Best practices process, including how to develop the IoT Concept. Design of your Business Model and End to End Scenario. Case study with Tennant Manufacturing.

1. Internal
Telit IoT Innovation Conference 2017
Deliver High Value IoT Transformations
Andrew LeBlanc, PE
Chief Enterprise Architect, SAP America Support
Digital Transformation – EA, Analytics & IoT
February 7, 2017
Internal

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Agenda
• Customer IoT Transformation Strategy
• Business Model & Standard Patterns
• Case Study: Tennant
• Takeaways

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Sample SAP Customers…deploying IoT
Common best practices to their success and achieving value
Real time costing increases
efficiency Energy apps lower
spend based on power contracts
Digital operations - increased
performance (-7% cost, +19%
net margin, +25% dividend)
Industrie 4.0 Award Winner
99.5% First Pass Yield
100% Track and Trace
“Made in China 2025” pilot project –
MES on HANA – Increased production
by 25% - Integrated to thousands of
sensors and equipment
Real time operational
surveillance of well
performance on HANA
Up to 30% improvements
in reporting speed
8-10% reduction in
maintenance costs
Optimized maintenance 3 –
5% increase equipment and
production efficiency
Innovation in Insurance
Telematics
Improve fleet utilization,
efficiency and transportation
services
Higher customer loyalty
and satisfaction
Increased transaction volumes
through new sales channels
Increased adoption of
mobile app
Increased safety and security
in truck parking
Improved service levels, higher
efficiency and productivity
Building innovative applications
based on the data of connected trailers
Improve service levels
for customers & new
business model
Improve fleet productivity
& transparency
Visibilityinto customer’s
fitness footprintand workout
habits using IOT. Engage
Better and Grow revenue
100% Improvement on
Speed of information
retrieval & reliabilityof
data send to ERP
15% Reduction in driver
turnover in the first year
Improved Talent development
and driver safety
Better Patient Engagement–
Diabetesconnected kit
Better customer service,
reducecarbonfootprint
and pay per use model
EfficientSupplychain
& cost reductionwith
predictivefor Container
Repositioning
100% Flood Reduction
Increase Forklift operator
safety and real time insights

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SAP Leonardo Innovation Portfolio
SAP Leonardo connects things with people and processes
Outcomes
Things
Valuechain
SAP Device Management by Telit

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SAP Leonardo Jumpstart – 3 Steps to Outcome
Rapid Design & Pilot Initial End to End Scenario
Explore Create Implement
• Understand the
impact of IoT
on the business
• Discuss core
business processes
and new business
models
• Identify area for
innovation
IoT Concept
• Narrow down on one
core business
process
• Redesign business
process/ model on
real data
• Rapid prototyping
to demonstrate vision
IoT Design
• Realize former prototype
as live pilot project
• Integrate into one
business scenario
• Provide software as a
service for limited time
• Define IoT roadmap for
next processes
Sprint Zero –
Build IoT Scenario
3 STEPS TO OUTCOME
1 DAY 1 WEEK 3 MONTHS

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Explore: IoT Concept - Design Thinking - Innovation Matrix
Successful IoT Transformation Requires Three Key Innovation Drivers
Desirability
Needs
Viability
Business Model
Feasibility
Technology
InnovationMatrix
Viability DesirabilityFeasibility
Today
Future
SAP Template & Method for Desirable,
Feasible & Viable Concept

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Create: Business Model Development & Innovation (BMDI)
Method to validate viability for an IoT - related Business Model
Value Network / Ecosystem
Find the greatest levers
& niches in ecosystem
Business Model Canvas
Viability: exploit full potential of (disruptive)
inventions
InnovationMatrix
Ÿ Manage Key drivers and
dynamics over time
Ÿ Trend Management
Ÿ Basis for Scenarios & Simulations
Design Thinking
for orchestration & needs perspective

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REIMAGINE
Reimagined
digitized products
Reimagined
digitized processes
Reimagined
digitized business models
Create: Internet of Things – Path to End to End Scenario
Building a Solid Foundation for IoT Transformation
Assets /
Devices
SAP Cloud Platform
& SAP Leonardo
Foundation
SAPLeonardo
Foundation
Standard
Services
Predictive
Maintenance and
Service (PdMS)
Connected
Manufacturing
Connected Products Network
Logistics Hub
Vehicle Insights &
Vehicle Networks
Asset
Intelligence Network
And more……
SAPLeonardo
ConnectedAPPS
CUSTOMERS
SAPSYSTEMLANDSCAPE
SAP S/4 HANA or
ERP Digital Core
CONNECT & TRANSFORM
New Core Business
Processes
„Digitalization
Platform“
Custom
IoT App
SAP
IoT App
Customer
OR
Customer of
yourCustomer
Digital Core

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ExploreCreate: IoT Accelerators Patterns
Two Sample Accelerators - IoT Technology Radar & IoT Business Model Patterns

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IoT Transformation Case: Tennant
From End to End Process to Innovative Business Models
§ Founded, 1870, Minneapolis, MN
§ 812 M USD Revenue, 2015
§ 3200 Employees
COATINGSTENNANTTRUE®
OUTDOOR
ORBIO®
TECHNOLOGIES
INDUSTRIAL COMMERCIAL
Equipment, Parts & Service
to maintain industrial &
commercial surfaces

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Empower Customer with Data – Insights - Action
Reduce Their Cost to Clean – Desirable, Viable Concept

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Tennant IRIS Asset Management Solution
Feasible: End to End Scenario - Devices to Core Business Processes
Asset Gateway
OT Device &
Integration
Intelligent Remote
Information System
ITOT Big Data,
Analytics & Services
SAP Leonardo IoT
Enterprise
Gateway
OT
Management
DMI
Intelliportal
IT Core Business
Processes
Equipment,
Customer
Etc.
Billing,
Orders,
Etc.
SAP ERP
MyTennant
Portal
Document &
Collaboration
Email
Notification
User Interfaces
= Available, not used

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Evolve Toward Value & Solution Provider
Operational Consistency
= Labor Savings
Minimize Cost of
Lost Assets

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Tennant’s Field Service Value Evolution
Incremental Growth toward options for Innovative Business Models
Service
Scheduling
•Hours
•Reduce # of
visits
Remote
Diagnostics
•Battery/DTC codes
•Increase FTR
Predictive
Failures
• Decrease in BD
visits & costs
Remote
Service
•Reduced cost
to service
2013
Enables Tennant to offer more “All In Solutions”…
Covered with “Usage based
Service Scheduling”
Covered with analytics
Predictive Maintenance and
Service
RemoteOperation or
CleaningAsAService

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IRIS® Helps Tennant Break Through to $1 Billion
Imagine the Future Possibilities!
§ Grow Machine Sales
‒ IRIS® increases Tennant’s
differentiation
§ Grow Service Attachment
and Support
‒ Service reporting through portal
‒ IRIS bundled with Gold/Silver
§ Customer Intimacy to
Become Consultant
‒ Continuous value add to customers
Impact
Detection
Orbio
Usage
Maintenance
Diagnostics
Usage by
Operator ID

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Next Steps for You
Ø Think Big, start small
Ø Define initial IoT Concept, reusing standard
patterns -> Discovery Workshop
Ø Design your IoT Concept
v End to end process i.e. PdMS, Connected Products,
etc.
v Business model, that is Desirable, Feasible, and
Viable
Ø Rapidly deploy End to End Process.
Incrementally add capabilities
Ø Achieve maturity to quickly adjust and build
transformative business models
andrew-leblanc
Develop your IoT Prototype for Free
Imagine IoT

18. Thank you
Contact information:
Andrew LeBlanc, PE
Chief Enterprise Architect
SAP Digital Business Services PE VA
Digital Transformation – EA, IoT, Analytics
andrew.leblanc@sap.com
+1.404.641.6944
linkedin.com/in/andrew-leblanc