DRIVING BUSINESS VALUE WITH THE INTERNET OF THINGS
Shawn KellyVice President, Corporate Strategy
December 7, 2017
2PTC Proprietary and Confidential – Not for Distribution
Title: Driving Business Value with the IoT
Abstract
• According to analyst firm IDC, consensus is in – over 90% of global manufacturers report that IoT is 'strategic' or 'transformational' to their business and have deployed or plan to deploy connected systems in the next 12-24 months. With endless opportunities to innovate using the IoT, where do you start? In this session, PTC will share top IoT use cases based on hundreds of customer interactions to showcase the creative ways manufacturers are capitalizing on the IoT opportunity to drive business value across the enterprise.
• In this session you will hear about:– Insight into the current state of IoT adoption in Manufacturing– Use cases that drive value across marketing and sales, product development,
manufacturing, service, IT, and end customers– How and where Augmented Reality experiences are emerging with the IoT in
Manufacturing– How PTC can help you unlock value from the convergence of the physical and digital
worlds
SESSION TITLE AND ABSTRACT
3PTC Proprietary and Confidential – Not for Distribution
PERSONAL INTRODUCTION
Shawn Kelly, PTC Vice President of Corporate Strategy
• Responsible for leading projects focused on key strategic
initiatives for PTC
• Inclusive of primary and secondary research to better
understand markets, trends, technologies, end user needs, etc.
• Over 15 years of professional experience in Corporate Strategy
and Finance for Technology, Life Sciences, and Financial
Services companies
• MBA from the Tuck School of Business at Dartmouth College and
a BS in Finance from The College of New Jersey
4PTC Proprietary and Confidential – Not for Distribution
Over 90% of global manufacturers report that IoT
is ‘strategic’ or ‘transformational’ to their business
and have deployed or plan to within the next
12 to 24 months– IDC
5PTC Proprietary and Confidential – Not for Distribution
PTC IS A $1.2B GLOBAL TECHNOLOGY COMPANY
REVENUE BY VERTICAL
Life Sciences
5%
Industrial Products
32%
Federal, Aerospace & Defense
15%
Electronics & High Tech
16%
Automotive
14%
Retail & Consumer
8%
Other
10%
REVENUE BY REGION
Americas
43%
Europe
37%
Asia Pacific
20%
FAST FACTS
6Kemployees
300Kecosystem developers
$1.16BFY17 total revenue
29Kcustomers
Need resized image
Fundamentally the PHYSICAL and DIGITAL worlds have converged
Video
77
Smart Manufacturing/
Industry 4.0
BROAD IMPACT OF PHYSICAL & DIGITAL CONVERGENCE
7
IoT/Smart,
Connected Products
Connected Service/
Maintenance
Smart Cities, Fields, &
Worksites
8PTC Proprietary and Confidential – Not for Distribution
• € 2.43 bn in FY2014
– 60% new machinery, 40% parts, services, and consumables
• Approximately 50% market share in printing presses
• 12,500 employees
• 170 countries
HEIDELBERG EMBRACES DIGITAL TRANSFORMATION
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EVOLUTION OF REAL-TIME ASSET MONITORING
Dial-up technician diagnostics
Remote Diagnosis
service
eCallService
Predictive Monitoring
service
Late 1990’s
Bu
sin
ess
Va
lue
2004 2008 2012
10PTC Proprietary and Confidential – Not for Distribution
“The only way you survive is you continuously transform
into something else. It's this idea of continuous
transformation that makes you an innovation company.”
– Ginni Rometty
11PTC Proprietary and Confidential – Not for Distribution
OPERATIONAL EFFECTIVENESS IS KEY DRIVER OF IOT
Optimize Operational Performance
• Availability; uptime
• Throughput; cycle time; lead time
• Production quality; defects and rework
Improve Risk Management
• Non-compliance events per year
• Product quality; returns
• Recalls; warning letters; audits
Reduce Costs
• R&D Expense; total development cost
• Manufacturing cost; energy usage; scrap
• Service cost; warranty cost; first time fix rate
Increasing productivity is cited as the top influencing factor in decision to create
IoT Strategy In manufacturing according to recent IDC survey data. The leading
use cases today are for ‘improvement of manufacturing processes’ (61.3%),
followed closely by ‘product testing and quality control’ (58.2%).
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STRATEGIC DIFFERENTIATION BRINGS IOT TO CUSTOMERS
Improve Customer Experience
• Retention rate; utilization rate
• Customer satisfaction; net promoter score
• Complaints; response time; resolution time
Differentiate Product or Service Offerings
• Time to market
• Product-as-a-Service models
• Customer lifetime value
Enable New Revenue Streams
• Percent profit from new products/services
• Attach rate; up-sell/cross-sell revenue
• Market share; growth
44% of current IoT adopters say that IoT has enhanced their customer or user
experience, making it the most popular benefit seen according to Vodafone’s
2016 IoT Barometer cross-industry study.
13PTC Proprietary and Confidential – Not for Distribution
“Data now stands on par with people, technology, and
capital as a core asset of the corporation.”
– Prof. Michael Porter &
Jim Heppelmann
14PTC Proprietary and Confidential – Not for Distribution
IOT OPPORTUNITIES ACROSS THE ENTERPRISE
Product
Development
Operations /
Manufacturing
Marketing
/ Sales
Service /
Support
Information /
Operational
Technology
Customer
Usage Based Requirements
Design for
Connectivity
Connected
Operational
Intelligence
Real-Time Asset
Monitoring
Real Time Market Insights
New / Flexible
Business Models
Remote
Monitoring
Predictive
Maintenance /
Service
Rapid IOT &
AR/VR App
Development
Data Integration
& Analytics
Remote
Operation
Usage &
Performance
Benchmarking
Digital Service
Instructions
Digital Design
Review Digital
Instructions
Remote Service
Product and
Asset
Connectivity
Customer Self
Service
Connected
Consumable
Resupply
Inventory &
Material Tracking
15PTC Proprietary and Confidential – Not for Distribution
USE CASE EXAMPLE: PRODUCT DEVELOPMENT
ProductDevelopment
Operations / Manufacturing
Marketing / Sales
Service / Support
Information / Operational Technology
Customer
• Company: Manufacturer of fluid motion
control solutions serving power, oil,
chemical, gas industries
• Use Case: Usage Based Requirements -
use real-time operational data from
industrial pumps to improve design of the
impeller and other elements of the pump
systems
• Benefits: Automated root cause analysis,
reduced warranty claims, higher quality
design, reduced number of returns,
reduced development and service costs,
improved customer satisfaction
16PTC Proprietary and Confidential – Not for Distribution
USE CASE EXAMPLE: OPERATIONS AND MANUFACTURING
ProductDevelopment
Operations / Manufacturing
Marketing / Sales
Service / Support
Information / Operational Technology
Customer
• Company: Grove City facility connected
its locomotive manufacturing plant to
optimize the efficiency of the operation
• Use Case: Connected Operational
Intelligence - gain real-time visibility into
the plant’s condition in areas such as
labor efficiency, machine health, and
production attainment
• Benefits: Increased visibility led to simple
changes such as staggering work orders
to avoid unnecessary downtime, leading
to a 10-20% improvement in efficiency
17PTC Proprietary and Confidential – Not for Distribution
AR USE CASE: OPERATIONS AND MANUFACTURING
ProductDevelopment
Operations / Manufacturing
Marketing / Sales
Service / Support
Information / Operational Technology
Customer
• Company: Bosch Rexroth CytroPac
hydraulic power unit is a revolutionary
Industry 4.0 enabled solution for machine
tool design
• Use Case: Performance Dashboards &
Alerts – ability to monitor the smart,
connected product and product systems
with KPI’s in real time
• Benefits: Visualizing digital insights in the
context of the physical environment
leads to increased operator efficiency
and ability to proactively problem solve
before issues arise
19PTC Proprietary and Confidential – Not for Distribution
USE CASE EXAMPLE: SERVICE AND SUPPORT
ProductDevelopment
Operations / Manufacturing
Marketing / Sales
Service / Support
Information / Operational Technology
Customer
• Company: Manufacturer of construction
and mining equipment, diesel and
natural gas engines, industrial gas
turbines, etc.; provides support and
service to network of dealers worldwide
• Use Case: Remote Monitoring & Service,
Digital Service Instructions - remote
service and administration of equipment;
combine service documentation with
sensor data to deliver service instructions.
• Benefits: Drastically increased technician
efficiency and first-time-fix rates, reduced
costs for service organization
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PHYSICALWORLD
DIGITALWORLD
30 year heritage in the
DIGITAL definition,
software, and lifecycle
management of things
~$1B technology
investment connects to
the PHYSICAL world and
enables new experiences
PTC UNIQUELY POSITIONED TO ENABLE OUR CUSTOMERS
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PRODUCT
LIFECYCLE
MANAGEMENT
PARTNER
SOLUTIONS
CLOUD| HYBRID| ON-PREM
INDUSTRIAL
INNOVATION
PLATFORM
PTC’S FIELD-PROVEN PRODUCTS & TECHNOLOGIES
24PTC Proprietary and Confidential – Not for Distribution
THOUGHT LEADERSHIP ON INDUSTRIAL DIGITAL INNOVATION
“Smart, connected products
raise a new set of strategicchoices about how value
is created and captured, and how companies secure
competitive advantage as the new capabilities reshape industry
boundaries.”
“Smart connected products are not only redefining competition
but how we run companies across
the value chain. New kinds of cross functional integration and coordination are necessary, and
whole new organizational units are being created.”
“There is a fundamental disconnect between the
wealth of digital data available
to us and the physical world in which we apply it. AR solves this problem by putting information
directly into the context in which we’ll apply it.”
November 2014 October 2015 November 2017
25PTC Proprietary and Confidential – Not for Distribution
• IoT is happening, with over 90% of manufacturers
using IoT within the next 12-24 months
• Companies should understand whether they are
looking to optimize their current offering or truly
transform and differentiate their business
• It is important to identify a specific set of use
cases to solve for based on what you’re looking
to achieve
• Find new ways to innovate in your organization
by collaborating across teams and exploring new
technologies and use cases
SUMMARY