SAP Innovation Awards 2019 Entry Pitch Deck

SignifyFrom light bulbs to Light-as-a-Service

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From light bulbs to Light-as-a-Service

https://www.youtube.com/watch?v=O9_AyPa5eTU

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“Quote” Challenge

Solution

Outcome

From light bulbs to Light-as-a-Service

Giant leap in business model transformation

Up to 40% cost saving for Signify’s customers

33% of customers interested in service contracts

(https://insights.abnamro.nl/2018/06/city-as-a-service-1-op-de-3-nederlanders-staat-open-voor-bezitloos-leven/)

Signify

“Light-as-a-service is cost saving and with this subscription, people only pay for usage. The advantages work two ways: we help our customers to make smarter decisions in their daily profession and as Signify we unlocked a new business model.”

Marcel Diepens, IT Business Partner

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Partner Information

“”“With our SAP Mobile Innovation Lab we bring innovations to our customers’ doorstep. Together wit Signify we delivered a prototype that supports their business model transformation into Light-as-a-Service. Rapid prototyping by Signify business and IT together with SAP experts within only 5 days. Perfect example of the power of co-innovation.”

Twan van den Broek, Customer Innovation Architect SAP Netherlands

SAP NetherlandsCo-innovator

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Business Challenge & Objectives

Make the lighting cost base variable for Signify’s customers, from capital investment (capex) to usage-based (opex) which aligns with the customer’s business growth.

Instead of upfront investments where you pay for lighting upfront, customers want to receive a variable bill based on usage. Next to that they want to gain insight in costs and usage with an intelligent solution that is able to predict future costs.

Enable usage-based billing triggered by consumption values from Signify’s Interact IoT platform. A facility manager is to be supported with insight in consumption based costs on different granularity levels.

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Project / Use Case Details

The world leader in connected LED-solutions, software and services, is continuously looking for innovative ways to improve its lighting solutions, and enhance people’s lives.

With its Interact IoT platform, Signify already gives its users real-time insight in their lighting consumption, which drives better informed decisions and operational efficiency. Combining Interact with Light-as-a-Service makes it possible for Signify to let go of the traditional business model in which customers buy and pay for lighting upfront. Instead, the organization wants to move towards a model where people and other companies receive a variable bill based on the amount of light they use.

The Light-as-a-Service contract in itself is simple: the facility manager pays a fee for installation and additionally pays monthly for a service contract and usage. A dynamic subscription: on productive days, the costs will be higher, but on slow days, during summer break for example or when a production area is temporarily out of use, the manager will pay considerably less.

The prototype platform is connected to Interact and makes it possible to convert usage into costs. And, as icing on the cake: it also delivers a prediction of expected costs.

Signify and SAP Netherlands worked together in an SAP Leonardo Rapid Prototyping approach. The results from a 1 day Design Thinking workshop were input for the SAP Leonardo NOW tour, 5 days in SAP’s Mobile Innovation Lab on customer location.

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Benefits and Outcomes

Business / Social IT Human EmpowermentBusiness model transformation, from capital investments to Light-as-a-Service

Saves money and energy

Support sustainability goals

Drive operational efficiency

Turn consumption values into costs

Connect to Interact platform and SAP backend system

Use cloud solutions for easy scaling

Extend SAP backend with new functionality

Use predictive algorithms for insight in future bills

Service agreements result in closer customer relations

Make better informed decisions

Gain insight to save energy

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Architecture

Connectivity

Cloud Connector

SAP Gateway

User Interface

SAP Business Suite

SAP HANAdatabase

FacilityManager

SAP Cloud Platform Integration

Interact Platform

Interact Services

Cloud Foundry EnvironmentNeo Environment

SAP Revenue Cloud

Connectivity

SAP Analytics Cloud

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Deployment

SAP Technologies Used:

Server Processor:

Linux Distribution:

Date of Deployment or POC:

Number of live users:

9 November 2018

15 for PoC, scaling up fast for live implementation

SAP Cloud Platform

SAP Cloud Platform

SAP Cloud Platform PoCSAP Leonardo PoCSAP Revenue Cloud PoCSAP Analytics Cloud PoCSAP HANA PoCSAP ERP Live

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Emerging Technologies and Use CasesThe following Emerging Technologies and use-cases are part of the project and describe the contribution

Technology or Use Case Yes/No Contribution to Project

1. Machine Learning / Artificial Intelligence

No

2. IoT Yes Using Signify’s Interact IoT

platform

3. 3D printing No

4. Blockchain No

5. API Economy / Integrate the Intelligent Enterprise

Yes Integration between SAP ERP, SAP

Cloud Platform and SAP Revenue

Cloud

6. Cloud Native / Event Based Architectures

No

7. Extending the digital core with SAP CP / ABAP in SAP CP

Yes SAP CP solution to extend SAP ERP

application

8. SAP Leonardo Application ( extending SAP application, using Industry Innovation Kits or result of Design Thinking workshop)

Yes Design Thinking workshop with all

parties involved to define the

design challenge and possible

solution.

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Emerging Technologies and Use CasesThe following Emerging Technologies and use-cases are part of the project and describe the contribution