Driving Sustainable Business Value with Industrial IoT Adoption Sukamal Banerjee. 1 Copyright 2016 HCL Technologies Limited
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1 Driving Sustainable Business Value with Industrial IoT Adoption Sukamal Banerjee 1 Copyright 2016 HCL Technologies Limited
2 Business Value Impact, from Embryonic to Ready to Run IoT SWC 2015 IoT SWC Copyright 2016 HCL Technologies Limited
3 Now is the time to graduate from art of possible to art of delivering MANUFACTURING Value at Stake Cost of downtime: $22K/minute* Cost of quality: 60 million cars recalled in 2014 (*auto industry) Keys to unlock IoT solutions (Track &Trace, Predictive analytics) on scalable and global PaaS Integrated with MES, EAM/CMMS, ERP User-centric redesign of processes and interfaces HEALTHCARE Value at Stake $41B/year 2.4 million patients readmitted within 30 days Keys to unlock IoT solutions (Remote Patient Monitoring) on scalable and global PaaS Integrated with EMR, hospital enterprise systems Patient-centric design of processes and interfaces Sources (manufacturing): McKinsey Industry report (Healthcare) Agency for Healthcare Research and Quality (AHRQ). 3 Copyright 2016 HCL Technologies Limited
4 Now is the time to graduate from art of possible to art of delivering ENERGY TRANSPORT Value at Stake Cost of outages: ~$2B/year Value at Stake >$50B, cost of lost or damaged shipments to shippers Improving paper thin margins (~4%) for LSPs to survive Keys to unlock IoT solutions (Active Grid Management) on scalable and global PaaS Integrated with rest of the SCADA and Grid Management system User-centric redesign of processes and interfaces Keys to unlock IoT solutions (Global Track & Trace, Analytics) on scalable and global PaaS Integrated with EAM, ERP systems of shippers User-centric redesign of processes and interfaces 4 Copyright 2016 HCL Technologies Limited
5 Delivering, sustainable business value GLOBAL PAY STATION MANUFACTURER FOR A FORTUNE 200 GLOBAL ENGINEERING CONGLOMERATE FOR A FORTUNE 500 GLOBAL OFFICE AUTOMATION PLAYER BUSINESS CHALLENGE Need the ability to differentiate in the commoditized marketplace; Current legacy solution is an inhibitor to expand into new geographic markets SOLUTION IMPACT Tangible outcomes Increased revenue by 30% Reduced Operating Cost by 12% Estimated NPV=$23.3M; IRR=52% Payback period=2 years INTANGIBLE OUTCOMES Improved customer experience BUSINESS CHALLENGE Untapped service revenue opportunities; high cost of service; disjointed customer experience due to multitude of systems SOLUTION IMPACT Tangible outcomes 1Mn+ devices across 18,000+ customers New recurring revenue streams; 15% reduction in support costs NPV (projected) : $69.5M; IRR = 24% (customer requirement=13%) Pay back period : 3 years INTANGIBLE OUTCOMES Improved customer experience BUSINESS CHALLENGE Facilitate auto replenishment of consumables to enhance customer experience and increase revenue SOLUTION IMPACT Tangible outcomes 15K photocopiers, 10K customers & 450 customers connected to single platform $1B in additional revenues over 5 years Estimated NPV=$42.7M; IRR=90% Payback period=2 years INTANGIBLE OUTCOMES Improved customer service and satisfaction Better demand management 5 Copyright 2016 HCL Technologies Limited
6 Leveraging end-to-end offerings throughout the lifecycle of IoT project Plan a customized IoT Program IoT Strategy & business case Industry insights & benchmark Outcome based IoT Roadmap POC & Technology roadmap User-centric business process transformation plan Implement IoT program Asset IoTization Platform Development Analytics & Datascience Application Integration Realize value - IT/OT support & analytics IoT Platform Management Orchestrate & manage IT/OT convergence Insight-as-a-Service Uptime Assurance 6 Copyright 2016 HCL Technologies Limited
7 Our solutions complete the information value loop to create transformative impact Connect Things, to generate new Data IoT begins with Things Analyse Data, generate insights, orchestrate Things, to Optimize Process Optimize Process, to change People behaviour, improving productivity and delivering greater value 7 Copyright 2016 HCL Technologies Limited
8 Intense focus on Business Outcomes with Large scale IoT Solutions GLOBAL MINING ORGANISATION LEADING GLOBAL AIRCRAFT MANUFACTURER LEADING MEDICAL DEVICES COMPANY IoT enabled Smart Safety implementation Reduced blast roll-call from 3-4 hours to 5 minutes Working on Fatality rate to be Zero in 3 years time. Predictive maintenance analytics solution Reduced time to insight from days to 1 day Reduce aircraft test cycle needs. Connected hospital strategy implementation 27% improvement in device uptime 18% reduction in field visit cost 8 Copyright 2016 HCL Technologies Limited
9 Progressive journey towards IoT driven Business Transformation THINGS DATA PROCESS PEOPLE Select and light up dark assets Determine data to be generated Business process transformation: Optimal inventory management - leveraging real-time data on demand and predictive analytics Electronic demand fulfilment system (no , phone or paper trail) Collect / analyze data to generate information / insights Change processes to take action on insights Sales Rep SCM People: Intuitive interface to (familiar) web-based tool = > low resistance to adopt Role-based access to data all relevant info at fingertips to encourage action TRANSFORMED STATE Reduction in working capital requirements (~$400M) Optimal inventory management prevent overstock & understock Role-based access and visibility on inventory in realtime Optimized routing Reduction in risks of hospitalacquired diseases Automated Sterilization record keeping 9 Copyright 2016 HCL Technologies Limited
10 Accelerating the pace of adoption to ensure transformative impact THINGS DATA PROCESS PEOPLE TRANSFORMED STATE Select and light up dark assets Determine data to be generated Business process transformation: Spare parts inventory system sync with suppliers database EAM/CMMS in sync with Airline schedules for work order creation Collect / analyze data to generate information / insights Change processes to take action on insights People: Leveraging tools and techniques end-user (technicians) are already familiar with Intuitive interface to (familiar) webbased tool => low resistance to adopt Role-based access to data all relevant info at fingertips to encourage action Breaking Silos Complete data integrity across multiple systems Optimization Outcome ~75% increase in resource optimizationassigning right specialist labor for the particular technical issue Minimized AOG( aircraft on ground) time by ~25% Tracking changes to reliability data with just a click Visibility Enhancement Reduction in time to furnish monthly reports by over 50% Prepackaged analytics with complete cycle coverage 10 Copyright 2016 HCL Technologies Limited
11 DIFFERENTIATED & UNIQUE IOT OFFERINGS TO ENSURE ENTERPRISE SUCCESS Comprehensive End-to-End IoT service offerings evolved over last 6 years (even before the word IoT) and sharpened through implementation of industrial scale projects Design Thinking Capabilities to reimagine business processes embedded with IoT FAST IoT Solutions positioned with business outcomes to key business decision makers Leveraging ecosystem with joint propositions with leading and niche partners 11 Copyright 2016 HCL Technologies Limited
12 $7 BILLION ENTERPRISE 110,000 IDEAPRENEURS 31 COUNTRIES
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