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The Return on Invest in the Internet of Things. Mastering the Digital Transformation with Connected Services
The document discusses the significant growth and impact of the Internet of Things (IoT), forecasting 75 billion connected devices by 2020 and over $2.7 billion in investment. It outlines the transformation through connected services, emphasizing the integration of data from devices for proactive customer engagement and the shift towards new revenue models. Additionally, it presents a framework for assessing IoT maturity and highlights various business cases that demonstrate IoT's potential to enhance productivity, reduce costs, and improve customer experiences.
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The Return on Invest in the Internet of Things. Mastering the Digital Transformation with Connected Services
- 1. Der ROI vonIoT Mit Connected Service den digitalen Wandel meistern Prof. Dr. Michael J. Capone Principal Analyst, Capgemini Digital
- 2. Copyright © Capgemini2013. All Rights Reserved 2Capgemini Datalympics_presentation.pptx 75,000,000,000 connected devices by 2020. McKinsey forecasts companies to invest more than $2.7 billion in IoT through 2020. Drivers Enablers Consumerization of Corporate IT consumer habits influencing workplace Mobile 90%+ adoption rate Cloud & In-Memory scaleable, low cost, fast Analytics powerful and real-time Competition global competition forcing new USPs
- 3. Converting device datainto a business impact is a transformational process. M2M Machine-to-machine involves the communication between machines to improve productivity and safety. Connected devices is a pre- requisite for M2M. IoT Internet-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 Services Connected 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 2 3 Control Tower Applications New Value-added ServicesProduction Automation
- 4. Converting device datainto action requires the integration of multiple technologies. Copyright © Capgemini 2013. All Rights Reserved 4Capgemini Datalympics_presentation.pptx 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
- 5. Prescriptive analytics ischanging the nature of CRM – from reactive to proactive. Copyright © Capgemini 2013. All Rights Reserved 5Capgemini Datalympics_presentation.pptx t1 Issue t2 Problem t3 Recognition t4 Report t5 Record t6 Response t7 Resolution DissatisfactionSatisfaction 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.
- 6. A combination ofuse cases yields a greater ROI Machines Assets Shipments Products Decrease Energy Costs Decrease Loss & Theft Decrease Misuse & Accidents Improve Efficiency & Productivity Decrease Assets Decrease Unplanned Downtime Decrease Inventory Costs Decrease Labor Costs Decrease Cost of Waste Decrease Costs for Parts & Supplies Decrease Early Retirement Decrease Shipping Costs Extend Machine Life Improve Productivity Decrease Accidents Decrease Energy Costs Decrease Mishandling & Loss Improve On-time Delivery Grow After-Market Sales Decrease Misuse & Warranty Costs Decrease Accidents Offer Value-Added Services Improve First-Call Resolution Rate Decrease Rearly Retirement Improve Product Development Reduce Undesired Side Effects Reduce Accidents Reduce Trial and Treatment Periods Improve Efficacy INTERNALEXTERNAL People OPTIMIZETRANFORMATIONAL
- 7. New Revenue Modelsfor 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.
- 8. Business Cases |Automotive Copyright © Capgemini 2013. All Rights Reserved 8Capgemini Datalympics_presentation.pptx 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.“
- 9. Copyright © Capgemini2013. All Rights Reserved 9Capgemini Datalympics_presentation.pptx 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.“
- 10. Copyright © Capgemini2013. All Rights Reserved 10Capgemini Datalympics_presentation.pptx 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.“
- 11. 30 Measurable BusinessCases for IoT Copyright © Capgemini 2013. All Rights Reserved 11Capgemini Datalympics_presentation.pptx Send an email Subject: ROI on IoT to michael.capone@capgemini.com to receive the white paper.
- 12. www.capgemini.com About Capgemini With morethan 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.