igital Transformation and The Internet of Things by Peter Cooper (Cloud + Enterprise)

2. SMS
SMS
It’s Big
So many devices and so much data…
It’s Noisy
So many opinions…
It’s Confusing
So many possible decisions…
Customer Perspective
The Internet of Things is complex
Should we
wait?
How (where)
do we get
started?
Who can
really help
us?
Do we need
to start over?
What
technology
do we need?
507521B2

3. Insights ActionThings

4. Research focused on delineating experiences of two distinct
customer segments: MSPs and Enterprise IoT Adopters
IoT segment Definition Example IoT deployment
“Managed Service Provider”
(MSP) Segment
The “MSP” segment consists of
organizations deploying IoT
technologies as a part of a product or
service they provide to end customers
or partners
Fortune 500 manufacturer of industrial
automation equipment uses remote
monitoring to track system health and
manage maintenance proactively
“Enterprise” Segment
The “Enterprise” segment consists of
organizations adopting IoT technologies
for uses internal to their business
A consumer packaged goods
manufacturer installs sensors in their
distribution facilities to optimize their
supply chain processes and reduce
latency

5. Different segments, different IoT goals and focus
Business objectives by IoT segment
1%
11%
10%
1%
10%
21%
10%
12%
21%
30%
13%
49%
Collect more product info
Replace old tech
Capture information
Customer experience
New ways to market
Enterprise
N=38
3%
MSP
N=38
Reduce costs
1%3%
New revenue streams
Operational efficiency
3%
Reduce costs
Increase revenues
Business transformation insights
MSP
priorities are revenue
generation and improving
customer experience
Enterprise
focus is on operational
efficiency and cost reduction

6. Digital transformation hinges on four imperatives
Engage your
customers
Empower your
employees
Optimize your
operations
Transform
your products
Systems of
Intelligence

7. Innovation at work – real world IoT use cases
Electric
charging
stations
Street
sweepers
Postboxes
Aircrafts
Auto
Elevators
Factory floor
Oil equipment
Cows
Engines
Vending
machines
Buildings
Fryers
Medical devices
Vaccine
dispensers
Trucks
BusesDogs
Oil distribution
Smart meters
Internet
of Things
Power plant
Surveillance
Power tools
Racing
Mining
equipment
Smart grids

8. Manufacturing
Moving from action to insights
Reduced development time and cost by 80%
by gathering and analyzing data more
efficiently and increasing automation across
the company.
Building efficiency with IoT
Connected chillers are back online 9x faster
than unconnected equipment, avoiding more
than $300,000 in hourly downtime costs.
Filtering the signal from
the noise
Used analytics to discover actionable insights
around fuel usage, predictive maintenance
and stop unscheduled delays.

9. Retail
Data transforms beverage business
Increased the actionable insight pulled from company data across all
areas of the company by deploying Microsoft Azure Machine
Learning.
Connecting the unconnected
Gathered data from sensors and systems to create valuable business
intelligence and shift from reactive to proactive maintenance.

10. Banking
A growing bank's new approach
Leveraged company wide data to predict how likely customers are to
go to other financial institution and drive better product features.
Fast, friendly, and reliable banking
Developed a complete business intelligence suite to track company
data in under a week in order to drive up engagement and accounts
holder satisfaction.

11. Government
How Glasgow is reinventing itself
Developed apps to help citizens use services and business find
growth opportunities using data from IoT sensors across the city.
The Internet of (Farm) Things
Deployed IoT sensors in different farms to optimize use of
Maryland’s 93,000 acres of the farmland and maximize production.

12. Health
Creating proactive,
personalized healthcare
Using data from blood-pressure cuffs, pulse
oximeters, and other devices, staff know to
respond before the patient knows something
is wrong.
Transforming healthcare with
faster access
By capturing and analyzing data recorded in
medical charts, staff were able to improve
treatment techniques by tracking return visits.
Building a connected hospital
Reduce medication delivery times and
inventory costs by connecting dispensary
devices with electronic medical records.

13. The Impact of this Transformation
Margin driven by
apps, analytics, and
services in 2020
Percentage of
companies surveyed
that are currently
active in IoT
Average increase in
operating income
among the most
digitally transformed
enterprises
Average gross margin
among organizations
with leading data and
analytics capabilities

15. Problem Statement
ITDEV
LoBDM
Enterprise

16. What do we need to do…
ITDEV
LoBDM
Learn & Engage Evolve & IntegrateDrive & Shift

17. Stages in IoT initiatives
Business case
development
Build vs buy &
vendor evaluation
Proof of concept
Pilot of limited
rollout
Full scale
rollout
Description
Developed by cross-
functional team; approved
by execs or board; may
involve assistance by SI
Evaluate Build vs Buy; vendor
evaluation performed by cross-
functional team
Validates vendor selection(s)
for scalability, quality, ease-of-
use, and overall fit
Staged rollout of IoT solution
for specific product lines,
geographies or beta
customers
Rollout of IoT solution across
all geos and customers
Typical
Duration
4-12 mos 1-9 mos 2-18 mos 6-12 mos 3+ mos
Common
Challenges
Unclear business goals,
customer value proposition
Identification of correct
KPIs
Fragmented vendor landscape
Complexity of tech,
architectural choices
Danger of project stalling
Challenges in executing
realistic PoC (e.g., scalability)
Compete with core business
objectives
Lack of planning for
org/process changes
Insufficient skills for analyzing
data
Insufficient training and buy-
in from users of system
Best Practices
Develop right executive sponsorship
from beginning
Ensure cross-functional participation and
alignment
Choose right organization structure for
success
Accelerate organizational change to
adapt capabilities
Adopt data-driven mindset and culture
for risk
Develop necessary software and data
capabilities

18. “Cloud is a given. CIOs no longer ask whether they should use cloud, but rather how.”*
Business is powered by the cloud
Enable innovation
“55% of CIOs indicated they
would source all their critical apps
in the cloud by 2020.”***
Improve efficiency
“Traditional on-premises data
storage is four times the cost
of cloud storage.”**
Transform your business
“Seventy percent of CIOs
will embrace a cloud-first strategy
by 2016.”****
Reduce costs and inefficiencies
Increase revenue
with existing assets
Create new business models
*”Cloud Evolves From Point Solution To Strategic Enabler Of The New Connected Economy,” Forrester, Liz Herbert, January 2015
**Forrester, 2014
***Smith, David Mitchell et al. Predicts 2014: Cloud Computing Affects All Aspects of IT. Gartner, Inc. December 4, 2013.
****IDC, CIO webinar, 2014

19. The Internet of Things is the key to digital transformation
Source: Redefining the Connected Conversation, IoT Trends, Challenges & Experience Survey. James Brehm & Associates, 2016.
60%
Of those working on IoT are aiming to
grow revenue and profits
73% Of the companies surveyed are currently
active in IoT
50% Reduction in downtime with predictive
maintenance
According to a recent IoT survey…

20. IoT projects can be complex
Time-consuming to
stand up
Hard to scaleIncompatible with
current infrastructure
Difficult to maintain
cohesive security

21. Capitalizing
on IoT
Connect
your things
Turn data
into insights
Transform your
business

22. Objective
Increase efficiency by reducing costs and
eliminating bottlenecks
Organizational readiness
This is a great place to start if you have:
• An identified business process you want
to gain visibility into
• An understanding of the kind of data you
need in order to support your business
objective
• Devices capable of providing the
type of data required
Connect your things
The IoT
Customer
Journey

23. Turn data into insights
Objective
Drive innovation and increase revenue
using your existing assets
Organizational readiness
This is a great place to start if you have :
• The ability to interpret incoming data
from devices
• An understanding of the impacted
business groups and processes
• A plan for using data to drive business
process improvements
The IoT
Customer
Journey

24. Transform your business
The IoT
Customer
Journey
Objective
Create new lines of business and new
business models
Organizational readiness
This is a great place to start if you have :
• A strong baseline of historical device data
(e.g. usage trends, repair records)
• Visibility into real-time operational
status
• Predictive capability from advanced
analytics
• Stakeholder commitment to support
change efforts

25. Business case
development
Build vs buy & vendor
evaluation
Proof of concept Pilot of limited rollout Full scale rollout
Description
• Developed by cross-
functional team; approved
by execs or board; may
involve assistance by SI
• Evaluate Build vs Buy;
vendor evaluation
performed by cross-
functional team
• Validates vendor selection(s)
for scalability, quality, ease-
of-use, and overall fit
• Staged rollout of IoT
solution for specific product
lines, geographies or beta
customers
• Rollout of IoT solution across
all geos and customers
Typical
Duration
4-12 months 1-9 months 2-18 months 6-12 months 3+ months
CommonChallenges
• Insufficient cross-functional
collaboration
• Identification of correct KPIs
• Limited technical or IT
support
• Departmental misalignment
• Risk of fragmented IoT
solutions across geos or BUs
• Limited technical capabilities
• Danger of project stalling
• Challenges in executing
realistic PoC (e.g., scalability)
• Impact to functioning of
core business
• Understanding training
needs
• Lack of planning for
org/process changes
• Insufficient skills for
analyzing data
• Insufficient training and buy-
in from users of system
• Lack of planning for
org/process changes
BestPractices
• Early executive support is
key to success
• Metrics defined up front
• Cross-functional teams
develop business case
• Cross-functional teams
evaluate all aspects of
solution
• When considering custom
solution, ongoing
maintenance costs are
calculated
• Cross-functional teams can
help to execute a more
thorough POC
• Projects with a visionary
leader tend to avoid stalls
and keep momentum going
• Early planning for
organizational and process
transformation prevents
issues later
• Internal training is key to
system acceptance and
process changes
• Data scientist or statistician
can be invaluable in driving
advanced analytics

26. From endpoint to insight to action, across the enterprise, and around the world
Built on the industry’s leading cloud
Recognized as a leader in Business Intelligence and Analytics Platforms
Recognized as a the leading visionary for Internet of Things platforms
Secure
End-to-end
From the endpoint, through the
connection, to data, applications,
and the cloud
Open
Connect anything
Any device, OS, data source,
software, or service
Scalable
Grow effortlessly
Millions of devices, terabytes of
data, on-premises, in the cloud,
in the most regions worldwide
Fast
Start in minutes
Preconfigured solutions for the
most common IoT scenarios
Insights ActionThings

27. An ecosystem ready to support your IoT needs
Internetofyourthings.com
Find a Partner

28. Get started today
Go to www.InternetOfYourThings.com
Connect with our regional IoT team
Go through our Quick Start process
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