The IoT-CSX Transformation
Making Machine Data Valuable for Customer and Business
What is IoT?
Telematics Intelligent Devices
IoTM2M
Connected
Digital
Industrie 4.0 Mobile
Predictive Analytics
Smart
Big Data
Datability
Data Science
PaaS
Prescriptive Analytics
Cloud
Sensors
Stages of the IoT Transformation
M2M
Machine-to-machine involves
the communication between
machines to improve
productivity and safety.
IoT
Internet-of-Things
involves making the
data from connected
products available
online for monitoring
and reporting.
Connected THINGS are
a pre-requisite for IoT.
CSX - 2 Steps Ahead
Connected Service eXperience
involves using the sensor data in
real-time to trigger 1:1 interactions
between the sales, customer care,
service and the customer.
1
2
3
50%
40%
30%
20%
10%
0%
The IoT Adoption Curve
Innovators Early Adopters Early Majority Late Majority Laggards
<20% of the world´s largest
1.000 manufacturers have
M2M, <10% have IoT, >3%
have CSX.
>$2.700.000.000.000 will be
invested in IoT by 2020.
Copyright © Capgemini 2013. All Rights Reserved
5IoT Stockholm.pptx
75,000,000,000
connected devices by 2020.
Why now?
Drivers Enablers
Consumerization of
Corporate IT
consumer habits influencing workplace
Mobile
90%+ adoption rate
Cloud
scaleable, low cost storage
Analytics
powerful and real-time
Competition
global competition forcing new USPs
The Gartner Hype Curve
„Where´s the
money!?“
2,7 zetabytes
of data today,
and 99% is
latent.
IoT CSX Story
Performance and usage
data is acquired and
transmitted every x
seconds.
Data from
many
connected
devices is
aggregated
and stored
When the data indicates an issue
that can cause a problem or
opportunity, a case is created, a
resolution is selected and assigned
to the proper actor.
Interventions are performed to
resolve the issue:
1. Customer Care provides the
operator tips and instructions,
2. Sales & Marketing proactively
sends the customer offers and
orders, and/or
3. Technical Service is dispatched
to perform maintenance or
repair.
4. System sends messages to the
machine directly.
The value of sensor data is
maximized when it is used in
real-time to automatically
trigger actions.
1
2
4 5
The resolution is
recorded. Outages and
accidents are prevented,
sales are captured, and
customer dissatisfaction
is prevented.
6
Data is
analyzed in
real-time to
identify
issues.
3
The Capgemini 5-A Model for CSX
Copyright © Capgemini 2013. All Rights Reserved
8IoT Stockholm.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,
relationships and anomolies are identified.
Analytic Tools
Aggregation (A2) Data from mutliple, different sources are
consolidated.
Big Data, In-Memory Database
Acquisition (A1) Data is created, collected, and
transmitted.
Sensors, Gateway, Communication
Business Applications for IoT
Industry 4.0
Asset Management
Logistics &
Supply Chain
End-Customer
Decrease Energy Costs
Decrease Loss & Theft
Decrease Misuse & Accidents
Improve Efficiency & Productivitiy
Decrease Assets
Decrease Unplanned Downtime
Decrease Inventory Costs
Decrease Labor Costs
Decrease Cost of Waste
Decrease Costs for Parts & Supplies
Decrease Shipping Costs
Extend Machine Life
Improve Productivitiy
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 FCM
Improve Product Development
Improve Customer Satisfaction
INTERNALEXTERNAL
Copyright © Capgemini 2013. All Rights Reserved
10IoT Stockholm.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.“
Business Cases | Automotive
Copyright © Capgemini 2013. All Rights Reserved
11IoT Stockholm.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.“
New Revenue Models for Machine Data
• Priority SLAs. The SLA or guaranty of the future will be pre-emptive. 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. This service level will have a price.
• Personalized Rates. Companies will offer pay-for-use, where price or rates reflect
actual usage and behavior. Customers will opt-in to save money.
• Factory-as-a-Service or Product-as-a-Service. Products will be free. The
company will replace (or complement) the one-time sale of a product with recurring revenue to
support the customer. Customers will subscribe to services in order to get tips to save fuel,
improve performance, lower operating costs, and prevent accidents.
• Data Remarketing. Products will be free. The data generated by the product will be
packaged, sold and re-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.
CSX Success Stories
Copyright © Capgemini 2013. All Rights Reserved
13IoT Stockholm.pptx
Street Lights
Vehicles
Production Equipment
Shopping Point-of-Sale
Trees
www.capgemini.com
About Capgemini
With 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.

The IoT-CSX Transformation

  • 1.
    The IoT-CSX Transformation MakingMachine Data Valuable for Customer and Business
  • 2.
    What is IoT? TelematicsIntelligent Devices IoTM2M Connected Digital Industrie 4.0 Mobile Predictive Analytics Smart Big Data Datability Data Science PaaS Prescriptive Analytics Cloud Sensors
  • 3.
    Stages of theIoT Transformation M2M Machine-to-machine involves the communication between machines to improve productivity and safety. IoT Internet-of-Things involves making the data from connected products available online for monitoring and reporting. Connected THINGS are a pre-requisite for IoT. CSX - 2 Steps Ahead Connected Service eXperience involves using the sensor data in real-time to trigger 1:1 interactions between the sales, customer care, service and the customer. 1 2 3
  • 4.
    50% 40% 30% 20% 10% 0% The IoT AdoptionCurve Innovators Early Adopters Early Majority Late Majority Laggards <20% of the world´s largest 1.000 manufacturers have M2M, <10% have IoT, >3% have CSX. >$2.700.000.000.000 will be invested in IoT by 2020.
  • 5.
    Copyright © Capgemini2013. All Rights Reserved 5IoT Stockholm.pptx 75,000,000,000 connected devices by 2020. Why now? Drivers Enablers Consumerization of Corporate IT consumer habits influencing workplace Mobile 90%+ adoption rate Cloud scaleable, low cost storage Analytics powerful and real-time Competition global competition forcing new USPs
  • 6.
    The Gartner HypeCurve „Where´s the money!?“ 2,7 zetabytes of data today, and 99% is latent.
  • 7.
    IoT CSX Story Performanceand usage data is acquired and transmitted every x seconds. Data from many connected devices is aggregated and stored When the data indicates an issue that can cause a problem or opportunity, a case is created, a resolution is selected and assigned to the proper actor. Interventions are performed to resolve the issue: 1. Customer Care provides the operator tips and instructions, 2. Sales & Marketing proactively sends the customer offers and orders, and/or 3. Technical Service is dispatched to perform maintenance or repair. 4. System sends messages to the machine directly. The value of sensor data is maximized when it is used in real-time to automatically trigger actions. 1 2 4 5 The resolution is recorded. Outages and accidents are prevented, sales are captured, and customer dissatisfaction is prevented. 6 Data is analyzed in real-time to identify issues. 3
  • 8.
    The Capgemini 5-AModel for CSX Copyright © Capgemini 2013. All Rights Reserved 8IoT Stockholm.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, relationships and anomolies are identified. Analytic Tools Aggregation (A2) Data from mutliple, different sources are consolidated. Big Data, In-Memory Database Acquisition (A1) Data is created, collected, and transmitted. Sensors, Gateway, Communication
  • 9.
    Business Applications forIoT Industry 4.0 Asset Management Logistics & Supply Chain End-Customer Decrease Energy Costs Decrease Loss & Theft Decrease Misuse & Accidents Improve Efficiency & Productivitiy Decrease Assets Decrease Unplanned Downtime Decrease Inventory Costs Decrease Labor Costs Decrease Cost of Waste Decrease Costs for Parts & Supplies Decrease Shipping Costs Extend Machine Life Improve Productivitiy 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 FCM Improve Product Development Improve Customer Satisfaction INTERNALEXTERNAL
  • 10.
    Copyright © Capgemini2013. All Rights Reserved 10IoT Stockholm.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.“
  • 11.
    Business Cases |Automotive Copyright © Capgemini 2013. All Rights Reserved 11IoT Stockholm.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.“
  • 12.
    New Revenue Modelsfor Machine Data • Priority SLAs. The SLA or guaranty of the future will be pre-emptive. 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. This service level will have a price. • Personalized Rates. Companies will offer pay-for-use, where price or rates reflect actual usage and behavior. Customers will opt-in to save money. • Factory-as-a-Service or Product-as-a-Service. Products will be free. The company will replace (or complement) the one-time sale of a product with recurring revenue to support the customer. Customers will subscribe to services in order to get tips to save fuel, improve performance, lower operating costs, and prevent accidents. • Data Remarketing. Products will be free. The data generated by the product will be packaged, sold and re-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.
  • 13.
    CSX Success Stories Copyright© Capgemini 2013. All Rights Reserved 13IoT Stockholm.pptx Street Lights Vehicles Production Equipment Shopping Point-of-Sale Trees
  • 14.
    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.