The four steps of Digital Transformation. Andrew Smith General Manager, Sales Strategy & Operations IoT Device Partners, Microsoft

Transcription

1 The four steps of Digital Transformation Andrew Smith General Manager, Sales Strategy & Operations IoT Device Partners, Microsoft

2 Here s what we re covering Four steps of digital transformation Differences between PaaS & SaaS P&L opportunities by partner type Hear from our IoT Partner of the Year

3 Digital Disruption and the 4th Industrial Revolution Mechanized production Mass production Automated production Digitized production 1780s 1870s 1970s 2015+

4 Digital Transformation Business Insights Operational Efficiencies New Business Models Features and Rev Streams Sensor proliferation Data collection, transfer, storage and processing New insights - understanding product and service more deeply Process engineering and product engineering improvements Cost reduction Time to market reduction Predictive maintenance Provision of services alongside devices and hardware. Devices / hardware / machines delivered as a service. Enablement of ancillary businesses, new businesses and transformed businesses

5 Digital Transformation Business Insights Operational Efficiencies New Business Models Features and Rev Streams Sensor proliferation Data collection, transfer, storage and processing New insights - understanding product and service more deeply Process engineering and product engineering improvements Cost reduction Time to market reduction Predictive maintenance Provision of services alongside devices and hardware. Devices / hardware / machines delivered as a service. Enablement of ancillary businesses, new businesses and transformed businesses

6 Digital Transformation Business Insights Operational Efficiencies New Business Models Features and Rev Streams Sensor proliferation Data collection, transfer, storage and processing New insights - understanding product and service more deeply Process engineering and product engineering improvements Cost reduction Time to market reduction Predictive maintenance Provision of services alongside devices and hardware. Devices / hardware / machines delivered as a service. Enablement of ancillary businesses, new businesses and transformed businesses

7 Digital Transformation Business Insights Operational Efficiencies New Business Models Features and Rev Streams Sensor proliferation Data collection, transfer, storage and processing New insights - understanding product and service more deeply Process engineering and product engineering improvements Cost reduction Time to market reduction Predictive maintenance Provision of services alongside devices and hardware. Devices / hardware / machines delivered as a service. Enablement of ancillary businesses, new businesses and transformed businesses

8 Digital Transformation Business Insights Operational Efficiencies New Business Models Features and Rev Streams Sensor proliferation Data collection, transfer, storage and processing New insights - understanding product and service more deeply Process engineering and product engineering improvements Cost reduction Time to market reduction Predictive maintenance Provision of services alongside devices and hardware. Devices / hardware / machines delivered as a service. Enablement of ancillary businesses, new businesses and transformed businesses

9 Transformation in your Market offering Profitability Customer relationships From MRI Scanner to Remote diagnostics subscription From Industrial Machine to Machine uptime subscription From Thermometer to Temperature Control Service From hardware margin to subscription margin From capex to capex+opex From transaction relationship to annuity relationship From procurement relationship to business owner relationship

10 IoT Partner Value Chain End Points Security Connectivity Services Business Consultants Distributors Developers Regulators

11 IoT as a service models Suitable for more complex solutions requiring high controllability, high customization, with low endpoint volume Suitable for less complex solutions and common use cases requiring low degree of customization, with high endpoint volume

12 IoT as a service models in Microsoft Azure IoT Solution Accelerators Solution accelerators for customers with cloud solution expertise and the need to fully customize Azure IoT Central Fully managed IoT SaaS No cloud solution expertise required Built on the same Azure IoT Platform Services SaaS PaaS

13 Opportunities for P&L transformation by business type

14 Opportunities for P&L transformation by business type Device Builder / OEM New Insight opportunities Operational efficiencies Business Model changes New Revenue opportunities Insight on how product is used in the field. Decrease manufacturing downtime by predicting and resolving issues before they happen. Product as a service. Attach and monetize new services.

15 Opportunities for P&L transformation by business type ISV New Insight opportunities Operational efficiencies Business Model changes New Revenue opportunities Enhance customer experience by understanding how product features are used. Increase speed to market and reduce cost through process automation. Subscription-based services. Consumer apps represent a new channel for future services.

16 Opportunities for P&L transformation by business type System Integrator New Insight opportunities Operational efficiencies Business Model changes New Revenue opportunities Remote monitoring of systems and processes. Remote troubleshoot and problem resolution. Service engineer arrives with right parts to fix physical infrastructure. Selling repeatable solutions and retaining IP. New services offerings such as business consulting, data science and device lifecycle management.

17 Opportunities for P&L transformation by business type Solution Aggregator New Insight opportunities Operational efficiencies Business Model changes New Revenue opportunities Remote monitoring of systems and processes. Single relationship and billing for customer including applications, infrastructure and cloud. Aggregation of hardware and softwarebased connected device solutions for specific verticals. Subscription-based revenue. Higher margin for higher value services than pure hardware distribution.

18 SYNNEX Technology Solutions

19 Intelligent Cloud Bringing Solutions Together with SYNNEX Intelligent Cloud - Transport - Intelligent Edge We become a General Contractor for IoT What does this mean? General Contractor = Solution aggregation. Architect, validate, support Public Cloud + Basic IP Connectivity Gateways Connectivity Edge Devices Connectivity piece is cornerstone if we don t connect, it s not IoT Cloud Platforms if we don t successfully store/manage/analyze data, it s not IoT Services increase margin profile Data Analytics Building IP where we can really make our money Edge Devices = Commodity, low margin, interchangeable Advanced ISV Applications Dev Ops + Deploy + Managed Services + Security

20 Data How the Channel Makes Money in IoT Data Premium Application Features Base Applications Gateways Devices (Connected, Edge) Data collected from all parts of solution. Identify new business models, key features, customer behavior, upsell opportunities Upsell revenue from high-value features identified by usage data Embedded of Cloud applications deployed through variety of business models. Initial sale + renewals + maintenance IoT gateways for interoperability, networking, other functions. Opportunity to license embedded or server software Services revenue opportunity relates to every layer. Primarily hardware sale. Any software likely a perpetual license Flexera. (Producer). (2018). IoT Monetization: Growing a Healthy IoT Business [Video Webinar]. Retrieved from

21 SYNNEX Fleet Management Solution Affordable Tracking One of the most cost effective solutions on the market without sacrificing service or functionality. Flexible Solutions A diverse product portfolio with a wide choice in product size, battery life, and optional add-on sensors and features. Tracking for Any Asset Ideal for any company that has assets that need to be tracked whether they re vehicles, mobile products, or even fixed goods.

22 SYNNEX Azure IoT Digital Signage Solution Management console Azure IoT Hub Simple plugand-play edge devices Hosted in Azure, a single management console enables users to customize and publish content. The Azure IoT Hub asynchronously pushes content from Azure to the edge devices on each display Edge devices that plug into each display automatically update signage when required.

23

24

25 Thank you 2018 Microsoft Corporation. All rights reserved.