Digital Business and IoT at Danfoss

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1 0 Digital Business and IoT at Danfoss

2 Presenter Director Digital Business and IoT, Danfoss Heating, Sales and Marketing, at Danfoss since 2015 Chief Architect, Connected Homes, Schneider Electric: System Architect (Public Safety), Motorola Solutions: Based out of the Danfoss Software Development Hub, DTU Science (Lyngby, Denmark) Nestor Avramov Director Digital Business and IoT, Danfoss Heating 1

3 Agenda Danfoss at a glance Digitalization why do we need it? Digitalization reach more with less What had to change IoT examples at Danfoss Adjusting the business models Digital business acceleration Lessons learned 2

4 3 Danfoss at a glance

5 Core & Clear: Our Digital Transformation to keep growth in the Core Digital Customer Experience Connected Products & Services Speed & Capacity in Innovation One common IT architecture 4

6 Global mega-trends Going Great DIGITALIZATION ELECTRIFICATION URBANIZATION GLOBAL MEGA-TRENDS transforming our world CLIMATE CHANGE FOOD SUPPLY 5

7 Digitalization why do we need it? Industries being transformed by technology is not a new phenomenon Music Photography Video rental Media & TV Travel HR Retail Banking Healthcare Automotive Education NO SAFE HAVENS 6

8 Digitalization why do we need it? The internet in 1973 (all of it!) 1 minute on the internet in

9 Digitalization why do we need it? Customers are becoming empowered OLD WORLD OLD SALES ENGAGEMENT POINT AWARENESS INFORMATION GATHERING EVALUATION SELECTION NEW WORLD AWARENESS INFORMATION GATHERING EVALUATION NEW SALES ENGAGEMENT POINT SELECTION 8

10 Digitalization why do we need it? Digitalization offers several upsides like expansion via e-commerce and new business models Challenge the channels Digitalization of Knowledge Reach more with less Adjust to new service and business models 9

11 Digitalization Reach more with less 10

12 Digitalization What had to change Dealing with digital transformation means we have to align business strategy with the digital reality Business strategy Business Strategy Digital Strategy Digital world 11

13 Use the digital platforms to connect to the customers Danfoss Heating example Digital Design Center, Building Information Models 12

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15 IoT examples at Danfoss Danfoss Enterprise Services (Food Retail) What is Danfoss selling in this example 14

16 IoT examples at Danfoss Danfoss Enterprise Services (Food Retail) 12,000+ Online Supermarkets 24/7/365 Alarm Management Optimum Compressor Performance Immediate Leak Detection Control of Refrigerant Levels Automated HACCP & TQI Reporting Global Setpoint Control Timely Password Lockdown Smart Energy Information System (EIS) Continuous Commissioning Process (CCP) Profitable Demand Response Instant Remote Assist Executive Reporting 15

17 IoT examples at Danfoss Danfoss Enterprise Services (Food Retail) Store Level Chain Level Application Level Actuator/sensor Danfoss Enterprise Services Enterprise Manager Uni System for 3rd party integration Remote Management Tool Web Browser System Manager StoreView Desktop SiteService App Evaporator Control Pack Control HVAC, Light, Aux. Control High-End Basic Controller Tray Mid-Range HFC High End HFC/CO 2 Basic Control Customized Solutions 3rd Party HVAC, Light, Controllers TXV EEV Sensors Drives CO 2 Valves I/O Modules Humidity Sensor Light Sensor Heat Exchangers Aux. Components Balancing Valves Condensing Units Compressors Gas Sensor Energy Meter 16

18 IoT examples at Danfoss Danfoss Enterprise Services (Food Retail) Correlate data points to find patterns that will provide the probability of a certain device needing service or checkup (prescriptive maintenance) Detection of false alarms eg. high temperature can be due to open door on the refrigerator which is not a normal state or defrost cycle which is normal state. Finding correlations between ambient temperature, refrigerator temperature and external weather conditions in order to optimize the energy consumption of a store. 17

19 IoT examples at Danfoss Danfoss Enterprise Services (Food Retail) Finding an energy consumption profile of the store and detect anomalies in the energy consumption profile Detection of products reaching their best before date. 18

20 Adjust the business models Companies can go from market leader to irrelevant in only a few years 19

21 When are we expecting significant changes in our industries? Already happening Less than 2 years More than 2 years 20

22 IoT examples at Danfoss Danfoss Link / Danfoss One (Indoor climate) 21

23 IoT examples at Danfoss Telematics/Plus 1 Guide (Off-road mobile machinery) Machine tracking Remote service access Geofencing Anti-theft mechanisms Data logging Automatic report generation 22

24 IoT examples at Danfoss Autonomous vehicles 23

25 IoT examples at Danfoss DrivePro (Variable Speed Drives) 24

26 Digital business acceleration LeanHeat Stand alone service offering Save >10% on energy cost with remote control Advanced weather forecasting and sensors in each flat Smart building algorithms Preventive maintenance and better asset utilization Smarter maintenance of assets new opportunities: Automatic balancing services with Connected HBC Humidity control Demand-response / load shifting Enable the utilization of buildings as storage Peak-load pricing pilots in Finland with District Energy 10%+ additional energy cost savings for a MFH 25

27 Digital business acceleration LeanHeat Pilots established in Denmark and China Automatic balancing adjustment (better balancing, avoid service tec.) Linked to Leanheat s energy saving services (Better comfort) Test Preventive maintenance opportunities within balancing Integration of NovoCon and Leanheat services Build service sales business in Denmark and test concept in Germany 26

28 Digital business acceleration different models for digital innovation PROSA By Danfoss Limited Leasing of cold rooms and remote monitoring Remote monitoring of vending machines Digital business acceleration in the segments 27

29 Lessons learned Digital transformation must be anchored in the board / c- suite Adaptation of the business models for digital businesses Rise of data driven decisions and use of all digital platforms to get data insights (always focus on the customer) The customers are already used to using digital platforms for all aspects of their work/life Know that digital talent is not the same as IT talent Accept that that they work different from most other talent 28

30 Lessons learned Consider new ways of working Think about how to accelerate the digital business development (at least in the concepting, launch and early growth phases) Partnerships are key to the success Question if your perception of MVP is truly an MVP 29

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