Presentation from Internet of Things Midlands event on 8th September, 2015: http://www.meetup.com/IoTMidlands/events/223960036/

2. © 2015 InVMA and ThingWorx
As advertised
• Provide an everyday way of thinking about the Internet of Things in
Industry
• Share a simple way of describing the technology stack required for
smart, connected products and some of the issues that are now
being overcome by the Tech Industry.
• Propose potential new ways that value will be created by things
communicating with people and each other
• He will bring this to life with real examples of additional and
“unintended” value created from connecting to a Combined Heat
and Power plant in a School.

3. Example Live ClientsOur Mission is to
“Connect the World for Good”
Founded in 2012 by directors of InControl
True End to End Capability through
Hardware, Software, Process and People
Design, Development and Integration
“The quality of the work they have carried out
for us is reflected in the low call out ratios,
minimal warranty costs and satisfied end users
on each of the projects for which they provided
assistance”
3

4. © 2015 InVMA and ThingWorx
Definition
• The Internet of Things (IoT)
• A network of physical objects or "things“
• Embedded with electronics, software, sensors, and connectivity
• Enable objects to exchange data with people, systems or other objects
• The term was coined by British entrepreneur Kevin Ashton in 1999
when he was at MIT.

5. 5
PHYSICAL
WORLD
Traditional Reality: Distinct and Separate
DIGITAL
WORLD

6. 6
New Reality: Distinct but Inseparable
Digital World Physical World
INTERNET OF THINGS
6

7. 7
Digital Twin Video

8. © 2015 InVMA and ThingWorx
What is IoT?
RULES / ANALYTICS
ENGINE
SMART PRODUCT
APPLICATIONS
IDENTITY AND
SECURITY
PRODUCT DATA
DATABASE
BUSINESS SYSTEMS
INTEGRATION
APPLICATION
PLATFORM
NETWORK
COMMUNICATION
010000101000001110001100
100101001100101010110001
010000101000001110001100
EXTERNAL INFORMATION
SOURCES
11011001001100101100110100110010100011010100001111
0110101011100011001000011000010100001010000011100 SOFTWARE
HARDWARE

9. © 2015 InVMA and ThingWorx
What does that mean for a product?
Electronics and Controls
Ability to Process
Smart Product
Product Cloud
Database, Application Platform,
Rules / Analytics Engine, Smart Product Applications
Sensors
Ability to Sense
Software
Ability to Instruct
Enhanced UI
Ability to Interact
Mechanical
Smart,
Connected
Product
Physical Product
Electrical
Connectivity
One to One, One to Many, Many to Many
01101010111000110010000110
00010100001010000011100011
01010111000110010000110000
10100001010000011100110110
01001100101100110100110010
10001101010000111101101010
11100011001000011000010100
00101000001110001101010111
00011001000011000010100001
11100011001000011000010100
00101000001110001101010111
00011001000011000010100001
01000001110011011001001100
10110011010011001010001101
01000011110100110010110011
01001100101000110101000011
11011010101110001100100001
10000101000010100000111000

10. © 2015 InVMA and ThingWorx
#1
Manufacturing industry will be the #1
industry sector by share of global economic
value-add.
– Forecast: The IoT, Worldwide, 2013
Estimated potential economic impact of The
Internet of Things in 2025, range from $2.7 –
6.2 trillion annually
– McKinsey Global Institute
$6.2T
Smart, connected products will give rise to the next
era of IT-driven productivity growth at a time when
the impact of earlier waves of IT has largely played
itself out.
–Harvard Business Review, November 2014
Jim Heppelmann
President and CEO, PTC
Prof. Michael Porter
Harvard Business School
Hype

11. © 2015 InVMA and ThingWorx
What conversations would you have?
11
More
people…I
need cleaning
More
people…I
need cleaning
I need
repair
I need
repair
I’m at full
capacity
I’m at full
capacity
I’m using more
energy than
expected
I’m using more
energy than
expected
I need
refilling
I need
refilling
My water is
corrosive
My water is
corrosive
I detect a
bio-hazard
I detect a
bio-hazard
I’ll raise the
bill for
usage
I’ll raise the
bill for
usage
I’ve
arrived
on site
I’ve
arrived
on site
Bearing
vibration is
rising
Bearing
vibration is
rising

12. © 2015 InVMA and ThingWorx
What does this enable?
Smart, connected products enable new categories of
capabilities, with each building on the preceding one
1. Monitoring
2. Control
3. Optimization
4. Autonomy
Sensors and external
data sources monitor
the product condition,
environment, and
operation, and
alert/notify of changes
Software embedded in
the product or in the
product cloud controls
product operation and
personalizes the user
experience
Monitoring and control
capabilities enable
algorithms that optimize
product performance
and perform diagnostic,
service, and repair
Combining monitoring,
control, and
optimization allows
autonomous product
operation, service, and
coordination with other
product systems

13. © 2015 InVMA and ThingWorx
Weather
System
Irrigation
System
Seed
Optimization
System
Farm
Equipment
System
Farm
Management
System
Platform
Tillers Planters
Tractors
Farm
Equipment
System
Combine
Harvester
+
++
Product is
comprised of
physical (i.e.,
mechanical,
electrical) and
other material
components
Product
incorporates
software, sensors,
electronics and
controls, and an
enhanced user
interface
Product incorporates
wired or wireless
connectivity to exchange
data remotely and
enable new capabilities
outside the physical
product
Smart, Connected
Product integrates into a
product system, usually
within the same industry,
to optimize product and
system performance
Smart, Connected Product is
coordinated across other
products systems, outside
traditional partners, suppliers,
and industry, to optimize
product and system
performance
SYSTEM OF
SYSTEMS
PRODUCT
SYSTEM
SMART,
CONNECTED
PRODUCT
SMART
PRODUCT
PHYSICAL
PRODUCT
What does this enable?
© 2014 Harvard Business Review, November 2014

14. 14
VALUE
New Ways to Capture Value
Optimize
Performance
Improve Risk
Management
Reduce
Product and
Service
Costs
New
Revenue
Streams
Operational
Differentiate
Offering
Quickly deliver
compelling,
differentiated
offerings that
meet or
anticipate
customer
demands
Elevate
Customer
Relationship
Make offerings
smarter, easier to
update, and more
personalized to
elevate customer
experience
Strategic
Combine real-
time data from
assets,
enterprise
systems, and
people to
increase
operational
efficiency
Improve ability to
proactively
identify and
mitigate financial,
safety,
environmental
and regulatory
compliance risk
Implement
proactive service,
limit warranty
costs and risks,
and optimize
service and
product
development
processes
Realize new
value-add
opportunities and
revenue streams
Predictive-
Based
Outcomes
Use predictive
analytics of big
data to launch
business
processes
preemptively
New
Business
Models
Maximize
revenue
opportunities and
value capture
from new
services or
business models
Disruptive

15. © 2015 InVMA and ThingWorx
New Business Models - Accenture
Source: Driving Unconventional Growth through the Industrial Internet of Things
Copyright © 2014 Accenture All rights reserved.
Single Invoice
Transactional
Subscription Based
Ongoing Relationship

16. Michelin Example
Source: Driving Unconventional Growth through the Industrial Internet of Things
Copyright © 2014 Accenture All rights reserved.

17. Source: Driving Unconventional Growth through the Industrial Internet of Things
Copyright © 2014 Accenture All rights reserved.
General Electric Example

18. Client OEM Example
Information
Services
Benchmarking,
Analytics, Training
Needs
Demand or Impact
Management
Equipment
Services
Breakdown and
Scheduled
Maintenance
Preventative
Maintenance
Air as a Service
Products Compressor Connected Pump
Pre-Digital
Product Line
Digital Product-
Line
New Market
Client OEM Example
Client is moving model from scheduled
maintenance to using predictive
analytics to manage preventative
maintenance. Next step operator
training and moving to connected
demand management with energy
suppliers

19. Auto Example
Information
Services
Share Location
Data and Traffic
Conditions
Equipment
Services
Breakdown and
Scheduled
Maintenance
Preventative
Maintenance
Car as a Service
Products Car Connected Car
Pre-Digital
Product Line
Digital Product-
Line
New Market
Auto Example
Daimler experimenting with Car2Go.
Uber in Taxi market, Waze, Mercedes
and BMW with connected services

20. 20
Service: Diebold Reduces Downtime by 15%
Diebold is a $2.9B provider of integrated
self-service delivery and security systems,
including ATMs
Deployment results:
• Average problem resolution time reduced from
3 hours to minutes
• 17% of total issues resolved remotely without
a field service visit
• Overall Opteva ATM downtime reduced
by 15%
“With OpteView, I can achieve world-class ATM availability by
making the most out of a close relationship with a trusted vendor
– Diebold .”
– Chad Lynch
Services Manager, America First Credit Union

21. 21
Analyze: Elekta Delivers Preventative Maintenance
Elekta is a $750 million company with
approximately 3,500 employees worldwide.
The company develops sophisticated,
state-of-the-art tools and treatment
planning systems for radiation therapy,
radiosurgery and brachytherapy.
Deployment results:
• >20% of service requests resolved remotely
without the need for an onsite visit
• Increased system uptime and patient
throughput
• Improved product design through machine
reliability data analysis
“By harvesting machine data and using predictive analytics on the
usage patterns and life-cycle of the systems, we can pre-position
spares closer to machines where we know that a part is coming to
the end of its duty cycle. This predictive support model truly
maximizes the availability of the systems, providing an enhanced
service experience for the customer and enabling them to deliver
improved patient care .”
– Martin Gilday
VP of Service, Elekta

22. 22
Integrate: GE Power & Water Optimizes 7 Processes
GE Power & Water is a world leader in
power generation and water technologies
for utilities, independent power producers
and industrial applications.
1. Commissioning - Sales Efficiency
2. Contractual SLAs – Higher profitability
3. Training – Employee productivity
4. Remote Monitor, Diagnostics and Service –
Fewer truck rolls, less downtime
5. Field Service – higher first time fix rate,
faster time to repair
6. Spare Parts – Optimized inventory levels
7. Upgrades and Repair – predictive maintenance
“We are using machine data to build algorithms to predict issues
or changes. Often we see ‘this is different from the majority of
engines’ and that will help us develop an appropriate procedure.”
– Audi Lucas
GE Power & Water

23. 23
Innovate: Joy Global Transforms Business Model
Joy Mining is a worldwide leader in high-
productivity mining solutions that manufactures
and markets original equipment and aftermarket
parts and services for the mining industries.
Deployment results:
• Anticipate equipment failures & efficiently
respond to problems reducing equipment
downtime
• Optimize mining processes with new analytics
to reduce the cost of resources & increase
production
• Manage the overall mining operation on behalf
of the mine owner. Transition from pay per
product to pay per tonnage of earth mined
“The future gains in productivity will come from system
improvements, not just the product itself. This requires smart
connected product systems that can monitor and optimize the full
system performance.”
– Ted Doheny
CEO, Joy Global

24. 24
Innovate: All Traffic Captures New Revenue Streams
All Traffic Solutions is the leading
manufacturer of signs used by police
departments and local governments to help
understand and manage traffic.
Results:
• Delivered an innovative solution for law
enforcement professionals called the
TraffiCloud
• Faster time to market
• Rapid development of mobile UI
• Advanced data mining that All Traffic can now
offer its customers
“ThingWorx’s rapid application development environment and
scalable platform allows us to extend our solution and deliver new
services to our customers in ways that were previously
impossible.”
– Scott Johnson
CEO, All Traffic Solutions

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If you don’t move you don’t win