1. Driving Growth from the
Industrial Internet of Things

2. “For those companies looking to build a more innovative
mousetrap – a new product-service hybrid that will
completely revolutionize their company or industry – now is
the time to harness the emerging Industrial Internet of
Things to identify new growth opportunities and, with the
right vision and leadership, turn them into reality.”
Paul Daugherty
CTO
Accenture
Copyright © 2014 Accenture. All rights reserved. 2

3. What is the Industrial Internet of Things (IIoT)?
The Industrial Internet of Things is the incorporation of intelligent industrial
products, processes and services that communicate with each other and with
people over a global network.
Intelligent technologies
to fuel innovation across
the eco-system
Data from Wearable
devices
Analytics from
mobile devices
Digital
Workforce
Management
Inputs
Outputs
M2M comm.
on-board devices
The Industrial Internet of Things Platform
Intelligent
Plants
Copyright © 2014 Accenture. All rights reserved. 3

4. IIoT’s Top-Line Opportunity
Optimistic predictions of the value created by the Industrial Internet range
as high as $15 trillion of global GDP by 2030.
Operational Efficiency
Automation, more flexible production
techniques and predictive maintenance
Top-Line Growth
New digital products and services, and
generate entirely new sources of revenue
Copyright © 2014 Accenture. All rights reserved. 4

5. Significant Value will be Realized from IIoT
Value Categories Value Levers
Value
Unconvention
al Revenues
Product as a Platform
NextGen Products/Services
Most Valuable Information
Provider
Data Analysis &
Recommendations
Boost Productivity
Improve Equipment Performance
Increase Customer trust & loyalty
Incremental
Revenues
Operational
Efficiency
Preventive Maintenance
Automation
Operation Optimization Services
Reduce Resource cost
Copyright © 2014 Accenture. All rights reserved. 5

6. Four steps to exploit revenue-generating opportunities
1. Innovate
through
Product-
Service
Hybrids
2. Become
the most
valuable
information
player
3. Treat
services
as R&D
4. Create
an IIoT
workforce
Copyright © 2014 Accenture. All rights reserved. 6

7. 1. Innovate through product-service hybrids
Product Makers Asset Owners / Operators
Preventive Maintenance
Automation
Operation Optimization
Services
Reduce Resource cost
Product as a Platform
NextGen Products/Services
Most Valuable Information
Provider
Data Analysis &
Recommendations
Boost Productivity
Improve Equipment Performance
Increase Customer trust & loyalty
Copyright © 2014 Accenture. All rights reserved. 7

8. 2. Be the VIP – Most Valuable Information Player
Sell products, and your customers interact with you only when they have a problem.
Sell services, and you gain multiple opportunities to create customer touch points, build
trust and become the preferred provider for new services.
Make the consumer aware of their “Internet of Things” and then work with the
ecosystem partners to drive next generation customer experiences.
• Increase ability to have context rich
interactions within value chains
• System offers analytics on large
real-time data for diagnostic and
recommendation
• Share data with partners for value –
added services across the eco-system
e.g. carrier, vehicle and payment
services
M2M in the home Loosely connected
Consumer
M2M on the
move
Today
Future
devices
Networked
Enterprise M2Ms
Cross selling & new
value-add services
New Consumer
M2M
Copyright © 2014 Accenture. All rights reserved. 8

9. 3. Treat Services as R&D
To innovate more quickly, industrial equipment makers will take a page from
technology companies: they will treat services as a speedy laboratory for discovering
the features that their customers want.
Products start to sound off. A product once installed a the customer will be
the primary feedback to the vendor from maintenance status to request for
feature enhancements.
Hardware is not that hard after all. R&D intensity is high in industrial sectors
where scientists and technologies are needed in electro-mechanical devices.
However embedded software can be upgraded in the field with new
functionality that allows innovation to be pushed out sooner.
Cooperative product development. The common drivers that influence the
R&D efforts of makers of products are energy management, safety, sensing
and measurement. A new driver will be more about the eco-system of
intelligence machines, processes and people in a global network
Copyright © 2014 Accenture. All rights reserved. 9

10. 4. Integrate Digital and Human Labor
While the adoption of the Industrial Internet will accelerate and expand the use of
digital labor (in the form of automation using intelligent software and robots), greater
returns and productivity gains will come from augmentation, which seamlessly blends
digital and human labor in task-specific environments
Examples
Self-driving cars create an entirely different kind of
commute and driving experience
Adaptive robots working side-by-side with people on
the factory floor
Remote operation of mining equipment from the
Command Center
Copyright © 2014 Accenture. All rights reserved. 10

11. Next Steps on IIoT Journey
There are a number of initial steps that companies should be considering
now to help them take advantage of the growth potential of the Industrial
Internet of Things including:
Think boldly about value potential
from product-service hybrids.
Cultivate tomorrow’s
partner ecosystem.
Start now to design
and develop Industrial
Internet platform.
Closely study
Industrial Internet
financials.
Prepare
marketing/sales/service to
promote new digital products
and services.
Clarify legal rights, obligations
and secure access to data
generated from machines to
deliver new digital services.
Think about how to
augment workforce
with smart machines.
Copyright © 2014 Accenture. All rights reserved. 11

12. Get the report:
www.accenture.com/iiot
#IIoT
Copyright © 2014 Accenture. All rights reserved. 12