MC2015_Accenture_Hendrickson

1. The Rise of Digital and Connectivity Bill Hendrickson Managing Director April 22, 2015 Copyright © 2015 Accenture. All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.

2. 2Copyright © 2015 Accenture All R ights R eserved © Accenture 2015. All rights reserved. Accenture, its logo, and Accenture High Performance Delivered are trademarks of Accenture. This document is produced by consultants at Accenture as general guidance. It is not intended to provide specific advice on your circumstances. This document and the content contained herein may not be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, without the prior written consent of Accenture. This document makes reference to trademarks that may be owned by others. The use of such trademarks herein is not an assertion of ownership of such trademarks by Accenture and is not intended to represent or imply the existence of an association between Accenture and the lawful owners of such trademarks. The information provided in this document is for informational purposes only and does not create a business or professional services relationship between you and Accenture. The information in this document is provided on an AS IS basis, with no warranty; it is not necessarily, complete, or up to date, and is subject to change without notice. Any use you make of the information in this document is at your own risk.”

4. Accenture & Meridium Relationship  Market leader in Digital & Operational Excellence Consulting  Global Systems Integration & Digital practice implementing Digital Technologies and Business Process solutions at scale  Significant experience implementing sustainable organizational transformations enterprise - wide  Market leader in Asset Performance Management Software  Deep knowledge of connectivity, asset strategy, failure elimination, mechanical integrity & asset safety Simply Connected  Utilize industry leading software tools to reduce your enterprise operating risk and improve asset reliability 4Copyright © 2015 Accenture All R ights R eserved

5. Digital disruption is changing how the world measures, communicates and acts on information In 60 seconds, 2.4 billion people are connected to the internet & interact ~277K snapchats received ~4M searches on Google ~38K photos shared ~3.1M likes on Facebook ~3.5K pins ~$275K (USD) transactions ~ 347K tweets ~100 hours of video uploaded Source: Company websites – December 2014 5Copyright © 2015 Accenture All Rights Reserved

6. Looking Forward Sensors Devices Networks APIs Apps Data 75% Fortune 1000 could offer public APIs by end of 2014. 4.4B Total number of app users by 2017. 16EB Mobile data traffic per month by 2018. Motion Location Touch interfaces 212B sensors expected by 2020 25B devices expected by 2020 4.9B people accessing 4G-LTE networks by 2020 Gesture Tracking Augmented Reality User data Transaction data Field data Inventory data Performance data Voice Recognition Chemical Light Heat Sound Mapping Billing Social Search Marketing 6Copyright © 2015 Accenture All Rights Reserved Source: Accenture Research

7. ~$14.4 Trillion of value can be captured between now & 2022 by leveraging “Digital Technologies” Source: © Copyright Cisco white paper “Embracing the Internet of Everything To Capture Your Share of $14.4 Trillion” February 12. 2013 $3.7 $2.5 $2.5 $2.7 $3.0 Customer Experience Asset Utilization Productivity Supply Chain and Logistics Innovation $14.4 Trillion 7Copyright © 2015 Accenture All R ights R eserved

8. Digital Plant Solutions can generate over $100 million value for a $2 billion company Accenture's experience & industry case studies quantify the potential of digital plant solutions 8Copyright © 2015 Accenture All R ights R eserved Source: Accenture experience and industry case studies

9. Digital business transformations should be focused on both revenue and margin enhancement Internal Focus External Focus Digitize Processes Revenue Profit Margin Digitize Channels Digitize Commercial Digital Transformation Digital Business Digitalize Operations 9Copyright © 2015 Accenture All R ights R eserved Digital disruption has companies rethinking business and operational strategies Source: Accenture Experience

10. Digital is disrupting the established industrial operating models and accelerating innovative solutions Mobile Cloud Data Velocity & Analytics Connected Devices Social Media Collaboration Copyright © 2015 Accenture All Rights Reserved Digital 011010101 010101110 011101010 101011010 IT / OT Connected Collaborative Contextual Capable 10

17. Continued integration of new technologies is changing the way companies run manufacturing plants Connected Collaborative Contextual Operations Costs Production Maintenance Costs Workforce Productivity Percent of companies that identified manufacturing technology as the highest priority for capital investment back in 2012 59% 17Copyright © 2015 Accenture All Rights Reserved Economist - The digitization of manufacturing will transform the way goods are made – April 21, 2012

19. The digital plant has the following characteristics Connected  Wireless  Intelligent devices  M2M communication Integrated  Supply Chain Vertical Integration  SOA based architecture  Standardized data acquisition Reliable  Analytics for Predictive Maintenance  Mobile Workforce enablement  Augmented Reality Transparent  Standardized KPI’s  Real Time Plant Visibility  Enterprise Manufacturing Intelligence Optimized  Advanced Process Control  Real Time Optimization  Batch Optimization Secure  Data Protection Management  Application Security Testing  Security Monitoring & Analytics Organization  Centralized process  Centralized applications  Global standardization 19Copyright © 2015 Accenture All Rights Reserved

20. Increased adoption of “Wearables” is becoming a game changer for the field worker GPS/RTLS receiver Camera on headset Voice headset on helmet Personal gas-monitor LifeMonitor Belt Touchpad Battery-pack Utility Belt: - Temperature - Vibration - RFID - Camera 20Copyright © 2015 Accenture All Rights Reserved

22. Digital asset management solutions are being embedded into plant operations Centralized Operations The maintenance planning team is working on next month’s plan Meanwhile, the maintenance planners create a daily plan that prioritizes work priorities and costs Maintenance Work Execution Maintenance Technician uses a wireless life safety and tracking solution assuring safe working conditions and track time Central Operations has real-time insight into asset performance, status of the daily maintenance plan and results of the work performed Maintenance Technician use mobile solution, job instructions, asset characteristics and data are easily accessible Illustrative 22Copyright © 2015 Accenture All R ights R eserved

24. Digital plant turnaround solution Near Real Time Visual Analytics Back end Transactional Analytics Command Center Visual Analytics Location Visibility Wireless Infrastructure Mobile Worker 24Copyright © 2015 Accenture All R ights R eserved

26. Journey to becoming a true digital business Copyright © 2015 Accenture All Rights Reserved Customer Expectations Technology Enablement STRATEGY • Digital Strategy & Roadmap • IT Transformation Themes • Legal construct EXECUTE • Digital Plays • Infrastructure and App Services • & Collaboration • Security OPERATE • Enterprise as a service • Service Management in the Cloud • Integrated Business Services • Integration and Service Desk BusinessBenefits Time Business case Roadmap Align organization Address digital skill gaps Execution of Roadmap 40 1 2 3 Internal Focus External Focus Digitize Processes Revenue Profit Margin Digitize Channels Digitize Commercial Digital Transformation Digital Business Digitalize Operations Connected Digital Worker Connected Plants and Assets Connected Networks Change Management Business Transformation 26

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