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Agenda
• The Internet of Things
• New Ways to Capture Value
• Driving Commerce with Smart, Connected
Products
• Driving Commerce with Data Brokering
• Start Your Connected Journey with PTC &
Zuora
4
The Internet of Things
By 2020, experts predict there will be 50 billion “things” connected to the Internet
Confidential and Proprietary - Not for Distribution
5
THINGS are Changing
Weather DataSystem
IrrigationSystem
Seed Optimization
System
FarmEquipment
SystemFarm
Management System Platform
Rain, humidity, temperature
sensorsWeather maps
Weather forecasts
Weather data application
Farm performance database
Seed databaseSeed optimization
application
Field sensorsIrrigation nodes
Irrigation application
System Of Systems
TILLERS PLANTERS
TRACTORSFarm
Equipment System
COMBINEHARVESTERS
Product System
+
+
Smart, Connected Product
+
Smart Product
Product
The changing nature of products is disrupting value chains, forcing companies to rethink and retool nearly everything they do internally.“
6
Smart Connected Systems Smart Farms, Smart Cities, etc.
Smart, Connected ProductsRemote Service, Ops &
Analytics
Smart, Connected OperationsBrilliant Factory/Industry 4.0
Change is Everywhere
7Confidential and Proprietary - Not for Distribution
Manufacturers are Positioned to Capture the Value
#1Manufacturing 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 HeppelmannPresident and CEO, PTC
Prof. Michael PorterHarvard Business School
8VALUE
New Ways to Capture Value
O pt im iz e Pe r f o r manc e
I mpr ov e R i s k Managemen t
R educ e P r oduc t and Se r v i c e C os t s
N ew R ev enue S t r eams
Operational
D i f f e r en t i a t eO f f e r i ng
Quickly deliver compelling, differentiated offerings that meet or anticipate customer demands
E lev a t e C us t omer R e la t i ons h ip
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
Pr ed i c t i v e -Bas ed O u t c omes
Use predictive analytics of big data to launch business processes preemptively
N ew Bus ines s Mode l s
Maximize revenue opportunities and value capture from new services or business models
Disruptive
9
Driving Commerce with
Smart, Connected Products
warranty management
premium support offerings
(e.g. predictive maintenance)
consumables management
usage-based billing
upsell / cross sell (e.g. pay-per-feature)
remote service
elevated customer
experiences
compliance management
10
Sysmex Innovates Service Offerings with ThingWorx
S o l u t i o n• ThingWorx Platform is enabling Sysmex to
expand their service offering dramatically while significantly lowering costs.
• Direct, real-time connections for delivering next-generation support applications.
• Rapid problem resolution using enhanced collaboration and use of remote and systems data
• Ability to quickly iterate their value-add applications to take advantage of changing market and customer demands.
R e s u l t s• 5-10x improvement in internal
application development team utilization.
• Improved equipment uptime (through faster decision response time)
• improved labor utilization through collaborative information exchange
Sysmex is a global leader in the design and development of high-quality, reliable, and innovative clinical diagnostic equipment and information systems (blood and urinalysis equipment). They generate 10% of their overall revenue through services offerings.
I n i t i a t i v e s• The intense competition in the
medical device market, especially in the US, is demanding a higher level of customer service at lower costs.
• With the current technology, Sysmex had an inability to scale as their business scaled and deliver the value-add services that they need to stay ahead in their market.
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 DohenyCEO, Joy Global
Innovation: Joy Global Transforms Business Model
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 JohnsonCEO, All Traffic Solutions
Innovation: All Traffic Captures New Revenue Streams
IoT App Store
• Accelerates platform adoption through global sharing of IP
• Improve IoT solution time-to-market through application “assembly”
• Creating additional revenue streams for Apps, Extensions, etc.
14
Start Your Connected
Journey with PTC &
ZuoraCreate your IoT Strategy
using the IoT Value
Roadmap
Select the IoT Platform & Subscription Billing Platform
Creating Value in a Smart,
Connected World
15
26 Key IoT Use Cases Across Business Functions
MARKETING /SALES
PRODUCT DEVELOPMENT
OPERATIONS / MANUFACTURING
SERVICE /SUPPORT
INFORMATION / OPERATIONAL TECHNOLOGY
CUSTOMER
Rapid IoT Application Development
Customer Insights and Opportunities
Connected Product Usage Analysis
Flexible Billing and Pricing Models
New Value Added Services
Connected Product Quality Analysis
Connected Software Management
CustomerSelf-Service
Usage and Performance Dashboard
Product Personalization
Connected Operations IntelligenceUnified Key
Performance Indicators
Real-Time Asset Health Monitoring
Operations Management Improvements
Asset and Material Tracking
Monitoring and Diagnostics
Remote Service
Condition-Based Predictive
Maintenance
Automated Service Execution
Warranty Cost Management
Connected Service Parts Planning
Flexible Product and Asset Connectivity
Identity and Security Management
Scalable IoT Operations
ManagementSeamless IoT Data
Integration
Automated Analytics and Actions
16
Network Communication
Product Data Database
Application Platform
Rules/Analytics Engine
Smart Product Applications
Implications on Technology Requirements
Identity & Security External
Information Sources
Digital PRODUCT CLOUD
Product Hardware
Product Software
Physical PRODUCT
Integration with Business Systems
COMMUNICATIONS
ThingWorx is the 1st Application Platform for the Connected World™ – one that combines the key functionality of Web 2.0, social media and Connected
Intelligence™, and applies it to any process that involve things.
17
Relationship Business Management
© 2014 ThingWorx
CommunicationsElements
InternetMobile Networks
Device Clouds
Wireless Provisioning
The Network
Connect
Application Enablement
BUSINESS LOGIC3D STORAGE
ENGINE
REST APIs
SERVICE INTEGRATION
COMMUNICATIONS
MASHUP BUILDER SQUEAL 3RD PARTY TOOLS
Sensors, Devices & Smart Products
Enable
Apply
Applications
Cloud ServicesBusiness Systems
Value IoT Solution Framework
© 2014 ThingWorx
CommunicationsElements
InternetMobile Networks
Device Clouds
Wireless Provisioning
The Network
Connect
Application Enablement
SubscriptionsSelling a ServiceUsage-based BillingService Contracts
Cloud ServicesBusiness Systems
BUSINESS LOGIC3D STORAGE
ENGINE
REST APIs
SERVICE INTEGRATION
COMMUNICATIONS
MASHUP BUILDER SQUEAL 3RD PARTY TOOLS
Sensors, Devices & Smart Products
Enable
Apply
Monetize
Zuora: Subscription Billing Platform
20
About PTC
Transforming how customers…
…smart and connected products, operations and systems
Next-generation technology platforms and enterprise applications
CREATE CONNECT SERVICEOPERATEANALYZE
21
PTC IoT Leadership
Our Customers: Leading Companies in Many Industries
23
years of helping manufacturers deliver market winning products & service
30kunique manufacturing companies do business with PTC annually
100sof production IoT customers fuel our experience and best practices
Innovation leadership built on providing technology solutions that help transform the way companies create, operate and service products
1000s of IoT engagements driving
22
Visit our web resources
• Read customer success stories
• Gather analyst and academic insights
• Watch videos and interactive demonstrations
Request an Innovation Workshop
• Plan for Growth and Innovation
• Define and Prioritize Use Cases
• Examine Your Customer Value Proposition
• Outline Implementation Options
Contact Your PTC Account Manager
Learn More
25
Manufacturing Leads IoT Transformation
#1
Manufacturing industry will be the #1 industry sector by share of global economic value-add.
– Forecast: The IoT, Worldwide, 2013
Automated Service Remote Service Self Service Predictive Maintenance Product as a Service
Marketing / Lead Generation Account Management Up-sell, Cross-sell New Offerings / New Markets
Connected Manufacturing Intelligence Consumables Asset Tracking & Management
Design for Continuous Innovation Usage-based Requirements Analysis Remote Software Management Connected Quality
Usages-based Billing Subscription Services Warranty Management Point-of-Sale Payments