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Industrial Internet of Things
Driving Unconventional Growth
January 8, 2015
Copyright © 2015 Accenture. All rights reserved.
Internet of Things in the News
2Copyright © 2015 Accenture All rights reserved.
IoT Acceleration
Source: CBI Insights, Cisco Consulting Services Analysis Source: Machina Research, IDC, ABI Insights, Cisco Consulting Services
Source: Machina Research, Cisco VNI, Cisco Consulting Services, Cisco Connection Counter Source: Factiva, Google, IPSO-Alliance, Intel
3
What is the Industrial Internet of Things?
“The industrial Internet of Things is the
universe of intelligent industrial products,
processes and services that communicate
with each other and with humans over the
computing network”
Intelligent Product, Environment and Services
Copyright © 2015 Accenture All rights reserved. 4
The benefits of Industrial Internet of Things are in the
trillions of dollars
5
Source: World Bank 2011, GE 2012 Source: Cisco, 2013
Copyright © 2015 Accenture All rights reserved.
Survey on IoT Investments
Source: Cisco IoT Survey 2014, % of survey respondents N=1230
Copyright © 2015 Accenture All rights reserved. 6
Copyright © 2014 Accenture All rights reserved. 7Copyright © 2015 Accenture All rights reserved. 7
Example - Life Safety
8Copyright © 2015 Accenture All rights reserved.
• Continuous gas monitoring for
each individual for abnormal
levels of H2S, LEL, O2, NO2,
CO and SO2 present in refinery
• “Panic” button for medical and
other emergencies
• Motion sensor in case individual
is unconscious and stops
moving
• All alarms managed by
Operators in Central Control
Room
• Must include location in order to
facilitate rapid recovery
Copyright © 2014 Accenture All rights reserved. 9Copyright © 2015 Accenture All rights reserved. 9
IIoT for Driving Growth
Products
Information
Services
Pre-digital product
line
Digital product
line
New market
segment
Farm equipment
Partner in agricultural
information service
marketplace
Equipment
services
Machine maintenance
services
Remote diagnostics
and optimization
services
Commercialofferingcategories
Go to market approach
More Intelligent Farm
equipment with sensors
Soil, plant and
equipment analysis
results
Partner in agricultural
services
Partner agricultural
products
Copyright © 2015 Accenture All rights reserved. 10
To deliver the outcome economy will require connected ecosystems and platforms so that data can be
easily aggregated and used to create new value-add services
The emergence of the outcome economy will redefine industry boundaries
and relationships and create a new wave of winners and losers
11Copyright © 2015 Accenture. All rights reserved.
Connected
Products
Connected
Ecosystems
& Platforms
Customer
Outcomes
enables
delivers
The Industrial Internet will enable the capture of significant
value – of which operational efficiency is only a small part
Value Categories Strategic Approach
Value
Unconventional
Revenues
NextGen Products/Services
Product as a Platform
New Business and Operating Models
Most Valuable Information Provider
Operations and Predictive Maintenance
Commercial Optimization
New Customer Experience and M2M
Applications
Treating Services as R&D for
products
Enabling third parties to create
information services
Locking customers into the
information services
Sensors, analytics, and real time data
for insights
Flexible production techniques to boost
productivity
Data to work as digital service for
equipment performance
Gain opportunities to create customer
touch points
Avoiding unnecessary product
shutdowns
Computerize repetitive tasks and
workflows
Improved supply chain and logistics
performance
Reduce costs of energy, maintenance,
repair etc.
Incremental
Revenues
Operational
Efficiency
Preventive Maintenance
Process Automation
Operation Optimization
Global Asset Visibility
Examples:
Copyright © 2015 Accenture All rights reserved. 12
The two most transformational impacts of the industrial internet will be the emergence of
outcome economy and the tight integration digital and human labor
The impact of the Industrial Internet is transformational
13Copyright © 2015 Accenture. All rights reserved.
1. Operational
Efficiency
2. New Product
& Services
3. Outcome-based
Economy
4. Autonomous Pull
Economy
• Asset Utilization
• Operational cost
reduction
• Worker productivity
• New business models
• Software-based
services
• Data Monetization
• Pay-per-outcome
• New connected
ecosystem
• Platform-enabled market
place
• Continuous demand
sensing
• End-to-end automation
• Resource optimization and
waste reduction
Workforce Transformation
Ecosystems & Platforms
ROI & Business Models
Near-term
Long-term
360-view of the ecosystem is key in reaping the most benefits from
Industrial Internet
14Copyright © 2015 Accenture All rights reserved.
Source: acatech, “Smart Service Welt”
IIoT Platform is needed to support the ecosystems
• Intelligent Product and Services
• Intelligent Productions
Copyright © 2015 Accenture All rights reserved. 15

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Industrial Internet of Things by Edy Liongosari of Accenture

  • 1. Industrial Internet of Things Driving Unconventional Growth January 8, 2015 Copyright © 2015 Accenture. All rights reserved.
  • 2. Internet of Things in the News 2Copyright © 2015 Accenture All rights reserved.
  • 3. IoT Acceleration Source: CBI Insights, Cisco Consulting Services Analysis Source: Machina Research, IDC, ABI Insights, Cisco Consulting Services Source: Machina Research, Cisco VNI, Cisco Consulting Services, Cisco Connection Counter Source: Factiva, Google, IPSO-Alliance, Intel 3
  • 4. What is the Industrial Internet of Things? “The industrial Internet of Things is the universe of intelligent industrial products, processes and services that communicate with each other and with humans over the computing network” Intelligent Product, Environment and Services Copyright © 2015 Accenture All rights reserved. 4
  • 5. The benefits of Industrial Internet of Things are in the trillions of dollars 5 Source: World Bank 2011, GE 2012 Source: Cisco, 2013 Copyright © 2015 Accenture All rights reserved.
  • 6. Survey on IoT Investments Source: Cisco IoT Survey 2014, % of survey respondents N=1230 Copyright © 2015 Accenture All rights reserved. 6
  • 7. Copyright © 2014 Accenture All rights reserved. 7Copyright © 2015 Accenture All rights reserved. 7
  • 8. Example - Life Safety 8Copyright © 2015 Accenture All rights reserved. • Continuous gas monitoring for each individual for abnormal levels of H2S, LEL, O2, NO2, CO and SO2 present in refinery • “Panic” button for medical and other emergencies • Motion sensor in case individual is unconscious and stops moving • All alarms managed by Operators in Central Control Room • Must include location in order to facilitate rapid recovery
  • 9. Copyright © 2014 Accenture All rights reserved. 9Copyright © 2015 Accenture All rights reserved. 9
  • 10. IIoT for Driving Growth Products Information Services Pre-digital product line Digital product line New market segment Farm equipment Partner in agricultural information service marketplace Equipment services Machine maintenance services Remote diagnostics and optimization services Commercialofferingcategories Go to market approach More Intelligent Farm equipment with sensors Soil, plant and equipment analysis results Partner in agricultural services Partner agricultural products Copyright © 2015 Accenture All rights reserved. 10
  • 11. To deliver the outcome economy will require connected ecosystems and platforms so that data can be easily aggregated and used to create new value-add services The emergence of the outcome economy will redefine industry boundaries and relationships and create a new wave of winners and losers 11Copyright © 2015 Accenture. All rights reserved. Connected Products Connected Ecosystems & Platforms Customer Outcomes enables delivers
  • 12. The Industrial Internet will enable the capture of significant value – of which operational efficiency is only a small part Value Categories Strategic Approach Value Unconventional Revenues NextGen Products/Services Product as a Platform New Business and Operating Models Most Valuable Information Provider Operations and Predictive Maintenance Commercial Optimization New Customer Experience and M2M Applications Treating Services as R&D for products Enabling third parties to create information services Locking customers into the information services Sensors, analytics, and real time data for insights Flexible production techniques to boost productivity Data to work as digital service for equipment performance Gain opportunities to create customer touch points Avoiding unnecessary product shutdowns Computerize repetitive tasks and workflows Improved supply chain and logistics performance Reduce costs of energy, maintenance, repair etc. Incremental Revenues Operational Efficiency Preventive Maintenance Process Automation Operation Optimization Global Asset Visibility Examples: Copyright © 2015 Accenture All rights reserved. 12
  • 13. The two most transformational impacts of the industrial internet will be the emergence of outcome economy and the tight integration digital and human labor The impact of the Industrial Internet is transformational 13Copyright © 2015 Accenture. All rights reserved. 1. Operational Efficiency 2. New Product & Services 3. Outcome-based Economy 4. Autonomous Pull Economy • Asset Utilization • Operational cost reduction • Worker productivity • New business models • Software-based services • Data Monetization • Pay-per-outcome • New connected ecosystem • Platform-enabled market place • Continuous demand sensing • End-to-end automation • Resource optimization and waste reduction Workforce Transformation Ecosystems & Platforms ROI & Business Models Near-term Long-term
  • 14. 360-view of the ecosystem is key in reaping the most benefits from Industrial Internet 14Copyright © 2015 Accenture All rights reserved. Source: acatech, “Smart Service Welt”
  • 15. IIoT Platform is needed to support the ecosystems • Intelligent Product and Services • Intelligent Productions Copyright © 2015 Accenture All rights reserved. 15