Bernd Heinrichs, Exec VP & CDO Automotive @ Bosch

@bheinric

Automotive Technology | C/AIC | 06/08/2017

© Robert Bosch GmbH 2017. All rights reserved, also regarding any disposal, exploitation, reproduction, editing, distribution, as well as in the event of applications for industrial property rights.3

CONNECTED – WHY NOW?The time is now – technology is finally here. Let‘s start!

PROCESSING POWER

Continous increase ofprocessing power due to new

technologies

COMMUNICATION

Tactile internet, latency, reliability, availability,

security

CONNECTED WORLD

20 bn. connected devices

expected until 2020

CUSTOMER

New services andbusiness models

MOORES LAW NIELSENS LAW

Automotive Technology | C/AIC | 06/08/2017

© Robert Bosch GmbH 2017. All rights reserved, also regarding any disposal, exploitation, reproduction, editing, distribution, as well as in the event of applications for industrial property rights.4

OMNIPRESENT – THE INTERNET OF THINGS

27 m IoT-Products

~50%

CONNECTED PRODUCTS INNOVATIVE PLATFORMMARKET PRESENCE

All electronic Bosch-product categoriesare IP-enabled

(as of 2016)

Currently realizedon Bosch-IoT-Cloud

Produced byBosch in 2016

70 Bosch-Projects

G42/BD | 22-23/01/2018

© Robert Bosch GmbH 2018. All rights reserved, also regarding any disposal, exploitation, reproduction, editing, distribution, as well as in the event of applications for industrial property rights.4

Center for Digital Business Transformation @ IMD to understand industries’ vulnerability to digital disruption:

Interviews with 941 business leaders across 12 industries and 13 countries

Analysis of market data, looking at investment, timing, means, and impact

Ranking of industries according to their proximity to the center of the Digital Vortex

Understanding Transformation and Disruption

G42/BD | 22-23/01/2018

© Robert Bosch GmbH 2018. All rights reserved, also regarding any disposal, exploitation, reproduction, editing, distribution, as well as in the event of applications for industrial property rights.5

Digital Disruption Will Reshape Markets and Industries

Market incumbents displaced 40%

Companies actively responding1 in 4

Expected time to disruption3 YEARS

IOT - Digital Transformation Everywhere

G42/BD-Rö | 22-23/01/2018

© Robert Bosch GmbH 2018. All rights reserved, also regarding any disposal, exploitation, reproduction, editing, distribution, as well as in the event of applications for industrial property rights.6

50% will Use

Robotic Fulfilment by 2019

86% will Pay

More for a Better Experience

10% of Global GDP

Stored on Blockchain by 2027

• Consumers as Creators

• Additive Manufacturing

• Automated, Visual Factories

• Virtual Reality Assistant

• Store Experience at Home

• AI based proposals

• Cash-free Society

• Virtual Tellers

• Blockchain-based

Reimagine Manufacturing Reimagine Retail Reimagine Banking

G42/BD-Rö | 22-23/01/2018

© Robert Bosch GmbH 2018. All rights reserved, also regarding any disposal, exploitation, reproduction, editing, distribution, as well as in the event of applications for industrial property rights.7

It is often too late, when it is recognized!

At first not

recognized

Late realized

Then missed

Sensing for Market Transitions all over the world

G42/BD-Rö | 22-23/01/2018

© Robert Bosch GmbH 2018. All rights reserved, also regarding any disposal, exploitation, reproduction, editing, distribution, as well as in the event of applications for industrial property rights.8

Informed Decision Making

Organization

Fast Execution

Hyper-Awareness

be AGILE

Openness

THE POWER OF OPEN

G42/BD | 22-23/01/2018

© Robert Bosch GmbH 2018. All rights reserved, also regarding any disposal, exploitation, reproduction, editing, distribution, as well as in the event of applications for industrial property rights.9

413

Digital Transformation @ Automotive

G42/BD-Rö | 22-23/01/2018

© Robert Bosch GmbH 2018. All rights reserved, also regarding any disposal, exploitation, reproduction, editing, distribution, as well as in the event of applications for industrial property rights.10

Example: Data Pools & Structures (here: cascading of digital twins)

Component/

Sensor

Carrier of Mobility

Flow Representation

Interaction Space

real

wo

rld

dig

ital

tw

in

Automotive Cloud Suite

C/AIC | 22-23/01/2018

© Robert Bosch GmbH 2018. All rights reserved, also regarding any disposal, exploitation, reproduction, editing, distribution, as well as in the event of applications for industrial property rights.11

usersrefinementraw material

Digital Transformation @ Automotive

G42/BD | 22-23/01/2018

© Robert Bosch GmbH 2018. All rights reserved, also regarding any disposal, exploitation, reproduction, editing, distribution, as well as in the event of applications for industrial property rights.12

“Data is the New Oil”

oil fuel V-power mobility

A

data

information content

syntax semantics pragmatics

iservice*)

*)Service with the meaning of: product, gain creator or pain reliever

B

business modelplayervalue proposition

Digital Transformation @ Automotive

G42/BD-Rö | 22-23/01/2018

© Robert Bosch GmbH 2018. All rights reserved, also regarding any disposal, exploitation, reproduction, editing, distribution, as well as in the event of applications for industrial property rights.13

Changing or Adding to our value Proposition

digital

aggressive

Product based:

delivering latest Li-ion technology and further improvements

to increase battery lifetime by 20%.

automotive

incumbent

hardware &

component driven

high capex

Data driven:

Increasing driving range by 20% based on individual driving

profile, topography, street surface quality and real time

traffic data updating Navigation System

software & data

pattern driven

low capex

Digital Transformation @ Automotive

G42/BD-Rö | 22-23/01/2018

© Robert Bosch GmbH 2018. All rights reserved, also regarding any disposal, exploitation, reproduction, editing, distribution, as well as in the event of applications for industrial property rights.14

Challenge & Opportunity

Although cars still will be

manufactured and sold by OEM

and OES, mobility services are

likely to earn the biggest share

of the future profit pool.

G42/BD-Rö | 22-23/01/2018

© Robert Bosch GmbH 2018. All rights reserved, also regarding any disposal, exploitation, reproduction, editing, distribution, as well as in the event of applications for industrial property rights.15

From Years to Weeks

From Corporate Driven to

Market Driven

From ClosedTo Open

Strategic Principles: Kill Fast / Win Fast

Partners/Startups/Customers/Bosch

Header of section

G42/BD-Rö | 22-23/01/2018

© Robert Bosch GmbH 2018. All rights reserved, also regarding any disposal, exploitation, reproduction, editing, distribution, as well as in the event of applications for industrial property rights.16

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