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Zinnov Zones for IoT Services 2017

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Zinnov has rated Global Service Providers in various segments of IoT Services for the year 2017.

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Zinnov Zones for IoT Services 2017

  1. 1. Zinnov Zones 2017 IoT Technology Services
  2. 2. 2Zinnov Proprietary Confidential Defining Internet of Things IoT Technology Market Landscape IoT Technology Service Provider Landscape Zinnov Zones Ratings Agenda
  3. 3. 3Zinnov Proprietary Confidential Internet of Things stack: WORKLOADS Customer Experience Operational Excellence Workforce Enablement Risk Management, Compliance & Security Digital Products & Services BUSINESS OUTCOMES AR/VRAnalytics DIGITAL TECHNOLOGY FOUNDATION BUSINESS MODELS DisintermediationData Monetization Platformization 3 MODERN INFRASTRUCTURE Sensors Communications { Gateways, Connectivity Protocols, Networks } IoT platforms { Device abstraction and management, edge-to-cloud connectivity, CEP & workflow management, security } Data Lakes High Performance Compute Software Defined Infrastructures Cloud Centric Infrastructure Block chain Robotic Automation Artificial Intelligence Servitisation Operational Intelligence Analytics & Trends Personalized cabin Virtual trial RELEVANT STAKEHOLDERS CMO | CTO | CDO | CAIO Visibility Control IntelligenceAutonomy Security Infra { MDM, End point encryption } IoT Applications CInO | CTO | CDO | CAIO COO | CIO | BU | CDO COO | CHRO | BU CRO | CIO | COO | CTO Predictive maintenance Fitness tracking Inventory Management Track and Trace Workforce tracking Failure detection and troubleshoot assistance Driver risk assessment Workforce risk management SCADA RFID Wearables Incentivization
  4. 4. 4Zinnov Proprietary Confidential IoT is a fusion of multiple infrastructure and technology layers where both incumbents and new age companies compete (1/2) Incumbents DIGITAL TECHNOLOGY FOUNDATION Artificial Intelligence Robotic Automation Blockchain Analytics AR / VR Communications IoT platforms IoT Applications Security Sensors & Devices Storage and Compute Infrastructure MODERN INFRASTRUCTURE
  5. 5. 5Zinnov Proprietary Confidential DIGITAL TECHNOLOGY FOUNDATION Artificial Intelligence Robotic Automation Blockchain Analytics AR / VR Security Sensors & Devices Storage and Compute Infrastructure MODERN INFRASTRUCTURE New Age Companies Communications IoT platforms IoT Applications IoT is a fusion of multiple infrastructure and technology layers where both incumbents and new age companies compete (2/2)
  6. 6. 6Zinnov Proprietary Confidential Enterprises are exploring newer business models, and are providing customers unprecedented business outcomes across workloads WORKLOADS BUSINESS OUTCOMES BUSINESS MODELS DisintermediationData Monetization PlatformizationServitisation Control Intelligence Enterprises are providing products as a service thereby disrupting the traditional business models Inventory Management Track and Trace Predictive Maintenance Fitbit to sell its data to German life insurer Generali who will offer customized policies based on the data Intelligence Visibility Fitness tracking Health Monitoring Sleep cycle intelligence Enterprises are building and offering to market their proprietary IoT platforms Intelligence Autonomy Asset tracking Risk management Predictive Maintenance Control Visibility Remote Monitoring Inventory Management Order Management Amazon has changed the traditional channel of sales through its Dash button Intelligence Visibility Incentivization C3 Energy and Opower Utilities are incentivising consumers to reduce consumption in peak hours Usage monitoring Pattern intelligence Grid failure management
  7. 7. 7Zinnov Proprietary Confidential Defining Internet of Things IoT Technology Market Landscape IoT Technology Service Provider Landscape Zinnov Zones Ratings Agenda
  8. 8. 8Zinnov Proprietary Confidential Global spend on IoT Technology Products and Services by Enterprises is ~USD 140 Bn and is expected to grow at 18% CAGR to reach ~USD 322 Bn in 2022 USD 62 Billion IoT Technology Products USD 78 Billion IoT Technology Services USD 322 Billion USD 140 Billion Total IoT Spend 2017 USD 132 Billion IoT Technology Products USD 190 Billion IoT Technology Services 2017 2022e Expected IoT Spend 2022 16.5% 19% • Sensor, MEMS, Actuators, Chipsets • Connectivity Hardware including gateways, data aggregators • Network bandwidth • Storage & Server Infrastructure • IoT Platforms • Advisory & Consulting • Product Engineering • System Integration • Managed Services Source: Zinnov Research & Analysis
  9. 9. 9Zinnov Proprietary Confidential IoT Technology Services Spend is expected to grow at 19% CAGR in the next five years to reach USD 190 Billion in 2022 2017 Service Provider Addressed Market Service Provider Addressable Market 78 Bn USD 46 Bn USD 3.5 Bn USD 190 Bn USD 130 Bn USD 11 Bn USD 2022e 19% 23% 25% Source: Zinnov Research & Analysis IoT Technology Services Spend
  10. 10. 10Zinnov Proprietary Confidential 18.4 9.2 9 8.7 7 6.8 4.8 4.6 3 2.6 2.3 1 0.7 0.6 50 23.3 24 20 16.1 14.4 8.4 13.3 5.8 5.5 3.8 2.3 1.5 1.7 0 10 20 30 40 50 Industrial Automotive Energy & Utility High tech Retail Telecom BFSI Healthcare Transport and Hospitality Consumer Packaged Goods Media and Entertainment Home Automation Others Wearables Industrial, Automotive, High Tech and Energy & Utility verticals are expected to drive the IoT growth contributing to ~62% of the spend in 2022 USDBillions Split of IoT Technology Services Spend by Verticals CAGR 22% 20% 22% 18% 18% 16% 12% 24% 14% 16% 11% 18% 16% 24% Source: Zinnov Research & Analysis 2017 2022e $78 Bn $190 Bn IoT Technology Services Spend
  11. 11. 11Zinnov Proprietary Confidential System Integration Managed Services Product Engineering Managed Services are expected to grow at the highest CAGR of 23.5% to reach USD 49 Bn in 2022 Global IoT Technology Services spend Advisory & Consulting USD 78 Bn USD 190 Bn 19% USD 14.7 Bn 35% USD 27 Bn 21% USD 17 Bn 12% USD 23 Bn 33% USD 63 Bn 26% USD 49 Bn 2017 2022e 9% 18.5% 23.5% Split of IoT Technology Services Spend by Service Lines Source: Zinnov Research & Analysis 25% USD 19.3 Bn 29% USD 55 Bn 22.5%
  12. 12. 12Zinnov Proprietary Confidential North America Europe Asia South America Middle East & Africa Australia 21% 20% 17% 8% 7% 9% 31.7 0.8 21.5 0.16 0.6 23.283 52.5 51 1.1 0.22 0.9 2017 2022e At 21% CAGR, North America is expected to grow at the highest rate contributing to ~44% of total spend in 2022 x x IoT Technology Services Spend in USD Bn CAGR Source: Zinnov Research & Analysis Split of IoT Technology Services Spend by Geographies
  13. 13. 13Zinnov Proprietary Confidential Defining Internet of Things IoT Technology Market Landscape IoT Technology Service Provider Landscape Zinnov Zones Ratings Agenda
  14. 14. 14Zinnov Proprietary Confidential Indian IoT Technology Service Providers currently address ~44% of the total outsourced market in 2017 1.52 Bn 0.94 Bn 0.15 Bn 0.81 Bn India Eastern Europe Western Europe USA IoT Technology Outsourcing Hotspots IoT Technology Services Outsourcing Addressed IoT Technology Services Market through Outsourcing Partners Billion USD 0.046 Bn ROW 3.5 *ROW Regions mainly include China, Argentina, Japan and Korea Source: Zinnov Research & Analysis (in USD Bn)
  15. 15. 15Zinnov Proprietary Confidential 0 50 100 150 200 250 300 350 400 450 0 20 40 60 80 100 120 Top 20 Global Service Providers contribute ~76% of the overall addressed market indicating consolidation Top 20 76% Next 20 15% Remaining 9% Revenue Distribution of IoT Technology Service Providers RevenueOfServiceProviders(inUSDMn) No. of Service Providers in decreasing order of revenues Source: Zinnov Research & Analysis
  16. 16. 16Zinnov Proprietary Confidential Region-wise Split of the overall addressed market x USD 3.5 Billion Overall addressed IoT Technology Services Market 40% 32% 23% 43% - Total addressed market for the region (in USD Mn) North America leads the addressed market in Advisory & Consulting Services, while India leads the Managed Services market Source: Zinnov Research & Analysis 23% 35% 22% 19% 24% Managed Services System Integration Product Engineering Advisory & Consulting India Western Europe North America Eastern Europe ROW Managed Services System Integration Product Engineering Advisory & Consulting 1519 14% 43% 21% 27% 18% 31% 19% 47% 16% 20% 37% 24% 939 156 47 808 20% 22% 24% 18% ROW
  17. 17. 17Zinnov Proprietary Confidential Defining Internet of Things IoT Technology Market Landscape IoT Technology Service Provider Landscape Zinnov Zones Ratings Agenda
  18. 18. 18Zinnov Proprietary Confidential Zinnov Zones Ratings exercise is a structured 3 step process Rating Invitation Data Collection and Analysis Rating and Validation 1 2 3 Initial Rating RFI Response Collection Response Cleanup and Follow-up Clarification Primary Research Validation by Zinnov Experts Customer Feedback Secondary Research Secondary Research Shortlist of 35 companies List of 100 Companies RFI Creation and Roll-out to 30 Co. Based on: • Digital Technology Service Landscape • Geographic Spread • Leadership Teams Based on: • Focus on IoT Services • Client Base & Business models • Organization Size a b d c Zinnov Zones 2017 Rating Source: Zinnov Research & Analysis
  19. 19. 19Zinnov Proprietary Confidential Zinnov’s Zones Ratings is based on a proprietary framework that quantifies qualitative data and subsequently uses an AHP model Data Point Classification AHP & Rating Scale Rating Data Extraction & Rating Methodology AHP is a statistical model used for assigning weights to the dimensions and the data points. Rating point of 1 to 5 is decided for each data point based on criteria For all data points extracted from RFIs, corresponding rating will be mapped in the Rating Scale Companies will be rated based on the scores arrived from the previous steps, using the parameter based modeler. Classification of company and vertical specific data points available from various RFIs Look-upScore Rank AHP Rating Scale Data Point 1 Data Point 2 1 2 3 4 5 1 2 4 3 Source: Zinnov Research & Analysis
  20. 20. 20Zinnov Proprietary Confidential Zinnov Zones for IoT Technology Services has ratings across 4 categories and their subsequent sub categories Zinnov Zones - Internet of Things Technology Services IoT Advisory & Consulting IoT Managed Services Communication Engineering IoT Product Engineering IoT Sub Category Ratings IoT Category Ratings IoT Overall Ratings Communication Management Sensor & Device Engineering Platform and Application Management Sensor & Device Management IoT System Integration Communication Integration Sensor & Device Integration Platform and Application Integration Big Data Management Analytics Services Remote Monitoring and Management of assets 1 2 3 4 5 Platform and Application Engineering 6 7 8 9 10 Sensor & Devices IoT Application IoT Platforms Communication Layer Security
  21. 21. 21Zinnov Proprietary Confidential IoT Technology Services spectrum is categorised under 4 segments, which are further sub categorized for a comprehensive view of activities (1/2) IoT Advisory & Consulting IoT Product Engineering IoT System Integration Sensors & Devices Engineering Communications Engineering Platform & Application Engineering Sensors & Devices Integration Communications Integration Platform & Application Integration IoT Readiness Evaluation Silicon design and validation IoT Switch / router engineering Core Platform Development Device Commissioning and Provisioning Interoperability testing Platform configuration Business Model Validation Embedded platform engineering IoT Gateway engineering Core Platform Testing Device Configuration Device/Sensor Connectivity Platform customization Architecture Roadmap Testing Interoperability testing Application Development Device Interoperability testing Network configuration Third Party Application Integration ROI Planning Device interoperability testing Network engineering UI/UX Design & Development Network Commissioning and Provisioning Platform testing for integration Build vs Buy Decision Making Device Security Communication security API Development UI / UX customization Partner Selection Application Security Activities Source: Zinnov Research & Analysis
  22. 22. 22Zinnov Proprietary Confidential IoT Technology Services spectrum is categorised under 4 segments, which are further sub categorized for a comprehensive view of activities (2/2) Source: Zinnov Research & Analysis IoT Managed Services Sensors & Devices Management Communications Management Platform & Application Management Big Data Management Analytics Services Remote monitoring and management of assets Sensor & Devices Monitoring Network Performance Monitoring Platform Upgrade & Migration Services Data aggregation Data visualisation Enterprise asset management Firmware upgrade Network Optimization Platform Support Services Data warehousing Descriptive analytics 24X7 NOC/Service Desk Sensor & Devices retirement / decommissioning Asset Management Platform Integrity Verification Data mining Diagnostic analytics Security Administration Security Operations Management Application management and upgrade Data protection Predictive analytics Compliance Management Data structuring / modelling Prescriptive analytics Incident Management Cognitive analytics Activities
  23. 23. 23Zinnov Proprietary Confidential Expansive Low High Zinnov Zones – Leading Service Providers Niche Emerging Established • Emerging companies with presence across Multiple Verticals • Focus on building competencies across multiple verticals • Niche Breadth and Depth of services across multiple verticals • Emerging companies in Niche Verticals • Focus on building Niche Competencies across focus verticals • Niche breadth and depth of services across focus verticals • Market Leaders across Multiple Verticals • Strong focus on Innovation, IP creation, and Ecosystem Linkages across most verticals • Excellent Breadth and Depth of services across multiple verticals • High Scalability across most verticals • Market Leaders with presence in Niche Verticals • Strong Competency in Focus Verticals • Excellent Breadth and Depth of Services across focus verticals Capabilities & Innovation, Specialisation Scale,ServicesDiversity,VerticalDiversity Source: Zinnov Research & Analysis IoT Technology Services: Overall Ratings
  24. 24. 24Zinnov Proprietary Confidential Expansive Wipro TCS Tata Elxsi LTI* Genpact HARMAN Connected Services Low High Zinnov Zones – Leading Service ProvidersScale,ServicesDiversity,VerticalDiversity Aricent Infosys Softdel Happiest Minds Altran L&T TS HCL EPAM Persistent Systems Prodapt Hughes Systique Innominds Capabilities & Innovation, Specialisation GlobalEdge eInfochips Niche Emerging Established IoT Technology Services: Overall Ratings Cognizant Source: Zinnov Research & Analysis Xoriant Globant Tech Mahindra 1 *Larsen & Toubro Infotech
  25. 25. 25Zinnov Proprietary Confidential Service Providers are evaluated across pre-identified key performance parameters and subsequently classified under Zinnov zones Human Capital Human Capital is critical in analysis of company’s capability to deliver specific engineering needs. We considered overall headcount, distribution by experience level, positioning (onsite/offshore), domain expertise across verticals. Capabilities Capabilities of the organization is assessed to understand the overall ability of the vendor to deliver on the requirements of clients; it encompasses strengths and advantages across People strength, operational capability, business models employed, and expertise of the organization Innovation Focus on innovations, IP creation and disruptive solutions through organic or inorganic capability development; this ensures the service provider capability to provide upcoming faster and cheaper go to market IoT solutions according to the clients needs Ecosystem Linkages Strategic partnerships with upcoming digitally native start-ups, University connects to focus on developing digital talent and research activities tell a lot about the organization’s capability in harnessing the ecosystem in Internet of Things Service space. We have covered all aspects as listed with specific weights to each as appropriate Infrastructure Infrastructure investment demonstrates capability and commitment to growth. Also, geographic spread and expansions throws light on the ability to leverage geo specific advantages. Companies that have invested in Infrastructure like Digital Labs and CoEs have strong capabilities in providing IoT Technology Services Service Maturity Client relationships, Service Line technology and business depth, along with established solutions are indicators of maturity. We used these parameters to assess the service maturity of the partner, which will help customers differentiate long term players from others Nurture Zone Breakout Zone Execution Zone Leadership Zone The cumulative score of enterprises based on the parameters is used to classify the service providers in one of the Zinnov Zones below- Source: Zinnov Research & Analysis
  26. 26. 26Zinnov Proprietary Confidential Nurture Zone Breakout Zone Execution Zone Leadership Zone Low High Scalability Zinnov Zones – Leading Service Providers IoT Competency Scale,ServicesDiversity,VerticalDiversity The cumulative score of enterprises based on the myriad parameters is used to classify the Service Providers in Zinnov Zones • Emerging entrants in the IoT technology services space • Presence in only select verticals • Limited number of clients • Niche capabilities across focussed verticals • Feeble IoT ecosystem linkages • Limited Thought Leadership, Whitepapers, Frameworks and IP • Typically work in T&M model • On the way into big league, delivering IoT services effectively • Presence in a few verticals • Innovation frameworks resulting in tangible benefit to customers • Generic capabilities across Consulting, Product development and Managed Services • Typically work in T&M and Fixed Price model • Capable of performing concept to Go-To-Market for IoT Technology • Presence in most verticals • Reusable IPs and frameworks built, and benefits quantified • Strong IoT ecosystem linkages • IoT specific labs and COEs built • Capable of working in all models, including Risk Reward and Revenue Share • Competent to implement End-to-End IoT technology solutions • Presence in almost all verticals • Formal innovation culture, resulting from strong Thought Leadership to create frameworks and IP • Core of the IoT ecosystems • Established IoT labs and COEs • Capable of working in all models, including Risk Reward and Revenue Share Source: Zinnov Research & Analysis Human Capital, Capabilities, Innovation, Ecosystem Linkages, Infrastructure, Service Maturity
  27. 27. 27Zinnov Proprietary Confidential Nurture Zone Breakout Zone Execution Zone Leadership Zone Wipro TCS Tata Elxsi Tech Mahindra LTI* Genpact HARMAN Connected Services Low High Scalability Zinnov Zones – Leading Service Providers Aricent Infosys Happiest Minds Altran L&T TS HCL EPAM Persistent Systems ProdaptHughes Systique Innominds IoT Competency Scale,ServicesDiversity,VerticalDiversity IoT Technology Services: Advisory & Consulting Source: Zinnov Research & Analysis Human Capital, Capabilities, Innovation, Ecosystem Linkages, Infrastructure, Service Maturity Softdel Cognizant Xoriant Globant 2 *Larsen & Toubro Infotech
  28. 28. 28Zinnov Proprietary Confidential IoT Technology Services: Product Engineering Nurture Zone Breakout Zone Execution Zone Leadership ZoneHigh Zinnov Zones – Leading Service Providers Infosys Tata Elxsi Tech Mahindra Genpact Altran Aricent Wipro Happiest Minds HARMAN Connected Services L&T TS EPAM Persistent Systems Prodapt eInfochips Innominds GlobalEdge Hughes Systique Low Scalability IoT Competency Scale,ServicesDiversity,VerticalDiversity TCS HCL Source: Zinnov Research & Analysis Human Capital, Capabilities, Innovation, Ecosystem Linkages, Infrastructure, Service Maturity Softdel Cognizant LTI* Xoriant Globant 3 *Larsen & Toubro Infotech
  29. 29. 29Zinnov Proprietary Confidential IoT Technology Services: System Integration Nurture Zone Breakout Zone Execution Zone Leadership ZoneHigh Zinnov Zones – Leading Service Providers Infosys Tata Elxsi Tech Mahindra Genpact Altran Aricent Wipro Happiest Minds HARMAN Connected Services L&T TS EPAM Persistent Systems Prodapt eInfochips Innominds Low Scalability IoT Competency Scale,ServicesDiversity,VerticalDiversity TCS HCL Source: Zinnov Research & Analysis Human Capital, Capabilities, Innovation, Ecosystem Linkages, Infrastructure, Service Maturity Softdel Cognizant LTI* Xoriant Globant 4 *Larsen & Toubro Infotech
  30. 30. 30Zinnov Proprietary Confidential IoT Technology Services: Managed Services Nurture Zone Breakout Zone Execution Zone Leadership ZoneHigh Zinnov Zones – Leading Service Providers Low Scalability Wipro TCS Tata Elxsi Tech Mahindra LTI* Genpact HARMAN Connected Services Aricent Infosys Happiest Minds Altran L&T TS EPAM Persistent Systems Prodapt eInfochips Innominds GlobalEdge HCL IoT Competency Scale,ServicesDiversity,VerticalDiversity Source: Zinnov Research & Analysis Human Capital, Capabilities, Innovation, Ecosystem Linkages, Infrastructure, Service Maturity Cognizant Globant 5 *Larsen & Toubro Infotech
  31. 31. 31Zinnov Proprietary Confidential IoT Technology Services: Platform and Application Competency Nurture Zone Breakout Zone Execution Zone Leadership ZoneHigh Zinnov Zones – Leading Service Providers Low Scalability Tech Mahindra LTI* Happiest Minds EPAM Persistent Systems Innominds L&T TS Genpact Prodapt HARMAN Connected ServicesTCS HCL Altran Aricent eInfochips Hughes Systique Tata Elxsi GlobalEdge IoT Competency Scale,ServicesDiversity,VerticalDiversity Wipro Source: Zinnov Research & Analysis Human Capital, Capabilities, Innovation, Ecosystem Linkages, Infrastructure, Service Maturity Infosys Softdel Cognizant Xoriant Globant 6 *Larsen & Toubro Infotech
  32. 32. 32Zinnov Proprietary Confidential IoT Technology Services: Communications Competency Nurture Zone Breakout Zone Execution Zone Leadership ZoneHigh Zinnov Zones – Leading Service Providers Low Scalability Infosys TCS Tata Elxsi Tech Mahindra HARMAN Connected Services Aricent Wipro EPAM L&T TS Happiest Minds Innominds GlobalEdge Hughes Systique AltraneInfochips IoT Competency Scale,ServicesDiversity,VerticalDiversity Genpact HCL Source: Zinnov Research & Analysis Human Capital, Capabilities, Innovation, Ecosystem Linkages, Infrastructure, Service Maturity Softdel Prodapt LTI* Globant 7 Cognizant *Larsen & Toubro Infotech
  33. 33. 33Zinnov Proprietary Confidential IoT Technology Services: Sensors & Devices Competency Nurture Zone Breakout Zone Execution Zone Leadership ZoneHigh Zinnov Zones – Leading Service Providers Low Scalability Infosys TCS Tata Elxsi Tech Mahindra HARMAN Connected Services Wipro Happiest Minds Altran L&T TS HCL EPAM Innominds GlobalEdge Hughes Systique eInfochips Persistent Systems Prodapt IoT Competency Scale,ServicesDiversity,VerticalDiversity Genpact Source: Zinnov Research & Analysis Aricent Human Capital, Capabilities, Innovation, Ecosystem Linkages, Infrastructure, Service Maturity Softdel Cognizant LTI* Xoriant Globant 8 *Larsen & Toubro Infotech
  34. 34. 34Zinnov Proprietary Confidential IoT Technology Services: Big Data Management ` Nurture Zone Breakout Zone Execution Zone Leadership ZoneHigh Zinnov Zones – Leading Service Providers Low Scalability TCS Tech Mahindra LTI* Genpact Wipro HCL EPAM Persistent Systems Innominds Aricent eInfochips GlobalEdge HARMAN Connected Services Infosys L&T TS Prodapt Happiest Minds Altran Hughes Systique IoT Competency Scale,ServicesDiversity,VerticalDiversity Source: Zinnov Research & Analysis Human Capital, Capabilities, Innovation, Ecosystem Linkages, Infrastructure, Service Maturity Tata Elxsi Cognizant Xoriant Globant 9 *Larsen & Toubro Infotech
  35. 35. 35Zinnov Proprietary Confidential IoT Technology Services: Analytics Services ` Nurture Zone Breakout Zone Execution Zone Leadership ZoneHigh Zinnov Zones – Leading Service Providers Low Scalability TCS LTI* Wipro HCL EPAM Persistent Systems Innominds Aricent eInfochips GlobalEdge HARMAN Connected Services Infosys L&T TS Prodapt Happiest Minds Altran Hughes Systique IoT Competency Scale,ServicesDiversity,VerticalDiversity Source: Zinnov Research & Analysis Human Capital, Capabilities, Innovation, Ecosystem Linkages, Infrastructure, Service Maturity Softdel Tata Elxsi Cognizant Xoriant Globant Tech Mahindra Genpact 10 *Larsen & Toubro Infotech

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