja jalat
asiakkaalla
Kingdom Tower, the tallest building in
the world, made possible by KONE