ewon FlexThink Conference

Transcription

1 ewon FlexThink Conference Creating Business Value With IoT Copyright 2016 Connected Methods

2 Difference Between Support and Service sup port 1 : to hold up, prop up, or serve as a foundation for 2 : to maintain in condition, action, or existence ser vice 1 : Useful labor that does not produce a tangible commodity 2 : Work done for others as an occupation or business 2 Copyright 2016 Connected Methods

3 Customer Loyalty The Service Experience can be more important than the Sales experience when it comes to customer loyalty A 5 percent improvement in customer retention rates will yield a 25 to 100 percent increase in profits. source: The Loyalty Effect by Frederick Reichheld 3 Copyright 2016 Connected Methods

4 Recent IoT Survey Results Point to Opportunities 4 Copyright 2016 Connected Methods

5 Recent Survey on Challenges and Payoffs of Services Manufacturers Ratings of Obstacles to Overcome When Expanding Services Organizational Readiness Lack of Experience Pricing Resistance from Customers Resistance from Sales Force Lack of Channels Services are a Cost Driver Economic Potential Improve Customer Relationships Capture a Large Share of Value Life Cycle Meet the Needs of Customers to Outsource Response to Changing Customer Needs Achieving Competitive Differentiation Greater Income Stability Profit Margin for Services Response to Decreased Margin for Hardware Manufacturers Ratings of Benefits When Expanding Services Brown, S.W., A. Gustafsson and L. Witell. Beyond Products. Wall Street Journal. 5 Copyright 2016 Connected Methods

6 Future Growth For Product Companies are Driven By Connected Services Traditional Product Development Cannot Keep Up With Customer s Performance Needs Level of deviceperformance required by users Performance Needs Transition point Non-Connected Marketplace Connected Marketplace The device itself becomes secondary to the value it brings to the customer. Non-Connected Products Profits come from the product / device Time Connected Products Additional profits come from value-added services 6 Copyright 2016 Connected Methods

7 Case Studies and Industry Examples IoT In Action 7 Copyright 2016 Connected Methods

8 Caterpillar Reducing Customer Risk & Cost 8 Copyright 2016 Connected Methods

9 Industrial Product Company IoT Strategy 4 critical business imperatives were identified Increase equipment uptime 16 IoT initiatives were identified, described, and ranked according to Ease of Implementation and Value of Benefits 6 of the 16 IoT initiatives were identified as High Priority Improve customer satisfaction/experience Reduce costs Impacts to product, process, people, and technology were defined for each of the high priority initiatives Increase revenue 9 Copyright 2016 Connected Methods

10 Directional IoT Transformation Roadmap Equipment Uptime Customer Satisfaction/Experience Monitor Operating Environment 1 9 Push for Help 16 Real-Time Event Monitoring 12 IoT Licensing Compliance Increased Revenue Automated Data Collection for Troubleshooting 11 Usage Monitoring 4 10 Data Architecture 7 IoT Alerting and Call Routing Analytics Program 3 Measureable SLAs Device ID Proactive/Predictive Monitoring 5 6 Installed Base Automation SW Feature Sales Quality Investigation 8 Automated SW Deployment Reduced Costs IoT Program/PMO 2 Year 1 Year 2 Year 3 and Beyond Aligns with all business imperatives 10 Copyright 2016 Connected Methods

11 Proactive Monitoring Results In Increased Uptime Laser Failure across installed base: Before DBD 3 ½ days of downtime and ½ day of lost operator productivity With DBD System notifies Support that the laser is close to EOL Dispatch schedule off hours for replacement 0 Unscheduled Downtime! Sanger Institute: Before DBD/Proactive Monitoring Facility Uptime = 92.4% With DBD/Proactive Monitoring Facility Uptime = 99+% Filer Crash: Before DBD/Proactive Monitoring Time to Resolution = Hours With DBD Diagnostic data automatically sent along with case creation Fix is developed and installed remotely Time to Resolution = 5-7 Hours Slow System Performance: Before DBD/Proactive Monitoring Time to Resolution = ~ 5Hours With DBD/Proactive Monitoring Time to Resolution = 15 MINUTES 11 Copyright 2016 Connected Methods

12 GE Healthcare Drives Mission Criticality Continuous Monitoring Condition Based Maintenance Firewall Internet Applications Enterprise Connectors Intelligent Data Feed Predictive Analytics Workflow / Business Rules Service Process Mgmt Engine Remote Diagnostics Repairs Returns Benefits Reduced overall downtime by 40%, increasing revenue by $100,000/month per Cath lab Rules Based Exception Handling 12 Copyright 2016 Connected Methods

13 Transforming Field Service Territory Management Consultative Skills Business Skills Customer Sat Skills People Skills Data Base Skills Technical Skills 13 Copyright 2016 Connected Methods

14 Customer Needs Assessment Top Business Challenges Cost Containment Increased Through- Put Higher Quality Outcomes Patient Safety Protecting the Schedule 14 Copyright 2016 Connected Methods

15 MEDRAD s Top Business Challenges Product Commoditization Need for Differentiation Improved Service Delivery Increased Competition 15 Copyright 2016 Connected Methods

16 The Connected Services Roadmap Technology Enabled Interactions and Connected Services Web Portal and Self Help Technology Market Segmented and Tiered Programs that Leverage IoT Connectivity/IoT Technology Field Service Management and CRM Tools (Siebel/SAP ) Great Products with 24 x 7 Field Service and Technical Support 16 Copyright 2016 Connected Methods

17 Results of Executing the Strategy Year over year increase in Net Promoter Score 10% Increase in Profitability Net Promoter Score Net Promoter Score 17 Copyright 2016 Connected Methods

18 18 Copyright 2016 Connected Methods

19 IoT INDUSTRY BEST PRACTICES 19 Copyright 2016 Connected Methods

20 Internet of Things Business Models and Maturity Curve Outcome-Centric Information-Centric Access-Centric Remote access as needed Status SW Updates Basic Alarms/EventsReactive Remote Diagnosis 20 Copyright 2016 Connected Methods Some proactive monitoring Usage Analytics Asset Management Entitlement Management Feature Management Monitor and report on services View and analyze product data Leverage usage data for new product enhancements Performance Guarantees Pay Per Use Predictive Service Vendor Managed Supplies Enterprise integration 3rd Party Products

21 Traditional Product Development Approach Long development effort toward a substantial product release incorporating a large set of features. Customer Desire Beyond Early Marketing, Low Customer Interaction, Heavy Planning Potential Business Partners May Enter late in the game Product Releases v1 v2 Advanced Research Product is Not Clearly Linked to Customer Preferences 21 Copyright 2016 Connected Methods

22 Iterative Approach To IoT Service Creation NEW APPROACH TO SERVICE DEVELOPMENT Involving customers early in the service design process reduces risk and provides a faster time-tomarket that creates real value Introduce Various Partners Deliver Value Early Expand Partners Customer Desire Product Releases Advanced Research Product Versions Va Vb Vc v1 Product Release Customer Experience & Validation 22 Copyright 2016 Connected Methods Business Planning Market Experience Introduction of Blue Sky Thinking Hardening New Features for next release

23 Key Success Factors for Product to Service Transformation Key Success Factors Ongoing support from senior management Alignment with overall strategy Buy-in from employees 32.0% Leadership capabilities in management team 27.2% Ambitious, but realistic transformation plan 24.8% Collaboration across functions 22.4% Sufficient and adequate resource allocation 21.6% Internal capability to run and manage projects 20.8% Communication of objectives 12.8% Planning and results monitoring 8.0% Flexible and scalable IT systems 7.2% Role model of leadership in embracing change 5.6% 41.6% 64.8% Source: The Economist Intelligence Unit 23 Copyright 2016 Connected Methods

24 Jack Levin President Connected Methods, LLC We Are Devoted To Helping You Grow 24 Copyright 2016 Connected Methods